Steam Power Plant

50MW Gas Steam Combined Power Plant Proposal
Addis Ababa University

Institute of Technology
Post Graduate program in Mechanical Engineering
Project Proposal
AAiT Engineering &Contracting
Design Build 50MW Gas-Steam Combined Power Plant Proposal
Client: Ethiopian Electric Power Corporation (EEPCO)
Instructor Dr.Birhanu Beshah
Advisor Ameha Mulugeta
Submitted by:
Mesay Diriba
Date: 2013/03/02
By Mesay D.G Page 1

Ref.No.aait/E&C/G/M/01/215/2013
Date: February 27, 2013
MESSRS,
Ethiopian Electric Power Corporation (EEPCO)
Addis Ababa, Ethiopia
Re: Dallol Power Station Construction Project –Request for proposal
I would like to take this opportunity to thank your esteemed corporation in inviting us to participate in this design
build tender proposal.
Please find enclosed herewith our best proposal offer of 50MW Gas –Steam power plant which is to be installed at
Dallol.
Hoping that our offer will meet your kind approval, we remain at your disposal.
Respectfully yours,
Table of Content
By Mesay D.G Page 2

Chapter: One Page

1 INTRODUCTION
1.1 Letter of Acceptance………………………................................................................ 6
Chapter: Two
2. GENERAL REQUIREMENT OF THE PROJECT
2.1 Scope of the Project………..………………................................................................7
2.2 Required Technical Specification ................................................................................7
2.3 Condition of Supply and required documentation........................................................8
Chapter: Three
3. UNDERSTANDING OF COMBINED CYCLE
3.1 Combined Cycle ..................................................................................................................10
Chapter: Four
4. PLANT EQUIPMENT SPESFICATION AND SELECTION
4.1 Selection Criteria of Technology ……………………………………………...……….20
4.2 Lists of Selected Equipment ……………………………………………………….….21
Chapter: Five
5. WORK OF ORGANIZATION STRUCTURES……………………………..………….
5.1 A Work Breakdown Structure (WBS)…………………………………….…………....32
5.2 Organization Breakdown Structure (OBS)……………………………………….…….33
Chapter: Six
6. PROJECT SCHEDULING AND COST ANALYSIS
6.1 Project Scheduling Methods…………………………………………………..………...42
6.2 Machinery Importing and Other related Costing ……………………………………….49
Chapter: Seven
7. RISK ASSESSMENT
7.1 What is Risk Assessment……………………………………………………….….....…56
7.2 Risk Break Down Structure ……………………………………………………..………56
7.3Project Risk Management and Risk Break Down Matrix ……………………………….60
Chapter: Eight
8. CONTRACT FORM……………………………………………………………………..64
Chapter: NINE
9. CONCLUSION AND RECOMMENDATION
9.1 Conclusion ………………………………………………………….…………..……….80
9.2 Recommendation ………………………………………………………………….…….80
By Mesay D.G Page 3

Acknowledgements
First of all, we are indebted to our instructor, Dr.Birhanu Beshah, who provided his kind instruction, comments
and for his earnest guidance and valuable experience sharing .We also want to thank our adviser Ato Ameha
Mulugeta for his full time follow up and valuable advice, comments and suggestion to finalize our proposal
project.
By Mesay D.G Page 4

CHAPTER ONE
1. INTRODUCTION
On this 20th century, globalization and industrializations are growing at the fastest rate, the demand of power is
absolutely very crucial.
To fulfill the demand, each countries and nations are finding their base way and mechanize for their power
requirement such as wind energy, nuclear energy, geothermal energy, hydro power energy and so on.
To choose and utilize such source of energy their are a lot of barriers such as environmental issues, finical,
political, etc counties are facing up.
The gas steam power plant is one of the method of extracting electrical power .Here, the most limited factors are
environmental effect from exhaust stack, source of fuel energy for the gas turbine ,source of water and best
efficient plant design and equipments.
By far the Dallol 50MW gas-steam power plant is an excellent solution which can assist/ fulfill the country power
demand and currency problem when it is implemented.
By Mesay D.G Page 5

