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Link to the study - European Parliament - Europa

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Policy Department D: Budgetary Affairs<br />

____________________________________________________________________________________________<br />

such a reliable plan all <strong>the</strong>se fields will present problems and are prone <strong>to</strong> substantial<br />

mismanagement. Escalating costs and extended delays are <strong>the</strong>n likely.<br />

Under <strong>the</strong> current overall management structure of this project a considerable improvement of<br />

management control, work performance indica<strong>to</strong>rs, financial control instruments and internal<br />

timely communication is required <strong>to</strong> keep <strong>the</strong> process under control and <strong>to</strong> allow timely<br />

interventions in cases where weak performance requires this.<br />

The overall conclusion, in respect <strong>to</strong> this <strong>study</strong>, is that nei<strong>the</strong>r <strong>the</strong> project management nor <strong>the</strong><br />

organisation form nor <strong>the</strong> gained performance level in <strong>the</strong> decommissioning process at Sellafield<br />

qualifies as a best practice example.<br />

3.4. SELECTED EXAMPLE FROM GERMANY: EWN GREIFSWALD<br />

The former German Democratic Republic ( GDR) operated six nuclear reac<strong>to</strong>rs (Rheinsberg,<br />

Greifswald/Lubmin units 1 <strong>to</strong> 5) in its terri<strong>to</strong>ry, which now makes up <strong>the</strong> eastern part of <strong>the</strong> Federal<br />

Republic of Germany ( FRG). Those were property of <strong>the</strong> state-owned combine 'Kombinat<br />

Kernkraftwerke Bruno-Leuschner'. When re-unification of East- and West-Germany came in 1990, this<br />

property was formally transferred <strong>to</strong> Treuhandanstalt, a privatization agency. The safety of <strong>the</strong><br />

facilities was evaluated with <strong>the</strong> finding that major backfitting would be necessary if continued<br />

operation of <strong>the</strong> facilities was <strong>to</strong> be chosen. Talks were held in 1990 with major nuclear operating<br />

companies on a potential takeover of <strong>the</strong>se facilities. These talks brought no viable result, and <strong>the</strong><br />

property was transferred <strong>to</strong> <strong>the</strong> <strong>the</strong>n-owner Bundesministerium der Finanzen (Federal ministry of<br />

Finance, BMF), <strong>the</strong> single owner since 2000. BMF became responsible <strong>to</strong> organize <strong>the</strong><br />

decommissioning of <strong>the</strong> six reac<strong>to</strong>rs. This included <strong>the</strong> assumption of <strong>the</strong> associated costs because no<br />

reserves had been set aside by <strong>the</strong> previous owner <strong>to</strong> cover part or all of those expenses.<br />

The following descriptions are based on different sources:<br />

The information necessary <strong>to</strong> understand organisational and control issues was received in<br />

comprehensive telephone interviews with <strong>the</strong> opera<strong>to</strong>r;<br />

On certain issues (such as project and risk management) additional descriptions and documents<br />

were provided;<br />

The responsible contact person at BMF provided insights concerning <strong>the</strong> perspective of <strong>the</strong> main<br />

funder and described decision-making strategic issues and <strong>the</strong> control over EWN;<br />

Practical experiences with <strong>the</strong> decommissioning project were derived from several visits over <strong>the</strong><br />

past years and working as consultant on behalf of <strong>the</strong> regula<strong>to</strong>r on <strong>the</strong> decommissioning of one<br />

of <strong>the</strong> facilities at EWN’s Rheinsberg nuclear power plant provided a close insight.<br />

3.4.1. Overall framework of <strong>the</strong> decommissioning project of EWN<br />

BMF set up a new organisation for decommissioning, Energiewerke Nord GmbH, a completely<br />

federally owned company. The formal structure is a limited liability company, with BMF as <strong>the</strong> sole<br />

owner. This organisational structure, not a state agency but acting like a privately organized<br />

company, allowed it <strong>to</strong><br />

Streamline <strong>the</strong> new management level of <strong>the</strong> company;<br />

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