Decision details

To consider the terms for the disposal of land at Daedalus, to enable the delivery of the IFA2 interconnector project by National Grid IFA2 Ltd (NGIL).

National Grid is planning a major new energy infrastructure project linking the United Kingdom's electricity transmission network to France, with its UK connection point being located in Fareham.

The project requires a large area of land to construct a converter station, which is a facility that converts alternating (AC) current to direct current (DC), and a site at Daedalus has been identified for this facility.

The report sets out commercial Heads of Terms for the disposal of land to enable this project to progress to the next stage of technical feasibility and detailed design.  If the technical feasibility and suitable environmental evidence can be demonstrated, then the Council would grant an option to National Grid to enter into a lease for land at Daedalus.  The option would be exercisable by them upon certain conditions being met, and the lease would be completed once the facility was constructed.

Assuming that the lease is completed, the premium paid by National Grid for the interest in the land would be reinvested in Daedalus, to provide funding for some of the improvements identified in the Council’s approved Vision for the site.

RESOLVED that the Executive:

(a)       approves the draft Heads of Terms, as set out in confidential Appendix A to this report;

(b)       delegates authority to the Director of Finance and Resources in consultation with the Executive Member for Policy and Resources to agree the detailed terms, as appropriate; and

(c)       agrees to reinvest the proceeds of the disposal of land under this agreement into the delivery of actions that support the Vision for Daedalus, including the airport, the business park and the open space.