Source · Select Committees · Public Accounts Committee

Recommendation 14

14 Acknowledged

Recent major project delivery at Sellafield shows tangible signs of improvement, with several projects on track.

Conclusion
DESNZ told us that it nevertheless believes that “there is some tangible evidence on improvement” and that “the overall direction of travel on project delivery is improving at the site”.36 Four of the five major projects which have been approved since 2018 are on track to be completed in line with the project team’s expectations when the project was originally approved.37 Additionally, the Infrastructure and Projects 32 Committee of Public Accounts, Nuclear Decommissioning Authority: risk reduction at Sellafield, Sixty–Fifth Report of session 2017 –2019, HC 1375, 31 October 2018 33 Committee of Public Accounts, Oral evidence: Nuclear Decommissioning Authority, HC 1375, 16 July 2018, Qq 20–21 34 Committee of Public Accounts, Nuclear Decommissioning Authority: risk reduction at Sellafield, Sixty–Fifth Report of session 2017 –2019, HC 1375, 31 October 2018 35 C&AG’s report, para 2.6 36 Q 74 37 C&AG’s report, Figure 6 13 Authority has given two of the projects a ‘Green’ rating two years running.38 This means that “successful delivery of the project on time, budget and quality appears highly likely”; only 11% of government major projects were in this position at March 2024.39
Government Response Summary
The government acknowledges the positive progress in major project delivery at Sellafield, referencing the NAO report and the positive contributions of the Programme and Project Partners (PPP) model.
Government Response Acknowledged
HM Government Acknowledged
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.”