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The proposed Circuit of Wales racetrack project for Blaenau Gwent is expected to receive a major boost on Wednesday with confirmation that it has secured a commitment of £425m in private finance to build it.

Earlier this month Economy Secretary, Ken Skates, set a two week deadline to the company behind the project, Heads of the Valleys Development Company (HoVDC), to submit a new business plan, as well as the identity of its financial backers and their respective term sheets - the documents which set out the terms on which they are willing to invest.

A cornerstone investor is pension giant Aviva Investors, who are understood to have committed around £270m, which would be repayable over a 35-year period.

Around £85m in debt finance has been raised by HoVDC's corporate advisors Kleinwort Benson, with an element of the project's costs also being secured through equity.

However, Aviva will only invest if the Welsh Government provides an underwriting position of around £210m - which is less than 50% of the project's cost.

Any underwriting from the Welsh Government would only kick in once the track, on more than 800-acres of de-registered common land near Ebbw Vale, is completed.

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The Welsh Government declined to comment, but it is understood that it will confirm on Wednesday that it has received what is the latest in a line of business plans from HoVDC and the identity of its financial backers.

The Welsh Government will now have to undertake a thorough due diligence on the latest business and financial case, before deciding whether it is willing to provide an underwriting position or not.

No time frame has been put on this, but is expected to take at least a month.

If the project is backed this could see work on the racetrack starting in the spring, with a completion date of 2019 - and in time to stage motor cycling's MotoGP.

HoVDC declined to comment.

The latest business plan from HoVDC is expected to rule out the circuit being able to stage Formula 1 at any future point.

HoVDC are confident that the project can develop an automotive cluster around the track, as well as being a major leisure facility.

However, the Welsh Government will not provide any future support - including the underwriting of major events attracted to the circuit.

So far the Welsh Government has provided £9m in financial support to HoVDC.