The cost over thirty years of the New Accommodation Programme is estimated at £783 Million Net Present Value (£1,623 Million Cash)

5.8 When the technical transition costs are added to the cost of the IAS contract and other related costs, a total cost over thirty years for the New Accommodation Programme to move GCHQ's business to the new site emerges. Although the Unitary Payments and, hence, the IAS cash flow are fixed, there are likely to be changes in the transition elements of the cost while GCHQ's projects that effect the move are being finalised. The total estimated cost over thirty years of the New Accommodation Programme at May 2002, in Net Present Value and cash terms as shown at Figure 11, amount to £783 million and £1,623 million respectively. The transition costs have been discounted in line with the cash profiles shown in the May 2002 review of GCHQ s management Plan.

This table shows the transition costs of moving GCHQ's business into the new building and the costs of providing accommodation and services for the thirty years of the PFI deal.

*This figure excludes the cost of in-house technical staff effort associated with transition estimated at 978 man-years and other GCHQ manpower and running costs.

**This figure includes provision for payment of £17 million to IAS in July 2007 in lieu of proceeds from the sale of that part of the Oakley site that GCHQ is retaining as part of its extended transition period. It also takes into account recovery of the £17 million in 2011-12 when the land is sold less demolition (£5 million) and other costs (£2 million).

Discount base date January 1999.