Exclusive
by political editor Paul Francis

pfrancis@thekmgroup.co.uk

A company set up to bring jobs and investment to Thanet is seeking an additional £500,000 of taxpayers' money to secure its long-term future, it has emerged.

East Kent Opportunities, a limited company set up jointly by Kent County Council and Thanet council, also wants to defer repayments on a £5.4million loan used to build the Eurokent Spine Road.

EKO wants Kent County Council to lend it £500,000 and has also asked the council if it can reschedule repayments of £5.4m that was provided to build the link road.

The news of fresh financial challenges for EKO comes just a month after it was disclosed that it was given an interest free loan of £190,000 by Thanet council and Kent County Council.

At the time, the authorities agreed to the loan after being told it was needed to ensure the company remained a going concern in the short term.

It is understood the additional £500,000 now being asked for is needed to secure the long-term future for EKO, which was set up in 2008 by KCC and Thanet council at a cost of more than half a million pounds to steer the regeneration and developent of the 70-acre Eurokent site and the 40-acre Manston Business Park.

However, the recession has slowed down the development of both sites and there have been further complications after EKO moved to designate the Eurokent site for housing rather than business.

The economic downturn has meant that there has been little interest from the private sector in developing either site and as a result, money that had been expected by EKO has not materialised.

In a further sign of its problems, EKO has also asked to reschedule repayments on a £5.4m loan provided by KCC to meet the costs of the Eurokent Spine Road.

Under the terms of its contract with KCC, the money was due to have been repaid by September this year. However, the overall sum will be higher because KCC can charge interest on the outstanding sum.

In a statement, KCC said: "Members are still considering the £500,000 loan and a decision will be made within the next few weeks. The Eurokent spine road is a long-term investment, part of the county council's commitment to East Kent Opportunities to provide the essential access which will help to attract development and jobs."