EN    EN EN 
EN 1   EN  EUROPEAN COMMISSION 
Brussels, 4.5.2010 
SEC(2010) 571 
 
COMMISSION STAFF WORKING DOCUMENT 
Status of the ITER Project  
 
accompanying the 
 
COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIA MENT AND THE COUNCIL 
 
ITER status and possible way forward 
  
{COM(2010) 226 final} 
EN 2   EN STATUS  OF THE  ITER  PROJECT 
1 INTRODUCTION 
ITER1 is a global project to build  and operate an experimental  reactor with the aim of 
demonstrating the scientific and technological feasibility of  fusion energy for peaceful 
purposes. Its successful accomplishment would esta blish whether fusion can become a major 
sustainable energy source contributi ng to the EU's strategy for the long term security in the 
supply of energy. Nuclear fusion, the process th at powers the sun, offers the prospect of 
producing an essentially limitless source of safe and clean energy with no CO 2 emission, 
contributing to tackling climate change. The ITER project s hould be followed by a 
demonstration reactor, expected  around 2050, on the path toward s the commercial exploitation 
of fusion power. Its implementation will concur  to the achievement of the "Smart Growth" 
priority of the European strategy for smart,  sustainable and inclus ive growth (Europe 2020 
strategy) as it will strengthen knowledge and inn ovation as drivers of the EU future growth. 
ITER is a magnetic fusion energy experiment , building on the achievements of several 
European precursors and especia lly on the Joint European Torus2 (JET), currently the world's 
highest performance fusion device. Indeed, it is recognized by scie ntists that the most advanced 
fusion experiments to date have all been based on “magnetic confinement”3. ITER is a 
uniquely global cooperation - a pioneering in itiative seeking to demonstrate shared 
technological solutions to global problems.  
With strong backing of the Council, the Commis sion successfully negotiate d with international 
partners on behalf of the Comm unity and succeeded to fix the site for building ITER in Europe 
at Cadarache, France. Being host of and the larg est stakeholder in the project, gives Europe a 
leading role in ITER's construction and underpins its pre-eminent position in fusion. This position will afford Europe a unique opportunity to benefit from emerging fusion technologies 
and possible spin–offs. It also endows the Eu ratom with special responsibility for and 
commitments to the project. 
ITER is conducted unde r the terms of an In ternational Agreement
4 between the European 
Atomic Energy Community (Euratom) and 6 other Pa rties - China, India, Japan, Korea, Russia, 
and the USA, which was signed in Paris in N ovember 2006 and which entered into force in 
October 2007. The agreement established the ITER  Organization (IO) with full international 
legal personality, to be respons ible for the joint implementation of the ITER project. The 
Members of the ITER Organization are the Parties to the Agreement and they jointly direct and 
supervise its conduct through their representation  in the ITER Council which is the principal 
organ of the ITER Organization. 
The Agreement has an initial duration of 35 years in order to construct, operate, and de-activate 
the ITER facilities, broken down as follows:  
                                                 
1 Originally denoted "International Th ermonuclear Experi mental Reactor". 
2 JET is situated at the Culham Science Centre in the United Kingdom. 
3 An alternative approach uses so-called "inertial c onfinement", which is in a considerably less advanced 
state of development towards practical exploitation. 
4 OJ L 358, 16.12.2006, p. 62–80. 
EN 3   EN − The construction period, the most intense in  terms of resource needs, was initially 
scheduled for 10 years and would culminate in  the so-called "First  Plasma", the physics 
process materialising the start of the operation.  
− This will be followed by an operation phase of about 20 years during which ITER will 
be progressively brought to its fu ll performance capabilities.  
− After the end of operations, there will be a 5 years phase of deactivation, whereupon the 
host country, France, will ta ke over responsibility for the facilities and their 
decommissioning using a fund set aside dur ing the operation for this purpose. 
Figure 1: overall planning of the ITER project5. 
 
