Nuclear contract to save taxpayer more than £1.5 billion

NDA new 200More than £1.5 billion of savings for the public purse are anticipated as The Cavendish Fluor Partnership (CFP) begins to implement its plans to decommission 10 of the UK’s first nuclear power stations, and two pioneering research facilities.

All bar one of the 12 sites has already embarked on the long-term decommissioning journey, and they will soon be joined by Wylfa Power Station on Anglesey, when it reaches the end of its electricity generation phase.

The new contract, formally awarded today by the NDA, will take all the sites through to the final stages of their decades-long programme of work. CFP will build on the progress already made, achieving the requirements specified by the NDA at a lower cost than previously envisaged.

Today’s share transfer event ends the NDA’s two-year procurement process to appoint a new parent body organisation for Magnox Ltd and Research Sites Restoration Ltd. The NDA’s contract with CFP outlines a clearly defined programme of work and challenging financial targets, in line with the tender submission, that will deliver real value for taxpayers. The Cavendish Fluor Partnership – a joint venture between the UK’s Cavendish Nuclear, part of Babcock International, and US-based Fluor Corporation – will own the shares in the two Site Licence Companies (SLCs) for the 14-year contract period. The SLCs will continue to operate the sites on behalf of the NDA.

Commenting on the hand-over, Baroness Verma, Parliamentary Under Secretary of State for the Department of Energy & Climate Change, said:

“These sites led the world in developing nuclear energy for the citizens of the UK. Today marks an important milestone in the long term environmental restoration programme for the first generation of nuclear sites in the UK.”

NDA Chief Executive John Clarke added:

“Today is a significant achievement for the NDA. By introducing a fundamentally different contract, based upon a clear understanding of the scope of work to be delivered across 12 sites over 14 years, we have been able to generate real competitive tension during the competition process. We are delighted that our approach looks set to deliver a reduction in decommissioning costs of more than £1.5 billion.”

Kevin Thomas, CFP chairman, is delighted to have won the contract:

“The Cavendish Fluor Partnership brings together a world-class team with unrivalled capability; with proven expertise in both international decommissioning and nuclear site management. We are looking forward to working closely with the NDA and the sites to deliver this extensive decommissioning programme, safely, on schedule and within budget. By combining our breadth of experience and utilising both proven and innovative solutions, we will deliver significant savings to the UK taxpayer.”

An invited audience of stakeholders joined the NDA and CFP at an event, held in Manchester’s Museum of Science and Industry, to mark the occasion and witness the signing of a collaboration agreement. Among the guests were Baroness Verma, senior representatives from the Governments of England, Scotland and Wales, the nuclear regulators, site stakeholder groups, trade unions, Magnox nd RSRL workforces.

The CFP bid was selected from four tender submissions which were evaluated against a range of criteria including cost, health, safety and security, underpinning technical rationale, commercial terms and approach to socio-economics.