Departmental Capital Expenditure
Departmental Capital Expenditure ($000)	Forecast 2007/08	Estimated Actual 2006/07	Budget 2006/07	Actual 2005/06	Actual 2004/05	Actual 2003/04	Actual 2002/03
Ministry of Defence Prepayments - Note 1	385,183	509,267	509,267	395,881	282,348	462,297	124,874
Purchase of Fixed Assets - Note 2	203,497	138,526	138,526	97,640	58,358	57,077	63,714
Total Capital Expenditure	588,680	647,793	647,793	493,521	340,706	519,374	188,588
Less Sale of Fixed Assets	0	4,156	4,156	64,694	2,087	32,464	14,938
Net Capital Expenditure	588,680	643,637	643,637	428,827	338,619	486,910	173,650
Note 1: Government agreed in June 2002 to provide for a NZDF modernisation programme that would be achieved through the Long Term Development Plan (LTDP). A previously established prepayment regime requires that the Ministry of Defence (MoD) be reimbursed twice annually for costs incurred while acquiring Specialist Military Equipment (SME) on behalf of the NZDF. This has the effect of transferring non-departmental MOD capital expenditure to prepayments in the NZDF Statement of Financial Position until equipment is delivered and subsequently capitalized. The prepayments associated with the LTDP that are expected to be made by the NZDF to the MoD during 2007/08 comprise the following projects:
Forecast Prepayments to the MoD	$000		Outyear Forecast Prepayments to the MoD				$000
P3 Orion Upgrade	44,157
C 130 Hercules Upgrade	44,421		2008/09				153,572
Maritime Patrol Vessels	142,805		2009/10				208,193
Tactical Communications Equipment	9		2010/11				228,891
Helicopter Replacement Project	119,509
Light Armoured Vehicle	144
Boeing 757 Modification	29,638
Medium Range Anti Armour Weapon	3,045
Light Operational Vehicles (LOV)	1,403
Very Low Level Air Defence (VLLAD) System (Alerting and Cueing)	52
Total Prepayments	385,183

Statement of Departmental Capital Expenditure to be Incurred

( for the Year Ending 30 June 2008)

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