1.13 The Armouries' objectives for the deal are given in Figure 5. These reflected the need to implement a strategy which made the Armouries more self-sufficient financially and reduced its requirement for grant, at the same time as delivering a new museum which would allow the Armouries to increase the proportion of its collection which was on show to the public.
1.14 The Armouries included amongst its objectives for the project that of the provision of a mechanism for both the public and private sectors to make a financial contribution to the project as the Department had required in June 1991 that some of the funding for the new museum should come from the private sector. Also, studies that the Armouries had commissioned stated that it was unlikely that the new museum could be wholly privately financed. Schroders reported in May 1992 that, although the project would generate net revenues once it opened, the rate of return would be too low for the project to be funded wholly by private finance, and it would require a substantial contribution (estimated at over £19 million) from the public sector. Because there was no track record of joint public-private sector ventures involving museum or other heritage developments, the private sector would require a clear commitment by the public sector to provide funding. As a result in July 1992 the Treasury approved a contribution of £20 million towards the construction and fitting out of the museum. There was to be no additional, revenue funding.