18 MW Heavy Fuel Oil Base Power Plant EXIM Bank of INDIA

at MORONI, Union of Comoros

Date : 24th March 2015
On EPC basis

OIA – BHEL Consortium

 Content
S NO. Description Slide No.

1 Project Synopsis 4

2 Salient Features of Project Location 5,6

3 Project Scope 7

6 Resource Planning 8,9,10,11

7 Proposed Methodology 12,13,14,15,16

8 Organization Chart 17

9 Challenges 18

10 Way Forward 19,20

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 Project Synopsis
S No. Title Description
1. PROJECT NAME Design, Supply & Installation of 18 MW Heavy Fuel Oil Based Power Generation Project
2. CLIENT The Ministry of Production, Environment, Energy & Crafts, Govt of the Union of Comoros
3. FINANCIER EXIM Bank of India Under Govt. of INDIA Line of credit (LOC)

EPC Overseas Infrastructure Alliance (I) Pvt. Ltd & Bharat Heavy Electricals Ltd. in consortium
4. BHEL: Supply of DG sets & auxiliaries on FOB Mumbai basis, supervision of E&C;
CONTRACTOR OIA: BoPs, Power Evacuation, Civil Works, Erection / Installation & Other Services.

Set up of 18 MW Heavy Fuel Oil Base Load Grid Connected Engine Based Power
5. PROJECT SCOPE Generation Project with Associated Tank Farm & Electrical Evacuation System on EPC
basis at Moroni, Union of Comoros.
6. DURATION 18 Months
7. VALUE OIA USD 14.99 Million and BHEL USD 18.00 Million (Total – USD 32.99 Million)

8. PAYMENTS Through Separate Letter of Credits/ Against Payment Authorisation

9. OTHER DETAILS Contract no. 003/MPEEIA/2014 dtd 18th Sept’14 & Amendment no. 01 dtd. 17th March’15

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 Project Location
Global Geographical Position
Project Location

( Reference : The World Atlas official website, http://www.worldatlas.com/webimage/countrys/africa/km.htm)

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 Project Location
About Site (refer Fig 1)
• Project Site is located 3 Km from Moroni Airport.
• Physical inspection reveals hard strata– volcanic rock & Fairly Levelled
• Easy approach & access from adjacent main airport road
• Abundant Water Supply & Electricity

Fig 1. Site Photographs

The power generated from the new power plant will be fed
to the existing electrical grid network in the country. The
highest system voltage in the country is 20 kV; 20 kV lines
from the new power plant will be connected to the existing
network (refer Fig 2)

Proposed Project Location

Fig 2. Existing Electrical distribution Network

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 Project Scope
• EPC Contractor Scope
o Detail Design Engineering
o Supply of HFO Engine and Standard Auxiliaries
o Supply of Balance of Plant Mechanical, Electrical & Civil Supplies
o Supply of Power Evacuation
o Installation of HFO Engine, Standard Auxiliaries, BOP Mechanical, Electrical and Civil
o Testing & Commissioning
• Employer Scope
o Provision of land for construction of ware house, workshop, site office for contractor & sub contractor Personnel
o Provision of land for construction of housing facilities
o Electrical Power for construction site work
o Provision for water i:e drinking & other uses
o Cost of maintenance, repairs & rehabilitation of roads , port due to heavy transportation of project materials
o Right of way clearances from various agencies locally in Moroni, Union of Comoros
o Statutory Clearances like Business licenses, duty exemption & exemption of all taxes in Union of Comoros for
Tools , tackles, vehicles & other project related equipment imported by Comoros.

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 Resource Planning
• Material Planning
Procurements made under the contract must adhere to the provisions outlined in International Standards & also
validate policies and procedures to be applied to typical procurement actions such as construction development,
equipment purchases, and selection for professional services (engineering consultants etc.)
S No. Scope Proposed Vendors / Sub Contractors
1 HFO Engine and Standard Auxiliaries BHEL
Valiant Power or Relevant experienced Sub
2 Balance of Plant Mechanical Supplies
contractor
3 Power Evacuation Siemens or Relevant experienced Sub contractor
Valiant Power or Relevant experienced Sub
4 BOP Mechanical, Electrical and Civil installation
contractor
Ashutosh Engineering, Transrail, Karamtara or
5 Poles for RE
equivalent
6 Conductors Lumino, Sterlite, Apar, Tirupati or equivalent
7 Line Accessories Supreme, Axis, or equivalent

