Sellafield Ltd awards £2.9bn infrastructure contracts
Three companies have won contracts with a total value of up to £2.9bn to supply key non-nuclear infrastructure works on the Sellafield site.
Overhead line work on the Sellafield site
Morgan Sindall Infrastructure, Costain Limited, and HOCHTIEF (UK) Construction Ltd will be part of a long-term arrangement called the Infrastructure Delivery Partnership (IDP).
The partnership will deliver projects and tasks to support essential services at Sellafield like electricity distribution, water, road and rail networks, bridges, foundations and security installations.
It has been designed to deliver value for money and create investment in skills, innovation, capability, and sustainability to benefit Sellafield and its local communities.
The contracts will be for an initial 9 years with an option for a further 6 years, through to 2040.
The work is split into 3 lots:
- electrical distribution partner - Morgan Sindall Infrastructure
- utilities partner - Costain Limited
- civils partner - HOCHTIEF (UK) Construction Ltd
Under the contracts, the companies will complete detail design plus all procurement, installation, construction, commissioning, and handover activities that form part of project delivery.
The contracts also include commitments to help create a thriving and sustainable local community in west Cumbria, aligned to Sellafield’s Social Impact strategy.
These include:
- supporting local business growth
- enabling companies to access work at Sellafield and beyond
- creating employment
- developing a skilled labour pool for IDP which local businesses can also access
- opportunities for apprenticeships, internships, upskilling, work placements, and work experience
- significant commitment of employee volunteering hours to support third sector organisations
The companies will also develop a joint sustainability plan to ensure a joined-up approach which is aligned to local priorities and delivers maximum impact and return on investment.
IDP is a key element of Sellafield Ltd’s Overarching Acquisition Strategy and replaces the existing Infrastructure Strategic Alliance.
James Riddick, Sellafield Ltd chief supply chain officer, said:
Our job at Sellafield is to create a clean and safe environment for future generations.
That means safely, securely, and cost effectively dealing with the legacy of historic operations on our site.
To deliver this we need robust and reliable infrastructure to support our nuclear decommissioning and waste management activities.
IDP is a long-term strategic partnership designed to provide that support while unlocking investment and opportunities for our local community and delivering sustainable value for money to the taxpayer.
We’re excited to welcome our new partners, and we look forward to working together to progress our mission while creating transformational and enduring social value.
Alex Vaughan, chief executive officer of Costain, commented:
This new contract award with Sellafield, with whom we have been working with since 2005, is testament to our strategy of developing long-term relationships with tier 1 customers, building strong and collaborative partnerships, broadening our service offering, and maintaining consistency and continuity of workflows.
This long-term award further demonstrates our integral position in the UK’s civil nuclear energy market. The Government is clear that the safe and responsible decommissioning of the UK’s nuclear legacy is a critical part of creating a sustainable future and delivering local and national economic prosperity. As one of Sellafield’s trusted partners we will deliver safe, high-quality utilities upgrades in a complex working environment.
Simon Smith, managing director, Morgan Sindall Infrastructure, said:
We have been delivering in West Cumbria for over 15 years, and we are delighted to build on this further with the award of the Infrastructure Delivery Partnership. This long-term programme is not only nationally significant for Sellafield and its decommissioning programme, but we know first-hand the benefits to local communities and the region from an award of this nature.
This award reflects the brilliant work our teams have delivered and continue to deliver.
Juan Santamaría Cases, CEO of HOCHTIEF said:
HOCHTIEF has an unbroken legacy in the nuclear sector since the 1950s and is a trusted partner in engineering and construction for some of the world’s most critical nuclear programmes. Together with Sellafield and its delivery partners, we have secured this strategic, long-term partnership. The award builds on HOCHTIEF’s expanding portfolio of long-term delivery contracts with globally significant clients across the nuclear and infrastructure sectors.