NDA has announced that that the Cavendish Fluor Partnership, a joint venture between Cavendish Nuclear and Fluor Corporation, has been selected as preferred bidder in the competition to take ownership of Magnox Ltd and Research Sites Restoration Limited (RSRL).
Whilst being selected as preferred bidder is not the end of the competition phase, it is major step in the process. All parties now enter into a mandatory 10-day standstill period, which will be followed by a five-month transition phase, during which the contract between the NDA and Cavendish Fluor Partnership will be finalised. The formal award of the contract is planned for 1st September 2014.
The transition period provides time for members of the new executive team to introduce themselves to the existing management and workforce and undertake a handover period from existing management.
Following successful transition, Cavendish Fluor Partnership will become the new Parent Body Organisation and take ownership of Magnox Ltd and RSRL, the Site Licence Companies for 12 nuclear sites, through share transfer. It is anticipated that this contract will provide savings in excess of £1 billion in the decommissioning programme for the 12 nuclear sites.
The competitive process continues until share transfer on 1st September 2014, and the NDA intends that the non-preferred bid remains in reserve until then.
John Clarke, NDA Chief Executive, said: “The selection of Cavendish Fluor Partnership as the preferred bidder is a significant step in our drive to attract world-class management and innovation to our sites. The Cavendish Fluor Partnership brings a successful track record and extensive nuclear experience that will bring enormous benefits to the decommissioning and clean-up programme.”
Roger Hardy, Cavendish Nuclear’s Managing Director, expressed his delight at the news: “Being selected as preferred bidder is a fantastic achievement. The Cavendish Fluor Partnership brings together outstanding international decommissioning, operational and site management expertise and we look forward to working with the Magnox and RSRL teams to deliver the sites’ programmes safely and cost effectively.”
Bruce Stanski, president of Fluor’s Government Group, said: “We are pleased our joint venture with Cavendish Nuclear has been selected as the preferred bidder for this prominent nuclear contract. We look forward to bringing our expertise gained from decades of managing and operating nuclear decommissioning sites.”