Public Accounts Committee hits out at URS, Areva and Amec for failures on multi-billion pound nuclear decommissioning project

Sellafield

The consortium of construction firms that runs Sellafield has been slammed by MPs over failures on the massive decommissioning project, which is set to see its costs spiral above 拢70bn.

Nuclear Management Partners (NMP), a consortium of URS, Amec and Areva, had its 拢1.6bn per year management contract at Sellafield extended for five years last October.

The renewal was controversial because there had been a series of cost hikes and overruns on nuclear decommissioning projects at Sellafield in the five years since NMP was appointed to run the site in 2008.

A report by the Public Accounts Committee, published this week, said NMP had 鈥渘ot provided the clear leadership, strong management and improved capabilities needed to deliver the performance required at the site鈥�.

It said the Nuclear Decommissioning Authority鈥檚 (NDA) decision to extend NMP鈥檚 contract at the site was 鈥渜uestionable鈥�.

The committee said the National Audit Office should monitor NMP鈥檚 progress after the first year of the extended contract.

It also said the NDA had failed to demonstrate that NMP鈥檚 management of the site was providing value for money.

The report also recommended that contractors at the site should take on a greater share of the risk on the project.

Margaret Hodge, chair of the committee, said that taxpayers鈥� interests were not being protected in the 鈥渃ontractual relationships鈥� between the private companies operating at Sellafield.

She said costs on the project were rising to 鈥渁stonishing levels鈥�, with one project - the Magnox swarf storage silos retrievals project - nearly doubling from 拢387m in March 2012 to 拢729m million in September 2013.

Hodge said: 鈥淐leaning up the nuclear waste on this hazardous site is estimated to cost more than 拢70bn in cash terms.

鈥淲hat鈥檚 worse is that the cost is likely to continue to rise.鈥�

John Clarke, NDA chief executive officer, said he would 鈥渇ocus on achieving鈥� the recommendations of the committee.  

He added: 鈥淏oth NMP and the NDA now have a much better understanding of the issues and complexities that exist at the site and the challenges that lie ahead. 

鈥淲hilst progress has been made on a number of fronts we will require significant improvements during the next contract period. 

鈥淲e have had extensive discussions with NMP and made clear where these improvements must be made. 

鈥淲e will continue to monitor performance closely.鈥�

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