1.1 Letter of Acceptance
Ref.No. aait/E&C/G/M/01/215/2013
Date: February 27, 2013
MESSRS,
Ethiopian Electric Power Corporation (EEPCO)
Addis Ababa, Ethiopia
Re: Dallol Power Station Construction Project –Request for proposal
We would like to take this opportunity to thank your esteemed corporation in inviting us to participate in this
design build tender proposal.
Please find enclosed herewith our best proposal offer of 50MW Gas –Steam power plant which is to be installed at
Dallol.
Hoping that our offer will meet your kind approval, we remain at your disposal.
Respectfully yours,
By Mesay D.G Page 6

CHAPTER TWO
2. GENERAL REQUIREMENT OF THE PROJECT
2.1 Scope of the project

The intent of this project is to provide designed-built construction of a gas and steam combined power
plant capacity 50MW in Afar Regional State, Dallol, Ethiopia.
The gas-steam turbine plant lay out is made of the following main subsystems.
1. Control room and office building block
2. Heat recovery steam generator and diffuser
3. Stack
4. Gas treatment and compression station
5. Gas turbine
6. Generator and gear box set
7. Steam turbine
8. Steam boiler
9. Steam condenser
10. Transformer yard
2.2 Required Technical Specifications

EEPCO is committed to build a combined cycle gas turbine (CCGT) power station, based in
Dallol,Ethiopia.The station comprise of a gas turbine fuelled by natural gas,a waste heat recovery
boiler(WHRB),a steam turbine and a single shaft generator.
The required gas turbine should normally generate 42MW of electrical power. The exhaust gases from the
turbine are passed into the boiler where steam is generated at both 4bar and 44bar pressure levels. This
steam is then sent through the steam turbine producing additional power and then condensed in a surface
By Mesay D.G Page 7

type condenser which is cooled by means of river water. In total, 50MW of electricity is expected to be
produced and exported by the plant.
The gas turbine and steam turbine will be arranged in a single shaft configuration .Both turbines are
connected through reduction gears to the same generator located between them.
Attachment Lists:
 Basic design of the power plant layout in the attachment 2.
 Layout
 Activity list
 Productivity curve
 Cost of supply and equipment
The intent of this project is to provide designed-built construction of a gas and steam combined power
plant capacity 50MW in Afar Regional State, Dallol, Ethiopia.
2.3 Condition of supply and required documentation

The following lists of documents will be provided along the detail technical specifications of our offers:
1. Technical report which includes the quality and quantity of supply (understanding of power plant layout,
pictures of technologic equipments, additional information to describe the supply, industrial site where
items are manufactured).
2. Work Break Down Structure(WBS)
3. Organizational Break Down Structure(OBS)
4. WBS/OBS matrix
5. Cost Breakdown Structure (CBS)
6. Network scheduling
7. Risk assessment (RBS,RBM)
8. Contract Form
9. Cash flow
Conditions of Supply:
i. The interest rate on overdraft is worth 8% and on credit3%
ii. Payment will be made:
a.10% agreement
b.5% engineering approval
By Mesay D.G Page 8

c.60% based on erection progress
d.15% final testing and completed
e.10% as a guarantee 6months after completion
iii. Payment from the client is 90days after invoicing
Iiii.Payment due to suppliers are due 60days after good receiving
CHAPTER THREE
3. UNDERSTANDING OF COMBINED CYCLE GAS-STEAM POWER PLANT
3.1. Combined Cycle
Combined cycle power plants are highly efficient, flexible, reliable, cost-effective and environmentally friendly
solutions to generate electrical power.
In combined cycle power plants (CCPPs) a gas turbine generator generates electricity while the waste heat from
the gas turbine is used to make steam to generate additional electricity via a steam turbine.
In other words, the output heat of the gas turbine flue gas is utilized to generate steam by passing it through a heat
recovery steam generator (HRSG), so it can be used as input heat to the steam turbine power plant. This
combination of two power generation cycles enhances the efficiency of the plant. While the electrical efficiency of
a simple cycle plant power plant without waste heat utilization typically ranges between 25% and 40%, a CCPP
can achieve electrical efficiencies of 60% and more. Supplementary firing further enhances the overall efficiency.
The high fuel utilization factor of the plant contributes to low lifecycle costs. Together with an outstanding
operational flexibility, CCPPs can provide a tailor-made solution for your power needs.
How a Gas Turbine Works:
A gas turbine compresses air and mixes it with fuel. The fuel is burned and the hot air-fuel mixture is expanded
through turbine blades, making them spin about a shaft. The spinning turbine drives a generator that converts the
spinning energy into electricity.
By Mesay D.G Page 9

