The Nuclear Decommissioning Authority

31 March 2008

 

An historic milestone in the UK's civil nuclear industry was achieved, today, when the Nuclear Decommissioning Authority awarded the contract for the management and operation of the Low Level Waste Repository, near Drigg in West Cumbria, to UK Nuclear Waste Management Ltd (UKNWM) – the consortium led by URS Corporation - Washington Division and including Studsvik, Areva and Serco Assurance.

The event marks the end of a two year process and also the completion of the first in a series of competitions for NDA sites as required under the Energy Act 2004. The new contract successfully delivered will provide major savings to the UK taxpayer. Proposals to reduce costs at the Repository will deliver savings of over £100million while innovative technical proposals aimed at delivering a 20% reduction in the UK's low level waste liability could result in savings of up to £1billion.

Dr Ian Roxburgh, NDA Chief Executive Officer, said:

“This is a landmark occasion for many reasons. Primarily it is significant because it is through the competition process that we will bring innovation and new expertise to the programme to decommission and clean-up the UK’s nuclear legacy. It is equally important as it means the NDA has delivered the first in a series of multi-million pound competitions.”

“This contract is significant as it is not only for the management and operation of the existing repository but also covers the development of a UK wide Strategy for managing nuclear industry low level waste.”

The contract was formally signed at a ceremony attended by representatives of both organisations and local stakeholders at NDA Headquarters, Herdus House, West Lakes Science and Technology Park in Cumbria. The initial contract is for a period of five years with the potential of further extension periods, subject to performance and NDA management approval, up to a total of 17 years. The contract has a value of between £200 million and £500 million.

Dick Raaz, the nominated Managing Director of UKNWM, said

"UKNWM brings together a group of companies with world-beating experience in nuclear waste management. We look forward to bringing our experience and technology to bear on the UK's extensive legacy of low level nuclear waste. We believe that in partnership with the Nuclear Decommissioning Authority, we can make a real difference. Like the NDA, we are committed to the fullest possible engagement with national and local stakeholders."

On 1 April 2008, the new Management and Operation contract comes into effect with the transfer of shares in the Site Licence Company from British Nuclear Group to UK Nuclear Waste Management Ltd.