2018 Report details for project: Airport Capacity Programme

Project name: Airport Capacity Programme - there are 2 reports for this project: 2017, 2018
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Organisation: DFT (D9) - see all reports for this organisation
Report year: 2018 (data is from Sept 2017)
Category: Infrastructure - see all reports for this category
Description: The Airport Capacity Programme's scope encompasses the DfT activities required to enable a decision on a preferred scheme for increased airport capacity and then the DfT’s activities required for new capacity to be delivered, including in relation to policy development, surface access and risk mitigation.
DCA (RAG): Amber
DCA text: The Amber delivery confidence rating reflects the complexity of the Airport Capacity Programme (‘the programme’) in terms of the political, public, stakeholder and media interest as well as the significant dependencies with other environmental and transport programmes. The programme is at an early stage which is also reflected in the delivery confidence rating. On 5 June 2018 the Government laid before Parliament the proposed Airports National Policy Statement (NPS) supporting a new Northwest runway at Heathrow Airport. Following a vote on 25 June 2018 with a majority of 296 and support from across the House, the Airports NPS was designated as Government policy on 26 June 2018. The programme now moves into a new phase where Heathrow Airport Limited (HAL) is expected to submit a development consent application. The role of Government is to act as an enabler and facilitator to the programme where appropriate – Government and Heathrow confirmed their intention to work together to deliver a new runway from 2026 in the Relationship Framework Document. Resources and governance arrangements have been identified to progress the current phase of the programme and will be developed further. The Programme and HAL will work with the IPA’s Project Initiation Routemap Team to plan a governance study and full Routemap exercise in autumn 2018.
Start date: 2015-07-01
End date: 2029-12-31
Schedule text: In October 2016 the Government announced its support for a new Northwest runway at Heathrow as its preferred scheme for delivering additional airport capacity in the South East. On 5 June 2018 the Government published and laid the proposed Airports National Policy Statement (NPS) supporting a new Northwest runway at Heathrow Airport for a vote on designation. Following a vote on 25 June 2018 with a majority of 296 and support from across the House, the Airports NPS was designated as Government policy on 26 June 2018. The programme now moves into a new phase where Heathrow Airport Limited (HAL) is expected to take forward its development consent application including a further consultation with local residents and stakeholders on its scheme design and airspace changes. The end date of the programme reflects the Airports Commission’s assessment of need for new airport capacity by 2030. This is also in line with the proposed Airports NPS published on 5 June 2018 which refers to development anticipated to be required by 2030. HAL is planning to take forward a Development Consent Order (DCO) application and start operations from a new runway in 2026. This date may be revised as scheme planning progresses.
Baseline: £14.70m
Forecast: £8.80m
Variance: -40.00%
Variance text: The variance in 2017/18 is due to changes in the phasing of the work in this early stage of the programme, particularly a change in date for the start of the February 2017 consultation and changes to the programme timeline following the General Election in June 2017. The programme's budget and resource plan is subject to annual corporate planning, ongoing resource planning and spending reviews. 2017/18 figures do not include any non-government costs because non-government costs at this stage are indicative and spend profiles are yet to be confirmed.
Whole Life Cost: £22,747.00m
WLCost text: If the scheme at Heathrow goes ahead, the scheme itself is expected to be designed, built and funded by the private sector. The 2016/17 Whole Life Cost (WLC) figure only referred to the Government programme and administration spend up to 2020/21. The figure reported in 2017/18 includes Government programme and administration spend (£147m up to 2026) and also the indicative cost of the preferred scheme promoter's (Heathrow Airport Limited’s (HAL’s)) Northwest Runway scheme (£22.6bn - 2014 prices, undiscounted) as assessed by the Airports Commission. The £22.6bn figure comprises indicative private sector costs of between £15.3 and £17.6bn for the Heathrow Northwest Runway scheme plus surface access costs of between £2.5 and £5bn. The high ends of the scheme and surface access cost ranges have been used. These costs will be revised as scheme planning progresses. HAL, for example, announced a potential reduction of up to £2.5bn in scheme costs in January 2018. Given scheme options are still being considered and will be subject to consultation, it is not currently possible to identify a firm scheme cost baseline. Government has made it clear that it expects the airport and industry to continue to work together towards the aim of delivering the ambition the Secretary of State set in 2016 for airport charges (the charge the airport charges airlines to use the airport) to remain close to current levels. The Government expects the scheme promoter to secure the upgrading or enhancing of road, rail or other transport networks or services which are physically needed to be completed to enable the Northwest Runway to operate. Where a surface transport scheme is not solely required to deliver airport capacity and has a wider range of beneficiaries, the Government, along with relevant stakeholders, will consider the need for a public funding contribution alongside an appropriate contribution from the airport on a case by case basis. The Government recognises that there may be some works which may not be required at the time the additional runway opens, but will be needed as the additional capacity becomes fully utilised. Heathrow Airport Ltd’s (HAL) operational costs are not included in the Whole Life Cost (WLC) here but are included in HAL’s plans which are under development.
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Sourcefile: IPA_2018.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.