The planned £100m Global Centre of Rail Excellence on the border of Neath Port Talbot and Powys will take a step closer to reality when councillors meet to formalise partnership arrangements next week.
Plans for the centre which were announced by the Welsh Government last summer involve a new facility to test trains in the UK.
Currently manufacturers have to send trains across Europe for testing before bringing them back to the UK for service.
On Wednesday, May 8, cabinet members on Neath Port Talbot Council will be asked to approve a joint venture agreement with Powys County Council and the Welsh Government.
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The rail testing and storage facility is planned for the Nant Helen/Onllwyn area which lies on the county border of Neath Port Talbot and Powys.
The Welsh Government says the facility would not only alleviate the gap in capacity at existing testing facilities and support the rail industry and wider supply chain but also support research into new technologies for rail electrification, hydrogen power and digital railways, and create jobs to support the local economy.
As part of the joint venture agreement a steering group has been set up, currently led by Welsh Government’s director of economic infrastructure Simon Jones.
Neath Port Talbot Council’s chief executive Steven Phillips is due to be the local authority’s representative on the group which will meet monthly and make recommendations, agree timings and monitor funding.
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According to council papers, the land being considered for the facility is owned by Celtic Energy.
Officers said the joint venture agreement can be terminated at any point if one of the parties involved breaches part of the agreement.
There is also an indemnity detailed that would see Neath Port Talbot and Powys liable to contribute towards the costs incurred by Welsh Government, up to a maximum of £100,000, if they “materially frustrate” the project to an extent that it cannot be delivered.
In his report for cabinet members Mr Phillips said: “Welsh Government are under a similar indemnity and given that the council is actively pursuing the implementation of this proposal it is contended that the possibility of such material frustration is very limited.”
