where the latest edition details how 29 projects were rated Green, 109 Amber, and 34 Red, with 17 projects exempt from a rating.<\/a><\/p>\nNista\u2019s update also includes the estimated whole life cost of each scheme and its projected monetary benefit to the UK economy.<\/p>\n
The 2025-26 portfolio comprises projects with a combined whole life cost of \u00a3924.2bn, compared to \u00a3603.6bn of \u201cmonetised benefits over the lifetime of each project,\u201d the report reads.<\/p>\n
Nista stressed these comparisons should not be interpreted as value-for-money assessments, because many projects deliver benefits that cannot be meaningfully expressed in financial terms.<\/p>\n
It defended the apparent disparity by stating that it is impossible to accurately provide a \u201cmeaningful\u201d monetary projection for the benefits each project will yield.<\/p>\n
Providing information to NCE, Nista further discussed how this is particularly so for projects led by the Ministry of Defence (MoD).<\/p>\n
MoD projects alone account for \u00a3305bn of the GMPP and Nista has stated the report\u2019s cost and benefit figures should therefore be read in that context and not as an indication the projects are failing to deliver value for money.<\/p>\n
Nista further detailed how the difficulty in accurately monetising the benefits of public goods and projects delivering public value extends beyond defence to other areas including justice, health and life sciences.<\/p>\n
A Nista spokesperson told NCE: \u201cIt is not possible to meaningfully reduce to a single cash figure the benefits of some projects, particularly those led by the MoD which account for around a third of the whole life cost of the GMPP portfolio.<\/p>\n
\u201cIn an increasingly volatile world, with the UK facing new and complex threats that require a robust and modern response, the safety and security of the nation are beyond price.\u201d<\/p>\n
The organisation further pointed out how it is important to note that all monetary cost and benefit figures in this year\u2019s Major Projects Annual Report have been presented in real terms for the first time.<\/p>\n
This is to enable accurate tracking of progress and impact over time, Nista confirmed.<\/p>\n
Where necessary, Nista has converted the figures provided by departments to accommodate this by using base year 24\/25 deflators from the Office for National Statistics (ONS).<\/p>\n
This approach means values in the annual report are not directly comparable to figures in previous reports.<\/p>\n
Nista\u2019s report states: \u201cGMPP projects aim to provide innovative and meaningful benefits to the UK, many of which have no real or estimated market price.<\/p>\n
\u201cFor example, out of the 38 Military Capability projects worth a combined whole life cost of \u00a3305.1bn, only one reported benefits this year due to the inherent complexity in monetising national security benefits.\u201d<\/p>\n
Projects<\/strong><\/p>\nTo provide extra detail beyond the figures of the whole GMPP, NCE has used Nista\u2019s data to calculate the differences in how much certain projects will cost compared, to how much economic benefit they are due to provide.<\/p>\n
For instance, the Department for Transport\u2019s (DfT) Transpennine Route Upgrade (TRU) is expected to cost just over \u00a311bn but will only provide close to \u00a33bn of monetised benefits, according to Nista\u2019s report.<\/p>\n
Another example is the Lower Thames Crossing (LTC). Although Nista\u2019s states the project\u2019s estimated whole life cost is close to \u00a39bn, recent estimates put it close to \u00a311bn, but Nista\u2019s projected monetised benefits sit just over \u00a33bn.<\/p>\n
However, a scheme projected to provide more benefit than it is due to cost is the Department for Environment, Food and Rural Affairs\u2019 (Defra\u2019s) Flood and Coastal Erosion Risk Management.<\/p>\n
Nista\u2019s projections put the whole life cost of the scheme around \u00a34.6bn, but the monetary benefit sits at close to \u00a322bn.<\/p>\n
Like what you’ve read?\u00a0To receive New Civil Engineer’s daily and weekly newsletters click here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The whole life cost of delivering the Government\u2019s Major Project Portfolio (GMPP) is expected to be \u00a3320.6bn more…\n","protected":false},"author":2,"featured_media":590165,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[79,183787,17355,179,18,19,17,163464,250233,250234],"class_list":["post-590164","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-defra","tag-dft","tag-economy","tag-eire","tag-ie","tag-ireland","tag-mod","tag-national-infrastructure-and-service-transformation-authority","tag-nista"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116934637461138000","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/590164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=590164"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/590164\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/590165"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=590164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=590164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=590164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}