Published: June 18, 2012
EDF announces £2bn winner of contract to build Hinkley Point C

EDF Energy has this week named the construction company which has won a £2bn contract to build Hinkley Point C power station, near Burnham-On-Sea, if it gets planning consent.

A joint venture, Bouygues/Laing O’Rourke, has been announced as the preferred bidder for the Hinkley Point C contract.

The work is subject to planning consent and EDF Energy taking its final investment decision at the end of this year.

The announcement is a crucial step in EDF Energy’s plans, with Centrica, to build the first new nuclear reactors in the UK for around 20 years which, it's claimed, will generate enough low carbon electricity to power five million homes.

Ahead of the signing of the contract, the joint venture has entered into a preliminary agreement for early contractor involvement which will see the two companies working on the development of the detailed design, construction methodology and programme up to EDF Energy’s final investment decision. The early engagement is intended to cut costs and construction delivery.

Bouygues/Laing O’Rourke beat off a rival bid from Vinci/Balfour Beatty. EDF Energy chief executive Vincent de Rivaz said the selection process was close.

"This was a close, very competitive tender which attracted some high quality and robustly-costed bids," he said. "We look forward to harnessing the relevant and complementary experience, expertise and knowledge offered by this powerful partnership of two well-respected and highly-committed construction companies."

"So much has been achieved on site already and we now have a strong partner in Bouygues TP/Laing O’Rourke Joint Venture to help to plan the next phase of works. For us, early engagement with key contractors is critical to ensure that they are clear on their responsibilities and the expectations we have of them."

"We are also working towards obtaining crucial decisions on planning consent and design approval later this year. A huge amount remains to be done but we are determined to do it."