THE European Investment Bank, the European Community's long-term
lending institution, is to lend #100m to Strathclyde Regional Council to
support investment in roads, water supply, and waste-water treatment
projects.
Councillor John Mullin, chairman of the council's finance committee,
said: ''This represents a good deal for the people of Strathclyde. The
rate of interest from the EIB is 8.95% compared to 9.25% from the Public
Works Loan Board -- a saving of #3m on the entire loan over 10 years.''
The loan is part of the council's borrowing consent which has already
been approved by the Scottish Office and does not constitute ''new''
spending money but simply money borrowed from a different source at a
lower rate of interest.
The EIB money will go towards paying for the Johnstone/Howwood bypass,
costing #30.3m, and the M80 Stepps bypass, costing #50.1m.
In addition, #36m of the loan is earmarked for the St James
interchange near Linwood, #2.3m for Ayr town centre improvements, #5.6m
for a new link sewer station at Saltcoats, #8.8m for Kelvin Valley
sewer, #15.2m for Muirdykes water treatment plant, and #13.5m for Argyll
water treatment programme.
The money has been lent because Strathclyde region's schemes meet the
EC's policy objectives to further regional development and protect the
environment.
A spokesman for the EIB said yesterday that this loan represented the
largest made to any local authority in recent years and that other loans
to local authorities were in the pipeline.
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