NEWPORT council is planning to borrow £5.7 million over the next three years for city road and pavement maintenance projects following a decision by its cabinet.

In 2009 the council launched an ambitious £21 million road and pavement improvement scheme funded using borrowing powers, dubbed Project 21.

But after the Welsh Government decided to provide a grant to help local authorities service debt invested in their road networks, the council now wishes to borrow £1.9 million for the each of the next three years.

The money would be used for a further programme of roadworks not included in Project 21.

Newport council claims that before it launched Project 21 it had a huge backlog of maintenance repairs and increasing numbers of compensation claims.

It says that, as the programme approaches its final stages, the authority has seen a fall in the “patchwork” repairs and a fall in the number of damage claims.

To fund Project 21 the council used “prudential borrowing” powers, a scheme designed for local authorities to borrow cash for major capital projects as long as the debt can be serviced from within their own resources.

Under the Welsh Government grant, Newport councilwould receive £131,267 every year for three years to service debt of £1.9 million a year.

However, Newport and all other councils taking part in the scheme must submit a business case to the Welsh Government for approval.

Cabinet on Tuesday agreed to include the scheme in the council’s capital programme for the next three financial years.

Councillor David Fouweather, cabinet member for street services, said: “The innovative Project 21 has made us the envy of many other councils in the UK and it is pleasing our lead can now be followed by other Welsh authorities."

EDITORIAL COMMENT: Borrowing adds up

NEWPORT city council’s decision to borrow almost £6 million to fund road and pavement improvements over the next three years may seem like an odd move given the current state of public sector finances.

But helped by a Welsh Government scheme designed to help local authorities borrow money for major projects, it is probably the most prudent way to ensure muchneeded repairs and maintenance take place.

And if the upshot of the works is a reduction in the number of compensation claims made against the council then the money spent will pay for itself relatively quickly.