Under the ITER Agreement each Member has its own "Domestic Agency" responsible for 
managing its contribution, and especially for proc uring the various components needed to build 
ITER and to be provided to ITER Or ganization as contributions in kind . 
The Euratom contribution for ITER is entir ely managed through the European Joint 
Undertaking for ITER – "Fusion For Energy" (F 4E), established as the European Domestic 
Agency by the Council in March 20076 and based in Barcelona, to discharge the international 
commitments of Euratom under the ITER Agreement. The Members of F4E, Euratom, the 27 Member States plus Switzerland, are all represen ted in its governance. The EU contribution to 
                                                
 
5 This planning is included in the "Final Report of the ITER Engineering Design Activities" 
Documentation Series No. 21, IAEA, 2001, referred in the article 3 of the ITER Agreement and included in the attachment "Final Report of Negotiations on ITER Joint Implementation, 1 April 2006 Attachment 
2_D". 
6 OJ L 90, 30.3.2007, p.58. 
EN 4   EN ITER construction mainly consists of major systems and components for ITER procured by 
F4E and provided "in kind" to the ITER Organi zation as well as cash provided to IO.  
The Commission represents Euratom, as one of  the 7 Members of the ITER Organization, in 
the ITER Council and its subsidiary bodies. It al so represents Euratom in the F4E Governing 
Board and provides more than 80% of the F4E resources. 
The construction of ITER is technically extremel y challenging in its scale and complexity. It 
will represent a major engineering undertaking on the scale of the construction of a very large commercial power plant with large- scale industrial contributions in civil, mechanical, electrical 
and nuclear engineering combined in unprecedented condit ions. It is foreseen  that about three 
quarters of the overall EU contribution to ITER will result in contracts with the European high- tech industry. The timely fulfilment of these cont racts will involve the transfer to European 
industry of major fusion specific technologies  and know-how built up over 50 years in the 
European fusion programme. As experience has s hown, large scale application of leading-edge 
technologies in scientific infrastructures stim ulates innovation and increases competitiveness of 
European high-tech indust ries throughout the construction peri od well before the project starts 
yielding its scientific results. Th is project should also contribu te to encouraging talented young 
scientists and engineers to de velop their careers in Europe. 
 The launch of the ITER project marked an impo rtant milestone in the development of world-
wide big science collaboration. For Europe the pr oject is emblematic of the EU's capacity to 
take a leading role at the global level in scie nce and technology. The ITER Organization 
presents a possible model for future large sc ale international collaborative infrastructure 
projects.  
2 THE
 CURRENT  CONTEXT   
The Member States have been following work  on ITER through their representation in the 
Governing Board of F4E. The EU Council was informed in late 20087 that the estimated costs 
for ITER construction would be much higher than  the initial estimates of 2001, on the basis of 
which the international ITER agreement of N ovember 2006 had been negotiated. The most 
important factors responsible for the increases of the cost estimates were summarized as 
follows: 
− the need for additional and more complex technical components to increase assurance 
of ITER success [not foreseen in 2001 w ith the level of knowle dge at that stage]; 
− escalation of the materials and construction costs much faster than average inflation 
rates; 
− increased complexity of project integrat ion in managing interfaces across 7 Parties 
[rather than the 3 Parties foreseen in 2001]; 
− the effort needed to ensure sufficient desi gn specifications of the ITER components to 
initiate tender action for industry [In 2001 the design was generic; and not detailed 
enough for tenders]; 
− 2001 cost estimates that are now seen  to have been rough and tight.  
                                                 
