The sale price for the three Sandown class ships to Estonia was £32 million (the gross return to MOD). The net return to MOD, however, will be adjusted by costs for regeneration of the vessels and training of crew prior to delivery. Regeneration is being carried out under incentivised arrangements and thus the final costs will not be known until completion of the work. In accordance with HM Treasury delegations, a business case was prepared and scrutinised by the appropriate authorities.
No work was undertaken, other than normal decommissioning activities, on these three vessels, in the year prior to the signature of the sales agreement in September 2006. Therefore no additional costs were incurred.