Cardiff Capital Region Faces Significant Legal Costs Over Aberthaw Power Station Demolition
The Cardiff Capital Region (CCR) faces substantial legal expenses following a High Court ruling that deemed its procurement process for the demolition of Aberthaw Power Station unlawful. The court’s decision mandates CCR to pay damages to Brown and Mason Limited (BMG), the unsuccessful bidder, with claims exceeding £10 million.
BMG initiated legal action after the £40 million demolition contract was awarded to Erith Group. The High Court, presided over by Justice Jefford, found that CCR’s procurement process was marred by numerous breaches, including:
- Unlawful alterations to award criteria during the procurement.
- Multiple breaches in bid evaluations, such as manifest errors and failure to apply published criteria.
- Lack of transparent evaluation records.
- Apparent bias during the evaluation process.
- Failure to disqualify the preferred bidder despite unmet mandatory requirements.
- Unlawful post-deadline negotiations with the preferred bidder.
These findings led the court to declare that BMG had submitted the most economically advantageous tender and would have secured the contract if not for CCR’s unlawful conduct. Consequently, BMG is entitled to damages, the exact amount of which will be determined in forthcoming proceedings.
This legal setback compounds existing concerns regarding CCR’s procurement practices. Earlier investigations revealed that the demolition contract was awarded to Erith Group, a company previously fined £17.6 million by the Competition and Markets Authority for involvement in a bid-rigging cartel. This revelation prompted scrutiny over CCR’s decision-making processes and adherence to fair competition standards.
The Aberthaw Power Station, decommissioned in 2020, was acquired by CCR in 2022 as part of a broader initiative to transform the site into a green energy hub. The recent legal challenges and associated financial implications may impact the project’s timeline and CCR’s reputation in managing large-scale developments.
As the situation develops, stakeholders and the public await further details on how CCR plans to address the court’s findings and the potential financial repercussions stemming from the procurement missteps.
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Image credit:
Aberthaw Power Station from Minehead, taken Saturday, 2 September, 2017
cc-by-sa/2.0 – © Chris Allen – geograph.org.uk/p/5555195
