Angela Jameson, Industrial Correspondent
Win a fitness package worth more than £3,000
A consortium including Amec, the British engineering group, Areva of France and Washington Division of the US surprised the nuclear industry yesterday by snatching a £6.75 billion contract to clean up Sellafield from under the noses of some of Britain and America's biggest nuclear experts.
The Nuclear Decommissioning Authority (NDA) revealed that the Nuclear Management Partners (NMP) consortium had beaten stiff competition from three other bidders.
News that the nuclear power station developer Areva will be involved in Sellafield in the long term has increased speculation that the site in Cumbria will become home to one of the UK's new generation of nuclear power stations.
Areva works closely with EDF, the French energy giant, which has been considering Sellafield as a potential site.
Bob Pedde, of Washington Division, part of the URS Corporation, the construction and engineering group, will head the consortium that is set to take over day-to-day management of Sellafield in November.
He refused to comment on why his consortium had won the contract, other than to say that it had offered best value for money to the NDA.
“The contract is designed to last for 17 years in five-year increments and we intend to be there for the long term,” he said. The NDA said that the contract is worth £1.3 billion a year, plus annual fees of £50 million.
Prospect, the main union at Sellafield, welcomed the award yesterday, saying that Amec in particular had strong connections with the local community. Mike Graham, Prospect national secretary for the North West, said: “This was something of a surprise but is nevertheless welcome. Amec and Areva have shown that they are keen to develop commercial opportunities at Sellafield.”
However, Greenpeace expressed concern that Sellafield's future would be in predominantly foreign hands. Ben Ayliffe, head of Greenpeace's nuclear campaign, said: “The degree to which the NDA has bent over backwards to accommodate foreign companies beggars belief.
"Not only could this contract be worth £22 billion of taxpayers' money, they have also waived the insurance indemnity meaning that public money could be used to sort out any accidents that occur on site.”
The losing bidders included Fluor of the US, which had teamed up with Japanese group Toshiba; a consortium made up of Bechtel and Babcock & Wilcox of the US and Serco of the UK; and CH2M Hill, the US engineering contractor.
However, NMP now finds itself in the throes of a dispute with Sellafield's 10,000 workers. After months of negotiations, the employees have rejected a 2 per cent pay settlement and will ballot on industrial action this month.
They are expected to vote for a strike, which would shut down the plant for up to a week.
Industry sectors news at a glance. Interactive heatmap, video and podcast
The inside track on current trends in the charity, not for profit and social enterprise sectors
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
Everything the Business Traveller needs to know to make a better trip
Shortcuts to help you find sections and articles
05/2005
£13,500
08/2008
£109,950
2006
£10,750
Great car insurance deals online
£Excellent+ executive benefits
Torres and Partners
London
£49,229 - £62,035 pro rata
Charity Commission
London/Liverpool/Taunton
Alstom Power
Europe
Six Figure
Rolls Royce
Midlands/Europe
From £89,950
Great Investment, River Views
Special Offers now available
At the new sophisticated
Encore Las Vegas Resort!
Cruise the Islands of Hawaii - Pride of America
List your property with two leading travel websites
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths
News International associated websites: Globrix | Property Finder | Milkround
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
This has occurred because BNFL, over many years, had proven to be completely incompetent - at all levels of operation. Regardless of the continual self-congratulations espoused in their annual reports and elsewhere.Trouble, the NDA and others have become infested with BNFL staff.
Michael, Bridgwater,, Somerset