The Nuclear Decommissioning Authority

02 April 2012

The Nuclear Decommissioning Authority (NDA) today announced completion of one of the UK's largest public contracts, making savings well in excess of £1 billion for the UK taxpayer when responsibility for the decommissioning of the Dounreay nuclear site in Caithness transferred to a specially created private sector consortium, Babcock Dounreay Partnership.

Today's transfer of shares signals the successful conclusion of a two-year competition run by the NDA to secure a world-class parent body for Dounreay Site Restoration Ltd (DSRL), the company that operates the site under contract to the NDA.  

Commenting on the hand-over, Rt Hon Michael Moore MP, Secretary of State for Scotland said:

"Dounreay was a beacon of engineering excellence in its operating days. It is now a world centre of excellence in decommissioning skills. Today marks an important milestone and I wish the new PBO well." 

Scottish Government's Cabinet Secretary for Rural Affairs and the Environment, Richard Lochhead, also welcomed the successful completion of the Dounreay competition: 

"The Scottish Government is committed to cleaning up the nuclear legacy it has inherited. Today's announcement is good news as it will allow Dounreay to enter its final decommissioning phase. It also provides investment in the local area which will secure jobs for many skilled workers and I am confident that Dounreay's highly skilled workforce can show the world how to successfully turn a complex nuclear site into a safe, secure and clean state."

 NDA chairman Stephen Henwood added:

"Today is a significant milestone for the NDA. Not only have we successfully gained a world-class parent body to take ownership of DSRL which will continue to oversee the last and arguably the most difficult stages of decommissioning Dounreay, but we have also been able to reduce the decommissioning period by potentially up to 16 years, from 2038 to as early as 2022 representing savings to the UK economy well in excess of £1 billion." 

Babcock Dounreay Partnership will own the shares in DSRL until decommissioning of the redundant nuclear site is completed. 

Kevin Thomas, Babcock Dounreay Partnership chairman, is delighted to have won the Dounreay contract:   

"The Babcock Dounreay 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 Dounreay Site Restoration Limited 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 will join Richard Lochhead MSP, Scottish Government's Cabinet Secretary for Rural Affairs and the Environment, the UK Government's Secretary of State for Scotland, Rt Hon Michael Moore MP, the NDA Executive and senior representatives of Babcock Nuclear, CH2MHill and URS at events in Caithness to mark the transfer to Babcock Dounreay Partnership.