+
and the only other realistic option i.e. renting.
As stated in para
3 of my letter to you of 7 June 1993 we fully appraised in 1989/90
other options and all those that included land cost elements remain
relatively much more expensive in comparison with building on the
free Colvin House site. The reasons for discarding other possible
+ option remain as explained in para 7 of the letter of 7 June 1993.
The summary below of the build and leasing options serves to
demonstrate conclusively that building is still much the more
economic solution:
Build new Offices (all Consulate-General
and British Council) and
7 UK staff flats
Lease new Offices (Consulate-General and
British Council) and
7 UK staff flats
.NPV £32.8m
Appendix A
NPV £77.7m
Appendix B
4. We have carried out a further risk analysis of the project and
conclude that those identified in para 8 of my letter of 7 June
will continue to be the main risks.
5.
Our Ministers have accepted our proposed course of action to
proceed with the project at a total estimate cost within £29.0
million. I should be grateful for your agreement to proceed as
soon as possible. Time is important in order to keep to programme
for occupation by 1 July 1996.
PJADS1.92
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