UK names Babcock as preferred bidder for nuclear contract - UPDATE

31st Mar 2014 11:09

The Cavendish Fluor Partnership has been selected as the preferred bidder to take ownership of Magnox Ltd. And Research Sites Restoration, the site-licence companies for 12 nuclear sites in the UK, Babcock has announced.The formal award of the contract is planned for September 1st 2014. The contract is anticipated to provide savings to the government in excess of £1bn in the decommissioning programme for the 12 nuclear sites, the Nuclear Decommissioning Authority (NDA) said. Cavendish Nuclear is a wholly owned subsidiary of Babcock International.The 14-year contract, which the NDA says is valued at up to £7bn, includes some of Britain's oldest nuclear sites such as Sizewell, Hinkley and Dungeness. It marks one of Britain's largest and most valuable public contracts put out to tender."The competition was based on the key criteria of securing the highest standards of safety and environmental performance, together with value for money for the UK taxpayer," the NDA further stated. Shares in Babcock gained 3.33% to 1,335p at 11:13 on Monday. RD