Article 7 Guarantees in respect of payment of compensation, etc.I1

England and Wales

(1)

The authorised development must not be commenced, and the undertaker must not exercise the powers in articles 24 to 37, until—

(a)

subject to paragraph (3), security of £10.5 million has been provided in respect of the liabilities of the undertaker to pay compensation under this Order; and

(b)

the City and County of Swansea Council has approved the security in writing.

(2)

The security referred to in paragraph (1) may include, without limitation, any 1 or more of the following—

(a)

the deposit of a cash sum;

(b)

a payment into court;

(c)

an escrow account;

(d)

a bond provided by a financial institution;

(e)

an insurance policy;

(f)

a guarantee by a person of sufficient financial standing (other than the undertaker).

(3)

The City and County of Swansea Council may agree to the substitution of a different sum to that of £10.5 million referred to in paragraph (1), having regard to the liabilities of the undertaker to pay compensation under this Order existing at the time of the approval referred to in that paragraph.

(4)

The authorised development must not be commenced until—

(a)

the undertaker has provided to the City and County of Swansea Council written evidence (which may comprise a written certificate given by a professional firm) of—

(i)

the construction contracts in respect of Works No. 1a, 1b and 2a and a contract for the procurement of hydroturbines for installation in Work No. 2a; and

(ii)

financial provision to secure the delivery of the works and procurement referred to in paragraph F1(i); and

(b)

the City and County of Swansea Council has given written confirmation that it is satisfied that such financial provision is sufficient.

(5)

The undertaker must pay to the City and County of Swansea Council the reasonable and proper costs, charges and expenses that the City and County of Swansea Council may reasonably incur in obtaining legal or financial advice in respect of giving the confirmation of satisfaction referred to in F2paragraph (4)(b).

(6)

The City and County of Swansea Council is to have no liability to pay compensation in respect of the compulsory acquisition of land or otherwise under this Order.

Annotations

Textual amendments

F1: Art. 7(4)(a)(ii): bracket substituted (27.10.2015) by The Swansea Bay Tidal Generating Station (Correction) Order 2015 (S.I. 2015/1830), arts. 1, 2, Sch.
F2: Words in art. 7(5) substituted (27.10.2015) by The Swansea Bay Tidal Generating Station (Correction) Order 2015 (S.I. 2015/1830), arts. 1, 2, Sch.

Commencement

I1: Art. 7 in force at 30.6.2015, see art. 1