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 Resource Planning
A. Supply Schedule (Major Items)
Weeks from date of commencement
Sr No. Item
(FOB- Mumbai)
1 First Engine - 18 V 28/32 40
2 Second Engine - 18 V 28/32 44
3 Third Engine - 18 V 28/32 48
4 Fourth  Engine - 18 V 28/32 52
5 Fifth Engine - 7L 27/8 52
 36 – 44
6 Mechanical Auxiliaries
To suit the Project schedule
 40 -48
7 Electricals Auxiliaries
To suit the Project schedule
B. Erection and Commissioning

1 Erection and Commissioning will be completed with in 18 months as per schedule.

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 Resource Planning
• Machinery Planning
In order to meet timelines of the Erection work at site we have proposed Employer for specific duty exemption &
exemption of other taxes in Union of Comoros for Machineries. Some of major machineries are:
o Back hoe excavator
o Concrete mixer
o Welding machines
o EOT Crane of 20 tonnes
o Trucks
o Tipper
o Drilling machines
o Tools & Tackles

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 Resource Planning
• Man Power Planning (Tentative) Description No.
Local Labour 20
Manpower Planning at Site Semi Skilled
22
Labour
80
Manpower at Site Skilled Labour 28
70
70
70 70
65 65
60 61
55 54
50
Manpower Count

45 43
40
37
30 31
28 28
20 20
15
10 9
7
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Month

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 Project Execution
Methodology
Complete Project Execution is divided into four Phases:

• Phase I : Basic Design & Engineering (Expected duration – 2 months)

o At the beginning of the assignment, site visit for kick-off meeting and technical conference with Client officials and
collection of pertaining data and documents will be taken up by the design team of OIA & BHEL.
o Checking of Basic Engineering documents supplied by Client will be done by OIA & BHEL
o Design Basis Report including basic drawings and data sheets, list of manufacturers/suppliers and list of codes &
standard to be followed against every activity in compliance with commercial & legal obligation of the Contract will
be submitted to the concerned department.
o After submission of Design Basis Report, OIA & BHEL will participate in Technical conference with Client and
obtain approval of Design Basis Report, basic drawings, data sheets and list of manufacturers/suppliers.

• Phase II : Equipment Ordering ( Expected duration – 1 month)

o Based on the approved Design Basis Report, OIA & BHEL will prepare package specifications and submit it to the
selected bidders.
o Review technical offers of the bidders of numerous packages; prepare clarifications on vendor’s queries, technical
negotiations with the bidders will be done by OIA & BHEL.

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 Project Execution
Methodology
• Phase III : Detailed Engineering , Design Review & Material Dispatch (Expected Duration-11 months)
The tasks in the detailed engineering and design review stage comprises of performing the design and detailed
engineering and approval by the client, interface engineering, review and approval of the Vendor's design drawings,
technical documentation, manuals, procedures, etc. The following specific activities will be taken up in this Phase of
work
o Detailed design of the project will be done by OIA & BHEL and will be submitted to client / client’s consultant for
approval. Inspection Agencies, co-ordination for inspection in the country of origin of equipment as per the agreement
will be carried out by OIA.
o After inspection of all equipment/accessories in country of origin and approval of test certificates, OIA & BHEL
will Issue Material Dispatch Clearance of items ready for transport.
o OIA & BHEL will provide inspection services at works of the suppliers, covering all plant & equipment as desired by
client. At the beginning of the assignment, OIA & BHEL will finalize the requirements of inspections jointly with
client as per their requirement. Expedite Manufacturing of Equipment at Vendors site in country of origin.
o Review the Sub Contractor’s quality assurance program for Contract compliance, review factory testing methods and
procedures, witness necessary factory tests of equipment and review test results.
o Submit reports giving the findings and result of each, inspection or witness tests at the Manufacturer’s plants.

