en.Wedoany.com Reported - The King of the United Kingdom recently confirmed in a speech that the government will introduce the Lower Thames Crossing [Highways (Finance) Bill], bringing a new Regulated Asset Base (RAB) financing model to the road construction sector to unlock more private capital. The government expects the Lower Thames Crossing to be the first road construction project to adopt this model.

According to the government's explanation, the bill will introduce a licensing regime, allowing private companies to act as license holders to deliver key road construction projects, and will clarify their powers and responsibilities. An independent regulator will oversee the license holders, ensuring that road construction infrastructure is well-maintained, efficiently managed, and provides services to users at a fair and reasonable cost. The bill also includes backstop measures to ensure roads remain open in the event of a private company's insolvency.

The government stated that establishing an independent regulator will ensure operational transparency, clear performance standards, and user protection. If a regulated company fails to meet the required standards, the regulator can take enforcement action, including imposing fines or revoking its road construction operating license. The government noted that the RAB model has been successfully applied in the energy and aviation sectors, and has recently been used in the Thames Tideway Tunnel and Sizewell C nuclear power projects. Drawing on these experiences will enable the model to play a greater role in the road construction sector.

This King's Speech outlined Prime Minister Keir Starmer's new legislative agenda following the local elections. Infrastructure was placed under the framework of "economic security," with the speech noting that the UK's economic security depends on world-class infrastructure, and that legislation will be introduced to unlock the benefits of airport expansion and accelerate road construction. The bill will apply to England and Wales, but only in relation to England.

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