The lifeline to rescue troubled private-finance projects has been backed by City consultants.

The announcement that £2bn will be pumped into private-finance initiatives through a new infrastructure bank from next month was greeted with relief by the private sector. If it works, dozens of projects such as new schools face a more certain future.

The Treasury hopes the cash injection will kick-start up to 110 major projects by attracting investment from both contractors and investment banks.

Concern had been rising for some time that the global freeze of money markets would put a raft of deals for major public infrastructure projects in danger of collapse.

The knock-on effect would be that the Government's plans to boost jobs by stimulating sectors such as the construction industry would have also been dealt a fatal blow.

Chief executive to the Treasury, Yvette Cooper, said: ‘We need to get these important infrastructure projects moving quickly to support jobs right now.'

Topping the list of priorities is a £4.4bn scheme to develop new waste facilities for Greater Manchester.

Jeremy Barker, director in KPMG's global infrastructure and projects group, gave a cautious welcome the launch of Alistair Darling's plan.

She said: ‘Any source of new money is clearly going to help. But the idea of a government bank acting like a private funder is potentially at odds with the philosophy underlying the private-finance initiative.

‘The success of PFI has come from the rigour that private funders have injected into the public procurement process, ensuring deals were correctly priced and risks properly managed.

‘The question is whether a government bank can create the same rigour. If not, we are back to old-style procurement, and bad old days of cost overruns and delays.'