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£4-5 billion Magnox and RSRL competition: potential bidders gather for conference
18 July 2012
The Nuclear Decommissioning Authority (NDA) has launched one of the UK's largest public procurement exercises as it embarks on the formal process to appoint a new Parent Body Organisation for the two companies that operate 12 historic nuclear sites.
The competition will see ownership of Magnox Ltd and Research Sites Restoration Ltd transfer to a new organisation with the skills and experience to take forward a decommissioning programme valued at between £4-5 billion over the next seven years. The first step was the publication on 16 July of the Contract Notice in the Official Journal of the European Union (OJEU), which gives official notification about the start of the competitive process.
Tomorrow (19 July), the NDA is inviting interested organisations to a bidders' conference at the Midland Hotel in Manchester, which will provide more detailed information about the process, including the projected timetable for key events and the specific requirements for bidders, as well as the expectations of nuclear regulators.
The one-day event will be hosted by the NDA's competition team, who will be on hand to answer one-to-one discussions.
Among the speakers will be NDA Chief Executive John Clarke, as well as members of the NDA's competition team, and representatives of the nuclear, security, and environmental regulators.
Competition is central to the NDA's strategy for securing world-class skills and experience to drive forward decommissioning across its estate. The latest procurement process is expected to last around two years and will lead to the appointment of a new PBO who will take ownership of shares in the two Site Licence Companies for the period of the contract, and oversee management of decommissioning activities at the 12 sites.
Nine of the Magnox sites in Scotland, Wales and England are nuclear power stations that have stopped generating and are in various stages of decommissioning, while one, Wylfa on Anglesey, is still generating electricity but is expected to close by 2014. Magnox Ltd is currently owned by EnergySolutions.
The two RSRL sites at Harwell and Winfrith are former research centres that housed some of the UK's earliest experimental reactors but are now well advanced in their decommissioning programmes. RSRL is currently owned by Babcock International Group.
Steve Dixon, the NDA's Competition Manager, said:
"The Magnox and RSRL sites played a unique role in the UK's pioneering nuclear past and we are seeking to ensure they continue to forge an important path in demonstrating the very best in decommissioning practice. We anticipate that the competition will attract the interest of organisations or consortia with very strong international track records in nuclear clean-up."