6 June 2000             00/193

PREFERRED TENDERER FOR REPLACEMENT RESEARCH REACTOR ANNOUNCED  The Minister for Industry, Science and Resources, Senator Nick Minchin, today announced the preferred tenderer for the design and construction of the replacement research reactor at Lucas Heights.

The preferred tenderer is the Argentinian company, INVAP, in alliance with Australian companies, John Holland Construction & Engineering Pty Ltd and Evans Deakin Industries Limited.

"While the existing HIFAR reactor continues to be safe, it was commissioned in 1958 and is now technologically obsolete. A replacement reactor is required so Australia can continue to benefit from radioactivity in the areas of medicine, environment, industry, mining, agriculture, science and the national interest," Senator Minchin said.

"After a tender process that has been certified as rigorous by two separate audit groups, ANSTO has selected INVAP as the preferred tenderer as its bid offered high performance for both neutron beam facilities and irradiation facilities, together with the best building layout.

"In teaming with two reputable Australian partners, INVAP also offered the highest value added local content of 53 percent.

"The bid has met the stringent international guidelines on nuclear safety.

"INVAP has a solid track record constructing research reactors, with five constructed around the world over the past two decades. Argentina has ratified the Non-Proliferation Treaty and is a responsible and active participant in the activities of the International Atomic Energy Agency. Argentina has six research reactors in operation, while it produces around 10 per cent of its electricity from nuclear power.

"INVAP's bid was within the budget for the reactor facility and the final contract will not exceed $278.5 million (in 1999 dollars)."

ANSTO will now enter into pre-contract negotiations with INVAP, to be followed by detailed design and site works, with construction likely to commence early in 2002. The reactor is scheduled to be commissioned by September 2005.

The construction of a replacement reactor was unanimously supported by both the Coalition and Labor members of the Parliamentary Public Works Committee in August 1999.

"The safe use of radioactivity has great benefits for Australia in medicine, industry and research. We are committed to seeing Australia has a safe replacement research reactor by 2005," Senator Minchin concluded.

Contact: Steve Ronson, Senator Minchin's office, 02 6277 7580

Professor Helen Garnett, ANSTO, 0416 222 000

Internet address: www.ansto.gov.au

CMR 241-00

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