Public procurement procedures for Near Surface Repository B25 completed

On June 1, the Public Procurement Commission of the SE Ignalina Nuclear Power Plant (INPP) decided to complete the public procurement procedures for the construction of the near surface repository for short-lived low and medium-level radioactive waste (B25). The decision to close the procurement procedures was taken due to the fact that the remaining tenderer did not clarify the information provided on compliance with the established qualification requirements within the prescribed period and did not submit his consent and provide the necessary documents for the renewal of the offer.

We note that this year April 11, the tenderer applied to the INPP with a request to consider the possibility of reviewing the price recalculation mechanism established in the contract and the frequency of its application, as the market conditions and the current situation have changed significantly after a long period of time (the deadline for submission of tenders was 25 January 2021). The uncertainty in the construction market and the continuing rise in prices for works and materials pose significant risks to suppliers.

After consultations with the Public Procurement Service, the INPP Public Procurement Commission informed the participant that the contract price recalculation mechanism established in the procurement documents cannot be changed, and asked to extend the tender, setting a deadline for the potential supplier to express his will. Taking into account the fact that the participant did not provide the relevant documents within the prescribed period until June 1, 2022 the INPP Public Procurement Commission made a decision based on the provisions of Article 45-part 1 point 3 of the Law on Public Procurement of the Republic of Lithuania to reject the participant’s proposal and in accordance with Article 29-part 2 point 2 of the Law on Public Procurement of the Republic of Lithuania to consider the procurement procedures completed.

“The competition started more than a year ago, in January 2021, during which we had a lawsuit with one of the participants, which we won, but as a result of this, the public procurement procedures were delayed. The post-pandemic price hike and the start of the war in Ukraine had a significant impact on the price growth of the project's construction works, since it was from Ukraine that it was planned to buy a large part of metal structures and other building materials. This is probably not news to anyone today, and we see that other strategic construction projects are facing similar challenges due to significantly increased prices and uncertainty. Today, our immediate actions are the announcement of a new purchase after the actualization of the procurement budget and procurement documents and coordination with the central Project Management Agency, which administers the project, taking into account market developments, “said Audrius Kamienas, Director General of the INPP.

The objective of project B25 is to design and build a low and medium-active short-lived radioactive waste repository for the final disposal of this waste. The repository, its protective areas, and auxiliary structures necessary for operation will cover an area of about 45 hectares. Three groups of vaults (12 vaults per group) and the infrastructure necessary for its functioning have been designed in the repository. The first and second groups of vaults (24 vaults in total) and infrastructure are planned to be built in the first stage of construction. The construction of the third group of vaults will be decided at a later stage of decommissioning of the SE INPP, taking into account the real need. The waste facility will be located next to the INPP and will be used to store the INPP waste.

The Project B25 is funded by the European Union Ignalina program.