Star date: 19th February 2013

A Salford Star Exclusive

PENDLETON NOT TOGETHER - SP+ £430MILLION REGENERATION IN DOUBT 

The £430million regeneration of Pendleton has stalled again, with the Government refusing to sign off the project, citing a lack of value for money to the taxpayer.

Salford Council's other PFI projects – for high schools and an SEN centre – will end up costing up to four times their initial capital costs, and the Government has now drawn the line, telling the Council and its partner, the consortium SP+, to `assess alternative financing options'.

Full story here…

The massive regeneration of Pendleton has been put into doubt following the Government's refusal to sign off the multi million pound deal, citing a lack of `value for money to the taxpayer'.

The Pendleton regeneration, known as Pendleton Together, aims to refurbish1200 homes, and build 1600 new homes - only 500 of which are to be affordable - while demolishing 885 properties in the 500 acre area of Pendleton. It also promises new `green spaces' and `community facilities'.

According to Government data, the PFI credits for Pendleton total £79million over thirty years, which would have cost tax payers anything up to four times that amount by the end of the contract.

The `Salford High Schools' PFI began with costs of £37.9million. But the total cost by the end of the 25 year contract will be £152.8million.

The `Salford SEN Project' PFI began with costs of £17.6million. But the total cost by the end of that 25 year contract will be £63.4million.

Now the Government is telling Salford Council that `the terms offered by the preferred bidder's proposed lenders were above rates offered by other lenders in the market', and the Treasury has asked the Council and its preferred bidder `to assess alternative financing options'.

The total £430million regeneration scheme, led by consortium SP+, has already cost Salford Council well over £1million clearing people out of their homes,in places like Athole Street, Apple Tree Court and Peach Tree Court, from a total budget of £12million.

In one financial year, 2011-12, the Council spent £3,639 on `meetings' with the community. It also spent over £819,621 on project teams and consultants, including `financial advisors'.

Residents told the Salford Star they were informed that work would start on affordable housing to replace their existing homes at the end of February this year. That now seems highly unlikely, as SP+, led by Together Housing Group, looks for alternative, cheaper finance.

* The Salford Star has been trying for three days to get a response from Pendleton Together, and its partners, the Together Housing Group, Keepmoat and Salford Council.

* The SP+ consortium was to be funded by the Together Housing Group, Allied Irish Bank, Nationwide, Co-operative Bank, plus Salford Council PFI credits.

* For further details on the Pendleton regeneration see the Pendleton Together website – click here

* See previous article on Pendleton regeneration - click here