The decision to select Cavendish Fluor Partnership as the Preferred Bidder for the 12 Magnox Ltd and RSRL sites was announced in March and brings the two-year procurement process closer to a conclusion. Share transfer will take place in September and will bring the opportunity to save the taxpayer more than £1.5 billion from the cost of taking the historic sites to the last stage of decommissioning before the final clean-up many decades into the future.
Earlier in the financial year, the NDA also extended the Sellafield contract, awarded to Nuclear Management Partners (NMP) in 2008, following rigorous assessment of possible options.
NDA Chief Executive John Clarke said:
“Making progress on the high-hazard facilities at Sellafield remains our number one priority. The decision to continue the contract with NMP into a second five-year term was made after extensive consideration and we believe that this offers the greatest likelihood of achieving this progress.”
Mr Clarke said that an updated plan for Sellafield was currently being reviewed, which will reflect a greater emphasis on assessing uncertainties surrounding the complex work required on the site’s ageing high-hazard facilities.
“We have noted the Public Accounts Committee’s concern about the importance of providing transparency to the taxpayer over the full range of possible costs of the NDA’s mission and have been working to provide a better estimate of the range which we are publishing in our Accounts.”
Positive progress is reported for the Magnox Optimised Decommissioning Programme (MODP) which continues to deliver good progress with defueling at Sizewell A now past the 75% mark and due to complete by September 2014. Trawsfynydd passed the halfway point in its journey towards entry into the Care and Maintenance stage in 2016, underlining the momentum behind its decommissioning programme.
The report also notes that at Dounreay, the NDA’s contractor, Cavendish Dounreay Partnership (CDP), is delivering on its promise to accelerate the programme and achieve savings for the taxpayer. Whilst there has been a requirement to add some additional scope into the baseline at Dounreay which is requiring increased expenditure, cost and schedule are being held against the original scope over the first two years of CDP’s contract.
In terms of revenue, commercial income of £935 million was secured by exceeding targets through sustained performance from the last remaining Magnox power station at Wylfa, the conclusion of commercial deals in respect of nuclear materials in the UK and through continued progress in the reprocessing and management of spent fuels. In addition, tight control of spending has seen the support and overhead costs in the estate reduce by more than the 25% target over four years which has meant more expenditure committed to front-line decommissioning activity.