2020 Report details for project: Heathrow Expansion Programme
| Project name | Heathrow Expansion Programme - there are 2 reports for this project: 2019, 2020 |
|---|---|
| Google search | Google search on project name (opens in new window)  |
| Contracts | Contracts search (opens in new window) - under development |
| Organisation | DFT (D9) - see all reports for this organisation |
| Report year | 2020 (data is from September 2019) |
| Category | Infrastructure - see all reports for this category |
| Description: | The Heathrow Expansion Programme covered the Government's policy activities to enable delivery of a new Northwest runway at Heathrow Airport (subject to the granting of development consent). The funding and delivery of the programme is led by Heathrow Airport ltd. |
| DCA (RAG) | Amber |
| DCA text: | The IPA Delivery Confidence Assessment (DCA) rating at Q2 1920 (30th September 2019) was Amber, which has not changed since last year's Q2 1819 Amber, due primarily to the following factors; - The Heathrow Airport Expansion Consultation (AEC) ended on 13 September 2019. Following consultation feedback Heathrow was expected to progress its final Masterplan through their formal Business Plan approval gateway (M5) - which was scheduled to complete in April 2020. DfT's HEP continued to work with Heathrow to understand its evolving Masterplan. - Confidence reviews were completed to examine Heathrow's construction delivery schedule and scheme financing; together with an internal qualitative review of how the draft Masterplan protects the benefits of expansion and mitigates disbenefits. Engagement continued between DfT, Heathrow and the CAA to review the Heathrow delivery date of 2026. - The IPA agreed that opening a third runway by 2026 was a challenging timescale however the IPA DCA was based upon the HALs ability to deliver new Airport Capacity by 2030. Since the Q2 1920 (30th September 2019) Amber IPA DCA, the following non-project operating environment activities have impacted the original Q2 IPA DCA; - On 27th February 2020 the Court of Appeal ruled that when designating the Airports National Policy Statement (ANPS), the previous Government did not take account of the Paris Agreement, non-CO2 emissions and emissions post-2050. The ANPS therefore has no legal effect until reviewed by the Government under the Planning Act 2008. - All reporting on the programme was paused and has not changed since the Court of Appeal ruling on 27th February 2020. Expansion at Heathrow is a private sector project and it is for the scheme promoter to take it forward. Further, there has been a global pandemic and air travel has largely ceased. While we can be confident based on previous recessions, and the pent-up demand at Heathrow, that if any airport is to need additional capacity it would be Heathrow, the future is uncertain. Since the Q2 1920 (30th September 2019) Amber IPA DCA, the following primary project actions have impacted the original Q2 IPA DCA; - Following the publication of the CAA position on Cat C costs, HAL confirmed in January 2020 that their schedule for the opening of the runway had been delayed for 2 years to 2028-29. This reflected the need to phase the costs over a longer period. HEP were awaiting further clarification of Heathrow's detailed schedule and costs. Further, HAL confirmed after the Court of Appeal hearing that the Court's judgment would have an impact on its timescales. Lastly, HAL's CEO confirmed a new runway would still be needed but not for 10-15 years. - All reporting on the programme was paused and has not changed since the Court of Appeal's ruling of the ANPS on 27th February 2020. - The Airports and Infrastructure Directorate have been temporarily redeployed to work on the COVID-19 response. Due to the expectation there will be an extended period of time for the aviation industry to return to 'normal' operations, it is likely that any expansion will be delayed. |
| Start date | 2015-07-01 |
| End date | 2050-12-31 |
| Schedule text | The scheduled baseline project end date at Q2 1920 (30th September 2019) is 31/12/50, has lengthened by 7670 days since last year's Q2 1819 date of 31/12/29, due primarily to the following factors; - The Project End Date baseline was updated to reflect Heathrow's decision to phase terminal capacity expansion and other development works over a longer time period (up to 2050) to manage costs and build terminal capacity in line with demand growth. - The ANPS stated there was a need for Heathrow to deliver new airport capacity (an operational runway) by 2030. The actual delivery date will be dependent on Heathrow's timescales (the target date as of Jan 2020 for an operational runway was 2028/29, although it was recognised that this was becoming increasingly challenging to deliver the runway to this timescale given the scale and complexity of the project. Since the Q2 1920 (30th September 2019) baseline project end date of 31/12/50, the following non-project operating environment activities have impacted the original Q2 baseline project end date; - On 27th February 2020 the Court of Appeal ruled that when designating the Airports National Policy Statement (ANPS), the previous Government did not take account of the Paris Agreement, non-CO2 emissions and emissions post-2050. The ANPS has no legal effect until reviewed by the Government under the Planning Act 2008. - All reporting on the programme was paused and has not changed since the Court of Appeal's ruling of the ANPS on 27th February 2020. Since the Q2 1920 (30th September 2019) baseline project end date of 31/12/50, the following primary project actions have impacted the original Q2 baseline project end date; - There have been no further change to the rebaselined project end date. - Following the publication of the CAA position on Cat C costs, Heathrow confirmed in January 2020 that their schedule for the opening of the runway had been delayed for 2 years to 2028-29. This was to reflect the need to phase the costs over a longer period. HEP were awaiting further clarification of Heathrow's detailed schedule. - All reporting on the programme was paused and has not changed since the Court of Appeal's ruling of the ANPS on 27th February 2020. |
| Baseline | £9.38m |
| Forecast | £9.38m |
| Variance | None% |
| Variance text: | Budget variance less than 5% |
| Whole Life Cost | £32,607.78m |
| WLCost text: | The baseline Whole Life Cost at Q2 1920 (30th September 2019) is £32,607.78m, has increased by £9874.88m since last year's Q2 1819 (£m) baseline Whole Life Cost of £22,732.90m, due primarily to the following factors; - The scheme cost profile was updated to reflect Heathrow's decision to phase the expansion of terminal capacity and other development works over a longer time period than originally planned. Costs were provided as part of a review of Heathrow's scheme financing. The preferred Masterplan forecast was £32.5bn [in 2014 prices] which included costs expected to be incurred from 2017 2051. - The Government made clear it expects Heathrow to work closely with airlines and its regulator (CAA) to refine the scheme design to target landing charges as close to today's (2016) level as possible. Since the Q2 1920 (30th September 2019) £32,607.78m baseline Whole Life Cost, the following non-project operating environment activities have impacted the original baseline Q2 Whole Life Cost; - Following the publication of the CAA's position on Cat C costs, Heathrow confirmed their schedule for the opening of the runway has been delayed by 2 years to 2028-29. This reflects the need to phase the costs over a longer period. HEP were awaiting clarification of Heathrow's detailed schedule and costs. - Recent financeability checks concluded that expansion appeared, in principle, to be privately financeable without government support. Should agreement on Cat C costs not be reached, there could be further impact on Heathrow's schedule and costs. Since the Q2 1920 (30th September 2019) £32,607.78m baseline Whole Life Cost, the following primary project actions have impacted the original Q2 baseline Whole Life Cost; - The government has been clear that expansion is a private sector project. Delivery of expansion at Heathrow will be funded by Heathrow. - Any investment by Government in related surface access would be subject to HMT's business case process. Where surface access schemes benefit airport and non-airport users, Government would share the cost with the private sector in line with regulatory processes with related costs being managed by DfT road and rail teams. - All reporting on the programme was paused and has not changed since the Court of Appeal's ruling of the ANPS on 27th February 2020. |
| Notes1: | |
| Notes2: | |
| Sourcefile | IPA_2020.csv |
Home Selection Search All Reports Projects +dates Projects +costs Organisations Years Categories
Acknowledgement: GMPP data has been re-used under the Open Government Licence.