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GMB Seek Talks With New Magnox Bidder

Monday, March 31, 2014

GMB Seek Urgent Talks With Cavendish Fluor Partnership Preferred Bidder For Decommissioning 10 Magnox Nuclear Power Stations

We want to ensure that this is a positive move for the workforce and nuclear communities says GMB.

GMB, the union for nuclear energy workers, commented on the announcement that CFP (Cavendish Fluor Partnership) has been named as the preferred bidder in £ multi-billion nuclear decommissioning contract for Magnox stations. See notes to editors for copy of NDA press release.

There are 10 nuclear licensed sites owned by the UK’s Nuclear Decommissioning Authority (NDA). These are Berkeley, Bradwell, Chapelcross, Dungeness A, Hinkley A, Hunterston A, Oldbury, Sizewell A, Trawsfynydd and Wylfa. Wylfa is still generating electricity whilst the other sites are at various stages of defuelling and decommissioning.

Gary Smith, GMB National Secretary for energy, said “GMB will be seeking urgent talks with the Cavendish Fluor Partnership. We want to ensure that this is a positive move for the workforce and nuclear communities.

We do know Fluor have a tradition of training. They have a state of the art training facility at Farnborough which is testimony to their investment in training. We hope we see similar commitments to training and development in Magnox.

GMB is still extremely concerned that the UK has no strategic direction for nuclear. The political leadership just isn't there.”

End

Contact: Gary Smith 07710 618 909 or GMB press office 07921 289880 or 07974 251 823

Notes to editors

Nuclear Decommissioning Authority press release dated 31 March 2014

CFP (Cavendish Fluor Partnership) named as preferred bidder in £multi-billion nuclear decommissioning contract

Savings of at least £1 billion in the decommissioning programme of 12 nuclear sites are anticipated after the Nuclear Decommissioning Authority (NDA) today named the Cavendish Fluor Partnership as the Preferred Bidder in the competition to take ownership of Magnox Ltd and Research Sites Restoration Ltd (RSRL).

The proposals submitted by Cavendish Fluor Partnership will take the 12 historic nuclear sites into the final stages of decommissioning and, in line with the NDA's strategy, will significantly reduce demands on the public purse.

Cavendish Fluor Partnership is a specially created joint venture between Cavendish Nuclear and Fluor Corporation.

The successful 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.

Today's announcement is a key milestone in the two-year competitive process to secure a world-class Parent Body Organisation (PBO) for the two Site Licence Companies. Tenders from four bidding consortia were subject to comprehensive evaluation and scrutiny over the last four months.

A mandatory standstill period and a five-month transition phase now follow while the contract between the NDA and Cavendish Fluor Partnership is finalised and all legal processes are completed.

During the transition period, members of the new executive team will introduce themselves to the workforce and the current management team.

Following successful transition, Cavendish Fluor Partnership will become the new Parent Body Organisation and take ownership via the transfer of shares of two site licence companies, Magnox Ltd and RSRL, on 1st September 2014. Until this point, the current PBOs will remain in charge and the three remaining bids will also be held in reserve.

Cavendish Fluor Partnership will build on the progress already made in decommissioning and environmental restoration at these historic sites and deliver the outcomes required by NDA at a lower cost than currently planned.

The competition was based on the key criteria of securing the highest standards of safety and environmental performance, together with value for money for the UK taxpayer.

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.

"We have undergone a comprehensive and rigorous process aimed at securing the best possible parent body for these challenging sites. Cavendish Fluor Partnership bring a successful track record and extensive nuclear experience that will bring enormous benefits to the decommissioning and clean-up programme."

Magnox Ltd is responsible for decommissioning 10 Magnox reactor sites, located in England, Scotland and Wales, which were the first generation of civil nuclear power plants in the UK built during the 1950s and 60s. RSRL is responsible for decommissioning two pioneering nuclear research centres at Harwell and Winfrith. The incumbent PBOs, EnergySolutions and UKAEA, will hand over to the new PBO on 1st September when the shares will be transferred, marking completion of one of the most significant public sector contracts to be awarded in 2014.

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