There is no SG scheme as such in the UK. However, bespoke guarantees have been used on individual transactions.
Debt instrument - In adopting support measures against the financial crisis, the UK established The Infrastructure Finance Unit ("TIFU") in HM Treasury in March 2009. This was able to provide loans on commercial terms to PPP projects, alongside commercial lenders and the EIB. TIFU was disbanded in late 2010 having made one loan of GBP 120 million to the Manchester Waste PPP scheme.
Termination payments - A conditional debt underpinning was used on the large and complex "M25" road widening PPP project. This reached financial close in May 2009. In this case, the State agreed to guarantee that the sums due by the State to the PPP company upon termination of the PPP contract following PPP company default (only following successful completion) would be at least equal to 60% of the contractually defined senior debt termination compensation amount. This undertaking departs substantially from the standard provisions of road PPP projects in the UK. As a further example, PPP contracts for the maintenance and renewal of the London Underground contained contractual provisions which guaranteed the lenders the recovery of 95% of debt outstanding in the event of contract termination for a default of the PPP company.