From New Orleans to Sellafield
Last updated 16:57, Wednesday, 09 July 2008
THE company that cleaned up New Orleans after Hurricane Katrina has emerged as the favourite to win the £1bn-a-year contract to run Sellafield.
CH2M Hill, a Colorado-based engineering and construction services company, is understood to be preferred by the Government, though no official announcement has yet been made.
The firm has emerged as the front runner because it is the only stand-alone company in the race and the Government is thought to prefer that as it offers clear lines of responsibility.
Rivals SBB Nuclear, Nuclear Management Partners and Fluor Corp and Toshiba are all consortia made up of separate businesses.
The decision on who eventually runs what is considered the most complex nuclear site in Europe rests with Barrow MP and Business Secretary John Hutton.
The contract – which will start next March – sees Sellafield enter private hands for the first time in its half century of existence.
CH2M Hill’s case will also be bolstered by the praise won for its involvement in Rocky Flats, a former weapons facility that required one of the largest and most complex clean-up operations in the US.
The company has also spent a lot of time in Cumbria and is thought to have strong support from the local community and unions.
Its main rival is SBB Nuclear, which is reported to be the favoured bid on price.
The consortium includes companies which have previously landed big contracts with the Labour Government.
Bechtel was employed on the London Underground and the high-speed link to the Channel Tunnel.
Serco, another firm involved in SBB, runs London’s traffic lights and the Docklands Light Railway.
The Sellafield contract will be the most lucrative in Britain’s £70 billion nuclear decommissioning bonanza.
It will initially run for five years but could be extended to 17 years and is anticipated to be worth up to £20bn over its lifetime.
Copeland MP Jamie Reed, whose constituency covers Sellafield, has warned companies bidding that their responsibilities lie with the people of west Cumbria, not the politicians of Westminster. He said that commitment would have to backed up with heavy investment in the area.
He said: “Future potential operators need to understand the needs of Whitehaven, not Whitehall, and spend more time in west Cumbria, not Westminster.
“You cannot succeed without the consent and co-operation of the community.
“To put it bluntly, Sellafield is the west Cumbrian economy.
“It affects how many classes local schools have, the quality of the roads and even the range of goods in local shops – it’s that important.”
The Nuclear Decomissioning Agency (NDA) said the four bidders remained with an 'equal status.' An announcement is expected on Friday.
mlegg@cngroup.co.uk
