August 1, 2015
EDF announces £1.3bn worth of contracts for Hinkley Point C

The companies set to be involved in building a new nuclear power plant near Burnham-On-Sea have been named.

French group EDF has chosen a number of national and local Somerset companies as preferred bidders for contracts worth £1.3bn to build Hinkley Point C.

Firms include Balfour Beatty and Laing O'Rourke and local companies such as food producers Somerset Larder.

A final investment decision is expected in the coming months, after which the contracts will be signed.

The power station, which is expected to be generating electricity in 2023, will cost around £14bn to build and provide 25,000 jobs during the construction phase.

More than 60% of the construction cost, it is now estimated, will be placed with UK firms, which is 3% more than an initial estimate.

Among the preferred bidders announced were Balfour Beatty Bailey for electrical cabling and equipment installation, Cavendish Boccard Nuclear for pipework and equipment installation and ACTAN for heating, ventilation and air conditioning.

The joint ventures from the South West, with combined contract values of more than £225m, included food producers Somerset Larder, bus organisation Somerset Passenger Solutions, and Somerset Infrastructure Alliance.

Neil Murphy, CEO of Somerset Chamber of Commerce, said: "I am delighted with the news from EDF Energy today that preferred bidder status has been awarded to a number of Somerset businesses.

"The Somerset Chamber of Commerce has been working tirelessly over the past 3 years with EDF Energy, local businesses and consortiums made up of local companies, to achieve this position. Today’s news represents a significant boost for the Somerset economy.”

Ken Owen, Hinkley Point C Commercial Director, said: “Working with the Somerset Chamber of Commerce, our innovative business approach has led to the involvement of local companies close to the construction site.

"It has been really impressive to see the way that Somerset and South West companies have joined together to rise to the challenge. The innovative supplier alliances created will enable them to match the standards of safety, quality, value and scale required on such an important project.”

The Deputy Leader of Somerset County Council, David Hall, has welcomed the announcement from EDF, saying: "The news from EDF Energy is a terrific boost for the local economy and is very positive news for the county and country as a whole."

"Once EDF Energy has reached its final agreement with its investment partners, our communities will be set to benefit hugely from the creation of jobs and millions of pounds worth of investment in our infrastructure."

"This announcement is extremely positive and should also give many other local businesses the encouragement and confidence they need to become involved in the supply chain. Thousands of businesses have signed up and any business wishing to find out more or register on the supply chain portal."

Earlier this month a lawsuit against the Hinkley site was filed by green power suppliers.


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