The ambitious Circuit of Wales project has taken a turn for the worse today as their main backers, the Welsh Government have withdrawn their funding of the project.
With plans in place for a £350m redevelopment of the area, it seems the circuit will now have to rely on independent backing; as insurance company Aviva announced its involvement with the funding back in February.
The Welsh economy minister Edwina Hart has explained today there is: “significant question around the viability of the project” and an “unacceptable risk” to the government underwriting the entire project.
She continued to explain she had “reluctantly come to the conclusion” to not proceed with the backing.
Despite this news the circuit is still under contract to host the MotoGP world championship for the next five seasons, until 2020 on top of the potential to extend the deal for five more seasons.
The government have explained they cannot guarantee they are able to provide the money and are therefore pulling out; however the Heads of Valleys Development Company (HoVDC) have said they are to ‘continue negotiations’ to find a solution.