2.13 Projects approved before 2002 were, on average, nearly 50 per cent larger by value than those approved after 2002. Figure 12 shows that the largest ten projects, representing nearly 60 per cent of the total approval value of all projects, have a total cost overrun of £10.7 billion, or 19.2 per cent against their approved level. Consequently, the Department continues to suffer from the legacy of significant cost overruns on these older, larger projects.
Figure 12 | |||||
Project | Main-gate year | Approved cost (£bn) | Forecast cost (£bn) | Increase/ | Percentage |
Typhoon | 1987 | 16.7 | 20.2 | +3.5 | +21.0 |
Future Strategic Tanker Aircraft | 2007 | 12.3 | 12.0 | -0.3 | -2.4 |
Type 45 Destroyer | 2000 | 5.0 | 6.4 | +1.4 | +28.0 |
Queen Elizabeth Class | 2005 | 4.1 | 5.9 | +1.8 | +43.9 |
Skynet 5 | 2002 | 3.3 | 3.2 | -0.1 | -3.0 |
Merlin HM Mk 1 Helicopter | 1983 | 3.2 | 4.2 | +1.0 | +31.3 |
Attack Helicopter WAH 64 Apache | 1995 | 3.0 | 3.2 | +0.2 | +6.7 |
Nimrod maritime patrol aircraft | 1996 | 2.8 | 3.8 | +0.8 | +28.6 |
A400M | 2000 | 2.6 | 3.4 | +0.8 | +30.8 |
Astute: boats one to three | 1997 | 2.6 | 4.2 | +1.6 | + 61.5 |
Total |
| 55.6 | 66.5 | +10.7 | +19.2 |
NOTES 1 Forecast cost and variations for Skynet 5 (2009), Merlin HM Mk1 Helicopter (2001), Attack Helicopter WAH 64 Apache (2003) and Nimrod maritime patrol aircraft (2010) are taken from the year they were last included in the Major Projects Report (shown in brackets). Forecast cost and variations for the remaining projects are taken from Major Projects Report 2010, with the Major Projects Report 2011 variation added due to the cost of capital being removed for the 2011 Report. These figures are, therefore, not comparable with Figure 2 where cost of capital has been removed completely. 2 If cost of capital is excluded from projects in the above table that were part of the Major Projects Report 2011 population, the increase in forecast cost would reduce from £10.7 billion to £8.5 billion. 3 Skynet 5's approved cost has been adjusted by removing £0.4 billion as money provided for the build of a fourth satellite was not required. See Major Projects Report 2009 for further details. 4 Of the ten projects shown, three were approved in 2002 or later. Two of these, Skynet 5 and Future Strategic Tanker Aircraft, are private finance initiative projects and are currently funded to include all support and through- life costs as well the initial manufacture of the equipment. Queen Elizabeth Class aircraft carriers are the only large project in Figure 12 to be approved after 2002 that includes only the development and manufacturing costs. Source: National Audit Office analysis of Departmental data | |||||