Fig.1. Gas turbine
Description of Gas turbine:
 Fuel is burned in the gas turbine

 The resulting energy in the gas turbine turns the generator drive shaft
 Exhaust heat from the gas turbine is sent to a heat recovery steam generator (HRSG)
 The HRSG creates steam using the gas turbine exhaust heat and delivers it to the steam turbine
 The steam turbine delivers additional energy to the generator drive shaft
 The generator converts the energy into electricity
Gas Turbine Cycles
Gas turbines are complex turbo machines made up of thousands of parts. Nevertheless, gas turbines have three
main parts that perform the fundamental thermodynamic processes involved in the mechanical shaft power
production from the fuel chemical energy as illustrated in Fig. . First, the income atmospheric air must undergo a
compression process in the compressor section where both pressure and temperature are increased. Next, the
compressed air is driven to a combustion chamber where fuel is injected into the compressed airstream and burnt
increasing the temperature at a constant pressure process.
Finally, the combustion products at a high temperature and pressure are expanded in the power turbine section
generating shaft power to drive the compressor as well as an electrical generator or any other rotary device
attached to the rotary shaft. The combustion products are exhausted through nozzle into the atmosphere.
Fundamentals of Thermodynamics Applied to Thermal Power Plants
A. Simple Brayton Cycle
By Mesay D.G Page 10

In an actual gas turbine, the working fluid changes from atmospheric air to combustion products that exhaust
back to the atmosphere, as illustrated in Fig.4 .However, in order to evaluate the machine from the
thermodynamic point-of-view, some assumptions are needed. Firstly, the working fluid is assumed to be plain
air, without any chemical transformation due to the combustion. In doing so, the air–fuel combustion process is
replaced by a heat addition process at a constant pressure. Secondly, the exhaust and admission processes are
replaced by a heat transfer process.
Fig.2 Three main parts of a gas turbine: the compressor, the combustion chamber, and the power turbine
Having the cycle of Fig.2 In mind along with the ideal gas behavior and constant thermodynamic properties
one may obtain the working equations from an energy balance for each cycle component:
Heat addition: qH = h3 - h2 = CP(T3 - T2)-------------------------------------------------------(1)

Heat rejection: qL = h4 - h1 = CP(T4 - T1)-------------------------------------------------------(2)
Compression work: Wcomp = h2 - h1 = CP(T2 - T1)-------------------------------------------(3)
Turbine work: Wturb = h3 - h4 = CP(T3- T4)----------------------------------------------------(4)
Cycle net work: w = Wturb- Wcomp --------------------------------------------------------------(5)
Equations 1 through 5 are on mass basis whose unit is kJ/kg in the international system of units, SI. Also, both the
kinetics and potential forms of energy have been neglected.
The simple Brayton cycle formed by its four basic ideal gas processes is indicated in both diagrams. The cycle net
work is given by the enclosed area shown in figures. First, air is compressed ideally (isentropic) in the compressor
(process 1–2) increasing both pressure and temperature at expenses of using compression work (wcomp) which is
supplied by the turbine itself. Second, heat (qH) is added at constant pressure making up the process 2–3,which
heats up the air to the highest cycle temperature, T3. Next, the high pressure and temperature air undergoes an
expansion process (process 3–4) generates work (wturb) enough to drive the compressor and produce net shaft
work (w). Finally, heat (qL) is rejected to the environment (process 4–1) at constant low pressure closing the
cycle.
The thermal efficiency, ηth; of a cycle is defined as the ratio between the cycle net work and heat added, as given.
By applying the First Law for the whole cycle, one easy can show that w = qH- qL. Therefore, one obtains:
ηth=1- qL/ qH
By examining the temperature-entropy diagram in Fig. a, one can easily notice that T3 is the maximum cycle
temperature, also known as the firing temperature, while T1 is the minimum one (usually the environment
temperature).
Fig. 3 Simple Brayton cycle in a temperature-specific entropy diagram; b pressure-specific volume diagram
By using isentropic ideal gas relationships between pressure and temperature, it is straightforward to show that:
p2/p1=(T2/T1)γ/ γ-1
p3/p4=(T3/T4)γ/ γ-1