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 Project Execution
Methodology
• Phase IV : Project Execution, Testing & Commissioning (Expected duration – 10 months)

Identification and finalization of sub-contractor for onsite erection work -

o Under supervision of OIA Site topographical and geographical Supervisors, Semi-skilled labour will be deputed to
carry out the preliminary survey on foot and find out wherever there is Right of Way (ROW) issue. The semi- skilled
person will put up the case to the skilled technician who will discuss the matter with Site Supervisors and frame a
final detailed survey and prepare a final profile of the line. The profile of the line will be submitted to the
Client/Consultant for approval.
o After the approval from the Client/Consultant, the Sub – Contractor will be asked to start the construction activities.
All the requisite materials will be issued to the Sub-Contractor by our Store Supervisors on receipt of the standard
requisition duly approved by our Site Engineer.

Mobilization of Tools & Tackles for Erection work

o All the tools and tackles such as heavy vehicles, mobile cranes, pick-up vehicles, stringing equipment, lathe and
drilling machines, relevant measuring equipment, etc. required for the Construction activities will be arranged and
utilized at Site by the Sub-Contractor.

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 Project Execution
Methodology
Job training of local semi-skilled and unskilled labour by technical experts -
o The semi-skilled and un-skilled labours will be trained by the technical experts at Stores i.e. the workers will
be made familiar with the construction material and at Site i.e. an actual training regarding installation of equipment
or construction materials prior to start of the erection activities.

Supervision of erection work -

o A weekly meeting between the Sub-Contractor, OIA Site Supervisors and the Consultants on behalf of the Client will
be convened by the Site Manager wherein Weekly work plan will be chalked out regarding the erection and
construction activities and any problems/ discrepancies/ short comings will be sorted out. The Site Engineers/
Supervisors will monitor the progress of the work weekly based on the choked out plan and if there is any delay in
the activity based on the plan, the necessary action in the matter will be initiated. The Minutes of the Meeting will be
sent to the Project Manager, OIA and the Client Project Coordinator for information and necessary action.
o BHEL will provide supervision of erection and commissioning for its scope of supplies.
 

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 Project Execution
Methodology
Project Monitoring -
o A format of project progress report shall be finalised in consultation with the employer. Project progress report shall
be submitted to the employer on periodic basis. The regular project progress review meetings shall be conducted in
presence of the employer. The concerns if any shall be discussed during the meeting for early resolution of the same
& future way ahead.
Pre commissioning tests for completed erection work & Handing over –
o The expert Engineers from OIA & BHEL will be deputed to conduct the pre- commissioning test of the line and
thereafter the line will be commissioned under the supervision of our technical experts.
o After the successful commissioning of the line, it will be handed over to Client.

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 Project Organization Chart

HO Team

Site Team

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 Identified Challenges
• Port
The existing Moroni port is relatively small and does not have the capacity to dock the merchant vessel. Barge is
used to offload cargo from the vessel and then carried to port.

• Crane Availability at Port

One crane with 40 ton capacity is available at port for offloading of cargo. Hence separate arrangements are required
to be made for handling of break bulk cargo. The available crane would not be sufficient to handle the HFO Engines
at port.
 
• External Fuel Handling System
There is no unloading and storage facility available for storage of HFO fuel in Comoros. The site location is about 18
Km from the lone port in island; and external fuel handling systems are require for unloading and storage of HFO
fuel from vessels to cater the needs of the power plant.

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 Way Forward
• Way Forward

o Employer already pre informed regarding the major challenges of the project during discussion & Employer
agreed to take a view on the same.

o OIA shall obtain Statutory Clearances like Business licenses, duty exemption & exemption of all taxes in Union
of Comoros.

o OIA & BHEL would regularly keep informed client regarding shipment so that necessary arrangements can be
taken care.

o Maintaining strict Interdepartmental & client coordination for monitoring the material shipment & transfers.

o Extensive training & development program would be provided for key operational personnel for smooth
operation of power plant.

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 Way Forward
o  The existing power generation is provided through DG set which uses Diesel as the primary fuel which is
expensive

o HFO is cheaper as compared to the diesel & this project is completely viable looking into the expenditures and
the fuel availability at Comoros.

o  The power generated through HFO based Power plant will be fed to the existing electrical grid of the country to
cater the increasing power demand of nation.

o Since the Power generation is from HFO fuel, the cost of per unit consumption would be low as compared to
other available options.

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 o Thank you

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