§ Ms Rachel SquireTo ask the Secretary of State for Defence what were the costs quoted in the original bid; what are the current estimated costs of Project D154; what is the reason for the difference; and from what source the additional expenditure will be met. [25411]
§ Mr. ArbuthnotThe 1993 comparator offer by Devonport Management Ltd.—DML—was some £236 million. Comparison between this and the heads of agreement recently signed with DML for construction of nuclear submarine refitting facilities would be unrealistic because the 1993 offer was not of contractual qualify and different factors, for example different levels of risk, were included in the prices. Certain contractual details, including price, remain subject to negotiation and are commercially confidential. Any additional costs will be contained within my Department's forward expenditure totals.