We are announcing today the commencement of a sale process to dispose of 100 per cent of UKAEA Ltd (offers will also be accepted for a partial offer), the commercial operations of the UK Atomic Energy Authority (UKAEA). The process will take the form of two stages, an initial stage which will allow bidders access to an information memorandum document written by Greenhill and Co and request first-round bids. Following this, a second stage will allow a smaller number of interested parties access to detailed due diligence and put forward a further more detailed bid. It is the intention for HMG to complete the transaction prior to the Summer Recess.

The sale is the next step in the development of the commercial business of UKAEA Ltd, which was first approved by Ministers in 2005. The sale is recognition of the work done by management in creating a commercially viable enterprise that has become an important repository of key nuclear skills that will help ensure that the UK will remain at the forefront of the nuclear services industry.

UKAEA Ltd principally undertakes nuclear decommissioning work under contract for NDA-owned sites in the UK (Dounreay and Harwell/Winfrith). The business also has a fledgling consulting services business within the nuclear decommissioning sector under which it operates tier 2 and tier 3 smaller scale contracts for both the NDA and other owners.

The principal site of operation for UKAEA Limited is Dounreay, located in the north-east of Scotland. The business also contains a pensions administration business which administers the pensions of several nuclear industry public sector operators.

The business plan of UKAEA Limited aims to grow revenues by principally growing the consulting services provided by the business. Within the UK and internationally there are a significant number of old nuclear facilities for which decommissioning services will be required.

UKAEA Limited's key decommissioning site at Dounreay will be completed in the next two years. The Government would like UKAEA Limited to be in a position to enter the competition with clarity and stability over the business's ownership.

This sale underlines the importance attached to the clean-up of nuclear waste. It will increase efficiency, competition and value for money for the taxpayer in the decommissioning and clean-up work of old nuclear power stations.