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This working paper discusses our approach to reviewing Heathrow’s Airport Limited (HAL’s) capital expenditure (capex) incurred during the Q6 price control. In particular, it includes:

• a recap of our previous work in this area;
• our method for selecting a sample of projects for review and a summary of the findings of our consultants (Arcadis) on whether there is evidence of inefficiency in relation to these projects;
• our proposed approach to reviewing these findings including in the context of broader issues; and
• the next steps.

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