Dome deal was good, but future could still be rocky, says NAO

13 Jan 05
The sale of the Millennium Dome site in southeast London was well negotiated but long-term success is far from certain, government auditors warned this week.

14 January 2005

The sale of the Millennium Dome site in southeast London was well negotiated but long-term success is far from certain, government auditors warned this week.

Although the agreement between English Partnerships, Meridian Delta Ltd and the Anschutz Entertainment Group should secure a flow of returns to the public purse, the National Audit Office said the project faces significant risks.

The management and maintenance of the Dome, coupled with the costs of the sales process, has cost English Partnerships £28.7m. Although more than £550m is expected to be returned to the taxpayer over the lifetime of the deal, under the terms of the profit-sharing agreement, EP will receive most of its profits only after the first 11 years.

Assistant auditor general Jeremy Colman said: '[The deal] looks as good as it could, but the future is uncertain. It certainly won't be yielding large amounts of money early for the taxpayer.'

The Dome itself is to be transformed into a 20,000-seat arena and indoor plaza. The rest of the Greenwich peninsula will host a mixed development, including a hotel, light industry and housing, at least 30% of which will be affordable. Work begins later this month.

Commenting on the January 12 report, Deputy Prime Minister John Prescott said he had 'every confidence' that EP and its private sector partners would deliver a success.

'Of course the deal still has to be delivered, but the NAO concludes there is a contractual basis for the long-term delivery of substantial benefits for Greenwich, London and the Thames Gateway,' he said.

PFjan2005

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