7 Note from the Commission on ITER status for the Competitiveness Counc il of 1-2 December 2008. 
16451/08 – RECH 394 – ATO 119. 
EN 5   EN − higher resources than foreseen for inspecti on and testing to comply with the Quality 
Assurance requirements for a nuclear instal lation and the millions of parts to be 
assembled; 
− the start-up costs of establishing aut onomous organisations from scratch. 
Since the end of 2008, the Commission has kept the Council of the EU closely informed on 
any development in this respect. The European Pa rliament has also expressed its interest in the 
project on various occasions.  
On 29 May 2009, the Commission pr esented to the Council a summ ary of the status of the 
ITER project, the challenges faced and the ac tions taken. The Commission also set out a 
number of boundary conditions  that it considers pre-requisite to be met in order to ensure the 
success of the project at acceptable cost and reas onable risks. These conditions include credible 
cost assessment and cost containment policies,  realistic timetable and sound management of 
the project at all levels.  
At its meeting of 16 November 20098, the Council confirmed it s unanimous support to the 
ITER project, understanding that the construction cost of ITER would be substantially higher 
than initially planned, a nd "provided that the boundary conditions elaborated by the 
Commission in the end can be met". 
The Council also concluded that the " Baseline ", which refers to the inter-related elements of 
scope (specifications of the machine to build), schedule (time table for construction) and cost 
for ITER, must build upon a scenario providi ng the optimal conditions for the project by 
integrating the above-mentioned boundary conditi ons. It called for action to be taken on 
necessary management changes, and a strong polic y to be applied on cost  reduction and cost 
containment. In addition, the Council invited the Commission to expl ore possibilities for 
providing the increased funding needed. 
Today, for our international partners in ITER, the critical step for the project is to agree on the 
Baseline which is an item to be decided upo n at the next meeting of the ITER Council 
currently scheduled for mid June in China. The adoption of the Baseline by the ITER Council 
would enable the ITER Organization, its Member s and their Domestic Agencies, to develop a 
coherent and credible basis fo r the construction of ITER.  
The adoption of the Baseline had been target ed for the fifth ITER Council meeting in 
November 2009 but it was not achieved. The Commission delegation, following the political 
direction of the EU Council, ma de clear that the boundary conditions were not respected and so 
declined to adopt the proposed schedule. Euratom, the main  contributor to the project, was 
isolated in taking this position. In the run up to the currently schedul e June 2010 ITER Council 
when the final agreement is expected on the Baseline, Euratom has already delayed this 
decision.  
                                                 
8 Documents 15815/09 RECH 401 ATO 136 + ADD 1 RESTREINT UE. 
EN 6   EN 3 ITER  COST 
3.1 Framework of the ITER Agreement 
Through the international ITER Agreement, Eura tom has taken the major responsibility for the 
construction phase of the project. During this phase Euratom contributes 5/11 (around 45%) of 
the total, of which 80% is funded from Euratom and 20% from France, the rest being equally divided among the other 6 ITER Parties (1/11 or around ~9% each)
9.  
During the operation and deactivation phases, Eu ratom will contribute to 34% of the total 
costs. 
Table 1: ITER project cost breakdown and sharing10: 
EUother 
Parties 
eachMEuros
 [2008 value]
In-kind 45.46% 9.09% 1,735
Cash 45.46% 9.09% 945
Total 45.46% 9.09% 2,680
Operation costs 34.00% 13.00% 1,915
Fund for 
decommisioning34.00% 13.00% 209
De-Activation
(5 Years)Total 34.00% 13.00% 111
TOTAL 4,916EU share
281
10,730MEuros
 [2001 value]
1,492
814
2,306
1,648
180
96
4,230Construction
(10 Years)
Operation
(20 Years)MEuros
 [2001 value]
3,282
1,790
5,073
4,847
530Cost Sharing Total ValuesITER Agreement Total Value of the ITER Project and EU Share for the various Phases of the Project
 
In 2001 the ITER Parties (then EU, Japan and Russi a) provided cost estimates of the project on 
the basis of technical specifications prepared by the ITER design team at that time. These 
estimates provided the basis for the ITER Parties to make their decisions on the scope of their 
involvement in implementing ITER11 and serve as a basis for th e conclusion of the ITER 
Agreement in November 2006. 
3.2 Initial estimates for the Euratom contribut ion to ITER construction (based on 2001 
estimates) 
Due to the specific nature of the Agreement, Euratom, as every other Party, committed to 
provide the agreed contributions in kind independently of the final cost  of procuring and 
delivering those components. The final cost of each ITER component to be delivered in kind 
                                                 