Fig. 4 Pressure ratio
Fig. 5 Actual and ideal compression work; b actual and ideal expansion work; c combination
Similarly, one may obtain the actual thermal efficiency, ηth-a, as the ratio of the actual net work and the added
heat.

In order to verify machine efficiencies, consider a gas turbine whose compressor efficiency is 80% and turbine
efficiency is 85%. Also, consider that the minimum and maximum cycle temperatures are T1 = 300 K and T3 =
1,200 K, respectively.
Fig. 6 Pressure ratio comparison between ideal and actual
2. Rankine Cycle
Rankine cycle is the one used in steam power plants. The most common fluid used in this cycle is water, but other
fluids can also be used. Lately, ROC, Rankine Organic Cycles have been devised using organic fluids, rather than

water. ROC is mostly used in small to medium installations and they are usually powered by solar energy or
recovered waste heat. Industrial and large thermal power plants use conventional Rankine Cycles, which are
revised in this section. First, the simplest .Rankine cycle is presented and the necessary variations are discussed
until discussing the more commercial configurations.
The Simple Rankine Cycle
The simplest Rankine cycle is the one based on four reversible process as shown in Fig. . Saturated liquid 1
undergoes an isentropic compression process to reach compressed liquid at state 2. Next, the compressed liquid is
driven to the steam generator, where heat QH is added to obtain saturated vapor at state 4. Useful work is
produced in an expansion machine, such as a steam turbine, in an isentropic process.

Fig. 7 A Four basic components of a simple Rankine cycle; b temperature-specific entropy diagram and Carnot
cycle
Yielding fluid at state 5. Finally, there occurs condensation by removing heat QL in the condenser to close the
cycle and the fluid returns to the initial state 1.
Thermal balance around the pieces of equipment of the Rankine cycle are:
Heat addition: qH = h4 - h2 = CP(T3 - T2)----------------------------------------------------------(6)

Heat rejection: qL = h5 - h1 = CP(T4 - T1)----------------------------------------------------------(7)
Compression work: Wpump = h2 - h1 ---------------------------------------------------------------(8)
Turbine work: Wturb = h4 – h5------------------------------------------------------------------------(9)
Cycle net work: w = Wt- Wp --------------------------------------------------------------------------(10)
Magnitudes in Eqs. 6 through 10 are on mass basis. For instance, if one needs the cycle total net power, W; it may
be obtained according to Eq. 11, i.e.,
W = m.x w
where, m_ is the mass flow rate.
3. Combined Brayton-Rankine Cycle
As analyzed in first discussion, a relatively high exhaust gas temperature is obtained in gas turbines. Considering
economic and environmental issues it makes sense to recover such amount of thermal energy to produce other
useful effect. One Possibility is just to use the regeneration technique as other possibilities include; (1) using the
exhaust gases to power an absorption refrigeration cycle. As a result air conditioning can be obtained for
controlling the environment in working areas or, even, to cool off the gas turbine inlet air temperature, which can
boost its power capacity using a compact heat exchanger to heat a fluid for any process purpose, including hot
water and steam; and using a heat recovery steam generator (HRSG) to produce steam at a temperature and
pressure enough to power a steam turbine (or other expansion machine) in a Rankine cycle.
The combined cycle increases the efficiency without increasing the initial cost greatly. Consequently, many new
power plants operate on combined cycles, and many more existing steam- or gas-turbine plants are being
converted to combined-cycle power plants.

