Future management of Sellafield announcement

New, simplified management arrangements to be introduced at Sellafield to ensure the long-term success of the clean-up programme.

New, simplified management arrangements will be introduced at Sellafield to ensure the long-term success of the clean-up programme at the Cumbrian site, the government announced today.

After a year-long review of the options, the Nuclear Decommissioning Authority (NDA) has concluded that simplifying the relationship between the NDA and Sellafield Ltd will bring greater clarity and focus on achieving progress and value for money.

The new arrangements will build on the success of the approach taken to complex infrastructure projects such as London’s Crossrail and the Olympics.

Ed Davey, Secretary of State for Energy and Climate Change, said “Sellafield is the biggest and most complex nuclear site in Europe, so it’s right that we keep the way it’s being managed under constant review. We have seen great examples of how this approach can work with Crossrail and the Olympics – and I’m confident we’ll see similar results at Sellafield.”

John Clarke, NDA’s CEO, said: “This decision is the result of careful consideration and review of various commercial approaches in use where the combination of public and private sector comes together to deliver complex programmes and taxpayer value.

“I believe we can build on progress to date and drive further improvements in performance and value for money by enhancing the capability of the Site Licensed Company (Sellafield Ltd) through a different approach.”

In the new arrangements, ownership of Sellafield Ltd reverts to the NDA from Nuclear Management Partners, the consortium that took control of Sellafield Ltd under contract to NDA in 2008.

The Sellafield Ltd Board will continue to consist of existing non-executive directors and key members of the current executive team, but over time will now also see the introduction of NDA appointed directors.

Reporting to this Board will be the Sellafield Ltd executive team which will continue to have day-to-day management responsibilities for the site.

The NDA’s recommendation is fully supported by DECC and the NDA anticipates the full co-operation of Nuclear Management Partners during the transition to new arrangements over the next 12-15 months.

A key feature of the new arrangements is for a “strategic partner” to be sought from the private sector to advise and assist the Sellafield Ltd executive team in the work necessary to take an overview of all site activities – these arrangements are similar to those successfully put in place by London’s Crossrail.

This means the private sector becomes a supplier to the Site Licensed Company (Sellafield Ltd) rather than a parent of it. Engagement with the supply chain at all levels will remain central to this new approach and key programmes of work will continue to be competitively let to the private sector.

The continued safe operation of the Sellafield site is paramount, and the NDA will continue to work closely with the Sellafield Ltd Managing Director and Executive team throughout this process. During this transition period NDA and Sellafield Ltd will engage with the Sellafield workforce, their trade unions, the regulators and other key stakeholders to ensure they are fully aware of the proposed structure and how it will be implemented.

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