9 Cost Sharing for all Phases of th e ITER Project. Attachment 2(b) to the Final Report on Negotiations on 
the ITER Joint Implementation, 1 April 2006 
10 This table derives from the attachments to the ITER  Agreement: "Final Report of Negotiations on ITER 
Joint Implementation, 1 April 2006 Attachment 2_A", and "Final Report of Negotiations on ITER Joint Implementation, 1 April 2006 Attachment 2_B". 
11 Common Understanding on Procurement Allocation, A ttachment 2(c) to the Final Report of Negotiations 
on ITER Joint Implementation, 1 April 2006. 
EN 7   EN will be known only when the procurement process is completed and the components accepted 
by the ITER Organization. 
According to the 2001 estimates, the Euratom contribution, amounted to EUR 2680 million  (in 
2008 value), corresponding to EUR 1 735 million fo r the components/systems to be provided 
“in kind” , and EUR 945 million to be provided "in cash" to the ITER Organization. These 
2001 estimates for the Euratom contri bution exclude F4E other activities12 and its running 
costs, as F4E was established late 2007. 
3.3 Revision of the estimates for the Euratom contribution 
The original estimates for Eurato m contributions have evolved sin ce the original calculations in 
2001 to take account of the latest updated estimates from 2008 and 2009: 
− of the revised actual costs to Euratom of m eeting its obligations for contributions in 
kind, which were assessed during 2008 by an  Ad-Hoc Group to the F4E Governing 
Board chaired by R. Toschi13.On average, more than half of the differences between the 
2001 estimate and the 2008 one could be attributed  to so-called internal factors (specific 
to the project) mainly linked to evolution of  the project e.g. (i) design changes; (ii) 
assessment of technologies; (iii ) Quality Assurance. The rest of the difference is due to 
external factors that would affect any simila r construction project such as increases of 
the real cost of raw materials and labour. For one of the major components, the ITER 
buildings, an independent assessment was carried out by a group of experts nominated 
by the Member States and by the Commission. The outcome of this assessment is fully in line with the costing exercise made by the Toschi group and a civil engineering 
consultancy contracted by  the ITER Organization
14.  
− of the IO revised costs related to the de sign and the management resources needed, 
which were assessed by an in ternational experts panel se t up by the I TER Council and 
chaired by F. Briscoe15. 
and to include the costs of ope ration and other activities of F4E following its establishment in 
2007 which were not foreseen in the 2001 cost estimates. 
3.4 Current estimates of Euratom contributions during the ITER construction period 
The initial period estimated for the constructi on of ITER was of 10 years. The schedule 
currently used as a working basis aims at star ting the operation phase with a First Plasma in 
November 2019. Because the first operation will ta ke place without all the equipments installed 
in ITER, the operation phase will then overlap w ith the completion of the construction phase. 
For the purpose of budget planning , the ITER construction could be  considered to extend to 
2020, as all the major investments are exp ected to be completed by that time. 
                                                 
12 "Other activities", according to the tasks of the Joint Undertaking as per ref. Error! Bookmark not 
defined. , refer to the ITER Test Blanket Programme, the implementation of the Broader Approach 
agreement with Japan and to the activities in prepara tion for the construction of a demonstration fusion 
reactor. 
13 Report from the Ad Hoc Group on the Cost of the EU In-kind Contributions to ITER. ref F4E(08)-GB08-
07. 8th meeting of the F4E Governing Board of 4th December 2008. 
14 Report on the independent assessment of ITER buildings cost estimates dated 17.December.2009 and 
transmitted to the Member States on 20 January 2010. 
15 Assessment of resource estimates for ITER construction, 5th meeting of the ITER Council 18-19 
November 2009. Record of decisions, attachment 8 appendix C. 
EN 8   EN The current cost estimates updated by F4E accord ing to the proposed schedule and presented to 
the F4E Governing Board in March 201016 amount to EUR 7 253 million (in 2008 value), 
subject to possible modification upon adoption of  the Baseline (scope, schedule, cost). These 
current estimates comprise: EUR 6.6 billion (6 603 million in 2008 value that would require 
EUR 5 282 million of funding fr om Euratom and EUR 1 321 m illion from France) for the 
contribution to ITER construction and EUR 650 million for the F4E running costs and other 
activities. The resulting overall contribution required from Euratom would be of EUR 5.9 
billion (EUR 5 892 million)17. A comparative evolution of the cost estimates is presented in 
Table 2 and related Figure 2 here after. 
                                                 