Fig. 8. Combined Brayton-Rankine cycle in 1 to 1 configuration

Figure 9. Shows a schematic of a combined Brayton-Rankine cycle.
Notice that steam to power the Rankine cycle is produced in the HRSG, which is driven by the exhaust gases from
the Brayton cycle. As a consequence, the overall cycle efficiency is improved as seen next.
The combined cycle efficiency, ηC; is given by
ηC =Wnet/QH=(WB + WR)/QH
Where, WB is the net shaft power produced by the gás turbine (Brayton cycle),WR is the net shaft power produced
by the Rankine cycle, and QH is the thermal power due to fuel combustion. The pumping power in the Rankine
cycle has
been neglected. Now, by substituting the thermal efficiency of the Rankine cycle,
ηR; yields:
ηC =WB + ηR X QC/QH
Where, QC is the heat load in the HRSG transferred from to exhaust gases to produce steam. Considering an ideal
condition in which the exhaust gases leaving the HRSG are at a low temperature, then:
QC= QH - WB
Substituting Eq. along with cycles thermal efficiencies, yields:
ηC = ηB+ ηR –ηB ηR

CHAPTER FOUR
4. PLANT EQUIPMENT SPESFICATION AND SELECTION
4.1 Selection criteria of technology
Best and reliable power plant equipment selecting will make power yarding capacity and efficiency production
faster, simpler and more efficient.
Selection criteria include:
A. Appropriate to setting ,Machine /Equipment should be:
• Suitable for the level of facility and service provided
• Acceptable to staff and patients
• Suitable for operator skills available
• Suitable for the local maintenance support capabilities
• Compatible with existing equipment and consumable supplies
• Compatible with existing utilities and energy supplies
• Suited to the local climate, geography and conditions
• Able to be run economically with local resources
B. Affordable and cost-effective, Machine /Equipment should be:
• Available at a price that is cost-effective
• Affordable in terms of costs for freight, insurance, import tax,etc
• Affordable in terms of installation, commissioning, and training of staff to use and maintain them
• Affordable to run (for example, cover the costs of consumables, accessories, spare parts and fuel over its
life-time)
• Affordable to maintain and service
• Affordable in terms of the procurement process (for example the cost of a procurement agent or foreign
exchange)

• Affordable in terms of staffing costs (for example, costs of any additional staff or specialization training
required)
C. Ease of use and maintenance, Machine / equipment should fulfill:
• for which we have the necessary skills in terms of operating, cleaning, and maintenance
• for which instructions and manuals are available in a suitable language
• for which staff training is offered by the supplier
• for which local after-sales support is available with real technical skills
• which offers the possibility of additional technical assistance through service contracts
• Which comes with a warranty/guarantee, covering a reasonable length of time, for which we understand
the terms
• which offers a supply route for equipment-related supplies (for example, consumables, accessories, spare
parts)
• Which offers assured availability of these supplies for a reasonable period (up to 10 years)
D. Conforms to existing policies, plans and guidelines, Machine / equipment should satisfy:
• Purchasing and donations policy
• Standardization policy
• Technology level described in the Model
• Which is deemed to be suitable, having studied available literature and compared products
• Which is deemed to be suitable, having received feedback regarding previous purchases
4.2 Lists of selected equipment
4.2.1 Control room and office Building Block
Consists of : remote-control desk, fire detection and gas detection systems, emergency shutdown system.
Application: uninterrupted tracing of work and conditions of main processing equipment and secondary systems
equipped with integrated system of control and emergency shutdown.
Main part: logical control organ as a unit with CRT displays (cathode-ray tube display) and operator’s console.

