Contractors eye PFI route for nuclear plant delivery

Contractors are already in talks with potential partners to consider creating PFI-style consortia to deliver the next generation of nuclear plants.

Balfour Beatty civil engineering managing director Andrew McNaughton said: "Banks will be nervous about funding a power station because of the construction risks, but a consortium that has a contractor on board putting in equity and a commitment to deliver the construction phase on time and to budget makes this a much more attractive proposition."

McNaughton said Balfour Beatty has already met with potential partners to discuss the possibility of forming a consortium. He said: "This is an important future market. We have been in it for years and we are already considering who the likely frontrunners are. We have already had discussions with potential partners."

With each scheme costing around £3bn, contractors wanting to form PFI consortia need to be able to put in at least £150m of equity, leaving the field open to the larger construction firms such as Balfour Beatty, Skanska and Carillion.

"All the major construction players are interested in taking part," McNaughton added.