A revised contract for £319 million was signed in May 2000

2.25  In May 2000 the Department and ICL signed a revised contract for the delivery of Libra. The value of the contract increased from £184 million to £319 million. The increase in costs was mainly for an extra four years of service at the end of the contract and for earlier roll-out of the infrastructure. Because the timing of the payments was re-profiled the Treasury provided the Department with additional funds for the early years against deliverables reducing ICL's borrowing requirement and consequential interest charges. A reconciliation between the original contract price and the renegotiated contract price is given in Figure 12.

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