The O2 opened on time and is having a positive impact on the Peninsula

2.1  On 24 June 2007 the former Millennium Dome opened as The O2 hosting a concert featuring Jon Bon Jovi in the new 20,000 capacity Arena. The completion of the Arena prior to this event took place as set out in the legal agreement between EP, MDL and AEG which said that work was to commence on the redevelopment of the Dome within twelve months of the Unconditional Date (17 June 2004) and to be completed within two years. The legal obligations placed on AEG to bring about the timely completion of the Arena therefore worked as planned.13

2.2  To date, a large number of people have visited the site and have attended the Arena with over 1.2 million ticket sales for events at the Arena during 2007. The programme of events is varied and includes major artistes as well as sporting events such as a US National Basketball Association European Tour, the opening game of the season for the National Hockey League and the Tennis Masters event. The O2's target of hosting 150 events per year is on track to being achieved with over 90 per cent of that target being confirmed in the first six months. Over the six months since it opened (24 June to 31 December 2007) The O2 Arena was reported to be the most popular venue in the world according to industry figures based on music tickets sold. The O2 has become a beacon for the new development.

2.3  Not only has The O2 opened on time, it has also had a positive effect on local employment. AEG is involved in a scheme with Greenwich Borough Council to train local unemployed people and encourage them back into work. Of those currently working in The O2, 45 per cent are Greenwich residents with a further 17 per cent living in the Thames Gateway. AEG, with support from EP, has also invested beyond The O2, for example by part-funding and operating the David Beckham Academy which offers a range of football based activities to local schoolchildren and by establishing a fast daily river transport commuter service between the Peninsula and the rest of London - The O2 Thames Clipper service. AEG anticipated that the award of a licence for a super casino would have brought in additional jobs.14

2.4  The need to open The O2 also meant that EP had to ensure adjacent developments were completed on time to cope with the demands on the northern tip of the Peninsula by the visiting population. The most notable of these were the upgrading of the Jubilee Line and North Greenwich underground station and completion of Peninsula Square, which is an open space in front of The O2 built to accommodate the large number of visitors and to host special events.15

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13  AEG's parent company, Anschutz, provided a company Guarantee backing the various contracts entered into by AEG. In the event that AEG had failed to start works on the site, it would have forfeited its Leases of the Arena site and MDL would have had the right to step in to assume the obligations with the Dome. In addition, AEG provided a performance bond guaranteeing completion of the Arena, to be called on should the works not be completed. These guarantees were never drawn upon.

14  The licence for the super casino was awarded by an independent panel to Manchester in January 2007. The Government dropped plans to build a super casino in Manchester in February 2008 following a review of the plans.

15  The upgrades involved updating the signalling system, adding a carriage to trains on the Jubilee Line and adding four trains to the fleet. This increases the capacity of the Line by up to 6,000 at peak hours. These were completed in December 2005. The escalators at the North Greenwich Station were also upgraded to cope with the increased outflow of passengers at peak times: this was completed in January 2007. The totality of Jubilee line upgrades will be completed by 2009. The Peninsula Square reached practical completion on 14 June 2007.