Britain’s Nuclear Decommissioning Authority is in the High Court this week for the final ruling in a long-running damages claim on a £7bn deal to clean up Britain’s oldest nuclear power plants. Energy Solutions, a US-based company, filed a high court writ in 2014 after losing the contract to engineering company Babcock and Texas-based Fluor. It had been managing the nuclear sites for 14 years and in documents filed to the court alleged that the NDA did not follow its own procedures when the new contract was awarded and that its point scoring system was flawed. It is trying to recoup the bid costs as well as the projected loss in profits over the life of the new 14-year deal. At the heart of the dispute is one of the largest contracts ever put out to tender by the government, which involves about 3,000 workers cleaning 12 of Britain’s 25 nuclear sites. These include Sizewell, Hinkley and Dungeness — built in the 1960s to produce plutonium to make nuclear weapons but now at the end of their lives. If the NDA loses the case it could cost the government hundreds of millions of pounds and will again raise questions over the way large and sensitive public-sector contracts are awarded.
FT 24th July 2016 read more »