Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Not Addressed
Major project delays and costs at Sellafield significantly escalated since 2018 due to poor planning.
Conclusion
When it last took evidence on Sellafield, the previous Committee was told that major project delivery was improving.32 The NDA told it that “cost forecasting is improving” while the Department said that “for the first time now, the estimates of those costs have begun to stabilise”.33 Even then though, the nine major projects underway were, between them, delayed by 165 months and expected to cost £913 million more than originally budgeted.34 However costs, and delays, have risen considerably since then for the four projects which were two years or more away from completion. These four projects are now expected to cost £1.15 billion more between them than when the previous Committee reported, while each will be delayed by between 58 and 129 months. Sellafield Ltd accepted that £546 million of this cost increase was caused by poor planning and poor contractor performance. It attributed £191 million to delays resulting from the COVID–19 pandemic and higher–than–forecast inflation.35
Government Response Summary
The government response does not directly address the committee's finding of increased costs and delays for major projects, instead citing a 2024 NAO report that noted positive progress in more recent projects and praised the Programme and Project Partners model.
Government Response
Not Addressed
HM Government
Not Addressed
3.3 The 2024 NAO report noted positive progress had been made in major project delivery at Sellafield, identifying that more recent projects are expected to be completed in line with business case assumptions. It recognised the positive ratings received by key projects from the then Infrastructure Projects Authority, and the gains made in Reference Class Forecasting to improve cost estimates. 3.4 The nationally recognised project delivery entity, the Programme and Project Partners (PPP) model was noted positively in the report: “Sellafield and the Infrastructure and Projects Authority believe that the PPP model has contributed significantly to strong performance on two of its first three projects, and external reviews have also identified a strong internal culture that is adding value to Sellafield.”