Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
Government defines mega-projects by specific criteria, identifying three current examples and one potential.
Recommendation
We asked how government will be defining mega-projects. The OVFM told us that its selection criteria is focused on strategic importance, complexity and size, using £10 billion whole-life cost as a threshold. The OVFM’s selection criteria also excludes all scalable projects with repeatable elements, explaining to us that with mega-projects, you either do all the project or none of it.24 The Treasury told us that there are currently three projects in the government’s portfolio defined as ‘mega’: High Speed 2, Sizewell C and Dreadnought.25 The OVFM added that the Department for Transport is currently looking at delivery models and governance for Euston as a large and complicated project in its own right. NISTA stated that due to its size, complexity, and separate governance arrangements to HS2, Euston has the potential to become a mega-project.26
Government Response Summary
The government agrees to write to the Committee setting out the rationale for the £10 billion cost criterion for mega projects, and under what circumstances a project’s complexity and importance could justify it being a mega-project even where the £10 billion cost threshold is not met, alongside its Treasury Minute response.
Government Response
Accepted
HM Government
Accepted
2. PAC conclusion: There are many strategically important projects that will not fall within the OVFM and Treasury’s definition of a mega project. 2. PAC recommendation: Alongside its Treasury Minute response, the Treasury should write to us setting out the rationale for the £10 billion cost criterion for mega projects, and under what circumstances a project’s complexity and importance could justify it being a mega-project even where the £10 billion cost threshold is not met. 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The Treasury has written to the Committee alongside this report.