By Alan Irving

Last updated 16:02, Wednesday, 02 July 2008

A CUMBRIAN company has pulled out of a near £20 million contract for major construction project on the country’s low level waste repository near Drigg.

Hanson Quarry Products (Europe Ltd), which has its Cumbrian base at Penrith and a quarry at Brampton, was all set to land the lucrative deal as “the preferred bidder” but has pulled out at the last minute.

The contract is for the construction of Vault 9, a massive project which will store low level radioactive material and help expand the lifetime of the site in line with a new national strategy to reduce the volume of waste.

The repository operators – LLWR – said yesterday that Hanson “has withdrawn its offer due to inflationary pressures in the market.”

The Whitehaven News understands this may be due mainly to rising cost factors over the last 12 months. The tendering process is now open again.

The repository company will now go back to other bidders. A shortlist has been drawn up and all the bidders have been told they must look to employing local labour and helping local businesses “in the supply chain” wherever possible.

Dick Raaz, LLWR’s managing director, said: “Obviously we are disappointed in the delay caused to this important project.

“Developments are on-going and we will be in a better position soon to see what impact if any Hanson’s withdrawal will have on our delivery strategy and which mitigation measures will be implemented.

“We are committed to an open and transparent procurement process in the interests of the taxpayer and are obliged to ensure that any contract meets the most economically advantageous tender criteria.

“We remain committed to keeping LLWR’ ‘open for business’ throughout the construction period, working with consignors to ensure reliable disposal solutions to support their vital decommissioning work.”

The winning contractor will be responsible for providing the labour for the Vault 9 construction.