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Bidders for nuclear work are gearing up to fight for a multibillion pound contract to manage the clean-up of the Dounreay site on the northern coast of Scotland On Monday, the Nuclear Decommissioning Authority issued a tender seeking a consortium to oversee the restoration operation at the derelict site, which contains three former nuclear reactors. The programme is valued at about £3.6bn. The Pentland Alliance is regarded as the frontrunner for the job. Members of this consortium, which includes Amec, CH2M Hill and the UK Atomic Energy Authority (UKAEA), have been seconded to senior posts at Dounreay over the past three years. However, in a surprise move last week, the commercial arm of UKAEA chose engineer Babcock International rather than Amec to be its buyer, which raised questions about the future of the Pentland Alliance. However, it is thought that the consortium will continue.

The UK Atomic Energy Authority expects the sale of its commercial arm to be completed by the end of September, chief executive officer Norman Harrison said. Harrison also told delegates at a decommissioning conference July 1 that the UKAEA, a state-owned company that pioneers the development of nuclear energy within the UK, plans to bid for decommissioning work at the Dounreay nuclear plant in Scotland once the government tender is launched later this year. UKAEA Ltd, a wholly-owned subsidiary that provides nuclear decommissioning, waste management and site environmental remediation services, was put up for sale in late March after the government said the business could operate independently and concentrate on growing its operations overseas.

A campaign to route a railway line to the far north of Scotland across the Dornoch Firth has won backing from a nuclear organisation. The United Kingdom Atomic Energy Authority (UKAEA) said the Dornoch Rail Link would boost the local economy. The link was mentioned in its submission to Scottish Government consultation on new transport projects.

* £50m sale 'good value for taxpayers', says Mandelson * Opposition warns against further decommissioning levies Dounreay nuclear power station. It was shut in 1993 but its safety and decommissioning will now fall into the hands of private firm Babcock. Photograph: Murdo MacLeod The body responsible for decommissioning and cleaning up Britain's fleet of nuclear power stations was sold today in the latest privatisation of part of the UK's nuclear industry. UKAEA, the commercial arm of the United Kingdom Atomic Energy Authority, has been bought by Babcock International Group for £50m. Business secretary Lord Mandelson claimed the deal "generates good value for taxpayers", but opposition politicians have previously voiced concerns over the sale.

The sale of the United Kingdom Atomic Energy Authority (UKAEA), the Government-owned nuclear clean-up business, has attracted 13 bids. A source close to the auction said that bids were submitted last month, with the shortlisted parties expected to be informed early next month. However, the bids are thought to be around the £30m-40m mark, when adviser Greenhill had hoped for closer to £50m. The bidders include: Amec, the Ftse-100 engineer; VT Group, the defence and support services company; Serco, the aviation-to-local government services giant; Finmeccanica, the Italian conglomerate; and Babcock International, the quoted defence-to-rail services outfit.

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