Major task: prevention of hydrocarbons leakage by uninterrupted monitoring and errors detection of
technological process with further shutdown of relevant systems.
Emergency shutdown: automatically emergency shutdown of one production unit (or process) after probe
triggering.
Emergency shutdown: automatically emergency shutdown of one production unit (or process) after probe
triggering. Automatically local emergency shutdown of processing equipment (or supporting system) in presence
of gas concentration, exceeding the lower explosive limit by 50%.
Automatically local emergency shutdown of processing equipment (or supporting system) in case of response of
fire detection system. Manual switching of whole processing system (or any part of it).
Supplier: Karachaganak Petroleum Operating b.v. (KPO)
Manufacturing Company location: Italy, United Kingdom, Russia, USA
Lay out location No. 4
Dimension [LXWXH][M]:15X9X4
fig.10: Control Room
4. 2.2 Heat recovery and steam generator
Steam capacity: 15 – 250 t/h
Operating pressure: 3-140bar
Supplier: Aalborg Engineering,EU
Dimension [LXWXH][M]:17.5X4X10

4.2.3 Stack
Supplier: Steelcon
 In Steelcon’s factories we manufacture according to ISO 9001 and Certificate Class E DIN 18800-
7, DIN 4133.
 Lay out location No. 12
 Dimension [LXWXH][M]:Ф2.5X40

Fig11: Stack

4.2.4 Compressor
Turbo compressors from Siemens –covering the complete spectrum Siemens offers a full range of turbo
compressors to meet the needs of the oil and gas and process industries: in-line, axial or axial-radial,or integrally
geared compressors can be matched with a range of drivers – steam turbine, gas turbine or electric motor – in a
solutionto match each unique customer.
Siemens has successfully supplied the largest air compressors and the largest mechanical drive steam turbines ever
made. This experience makes Siemens the partner of choice for all compression and power requirements in all
sections of the GTL process up to a complete power island.
The STC-SV is a single-shaft centrifugal compressor with vertically split barrel-type casing, designed for direct
drive concepts in accordance with API 617. All compressor internals are assembled into one Bundle for easy
installation and maintenance. The STC-SV allows for perfect matching of compressor performance and rotor
dynamics and is the perfect solution to compress gases of any molecular weight.
The single-stage STC-SV (S) is a packaged-unit concept – compressor, driver and auxiliaries form one single lift
unit which facilitates transport and reduces site installation work to a minimum.
Technical data
• Flow rates from 250 to 480,000 m3/h
• Discharge pressure up to 1,000 bar
 Rotational speed: <20000rpm
Features
• Wide variety of sealing systems
• Can be operated with any drive system
• High part-load efficiencies
• Suitable for light gases and high pressures
• Can be designed for up to four process stages and with up to 10 impellers
Supplier: Siemens
Model Name: STC-SV
Dimension [LXWXH][M]:9X4.5X7
Further specifications: High efficiency, Low maintenance
Company detail :Siemens AG,Energy Sector,Oil & Gas Division,Wolfgang-Reuter-Platz,47053 Duisburg,

Germany

fig.12: Siemens STC-SV
4.2.5 Gas Turbine
Supplier:
Model: SGT-800
Power: 42-47MW
Efficiency: 37.5%
Frequency: 50/60Hz
Rotational speed: 6,608 rpm
Dimension [LXWXH][M]:12.5x10.5X3.5
Features and benefits
 High industrial gas turbine electrical efficiency

 Dual fuel low emissions technology
 Fuel changeover capability
 Stable load rejection capaSGT-800 Industrial gas turbine

Features and benefits , <5% over speed
 Low gas supply pressure, 27-30 bar(a)
 High exhaust energy giving excellent cogen/CC characteristics
 Established onsite service concept

