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Mike Brown MVO Response to Dame Margaret Hodge MP Review of The

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Mike Brown MVO Response to Dame Margaret Hodge MP Review of The Information pack on the Garden Bridge project September 2016 The list below details the documents that are contained in this pack. All documents have already been published, except where they are marked with an asterisk (*). This document pack will be published on the TfL website in full. 1 Project summary a. Summary and history of TfL’s involvement in the project * b. Strategic Outline Business Case, May 2014 c. Garden Bridge Trust draft Operations and Maintenance Business Plan, March 2016 d. Breakdown of TfL expenditure on the project, August 2016 e. Breakdown of funding secured by the Garden Bridge Trust, August 2016 f. Public spend to date and schedule of future payments, September 2016 * g. List of Freedom of Information requests received by TfL, September 2016 * 2 Mayoral Directions TfL has provided funding and carried out its work on the project under four Mayoral Directions. Copies of these directions are provided for reference: a. MD1248 Temple to South Bank footbridge development proposals, August 2013 b. MD1355 Garden Bridge development proposals, June 2014 c. MD1472 Garden Bridge guarantees, June 2015 d. MD1647 Garden Bridge guarantees, April 2016 3 Planning permission Planning permission for the project was granted by Westminster City Council and Lambeth Council in 2014. The following documents are provided for reference: a. Lambeth Council Decision Notice, 19 December 2014 b. Westminster City Council Decision Notice, 22 December 2014 c. Summary of planning conditions, 19 September 2016 * 1 4 Funding agreement between TfL and the Garden Bridge Trust A public contribution to the project was originally discussed in an exchange of correspondence between the then Mayor of London and the then Chancellor of the Exchequer in 2013/14. TfL entered into a Deed of Grant with the Garden Bridge Trust, which described how we will pay the full £60 million public sector contribution to the project. A separate Loan Facility Agreement was then signed in November 2015. The following documents are provided for reference: a. Exchange of correspondence between the then Mayor of London and the then Chancellor of the Exchequer regarding public funding of the project, August 2013 – March 2014 b. Deed of Grant, 2 July 2015 c. Deed of Variation, 13 November 2015 d. Loan Facility Agreement, 13 November 2015 e. Variation letter, 25 April 2016 f. Variation letter, 27 May 2016 g. Variation letter, 28 September 2016 (with the Trust for response) * 5 TfL procurement of design services TfL conducted two procurement exercises in 2013, to support its work to develop the scheme and secure planning permission. The following procurement documents are provided for reference: a. “Garden Bridge – Proposed next steps” TfL briefing note, January 2013 * b. Invitation to Tender for bridge design services, February 2013 c. Tender submissions from Marks Barfield, Wilkinson Eyre and Heatherwick Studio, and scores d. Heatherwick Studio award letter (8 March 2013) and contract (3 May 2013) e. Invitation to Tender for consultancy services, April 2013 f. Arup call-off contract, under TfL’s Engineering and Project Management procurement framework, 8 July 2013 6 TfL’s Internal Audit review of the design procurement a. Correspondence between TfL and Caroline Pidgeon AM, June – September 2015 b. TfL Internal Audit memorandum, 15 September 2015 c. EY review of TfL’s Internal Audit memorandum process, and TfL response, September 2016 * 2 7 GLA Oversight Committee review of the design procurement a. GLA Oversight Committee report, March 2016 b. The then Mayor of London’s response to the report, 3 May 2016 c. The Commissioner of Transport’s response to the report, 4 May 2016 Extensive documentation has been published by the Committee to accompany their investigation including transcripts of four evidence sessions and a number of correspondence exchanges – these are available on the Committee’s website at https://www.london.gov.uk/about-us/london-assembly/london-assembly- publications/garden-bridge-design-procurement. 8 Other formal reviews of the project a. Letter from the Comptroller and Auditor General of the National Audit Office to Gareth Thomas MP, describing the NAO’s findings about the DfT’s rationale for providing £30 million to the project, January 2016 * We do not believe that this letter has been published, but its contents have been widely reported in the press. b. National Audit Office investigation into the DfT’s funding of the Garden Bridge This report has not yet been issued – it is expected in October 2016 and a copy will be provided as soon as it is published. c. Charity Commission review of the Garden Bridge Trust’s accounting and governance This report has not yet been issued – it is expected in October 2016 and a copy will be provided as soon as it is published. 