16 F4E(10)-GB15-08-RESTRICTED -F4E Governing Board meeting of 30-31 March 2010. 
17 To this contribution about EUR 40 million should be added, which come from the F4E members 
(EURATOM, 27 Member States and Switzer land) other than EURATOM and France. 
EN 9   EN Table 2: Evolution of estimates of ITER related costs from 2001 estimates to updated 
estimates  
As agreed in 2006 
on the basis of 
2001 cost estimate2010 update
Euratom 2145 5282 Euratom 5892
France 536 1321 France 1321
total 2680 6603 F4E other members** 40
Total 7253 Total 7253
** The F4E members (Euratom, 27 Member States and Switzerland) other than Euratom and France make contributions not 
exceeding 10% of the annual resources required for the administration of the Joint Undertaking (a total of about EUR 40 
million for the ITER construction period, 2007-2020)ITEREU contribution to  ITER 
construction
(in M€ 2008 value *)
6603
* These estimates do not include inflation from 2008 onwards.Breakdown contributions to 
the overall F4E budget
during the ITER construction 
period 
2010 update
(in M€ 2008 value*)Overall F4E budget 
during the ITER 
construction period 2010 
update
(in M€ 2008 value*)
F4E running 
costs and other 
activities650
 
 
Figure 2: Graphical representation of the Table 2  
EU contribution to the overall F4E budget
(for ITER and other related activities during 
the ITER construction period)
F4E
running costs 
and other activities
650
F4E
running costs 
and other activities
650EU contribution to ITER construction
2010 update2010 update
Euratom
5892
Euratom
5892
Euratom
(80%)
2145
Euratom
(80%)
2145
French
contribution
(20%)
536
French
contribution
(20%)
536Euratom
(80%)
5282
Euratom
(80%)
5282
French
contribution
(20%)
1321
French
contribution
(20%)
1321(all M€ 2008 value)
Agreed in 2006 on 
the basis of 
2001 cost estimateAgreed in 2006 on 
the basis of 
2001 cost estimate2010 update2010 update
ITER
Construction
6603
ITER
Construction
6603Total
7253Total
7253 Total
2680
of which
In-kind: 1735
Cash to IO: 945Total
2680
of which
In-kind: 1735
Cash to IO: 945Total
6603
of which
In-kind:  5128
Cash to IO: 1475Total
6603
of which
In-kind:  5128
Cash to IO: 1475
French
contribution
1321
French
contribution
1321
F4E other
members 
contribution
40
F4E other
members 
contribution
40
 
EN 10   EN Indicative profiles for cost estimates and Eura tom's contribution during the ITER construction 
period  
The estimate of Euratom's share of the F4 E resources (including F4E running costs but 
excluding the contribution from France) throughout the whole construction period (2007-2020) 
of about EUR 5.9 billion  (in 2008 value) is broken down as follows: 
− For 2007-2011 (5 years) the estimated fina ncial needs are about EUR 1.3 billion; 
− For 2012-2013 (2 years) the estimated financial needs are about EUR 2 billion; 
− For 2014-2020 (7 years) the estimated fi nancial needs are about EUR 2.6 billion. 
A profile of the original and updated estimates  of Fusion for Energy needs and the Euratom's 
share total contribution to ITER (including F4 E running costs and other activities but excluding 
the French contribution to I TER construction) is presen ted in Figure 2 here under: 
Figure 3: F4E total indicative resource estimate (2008 value) during the ITER 
construction period. 
0200400600800100012001400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year -->
M€ -->Updated Estimate Total
(Euratom & France)
Original*  Estimate Total(Euratom & France)
Updated EstimateEuratom contribution
(without France)
Original* Estimate
Euratom contribution(without France)
*The original estimate in this graph includes the Euratom contribution to ITER construction based on 2001 assessment and the 
resources projected  for the running cost of F4E and other activities as included in the 2007 Council decision establishing F4E
 
