Sellafield awards $3.86B in infrastructure contracts to three companies

As part of a long-term arrangement called the infrastructure delivery partnership, the three companies will deliver projects and tasks to support essential services at Sellafield, such as electricity distribution, water, road and rail networks, bridges, foundations, and security installations.

According to Sellafield Ltd., the infrastructure delivery partnership is a key element of the company’s overarching acquisition strategy and replaces the existing infrastructure strategic alliance, previously held by Morgan Sindall and Arup.

The contracts will be for an initial 9 years with an option for an additional 6 years, through to 2040. As described below, the work has been split into three lots.

Morgan Sindall: As the electrical distribution partner, Morgan Sindall will provide the lead on maintaining and upgrading Sellafield’s electrical network. The company said it will complete the detail design plus all procurement, installation, construction, commissioning, and handover activities that make up the project’s delivery.

Morgan Sindall’s share of the contract is estimated to be valued at £1.3 billion (about $1.7 billion).

Simon Smith, managing director of Morgan Sindall, 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 program is not only nationally significant for Sellafield and its decommissioning program, but we know firsthand the benefits to local communities and the region from an award of this nature.”

Costain: As the utilities delivery partner, Costain’s role will include the completion of detailed design and all procurement, installation, construction, commissioning, and handover activities that form part of the contract delivery.

Drawing on its experience delivering infrastructure projects in the water, energy, and transportation sectors, the company’s responsibilities will involve refurbishing and replacing a variety of on-site and off-site utility distribution systems and services, including steam, water supply, water treatment, compressed gas, and other essential utilities serving Sellafield.

The contract is worth up to £1 billion (about $1.3 billion) to the company.

“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,” said Alex Vaughan, CEO of Costain.

Costain was also recently awarded a £70 million (about $93 million) contract by Nuclear Restoration Services to deliver a decommissioning project at the Trawsfynydd nuclear power plant in North Wales. Under that contract, Costain will manage the deconstruction and partial reduction in the height of the plant’s two reactor buildings, which were built in the 1960s and have been subject to decommissioning works since 1991.

HOCHTIEF: As the civil works partner, HOCHTIEF will provide the design, engineering, and delivery of civil infrastructure works in support of nuclear operations and decommissioning in collaboration with Sellafield Ltd. and its partners.

According to the company, the award reflects HOCHTIEF’s strong engineering capability, proven track record in the nuclear and infrastructure sectors, and commitment to collaborative and secure project delivery in west Cumbria.

HOCHTIEF’s civil works framework contract is worth up to £595 million (about $792 million).

HOCHTIEF CEO Juan Santamaría Cases said, “Securing this strategic, long-term partnership reinforces HOCHTIEF’s unbroken legacy in the nuclear sector since the 1950s—a trusted partner in engineering and construction for some of the world’s most critical nuclear programs.”

Community support: According to Sellafield Ltd., the contracts also include commitments to help create a thriving and sustainable local community in west Cumbria. These include the following:

• Supporting local business growth.
• Enabling companies to access work at Sellafield and beyond.
• Creating employment opportunities.
• Developing a skilled labor pool accessible to local businesses.
• Providing opportunities for apprenticeships, internships, training, work placements, and work experience.
• Making a significant commitment of employee volunteering hours to support third sector organizations.

The companies will also develop a joint sustainability plan to ensure a unified approach that is aligned to local priorities and delivers maximum impact and return on investment.