Costain secures £1bn contract with Sellafield

(Sharecast News) - Costain announced on Monday that it has been selected by Sellafield as its utilities delivery partner, a major part of Sellafield's Infrastructure Delivery Partnership (IDP), in a contract worth up to £1bn. As utilities delivery partner, Costain will refurbish and replace a variety of on-site and off-site utility distribution systems and services to enable Sellafield's decommissioning programme.

The contract consists of an initial term of nine years with an option to extend by a further six years, either in a single extension or multiple smaller extensions. The total value of Sellafield's IDP is worth up to £2.9bn.

Chief executive Alex Vaughan said: "This new contract award with Sellafield, with whom we have been working with since 2005, is testament to our strategy of developing long-term relationships with tier 1 customers, building strong and collaborative partnerships, broadening our service offering, and maintaining consistency and continuity of workflows.

"This long-term award follows previous contract wins in the civil nuclear energy market this year with Sizewell C and Urenco and further demonstrates our integral position in this market. The Government is clear that the safe and responsible decommissioning of the UK's nuclear legacy is a critical part of creating a sustainable future and delivering local and national economic prosperity. As one of Sellafield's trusted partners we will deliver safe, high-quality utilities upgrades in a complex working environment."

At 0835 BST, shares in the construction and engineering firm were up 9.5% at 153.78p.