The peak in the resources needed in the year s from 2012 to 2015 is linked to the start in 2012 
of the major construction activ ities on site and the launch of  the series production of many 
components that will follow the fabrication of prototypes. 
3.5 The gap between the initial and the updated cost estimates 
The initial cost estimate of the Euratom contri bution for the ITER cons truction (to be provided 
by Euratom and France), based on the 2001 assessment, was of EUR 2.7 billion (in 2008 value 
and excluding F4E running co sts and other activities). 
EN 11   EN As the updated total F4E cost estimates including the contribution to the ITER construction and 
the F4E running costs and other activities are of about EUR 7.2 billion (in 2008 value) for the 
period of ITER construction (2007-2020), more th an a doubling of the Euratom contribution to 
ITER construction is required compared to the initial estimates (see Table 2).  
Thus, there is a substantial gap between the in itial and the current updated overall estimates 
that needs to be considered in order to take  decisions about the future of the project.  
The cost estimates of the project are continually  being improved and refined as is the case for 
large-scale and long-term infras tructures/research projects. Uncertainties around the current 
cost estimates for the early period of the cons truction phase have been significantly reduced 
mainly due to the advancement on the desi gns and the assessment s made by industry.  
However, beyond that early period of construc tion, it cannot be excluded that further cost 
increases will emerge in the future through the la ter parts of the construction and the operation 
phases of the project (e.g. during the proc ess of assembling the many thousands of 
components, coming from the 7 different parts of the world). 
A strong policy for cost containments alrea dy initiated both at the level of the ITER 
Organization and of F4E will have to be vigorou sly pursued in order to control and mitigate as 
much as possible further escalation of costs. 
The gap between the programmed expenditure  for 2012 and 2013 and the estimated needs  
The current instrument for fundi ng of ITER is the Seventh Fram ework Programme (FP7) of the 
European Atomic Energy Community (Euratom) for nuclear research and training activities 
(2007 to 2011)18.. The provisions in the Multiannua l Financial Framework (2007-2013), 
covering the Euratom FP7 and programmed ex penditure for 2012 and 2013, were made taking 
into account the initial cost estimate, and the need for establishing the Domestic Agency, F4E. 
Some EUR 2.1 billion (in current value)19 of commitment appropriations from the Euratom 
Budget would be needed for the years 2012-2013 in  order to commit the procurements needed 
early in the construction process. Considering the programmed appropriations available for this 
purpose in the current Multiannual Financial Framework (EUR 346 million for 2012 and EUR 
344 million for 2013 in current value), Euratom is  facing an estimated deficit on commitment 
appropriations of about EUR  1.4 billion (in current value) for the years 2012-2013  (EUR 550 
million in 2012 and EUR 850 million in 2013) in a ddition to the contribution from France, in 
order to honour the Euratom obligat ions under the ITER Agreement.  
                                                 
18 OJ L 460, 30.12.2006. 
19 While cost estimates for ITER construction have b een done in EUR 2008 value, to allow immediate 
comparison with existing ceilings in the budget inst ruments, the need for 2012-2013 are presented in 
EUR current value. 
EN 12   EN Table 3: gap in the resources needed  
in million Euro (current value Error! 
Bookmark not defined. ) 2012 2013 TOTAL 
A- F4E projection on commitment 
appropriations from Euratom FP7 budget  ca. 900 ca. 1200 ca. 2100 
B- Indicative amount available for the new 
Euratom FP7 budget contribution to ITER (row A in table 1)  ca. 350 ca. 350 ca. 700 
Additional commitment appropriations 
required for Euratom (A – B)  ca. 550 ca. 850 ca. 1400 
4 MEETING  THE  BOUNDARY  CONDITIONS,  STATE  OF PLAY. 
Good progress is being made in meeting the bo undary conditions that the Commission believes 
necessary to ensure the success of the projec t at acceptable cost and reasonable risks.  
4.1 Cost estimates  
In view of the scale of variati ons indicated, as well as the uncer tainty of the revised estimates 
for the IO and for F4E, each of these bodies has been subjected to independent expert assessment (see footnotes 14 and 15). Significant progress has been achieved on the assessment 
of the cost estimates for ITER construction, which are the best estimates attain able. This is 
mainly due to the increase in the level of maturity of the design of the machine which allows decreasing the ranges of uncertain ty and to the development and implementation by IO of more 
rigorous and transparent costing methodologies. 
Those estimates are not foreseen to undergo mate rial variations in th e short term. Given the 
scale and nature of an undertaking such as ITER  at the edge of global scientific and technical 
knowledge, cost estimates and the management of co st evolution will be subject to an agreed 
range of cost containment measures to mini mise the risk of unforeseen cost overruns.  
4.2 Cost containment policies 
As from 2008, when IO and F4E entered in to the implementation phase of the ITER 
construction, and in face of the high technical pressure giving rise to increasing costs, cost 
containment policies and measures have been pur sued with the highest priority by the IO and 
F4E and feature as regular items on the agendas of their governing bodies.  
Focusing mainly on the design of  the ITER machine and its inte gration, the ITER Organization 
has been directed to pursue measures to optim ize cost, reduce risk and simplify interfaces. A 
range of measures are being pursu ed in this sense, including: 
− value engineering studies for the overall design20,  
                                                 
