1.3 The Portfolio is created using a definition of a major project as a central government project that requires HM Treasury approval during its life, as set out in a letter of delegation from HM Treasury to each department. There are areas where HM Treasury authority cannot be delegated, so the Authority assumes that projects with other characteristics should be included, such as those which could create pressures leading to breaches in financial expenditure limits; make contractual commitments to significant levels of future spend; could set an expensive precedent; are novel and contentious or potentially repercussive; or require primary legislation. This does not necessarily capture all programmes of strategic importance. For example:
• The Department for International Development told us that it has a portfolio of 1,600 programmes with whole-life costs of £67.2 billion and their own assurance processes to ensure value for money and aid impact. It commissions many of these programmes from global partners and only one (the development of an airport in St Helena) is on the Portfolio.
• The Department for Business, Innovation & Skills has a project team working on the transatlantic trade negotiations. While this is not valuable in terms of costs and the Authority does not regard it as a project, a successful outcome is of prime importance to the economy.
These examples indicate that project delivery is a bigger part of government business and the work of most departments than is indicated by the Portfolio alone.