UK spending watchdog warns on costs of cleaning up old nuclear plants. Estimates of the cost to clear up 12 of the UK’s earliest nuclear power sites have increased by nearly £3bn since 2017 and there remains ‘inherent uncertainty’ over final bill, NAO finds. The NAO published its report on Friday on the long running saga of decommissioning Magnox reactors and two research sites. The cost to the taxpayer of the botched 2014 tender process was £20m higher than when it investigated 3 years ago. The NDA estimates that the cost of getting all the Magnox reactors cleared and safely enclosed has increased by up to £2.7bn to as much as £8.7bn since 2017.
FT 11th Sept 2020 read more »
Progress report: Terminating the Magnox contract: Between 2012 and 2014, the Nuclear Decommissioning Authority (NDA) ran a competitive procurement exercise for a parent company to manage the decommissioning of two nuclear research sites and 10 Magnox sites. The latter comprise power stations that were at, or nearing, the end of their operational life. In September 2014, the NDA awarded the 14-year Magnox contract to Cavendish Fluor Partnership (CFP). In July 2016, the High Court ruled that the NDA had wrongly decided the outcome of the procurement process. In March 2017, the Secretary of State for Business, Energy & Industrial Strategy announced that the NDA had agreed settlements totalling £97.3 million with the bidder that brought the legal claims against the NDA. He also announced that the NDA had decided, based on legal advice, to terminate the contract with CFP nine years early due to a “significant mismatch” between the work specified in the tendered contract and the work that needed to be done. In October 2017 we reported that the failed Magnox contract had cost the taxpayer more than £122 million by the time it was announced that it was to be terminated. We also found that the NDA’s poor understanding of what was happening on the sites had contributed to serious problems after it awarded the contract to CFP in 2014, with its assumptions about the work required proving to be inaccurate. In 2018, the Committee of Public Accounts (the Committee) published a critical report and recommended that the NDA improve its understanding of the state of the sites, its ability to monitor work carried out on them, and the capability and expertise of its executive team.
NAO 11th Sept 2020 read more »
Magnox nuclear clear-up cost soars to £9bn. Fresh estimates of the cost of getting all Magnox sites cleared and safely enclosed has increased by £2.7bn to £8.7bn since 2017.An investigation by the National Audit Office warns that while the Nuclear Decommissioning Authority has made major progress sorting out its delivery procedures, costs are likely to continue to rise as it gets to grips with the scope of work. The expected cost is now double the original contract price when the initial clean-up deal was signed in 2014 with Cavendish Fluor Partnership to decommission two nuclear research sites and 10 Magnox sites.
Construction Enquirer 11th Sept 2020 read more »
Building 11th Sept 2020 read more »