Following confirmation of the investment deal between French energy company EDF and its co-investor China General Nuclear Corporation, EDF has announced that it has agreed final terms with a range of contractors.
This includes the main civil engineering contract between the BYLOR joint venture, made up of Bouygues TP and Laing O’Rourke.
Although the BYLOR team has been working with EDF for the past four years, the agreement on the final terms will now allow for more detailed planning, to prepare for mobilisation to begin.
The main civils contract was valued at £2bn when it was awarded in June 2012.
But EDF has quoted construction costs as “£16bn at 2012 prices” – and construction price inflation has been racing ahead since then.
It’s already emerged that the value of the enabling works contract between EDF and Kier BAM Nuttall, also finalised this week, has risen from £100m to £203m.
"This project will provide thousands of job opportunities during construction and eventual operation. Furthermore, it will make a significant contribution towards the local economy, as well as securing sustainable power provision to the UK."
Anna Steward, Laing O’Rourke
Anna Stewart, Laing O’Rourke group chief executive, said: “Hinkley Point C represents another leap forward, and the opportunity for British engineers to work alongside our French colleagues on a world class project.
“We are delighted that the contract is in its final agreed form between our joint venture and EDF, and look forward to a close and harmonious relationship. This project will provide thousands of job opportunities during construction and eventual operation, with a high proportion in the south west. Furthermore, it will make a significant contribution towards the local economy, as well as securing sustainable power provision to the UK.”
Martin Westbury, BYLOR project director, said: “Since being named as preferred bidder for main civil works, we have worked closely with the client, EDF, and their designers under an early contractor involvement (ECI) agreement. This has allowed us to work together to help define construction processes and methodology.
“We have cemented a truly collaborative working relationship between BYLOR and EDF, so that we can look forward to the increase in project activity with confidence.”
Laing O’Rourke Wales & West was recently named as the preferred bidder for the construction of workforce accommodation on site.
Hinkley Point C is due to have a 60-year lifespan once operational and provide 7% of the UK’s generation needs, enough power for more than 5 million homes.
The electricity generated from the new power station is due to avoid 10 million tonnes of CO2 emissions a year, compared to fossil fuel sources of electricity.
