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United Kingdom: AREVA and partners seal management and operations contract for Sellafield site

Press release

November 24, 2008

Nuclear Management Partners (NMP), the joint venture comprising URS Washington Division, AMEC plc and AREVA, has today signed a contract for the management and operations of the Sellafield nuclear complex, located in West Cumbria, with the UK Nuclear Decommissioning Authority (NDA). This success comes at the end of a long and stringent selection process, with strong competition from Fluor/Toshiba, Bechtel/Serco/BWXT and CH2MHill.

The shares in Sellafield Ltd, the site licencee company, previously owned by British Nuclear Fuels Limited have been transferred to NMP. As consequence, the NDA and Sellafield Ltd have agreed a revised Management and Operations contract.

Sellafield Ltd manages and operates, on behalf of the NDA, the reprocessing and waste storage facilities at Sellafield, the former nuclear power stations Calder Hall and Windscale (all in West Cumbria), and the Capenhurst nuclear site and an Engineering Design Centre at Risley in Cheshire.

As a consequence, the NDA and Sellafield Ltd have agreed a revised Management and Operations contract.

The management and operation contract is initially for a period of five years with the potential of further extension periods, subject to performance, to a total of 17 years. This contract offers business initially to the value of around £1.3 billion per annum with associated fee of approximately £50 million per annum, subject to the specified level of improved performance and efficiency of Sellafield Ltd being met.

Anne Lauvergeon, AREVA Chief Executive Officer, said “This contract highlights the willingness of AREVA to be a reliable and a long term partner of the whole UK nuclear industry. We have long co-operated with Sellafield on waste management, transport and recycling, which are essential to a sustainable nuclear programme. AREVA is committed to supporting the development of nuclear new build in the United Kingdom, to supply secure, safe, low-carbon energy.  We look forward to contributing to a nuclear renaissance in West Cumbria and the United Kingdom, which will bring global skills, training and supply chain benefits to local and national communities.”

This is AREVA's second success at the back-end of the fuel cycle in the United Kingdom. AREVA is also a partner in UK Nuclear Waste Management Ltd, which was awarded the Parent Body agreement for the UK’s Low Level Waste Repository in Cumbria in March 2008.

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