The Lord Chancellor's Department's troubled Libra project will cost £134m more than originally anticipated, according to a report by the National Audit Office (NAO).

Libra was designed to provide a standard IT system for Magistrate's Courts including upgraded infrastructure, office automation facilities, a national casework application and electronic links with other criminal justice agencies such as the Crown Prosecution Service.

The original £184m private finance initiative contract was awarded to ICL in 1998 but the implementation was dogged with problems and the deal collapsed in July last year.

ICL - now Fujitsu Services - was left with responsibility for just the infrastructure part of the project, with separate contracts to be awarded for the software and systems integration work.

After re-negotiations last summer, the infrastructure is costing £232m over 8.5 years. The software and systems integration contracts are expected to cost £86m, bringing the total cost to £318m over 8.5 years.

Public Accounts Committee chairman Edward Leigh says Libra is one of the worst IT projects he has ever seen.

'Not only has the cost more than doubled since the original bid but the system will be available for two years less than originally planned. This is a shocking waste of money,' he said.

The NAO report says that the important lesson to be learned is the need for technology projects to run alongside business process changes.

'IT system changes should be planned to support redesigned business processes. Undertaking one without the other is unlikely to deliver value for money,' it said.

'The Department needs to plan ahead now for the IT systems to replace Libra and other court systems where the contracts are due to end in 2007.'