20 Value engineering is a systematic method to improve the "value" of goods or products and services by 
using an examination of function. 
EN 13   EN − rationalising the allocation of  procurement obligations,  
− agreeing standards and  
− exploiting economies of scale.  
The ITER Council has encouraged further activi ties along the lines presented and charged the 
ITER management to make quantified assessment s of their effects to be monitored. In this 
regard, the European Commission would encourage an active and transparent monitoring of an 
agreed list of cost containment measures to be approved by the ITER Council and to be 
reported on annually or as soon as si gnificant cost escalations arise. 
At EU level, the F4E Governing Board on 30- 31 March 2010 discussed the efforts made on 
cost containment for the EU in-kind contribut ion and found that F4E is engaged on several 
fronts in a wide range of technical, contractual and industrial measures th at aim to reduce risks 
and contain costs. These measures include: 
− procurement strategies 
− value engineering for the procurements 
− contractual and industrial measures incl uding active promotion of competition and 
adapting the provisions of F4E contracts. 
These measures will be complemented by anal yses of the recently awarded tenders which 
should allow F4E to identify trends and to further refine its strategy. 
Euratom and other Members of the F4E Govern ing Board shall receive a report setting out 
progress on these measures annually or in real time when there is a risk of significant cost 
escalation. 
4.3 Realistic timetable for the ITER construction 
The schedule of construction leading to an ope rational phase by the end of 2018, as proposed 
by IO in September 2009, was found to be too risky and costly, in particul ar for Europe which 
has the responsibility for providing major com ponents early in the construction. On these 
grounds and in accordance with the conclusions  of the EU Council, Europe opposed the 
adoption of this schedule at the last ITER C ouncil of November 2009. Th is triggered criticism 
from the other ITER Members. 
Since November 2009, the IO and the Domestic Agen cies of the Parties have been working on 
a revised and more realistic schedule, seeking, wh ere possible, to acceler ate schedules to meet 
demanding delivery dates and to mitigate risks. After intense work of F4E in consultation with IO, industry and other Domestic Agencies, it ap pears that the current proposed schedule, under 
which the operational phase would be attain ed in early November 2019, appears to be 
technically credible and achievable, and in line w ith delivery dates that the Parties assess to be 
realistically achievable, provided that the risk mitigation approaches are successful.  
4.4 Sound management of the pr oject at all levels  
− Management of the European contribution to ITER  
A management assessment of F4E, conducted in the second half of  2009, concluded that 
radical changes were needed to the organisation and culture of the agency to put it in a position 
to fulfil Europe's obligation to ITER. Early January 2010, the Director of F4E resigned and a 
new Director has been appointed ad interim . He is restructuring F4E in light of the 
management assessment report. All efforts will also  be made to review the functioning of F4E 
EN 14   EN governance in ensuring cost containment a nd most efficient use of resources and the 
monitoring of F4E activities by th e Commission will be reinforced. 
− Management of IO  
The ITER Council of June 2009 established a Management A ssessment of IO. The report, 
delivered to the last ITER Council (November 2009) , stated that changes were needed of both 
the top management and the organizational structure.  
The ITER Parties reached in February 2010 a common understanding concerning changing the 
top management of IO. The agreed  steps are now being taken with the view to formalising top 
management change at the ITER Council in June 2010.