Press Release - The Regeneration of the Greenwich Peninsula: A
Progress Report
16 July 2008
The O2, a central part of plans to regenerate the Greenwich
Peninsula, opened on time in June 2007 and has become a highly
successful entertainment venue which has boosted local employment.
According to the National Audit Office, however, housing
development on the rest of the Peninsula is taking longer than
originally expected, and financial returns to the taxpayer are
likely to be lower as a result.
The report found that the number of houses built, making up most
of the project, is two years behind original forecasts. English
Partnerships’ oversight of the regeneration can influence the
quality of the project, but it cannot easily speed up delivery by
house-builders. The delay increases the risk that English
Partnerships might not meet its forecast of 4,250 housing units by
2016.
Delays to the housing programme have, however, freed up capacity
and brought forward the development of schools and commercial
space. This development will benefit the growing community on the
Peninsula, as it will allow them to live, work and use recreational
facilities on the Peninsula from the day they move in.
A consequence of these delays is that the financial returns to
the taxpayer from the residential and commercial elements of the
deal (excluding The O2) could be lower than expected. The available
information suggests a reduction of £45 million to £60 million
compared to the initial 2004 calculation, though returns will
fluctuate over the 20 year lifetime of the project.
English Partnerships has not yet quantified the likely return
from The O2. The Public Accounts Committee recommended in 2005 that
Departments should attempt quantification in such cases.
Arrangements to secure a fair and timely financial return for the
taxpayer are still being agreed with the developer AEG.
Tim Burr, head of the National Audit Office, said
today:
"The Greenwich Peninsula is an ambitious regeneration,
highlighted by the landmark O2 venue. The pace of house building is
already two years behind schedule, though better progress has been
made on community and commercial space. English Partnerships needs
to safeguard returns to the taxpayer, both by addressing the
effects of delay, and by delivering the return which is due from
the success of the O2."
Notes for Editors:
- The O2 opened to schedule in June 2007 and is now the most
popular music venue in the world. Some 45 per cent of its employees
are Greenwich residents and a further 17 per cent live in the
Thames Gateway.
- English Partnerships is the Government’s national regeneration
agency, with a remit to deliver high quality, sustainable growth in
England sponsored by the Department for Communities and Local
Government. English Partnerships manages the delivery of the
regeneration of the Greenwich Peninsula.
- The Anschutz Entertainment Group Europe (AEG) are a leading
sports and entertainment presenter, responsible as part of the
overall project for the regeneration of the former Millennium Dome
into The O2.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 34/08
All enquiries to Phil Groves, NAO Press Office:
Tel: 020 7798 5339
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