By Matthew Legg Business editor

Last updated 11:49, Tuesday, 07 October 2008

THE £20bn deal to transfer Sellafield to private ownership, described as “the most important development in the history of west Cumbria”, was signed yesterday.

Deal: Bob Pedde and Tom Zarges of NMP, with Dr Ian Roxburgh and Stephen Henwood of the NDA

Nuclear Management Partners, an American-Anglo-French consortium, sealed a ‘transition agreement’ with the Government clearing the way for a formal handover of the site next month.

The deal officially confirms the end of the race to run the nuclear site and marks the close of more than half a century of public ownership for Sellafield.

NMP is a collaboration between US nuclear giant URS Corporation, French outfit Areva and British construction services group Amec. On the same day, Amec signalled a significant shift in its approach to energy production by ditching its wind power business for £126m as it put pen to paper on the Sellafield deal.

NMP has signed the transition agreement despite the possibility of a potentially crippling strike at the site which unions have warned will begin before October 16 unless management improve a pay offer. The consortium has previously assured Sellafield staff their jobs are safe for now.

Sellafield will now enter a period of transition, prior to official transfer of shares to NMP on November 24. After that NMP will become the ‘parent body organisation’ of the site and will become responsible for its decommissioning and eventual closure – a job that could take up to 100 years to complete.

NMP beat off competition from three rival bids to land the contract which is worth more than the London 2012 Olympics.

Copeland MP Jamie Reed, whose constituency covers the site, has called the deal “the biggest in the history of west Cumbria”.

Stephen Henwood, chairman of the Nuclear Decommissioning Authority (NDA), the Government body set up in 2004 to run Sellafield, said: “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 control on November 24. 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 clearly demonstrates 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.”

NMP will be handed £1.3bn a year to run Sellafield, described as the most complex nuclear site in the world. It will be awarded a five-year contract initially, with another 12 years on offer subject to performance.

NMP’s contract covers the decommissioning of the former nuclear power stations at Calder Hall and Windscale on the Sellafield site plus the management of the Thorp and Mox reprocessing plants. The deal also covers the Capenhurst nuclear facility in Cheshire and an engineering design centre at Risley, near Warrington.

The NDA will continue to own the land at the sites.

MLegg@cngroup.co.uk