2019 Report details for project: Heathrow Expansion Programme

Project name: Heathrow Expansion Programme - there is only one report for this project
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Organisation: DFT (D9) - see all reports for this organisation
Report year: 2019 (data is from Sept 2018)
Category: Infrastructure - see all reports for this category
Description: Covers the Government activities to enable delivery of a new Northwest runway at Heathrow Airport.
DCA (RAG): Amber
DCA text: The Heathrow Expansion Programme covers the Government activities to enable delivery of a new Northwest runway at Heathrow Airport (subject to the granting of development consent). The Amber delivery confidence rating reflects the scale and complexity of the programme; the political, public stakeholder and media interest; and the significant dependencies with other environmental and transport programmes. The programme is at a relatively early stage which is also reflected in the delivery confidence rating. Following designation of the Airports National Policy Statement (ANPS) by the Secretary of State in June 2018, the programme moved into a new phase and there is a different role for Government. Resources and governance arrangements are in place for this phase of the programme and the management of dependencies is a key focus. DfT has also defended the Government’s position against five judicial review claims that challenged the ANPS. These cases were heard in March 2019 and a judgement is expected in spring 2019.
Start date: 2015-07-01
End date: 2029-12-31
Schedule text: The end date of the programme reflects the need for additional airport capacity by 2030 and this is reflected in the Airports National Policy Statement (ANPS). Heathrow Airport Limited (HAL) are aiming for the runway to become operational in 2026. The Government believes that the capacity is required by 2030.
Baseline: £14.70m
Forecast: £7.90m
Variance: -46.00%
Variance text: The baseline budget for 2018/19 was set early in the programme and has been revised as part of annual corporate planning, resource planning and spending reviews. The variance between the baseline and forecast costs for 2018/19 is due to changes in the phasing of the programme and budget needs have become clearer over time. The figures for 2018/19 do not include any non-government costs because non-government costs at this point are not formally reported.
Whole Life Cost: £22,732.90m
WLCost text: Expansion at Heathrow Airport will be built and financed by the private sector. Given that HAL are developing their masterplan, it is not currently possible to identify a firm scheme cost baseline. The £22.732bn figure reported comprises of £132m budgeted government resource costs and £22.6bn of private sector (non-government) costs as estimated by the Airports Commission in 2014 prices with the upper estimates of the cost ranges used. HAL continue to work closely with airlines and the regulator (CAA) to keep landing charges (the amount airlines pay to use the airport) close to 2016 charges (2016 is the date when the Government stated its preference for Heathrow Northwest Runway). HAL would pay in full the cost of any surface access required for airport expansion. The Government would contribute to surface access costs where they were not needed purely for airport expansion and they benefit non- airport users. HAL’s operational costs are not included in the whole life costs but are included in HAL’s plans which are under development.
Sourcefile: None

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