3 [This page is intentionally blank] 1a THE GARDEN BRIDGE SUMMARY AND HISTORY OF TFL INVOLVEMENT 1 Summary of the project and TfL’s involvement The Garden Bridge would connect Temple with the South Bank. Construction, operation and maintenance of the bridge are the responsibility of the Garden Bridge Trust, an independent charity specifically set up for the purpose. The total project cost is c£185m. The construction contract was let in February 2016 at a cost of c£105m. The project’s business case in May 2014 estimated a benefit- cost ratio of 5.8:1. TfL first became involved in the Garden Bridge project in early 2013 at the previous Mayor’s request. Since then we have carried out work under four Mayoral Directions. It is under these Mayoral Directions that we provided support and assistance to the Garden Bridge Trust in securing planning permission in Westminster and Lambeth in late 2014, and are providing £30m to the project. This contribution is matched by central Government, which is also providing £30m to the project. The remaining funds for the bridge must be raised by the Garden Bridge Trust, from private sources. Taking into account the money that has already been secured, the Trust needs to raise a further £55.9 million to meet its fundraising total. A timeline of TfL’s involvement in the project is provided at the end of this document. 2 Progress on delivery We understand that the Garden Bridge Trust has completed the following milestones on the project: o Planning permission was secured from Westminster City Council and Lambeth Council in late 2014. o All pre-commencement planning conditions have been discharged in both boroughs, except for the signing of section 106 agreements. o Section 106 agreements have been drafted in readiness for when the Garden Bridge Trust has secured the necessary land interests. o A River Works Licence and Lease has been agreed in draft form with the Port of London Authority (PLA). o A Marine Licence has been granted by the Marine Management Organisation (MMO), in July 2016. o Third party agreements have been entered into with key stakeholders including Thames Tideway Tunnel, the HQS Wellington, ITV and IBM. o The main construction contract has been awarded to Bouygues TP Cimolai SpA, following an open, competitive process. o A Ground Investigation programme has been completed, comprising c£1m of land and riverine works. o Approximately £70 million of private funding has been secured so far. o Two Judicial Reviews relating to the project have been resolved – one was settled in 2015, and another was (recently) refused permission by the High Court. The Garden Bridge Trust needs to secure a number of key steps before construction of the bridge can begin: o Agreement with Coin Street Community Builders and Lambeth Council on lease variations and new sub-leases, to provide the land interest on the south bank. o Use of statutory provisions by Westminster City Council to permit the construction of the bridge on Temple station roof, and subsequent lease arrangements to provide the land interest on the north bank. o Execution of documents with parties including a Development Agreement for work on the north bank; guarantees for the operation and maintenance of the bridge; and a River Works Licence. These documents are already prepared in draft form. o Remobilisation of the main construction contractor following a standby period that was initiated in August 2016 as a result of delays finalising property and planning matters. o Raising sufficient further private funds for the Trust to meet all contractual liabilities and have confidence in commencing construction activities. The Garden Bridge Trust expects to complete these activities by Autumn 2017, and then to complete construction of the bridge in 2019. 3 Public funding and cost of cancellation The public sector is contributing £60m to the project, split evenly between TfL and the DfT. Our £30m contribution was further divided into a £10m grant and a £20m loan which will be repaid over a fifty year period. We are responsible for managing the payment to the Garden Bridge Trust of the whole public contribution, including the DfT’s portion on their behalf. The schedule for payment is set out in a funding agreement between TfL and the Trust, and approximately £37 million has so far been paid to the Trust. The remainder would be paid over the course of the bridge’s construction. The Government has further agreed to underwrite the Garden Bridge Trust’s cancellation liabilities of up to £15 million until the end of September 2016, falling subsequently to a maximum of £9 million. It would not be possible to recover the public sector funding already provided to the Trust. If the project is completed,
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