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Private consortium set to lose £9 billion deal to clear nuclear waste

Private consortium Nuclear Management Partners (NMP) is set to lose its contract to clean up western Europe’s largest nuclear waste site at Sellafield, following criticism of its performance.

NMP, made up of US engineering group URS, British firm AMEC and French energy firm AREVA, was awarded an extension to its deal in 2013 despite accusations of delays and cost over-runs.

The Nuclear Decommissioning Authority (NDA) is reported to assume responsibility for the work following the government’s decision.

The cost of making the site, on the Cumbrian coast, safe has been put at almost £80bn over 120 years. NMP was handed a 17-year contract worth £9bn in 2008.

An Energy Department spokesman told Sky News: “Ed Davey (the energy secretary) has been very clear that he’s wanted to see more effective progress in decommissioning the biggest and most complex nuclear site in Europe, providing the best outcome for the taxpayer.

“The NDA and Government have been working with industry experts on alternative options.”

NMP general manager Iain Irving said: “We understand that the NDA has been considering whether there are alternative options to the current arrangements for managing Sellafield.

“It is not possible for us to make any further comment at this time.

“Notably, however, since the NDA awarded NMP with a five-year contract extension, the site has enjoyed one of its best ever periods of performance and progress.

“Importantly, over the last two years, we have consecutively achieved the site’s best overall safety records.”

But Gary Smith, national officer of the GMB union, said: “The termination of the NMP contract is welcome. We could not limp on any further.

“We said the contract should not have been extended in 2013. We understand the Tories overruled the NDA. The Government needs to be held to account.

“Hundreds of millions of pounds of taxpayers’ money have been squandered as NMP has simply failed to deliver time and time again. They have been big on promises but not on delivery.”

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