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Defence Update

02 November 2020

Proposing MP
Ben Wallace Con
Wyre and Preston North
Type
Written Ministerial Statement
Department
Ministry of Defence
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At a Glance

Issue Summary

The Ministry of Defence is transitioning the Atomic Weapons Establishment (AWE) from a Government-owned Contractor-operated model to direct government ownership.

Action Requested

The MOD will establish AWE plc, an Arms-Length Body wholly owned by the MOD, with a new Board appointed by the MOD. The transition to this new arrangement is expected to be completed by June 2021.

Key Facts

  • In 1993, the MOD entered into a GoCo arrangement with Hunting-BRAE.
  • In 1999, AWE Management Ltd (AWE ML) was awarded a 25-year contract to operate AWE.
  • The Successor Arrangements clause was triggered on July 1, 2019, to explore alternative management options.
  • AWE plc will become an Arms-Length Body wholly owned by the MOD.
  • Transition to new arrangements anticipated to be completed by June 2021.
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