National Participation NPP project - International Atomic · PDF file ·...

Jordan Atomic Energy Commission

National Participation

NPP project

Presentation to

Technical Meeting on Industrial Involvement and Localization for New Nuclear Power Plant Construction

26-29 August 2014

Qingdao , China

Ahmad Malkawi



Jordan Country Profile

- Total Area: 89,213 Km2

- Sea Port: Aqaba

- Coastline: 26 Km

- Population: 6,482,081 (July 2013 est.)

60% (15- 64)

35% (below 15)

- Climate: Mediterranean & Arid Desert

- GDP: $31.21 billion (2012 est.)

- Per Capita: $6,100 (2012 est.)

- Annual GDP Growth: 2.8% (2012 est.)


JAEC‘s Current Activities

Jordan’s Nuclear Projects

Uranium Exploration

HRD Nuclear

Power Plant Project

Research Reactor

Subcritical Assembly

Education & Training


Nuclear Research Facilities The JRTR

CP Obtained in August 15th, 2013


NPP Model Two inland NPP that will rely on reclaimed, treated waste water as its

cooling water

This is very similar Palo Verde/USA use of waste water for cooling

We anticipate the need of 25-30 M m3/1,000 MWe unit per year


Key GoJ Decisions, 2014

Establish the Jordanian Nuclear Company

Characterize the Amra site

Rosatom/ASE selected as a Preferred Bidder

Start Phase 1 activities (Definition of Project Parameters) with the Preferred Bidder

Establish, negotiate and secure all viable financing options (e.g., government to government; state-backed utilities, state supported lending organization, etc.) with the Preferred Bidder.


Owner/ Operator

Company JNPC JAEC

Government of Jordan

JNRC

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

EPC Contract Signature

First Concrete

COD for Unit 1

Feasibility & Finance Arrangements

Site Characterization & EIA

Site Permit (JNRC) Construction Permit (JNRC)

Negotiations with Preferred Bidder

Phase 2

Phase 1

Final Investment Decision

Construction Ends

Construction Period for Unit 1

Indicative Key Milestones for JNPP


NPP Available Sites - خارطة المواقع


Introduction

In Bid Invitation Specification (BIS) JAEC required 20% share

of total project budget to be given to local industry

JAEC want to increase the share to 30% for the second NPP

units

Local industry should compete in a commercial basis in terms

of price and quality.


Activities

During Sep 1-3,2003.JAEC hosted IAEA workshop in

national participation

Three IAEA expert participate in the work shop Mr.Kang

and two experts from Korea and China

JAEC invited related government institutes and industry

regulators

Different topics in localization and technology transfer

were discussed

Exploring China and Korea experience and lessons

learned

During the meeting, an open half-day for 33

representatives from local industry met with IAEA experts


Meeting with local industry

• JAEC invited about 30 representative of local industry and construction companies for a half day meeting

•Presentations from experts and questions •concern a bout competing the prices, especially of nearby countries due to high energy prices in Jordan.


Workshop recommendations

Set-up of localization planning committee

Establishment of long-term Localization Program

led by Government & project owner

Set-up of policies for promoting national

participation

Selection of one type of NPP and repeated order

for standardization

Improvement of local industry’s capability

14


Actions

For the first recommendation, JAEC requested Prime Ministry

to form a localization committee headed by JAEC, members

from:

-Related Ministries and government institutions

-Industry regulators (chambers of industry)

-Professional societies (Engineers, Contractors)

- R &D institutions

- Future nuclear power company

Other recommendation will be the duty of the committee; first

duty is to conduct a survey for potential local industries to

determined gabs in meeting requirements, quality and training.


localization planning committee suggested members


(Jordan Nuclear Power Company)*

Minister of Industry, Trade and Supplies

Ministry of Public Works and Housing

Ministry of Energy and Minerals Recourses

Ministry of Higher Education and Scientific Research

Ministry of Labour

Jordan Armed Forces

Jordan Standards and Metrology Organization

Jordan Chamber of Industry

Amman Chamber of Industry

Jordan Engineers Association

Jordanian Constructions Contractors Association

King Abdullah II Design and Development Bureau (KADDB)

( Other institutes and experts as needed)

* After company registration


Localization committee Two meetings took place so far, on 22 January and 29 April 2014

Specification, quantities, construction materials, list of equipments,

codes and standards were extracted from ASE Bid in order for the

localization planning committee to identify potential areas and

opportunities were local industry and suppliers can participate

Several meetings conducted with chambers of industry to study

information extracted from Russian Bid

Several meeting took place with Jordan Standards and Metrology

Organization to adapt Russian codes and standards


Activities

• A macro-economic study has been conducted that could assist in establishing policy criteria. The study indicates a threefold benefit to the local economy in terms of the localisation expenditure • Conducting a survey of potential local industries to determined gabs in meeting requirements, quality and training will be conducted by localization committee in Q4/ 2015


Bid Invitation Specification,BIS

• According to BIS, Bidders shall specify the target volume of the local subcontracts planned for the project, • The list of local services shall include a general description of the services and/or equipment to be provided by the local subcontractors

• During bidding process, vendors were provided with an initial list of potential local construction companies that may be qualified to participate in the project.


