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S U I S O U T H E R N G A S C O M PAN Y L I M I T E D

R E S E A R C H A ND D E V E LO P M E N T D E PA RT M E N T

Ref: R&D/AS-007/02/2012
24 February 2012

Note to Deputy Managing Director (Ops)

NATURAL GAS EFFICIECNY PROJECT (NGEP) CONCEPT NOTE


FOR APPOINTMENT OF OWNERS ENGINEER (OE)
Preamble
This is with reference to our discussion with the DMD (Ops) held on 22 February 2012,
regarding the planning of NGEP and preparation of a concept approval for the appointment of
Owners Engineer (OE). Owing to the mechanisms of checks and balances in NGEP, two firms
Lenders Engineer (LE) and Owners Engineer (OE) will be appointed. LE will carry out topsupervision of NGEP activities for and on behalf of the World Bank, whereas, OE will be the
project facilitator for SSGC.
Purpose of OE
Conceptually, the OE will be a firm of international repute, having expertise in downstream gas
industry. It will be responsible for the following:
i)
ii)
iii)
iv)

Facilitation of SSGC in planning/procurement/project management processes;


Provision of support for capacity building, R&D, and technology-upgrade/transformation
of core business activities of SSGC for sustainable UFG-reduction;
Conducting work inspections/technical audits to prepare project/phase completion reports
and;
Intimation of NGEP-progress to SSGC Management, Lenders Engineer and the World
Bank.

Composition of core OE team


The OE team will comprise experts in Gas Distribution, Project/Supply Chain Management, Gas
Measurement and Pipeline protection. The broader guidelines of their area of expertise are
described as under:
1.

Team Leader/Gas Distribution System Expert - will be a seasoned Gas Distribution


Engineer, having 20 years experience consisting of:
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a.
b.
c.
d.
e.

At least 15 years of experience in Management of operation and maintenance of Gas


Distribution Networks.
Capability to develop R&D function at SSGC aimed at process improvement and
technological transformation.
Experience with latest pipeline construction technologies like: trenchless technology,
key-hole technology, etc.
Familiarity with best-practices in design, load management, computer simulation and
modeling, cathodic protection, pressure management of gas distribution networks.
Hands-on experience in construction/rehabilitation of gas distribution in urban/rural
areas

2.

Project Management/Supply Chain Management Expert will be an expert in the field of


Project Management with a sound knowledge of Supply Chain Management. The
individual may have an exposure of at least 15 years in Planning and Scheduling,
Material Procurement and Inventory Management of gas distribution construction
projects.

3.

Gas Measurement Expert will be an expert in the field of Gas Measurement having at
least 15 years of experience in design, installation and maintenance of gas metering
stations. The prospective team member shall have a sound knowledge of latest gas
measurement technologies; their installation and maintenance; and their calibration
methods and techniques. The knowledge of remote-monitoring and data acquisition
systems of customer meters and theft/tampering detection will also be considered.

4.

Pipeline Protection Expert will be an expert in the field of Cathodic


Protection/Corrosion Engineering. The individual may have an experience of at least 15
years in design, installation and maintenance of cathodic protection systems for gas
distribution networks comprising: thermoelectric generators (TEG)/transformer rectifier
stations (TR), deep well ground beds, battery backup systems, CP remote monitoring
systems and CP survey equipment. The knowledge of latest developments in coating
tapes and primers along with new materials for plastic pipe will also be considered.

5.

The team will appoint support staff as per their requirement.

Specific Tasks to be performed by OE team


a.

Enhancement of R&D function and top-supervision of capacity building measures


undertaken by SSGC for implementing NGEP.

b.

Technical design support which includes advice on the selection of technologies and
methods utilized in UFG reduction (e.g. trenchless pipe-laying).

c.

Project supply chain management activities and procurement support for:

Preparation / review of bidding documents for goods and works


Review and update specifications of materials and equipment

Responding to questions from bidders and participating in pre-bid meetings if


required

Reviewing bids preparing bid evaluation reports;


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Coordinating with contractors during implementation; and


Reviewing and updating the procurement plan as required.

d.

Project Management and overall implementation support including a review of


contractors procedures, monitoring time schedule and cost control, review and
evaluation potential change orders, and overall quality assurance/quality control of
project implementation.

e.

Participate in site visits for supervising major works.

f.

Reviewing the project cash flow cash flow and review of contractors payment
certificates and verification of works completed.

Facilities to be provided by SSGC


SSGC will provide the following facilities to the OE:
a.
b.
c.
d.

Furnished Office space comprising the following:


IT infrastructure computers, efficient printers, networking, etc.
Tele-communication facilities
Transportation on as and when required basis

Duration of appointment and timeframe


The total period of appointment may be for six years i.e. from 03 May 2012 02 May 2012.
However, to monitor the progress of OE, initially an annual contract may be awarded, which will
be renewed subsequently based on annual performance of the firm.
Budget and estimated Costs
An amount for USD 2.0 million has been earmarked in the NGEP budget. The costs incurred
may be estimated based on monthly charge-rates of the core-team members, which are tabulated
as under:
Sr. #

Description of services

1.
2.

Team Leader/Gas Distribution System Expert


Project Management/Supply Chain Management
Expert
Gas Measurement Expert
Pipeline Protection Expert
Salaries of support staff (@ 25% of sum of items 1 4)
Overheads (@15% of sum of items 1 4)
Total

3.
4.
5.
6
7.

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Estimated Amount
(USD/Month)
6,500
4,500
4,500
4,500
5,000
3,000
28,000

Hence the estimated annual cost of the assignment will be USD 336,000 and for the six year
period the cost will be USD 2.02 Million.
Kindly accord your approval for going along with this project and advise the concerned
departments to take necessary actions in this regard.

Aatir Salman
Actg. Chief Engineer (R&D)

Prince Naushad Hizb


Actg. Chief Engineer (R&D))

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