1.59 As a condition of its approval of the project in July 1992 the Treasury stipulated that there would be no additional funds available for the project apart from the original £20 million contribution to the budgeted cost of approximately £43 million for constructing and fitting out the new museum. The £20 million contribution was to be wholly financed from additional visitor revenues at the Tower of London which would arise from the construction of the new exhibition centre for the Crown Jewels and improvements to the facilities for tourists.
1.60 The 1993 agreement did not envisage that the Armouries would provide any contribution to the operating costs of the museum, except for promotion and marketing. Recognising that there were considerable "downside" risks, the Treasury had agreed to the new museum in July 1992 on the basis that there would be no additional funds available for the project from the Department. This condition meant that, if the Armouries were to provide any contribution to the operating costs of the museum, this would have to be met from their existing grant allocation. Consequently the Armouries had limited scope for providing a contribution to museum operating costs when it became clear that the original revenue projections were not being achieved.