ASE (Preferred Bidder ) & Localization,1

ASE (Preferred Bidder )confirms its interest to involve Jordanian companies in JNPP construction, in • site preparation, • construction of technical and administrative buildings. ASE suggested the following areas to be involved for the project localization: • Natural building materials (sand, gravel, cement raw components, etc.); • Building materials, cement, metal structures; • Qualified labor force in the construction field.


ASE (Preferred Bidder ) & Localization,2

Jordan aim is to cover more areas in localization, for example, 1. Equipment Supply - Tanks, Piping in Turbine Building - Low Voltage Cables, Lighting System 2. Design & Engineering - Field Civil Engineering (limited portion) 3. Preliminary & Supplementary Works - Power Supply System, Tele-Communication Facilities 4. Construction Material & Installation - Painting - Equipment Installation, Cable Installation & Termination 5. Start-up Material Supply & Support


It is planned that a department or unit will be established within JNPC to: • Promote, monitor and assist with the achievement of localisation targets.

• Play an oversight role to ensure continued policy implementation

• Localisation will continue through all applicable phases of the NPP lifecycle, local infrastructure development, manufacturing, construction, operations and maintenance

JNPC & Localization


Strategy to establish the Government to government arrangement related to local

industrial involvement/supply chains

•An Inter-Governmental Agreement (IGA) is currently being drafted and should be signed by year end.

• The IGA will ensure the smooth progress of the project up to commissioning. •The Project Development Agreement (PDA) as well as the Bid Invitation Specification (BIS) clearly specifies this.


How we can decide the percentage of localization and what are the basis of percentage?

• Currently, the Localization percentage target for the project is about 20%

• For a first nuclear power plant in Jordan, this is quite optimistic

• Discussions with the vendor have culminated to very ambitious localization percentage reaching 30% if proper local industry preparation takes place coupled with investment in industry upgrade which might be possible in the 2nd NPP unit


How to manage risk in dealing with legal, cultural and contract issues related to local industrial

involvement from the vendor’s view point

• Jordan has a vast experience in working with foreign

companies in all aspects. • Local vendors have participated in several large projects that were completed in Jordan by foreign firms

• Thus, the risks over the years for foreign vendors having to deal with Jordanian Company have greatly diminished • Risks still exist due to the unique industry (nuclear) as the requirements are slightly different and highly regulated • The products’ shelf life is 60 years and requires special manufacturing processes, and the fact that 2 reactors are being built in Jordan make establishing some industries not feasible


How can you survey the local companies?

•A general sorting for companies that are able to supply materials and components for the Nuclear Power Plant Locally in process before the general survey started with the assistance of the Ministry of Trade and Industry, Amman Chamber of Industry, and Jordan Chamber of Industry

• Then, distributing an applications followed by visits to identify and short-Listed potential industry

• Jordan plans to consult with the communities near to the site and assess their capabilities to promote local economic involvement in the programme during its various phases


Dialogue between vendors owner-operator and potential vendors/suppliers including incentives

to optimize local participation

• Dialogue between owner-operator vendors should start after establishing the project company

• Incentives and subsides are difficult because of Jordan open trade policy and mutual agreements with many other countries


Qualification and selection of local industrial organizations

• In conjunction with our partner/vendor’s expertise, target local industrial sectors are identified

• Through the Ministry of Trade and Industry, Amman Chamber of Industry, and Jordan Chamber of Industry, potential candidates companies and suppliers are qualified • Meetings are conducted with these companies to rate their ability to deliver the product • Eventually, several short lists of candidates are created, - suitable to supply without major upgrades - required major upgrades to be able to be classified “qualified suppliers”.


How to put national involvement on the bidding process?

• The localization percentage has been set in the BIS (Bid Invitation Specification) at a minimum of 20%.

• In addition, This percentage will be set as a floor (bottom target) during negotiations for project development agreement including the IGA, PDA and EPC contract and during project implementation


Vendor’s role in upgrading industrial company competencies in order to meet

nuclear standards

• The Vendor will play a major role in upgrades required for local companies to get to the 20% • There will be a few companies that will require little upgrade • A group of other industrial companies will need more help to provide the product as per the requirements of the vendor

• Cost for upgrading should be agreed upon through negotiations and according to localization policy


Thank You

National Participation NPP project - International Atomic · PDF file ·...

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