NATO Infrastructure Program

As Threat Declines, NATO Reduces Expenditures Gao ID: NSIAD-92-174 May 1, 1992

Recent political, economic, and military changes in Europe have caused the North Atlantic Treaty Organization (NATO) to reassess potential military threats and its future defense strategy. Congress has cut U.S. contributions to NATO for fiscal year 1991 from $325 million to $192.7 million, about 48 percent of the 1990 appropriations level. This report examines (1) NATO's efforts to reassess existing infrastructure program requirements, (2) the impact of reduced U.S. funding on NATO's infrastructure projects, and (3) the results of U.S. military commands' review of U.S. user infrastructure requirements.

GAO found that: (1) by March 1991, NATO had eliminated or deferred projects valued at $1.4 billion and an additional $291 million in November 1991 for projects approved from fiscal year (FY) 1985 through FY 1991; (2) although the United States significantly reduced its FY 1991 appropriation for the NATO infrastructure program, it was able to cover all but over $15 million in 1991 U.S. commitments; (3) NATO revalidated infrastructure projects it had approved in FY 1985 through FY 1991 and has reduced its program by $1.7 billion; (4) U.S. commanders cancelled 57 projects, valued at $414.5 million, and deferred 74 others, totalling about $792 million; (5) higher appropriations may be requested, after FY 1993, unless the infrastructure program is further reduced, primarily because millions in recoupments will remain after FY 1993, a greater percentage of FY 1994 appropriations will be needed to meet prior year commitments, and in 1991, the U.S. stretched its obligation authority as a result of changes in NATO procedures for funding new projects; (6) NATO and U.S. commanders believe that the decreased threat and planned reduction of forces in Europe increase the need for reinforcement forces and associated support infrastructure; (7) the Supreme Allied Commander, Atlantic has cancelled or deferred 18 projects in the last 2 years totalling $203.1 million, while the U.S. Commander in Chief, Atlantic Command (CINCLANT), has deferred 44 future projects, valued at $658.3 million; and (8) projects planned for Keflavik Naval Air Station in Iceland, valued at $178 million, may not be needed, since they would provide capability beyond current requirements.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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