b EP should agree explicitly with AEG how it will access profit share information and calculate its financial returns by the end of 2008, which will be 18 months after the opening of The O2. This access should include the relevant records and accounts of the AEG Group, which would give EP assurance that the taxpayer will receive a fair and timely return from the activities of The O2 Arena and Waterfront.
c EP should implement the PAC recommendation to Departments to develop an estimate of the total expected return from this project. Now that The O2 is open this should include its share of profits made from the Arena and the Waterfront.
d Within a long-term deal, change is inevitable and this will have an impact on the returns to the taxpayer. EP should ensure that the new financial model allows for an understanding of the impact of change on the value of its interest in the Peninsula land-based deal, particularly where it is involved in approving changes. In these situations, it should review the balance between its returns and those of MDL and ensure that that these are in accordance with the legal entitlement.