The Welsh Government has been extremely clear about its position on the EIB. We called for the UK to remain a subscribing partner in the bank—something we believe would have been achievable had the UK shown the political will to bring it about. After all, we all benefit from EIB finance: borrowers benefit from a lower cost of capital and member states in their role as investors benefit from a steady return on investment. As things stand, with or without a deal, on 29 March, the UK will crash out of the EIB. The UK Government has failed to put in place any safeguard, with the exception of an offer to put an additional £200 million of capital into the British Business Bank in 2019. I need only point out that over the last 10 years, the EIB has invested on average over £5 billion per annum in the UK to demonstrate how paltry a safeguard this is. Just last week, the House of Lords concluded with a degree of understatement that the lack of any meaningful proposals from the Conservative Government on a future relationship with the EIB or domestic alternatives was disappointing. As an absolute minimum, this Government wants the UK to make good on its commitment to bring about a meaningful relationship with the EIB. That relationship must include a clear mandate for the EIB to continue investing here, providing the funds and the expertise that public and private borrowers have been able to count on for over four decades.

Turning to the mutual investment model, I'd like to thank in particular the Economy, Infrastructure and Skills Committee and the Finance Committee for their respective consideration of the mutual investment model towards the end of last year. Members will know that we are committed to delivering three schemes using this form of innovative funding: completing the dualling of the A465, additional investment in the next phase of the twenty-first century schools and education programme, and the new Velindre Cancer Centre. Together, these schemes have a capital value of more than £1 billion, and would not be affordable from our current, denuded capital budgets. Had we not developed the model, projects such as these would have to wait in line until enough capital became available, and despite what we've heard from Westminster about the end of austerity, the budgetary arithmetic just does not bear this out.

From the outset, our intention has always been to ensure that the mutual investment model promotes the public interest in the widest possible definition of that term. To that end, the model will deliver positive, additional outcomes in relation to well-being, value for money and transparency, and in doing so will avoid many of the criticisms levied at historic forms of public-private partnership—in some cases, criticisms that the Welsh Government was among the first to raise. For example, you'll recall that successive Welsh Governments have criticised the now discredited form of PFI. Indeed, last week in this Chamber, you will have heard the First Minister say that he expects all contracting authorities in Wales to conduct reviews of their historic PFI contracts and to identify the scope to make savings.

In relation to well-being, private partners with whom we contract using the mutual investment model will be obliged to help the Government deliver the objectives of the Well-being of Future Generations (Wales) Act 2015. They will need to deliver stretching community benefits, with penalties for non-delivery. They will need to adopt the code of practice for ethical employment in supply chains. And they will need to build our infrastructure with long-term sustainability and environmental efficiency in mind. We will require all MIM schemes to be subject to the rigorous investment appraisal of the five-case model—an internationally accredited appraisal tool, co-owned by the Welsh Government. The G20 finance Ministers have adopted the model’s principles as the basis for a global standard for infrastructure investment appraisal.

We've also developed a new project assurance tool that all MIM schemes will be subject to—commercial approval point checks. We have run two of these checks on the dualling of the A465. These checks have been supported by experts from the European Investment Bank and the UK Infrastructure and Projects Authority. I am convinced that rigorous investment appraisal, coupled with robust project assurance delivered by undoubted experts, will result not only in a better understanding of the risks involved in the delivery of major infrastructure projects, but also in a more credible appreciation of the value for money of such projects, and their affordability. To increase the value for money of our schemes, we have taken a conscious decision not to use the mutual investment model to finance soft services, such as cleaning and catering, which was one of the major criticisms of previous PFI contracts, and nor will it be used to finance capital equipment.

With regard to transparency, the Government intends to invest a small amount of risk capital in each scheme, ensuring that the public sector participates in any return on investment. This shareholding will be managed by a director appointed under the direction of Welsh Ministers onto the boards of those companies delivering our assets.

I agreed last month that, subject to the satisfactory completion of due diligence, the Welsh Government would invest 15 per cent of the total risk capital requirement for the A465 dualling scheme, pending a decision to proceed to construction. This investment will be on pari passu terms, with private equity investors. While all risk capital is, by definition, invested at a risk, we expect our investment to earn a return for the public sector that can be reinvested in other public projects.

The Minister for Economy and Transport has taken the decision to make the orders for this scheme. Notification letters were issued yesterday. He will provide further details on progress on this project in the coming weeks.

The Government has recognised the real pressures local authorities are facing, and we have been resolute in our commitment to do all that we can to protect them from the worst effects of the UK Government’s damaging policy of austerity. Alongside the three-year package of additional financial measures we announced ahead of the final budget, we have agreed that, for the next phase of the twenty-first century schools and education programme, we will increase the intervention rates for both capital and mutual investment model-funded projects.

Capital projects will benefit from a Welsh Government contribution of 65 per cent of the costs, and mutual investment model projects will benefit from a broadly comparable Welsh Government contribution of 81 per cent of the costs. Taking more of the load onto our shoulders, whilst challenging, will provide valuable additional support to our delivery partners in these times of austerity. It also offers a fantastic opportunity for us to deliver more in partnership. The Minister for Education will set out further details about the intervention rate in a written statement shortly. Thank you.