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'Critical role' for preferred Dounreay bidder


By Gordon Calder

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Rob Gibson says the Babcock Dounreay Partnership has an important task in taking Dounreay and Caithness forward.
Rob Gibson says the Babcock Dounreay Partnership has an important task in taking Dounreay and Caithness forward.

THE consortium of UK and US companies which is to take over the £3 billion contract to decommission Dounreay has “a critical role” to play in shaping the future of Caithness.

That was said this week by Far North MSP Rob Gibson after the Nuclear Decommissioning Authority confirmed the Babcock Dounreay Partnership is its preferred bidder to run the site.

The consortium is due to take over from Dounreay Site Restoration Ltd in April after a procurement process which lasted two years.

“I congratulate Babcock Dounreay Partnership on being named as the preferred bidder,” he said.

“They now face an important task in taking Dounreay, as well as Caithness, forward.

“What will be vitally important is that all parties work with and for the community. Their actions will be closely scrutinised by many, including myself.”

The SNP MSP added: “Babcock now will hold a critical role. It will help shape the future of Caithness and I am sure they will be doing their best to make that happen. There is great potential in Caithness and Babcock is now pivotal to that.”

Derrick Milnes, who chairs the Thurso and Wick Trades Council and the socioeconomic sub-committee of the Dounreay Stakeholder Group, said:

“We are glad the waiting is over and the NDA has made its decision on the new preferred bidder for the Dounreay site. We will be interested to hear how they will take their stewardship forward.

“We will work with them to achieve a forward plan for the decommissioning of Dounreay and also to make certain the expertise gained is used to sustain the future prosperity for Caithness and north Sutherland.”

Mr Milnes continued: “We would ask that the consortium works with the community to invest in long-term diversification for the benefit of all the local stakeholders.

“We will be looking with interest at the terms of the 20-year contract being quoted at the present time and would want to make certain if the timescale is reduced there is detailed discussion with all stakeholders to make certain additional business or work is available in the county.”

Caithness Chamber of Commerce chief executive Trudy Morris was pleased with the announcement.

“We obviously welcome the news that the preferred bidder has been announced and that the process is a little closer to be being finalised as it has been a long two years of uncertainty for the site and the local supply chain,” she said.

But Ms Morris said the chamber is keen to find out about Babcock’s plans for the site in detail.

“We would urge the consortium to make its plans known as soon as possible after December 9 – when a transition agreement is signed – and start working with the chamber and local stakeholders so that the workforce, local supply chain and wider Caithness can get more clarity on the future,” she stated.

Ms Morris also pointed out members would seek assurances on the “hugely important” issue of the socioeconomic legacy and what it will look like.

John Thurso, MP for Caithness, Sutherland and Easter Ross, said: “Since its inception Dounreay has been a world-leading centre of technological innovation and that innovation and skill will continue to be required through the decommissioning process.

“I welcome the announcement of the preferred bidder and I look forward to working with them to ensure that, in addition to the undoubted technological legacy of Dounreay, the Far North’s economy remains a growing, vibrant, skill-based economy that will take us forward for another half century.”

The NDA announced that following a mandatory 10-day standstill period, a three-month transition phase will begin during which the contract will be finalised. The contract is expected to be awarded to the Babcock Partnership – a specially created private-sector consortium comprising Babcock Nuclear Services Ltd, CH2M Hill and URS Holdings (UK) Ltd – in April 2012.

Tony Fountain, NDA chief executive, said: “The selection of Babcock Dounreay Partnership as the preferred bidder is a significant step in our drive to attract world-class management and innovation to our sites.

“We have undergone a comprehensive and rigorous process aimed at securing the best possible parent body for this challenging site. Babcock Dounreay Partnership bring a successful track record and extensive nuclear experience that will bring enormous benefits to the decommissioning and clean-up programme.

“We had a number of threshold criteria and these were all met and, in some instances, well exceeded the minimum requirements.”

Closure date to be accelerated

2: The Babcock Dounreay Partnership – the preferred bidder – is due to take over the decommissioning and clean-up at the Caithness nuclear site in April. At present that task is the ?function of Dounreay Site Restoration Ltd.

3: Key criteria for the bids were that they should accelerate the 2038 closure date by, at least, six years while reducing costs by £500m.

4: Caithness Solutions, another consortium of engineering and design firms, also bid for the £3 billion contract. It comprises Cheshire-registered engineering firm AMEC and Salt Lake ?City-based nuclear services company EnergySolutions.


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