2.1 HMT has revised its project approval processes as part of a wider programme of strengthened spending control. These revisions aim to provide a more coherent approvals and assurance framework, and make the tools HMT uses to approve Major Projects more consistent across Government.
2.2 The changes are effective from 1 April 2011. Implications for departments are set out below.
2.3 HMT approval is required for Major Projects at 3 key business case stages:
1 Strategic Outline Case (SOC)
2 Outline Business Case (OBC)
3 Full Business Case (FBC)
Table 2.A: Scope and timing of approval stages, including how HMT approvals relate to MPA assurance processes. MPA assurance will inform HMT approval at each business case stage. More information on MPA assurance processes can be found in Chapter 3.
| Treasury Approval Point | Scope and timing | How does the approval point relate to MPA Assurance? |
| Strategic Outline Case Project initiation stage | All new Major Projects to ensure strategic fit, value for money and deliverability. Approval required before any public commitment is made. | Preceded by at least one of the following: Starting Gate OGC Gateway Review 1 Project Assessment Review (PAR) |
| Outline Business Case Pre-market stage | All Major Projects to assess all options in detail. Approval required before going to the market/issuing Official Journal of European Union (OJEU) notice. | Preceded by at least one of the following: OGC Gateway Review 2 |
| Full Business Case Pre-final negotiation stage | All Major Projects pre - spending commitments Approval required before finalising commercial contracts. For projects using competitive dialogue as a procurement route, approval required before close of dialogue. | Preceded by at least one of the following: OGC Gateway Review 3 |
2.4 The Treasury's experience is that projects often go off track after Full Business Case stage. The Treasury will therefore agree with the department a set of milestones in addition to these key stages where approval must be sought for each project or programme. The Treasury reserves the right to add further approval milestones where necessary.
2.5 The Department must continue to provide the Treasury and the MPA with details of Major Projects after FBC approval and until the Major Project is operational. Relevant information will at least in part be provided through the regular reporting by Departments to the Government Major Projects Portfolio (GMPP). More information on GMPP reporting is in Chapter 3.
2.6 HM Treasury continues to consider Major Project approvals in the context of departmental portfolios. This could include the consideration of the affordability and deliverability of departments' portfolio as a whole.