The Nuclear Decommissioning Authority

06 October 2008

The Nuclear Decommissioning Authority has today entered into a Transition Agreement with Nuclear Management Partners Ltd (NMP). This concludes the formal competitive process to appoint a new Parent Body for the Sellafield Site Licence Company – Sellafield Ltd. The Transition Agreement creates a contractual relationship between the NDA and NMP leading to the transfer of shares in Sellafield Ltd from BNFL to the new Parent Body, NMP, scheduled for 24 November 2008.

The NDA competition for a new Parent Body for Sellafield Ltd was launched on 25 October 2006 and Nuclear Management Partners Ltd was named as the preferred bidder on 11 July 2008. Following today’s announcement, a period of formal transition will culminate in share transfer on the 24 November and, on the same day the signing of:

• a new Parent Body Agreement between the NDA, NMP and Sellafield Ltd
• a revised Management & Operations Contract between the NDA and Sellafield Ltd.

The end of the competitive process is a significant milestone in the NDA’s drive to attract world class management and expertise to the UK’s nuclear decommissioning industry as NDA Chairman, Stephen Henwood explains:

“The successful conclusion of the competition to secure a new Parent Body for Sellafield Ltd involved a tremendous amount of hard work, drive and determination from all three parties, the NDA, NMP and Sellafield Ltd. Work continues to ensure the new parent body is well prepared to take over the control of the SLC on 24 November.”

“We can look forward to entering into new contracts with NMP and Sellafield Ltd on that day, which we firmly believe will secure exemplary operations on the site and value for money for the taxpayer.

The Sellafield sites involve the most significant challenges we face and the successful completion of this competition, as with its forerunner for the national Low Level Waste Repository, clearly demonstrate that the NDA is well placed to achieve its mission for the safe and secure clean-up and decommissioning of the UK’s civil nuclear legacy.”

The Transition Agreement will lead to the signing of a revised Management & Operations Contract, a Parent Body Agreement and the transfer of shares in Sellafield Ltd from British Nuclear Fuels Ltd to NMP Ltd, all scheduled to complete on the 24 November 2008. The Management & Operations Contract is between NDA and the Site Licence Company, Sellafield Ltd. It embodies the delivery of all work across the Sellafield sites in accordance with specified terms and conditions. The Parent Body Agreement is entered into between the NDA, NMP and Sellafield Ltd. It specifies the obligations of the Parent Body as owner of the Site Licence Company in areas such as financing, deployment of key resources and the enhancement of performance in key areas.