Mayoral Decision 2488

Meeting: 
MQT on 2019-07-18
Session date: 
July 18, 2019
Reference: 
2019/14167
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

The recently published Mayoral Decision 2488 relating to power lines states that the London Legacy Development Corporation would retain risk if any claims were not covered by insurance or could not be passed down to the relevant contractor or designer. As the agreements have a 12-year liability limit for contractual claims this liability would fall directly to the GLA if LLDC is wound up before this expired date and could not be passed on to a successor body. Please set out whether the GLA has entered into any further agreements where the GLA could potentially be responsible for any other liabilities of decisions made by the LLDC if it is wound up and liabilities could not be passed on to a successor body.

Answer

Mayoral Decision 2488

Mayoral Decision 2488

Answered By: 
The Mayor

Asset Protection Agreements are relatively standard in construction projects to protect assets such as power cables or transport infrastructure. They have been widely used across the Olympic Park and have enabled the regeneration and development of the site.  Further APAs will be entered into in relation to a new pedestrian bridge over rail lines that will connect East Bank to the International Quarter London.

LLDC sought a Mayoral approval for the statutory transfer of the heating concession agreement from the Olympic Delivery Authority to the LLDC (MD1352 in May 2014). Any reputational, legal or financial liabilities would fall to the GLA or a successor body when LLDC is wound up.

Identifying a successor body for LLDC’s long term contracts and obligations is a key strand of the transition strategy currently being produced by LLDC.