Fig13: Siemens SGT800
4.2.6 Generator and Gearbox
Generator
It goes without saying that a reliable gearbox is a requirement. You want to know that the gearbox will deliver
high availability and operate efficiently for the life of the turbine. And you want your gearbox supplier to have the
integrity and longevity to stand behind its products, as well as the capability to meet your demand anywhere in the
world. Because, whether it's a gearbox or the company that builds it, it's what's inside that count.
Supplier: GE
Name: Air-cooled 6A6 Series
Output: 50MVA
Frequency: 50Hz
Voltage: 11.5 kV
Description:
 GE's air-cooled generators are an ideal choice for power system applications that demand simplicity
and flexibility of operation. The absence of a pressurized atmosphere within the generator makes its
structural components simple, facilitating maintenance
 Brushless

Manufacturing: Belfort, France, Bracknell, UK
Gear Box
Supplier: RENK MAAG TURBO GEARS
Name: G - series
Description: specifically designed for turbo-compression and power generation applications up to

140 MW
Manufacturing: Winterthur, Switzerland
Dimension [LXWXH][M]:7.5x7.5X3
4. 2.7 Steam boiler
Supplier: SEEGER ENGINEERING AG
Steam output: 12 t/h
Type of boiler: vertical water tube boiler
Steam temperature: 465°C
Steam pressure: 50 bar
Dimension [LXWXH][M]:6.5x4X2
4.2.8 Steam Condenser
Supplier: Alstom Power
Description: Alstom floor mounted condensers integrate best into the compact arrangement of modern
combined cycle power plan.
Main features and advantages:

 High overall thermal performance from the smallest to the largest unit
 Excellent removal of non-condensable (air) ensures high heat transfer rates
 Extremely low oxygen content of the condensate in the hot well due to good degassing
characteristics

 High condenser tightness on both steam and water sides

 Proven and well accepted design due to many references and detailed condenser performance tests
 Good accessibility for inspections, maintenance-free except replacement of the sacrificial anodes on
the cooling water side
 Our condensers are manufactured to our specifications, under our supervision and with our
assistance in the workshops of carefully selected subcontractors or partners.
 Manufacturing: 90018 Belfort Cedex, France
 Lay out location No. 18
 Dimension [LXWXH][M]:4x3X3
4.2.9 Steam Turbine

The SST-100 is a single-casing turbine, geared for generator drive; pre-engineered including
Balding as a cost-effective solution.
Fig14: SST-100 Steam turbine in the layout
Supplier: Siemens
Name: SST-100

Power: 8,5MW
Rotational speed: 7500rpm
Inlet Steam Pressure: <65bar
Backpressure: <10bar
Exhaust pressure: <1bar
Exhaust area: 0,22 sqm
Manufacturing: Germany
Dimension [LXWXH][M]:5x9X5
fig.15: Siemens SST-100
4.2.10 Transformer Yard

Supplier: SES Ltd
Description SES Ltd:
SES Ltd has accumulated a considerable amount of expertise and many years experience in the Manufacture,
Installation, Commissioning, Refurbishment and Maintenance of Distribution and Power Transformers both in the
UK and overseas.
We can offer a complete Project Management service which will include as standard a site visit for inspection,
creation of individual risk assessments, method statements and COSHH assessments and identification of any
specialist equipment or training required to complete the project.
Voltage: 415V-400kV
Manufacturing UK
Dimension [LXWXH][M]:5x5X4

fig.16: SES Transformers

CHAPTER FIVE
5. WORK OF ORGANIZATION STRUCTURES
5.1 A work breakdown structure (WBS)
A work breakdown structure (WBS), in project management and systems engineering, is a deliverable oriented
decomposition of a project into smaller components. It defines and groups a project's discrete work elements in a
way that helps organize and define the total work scope of the project.
A work breakdown structure element may be a product, data, a service, or any combination. A WBS also provides
the necessary framework for detailed cost estimating and control along with providing guidance for schedule
development and control.
WBS is a hierarchical decomposition of the project into phases, deliverables and work packages. It is a tree
structure, which shows a subdivision of effort required to achieve an objective; for example a program, project,
and contract. In a project or contract, the WBS is developed by starting with the end objective and successively
subdividing it into manageable components in terms of size, duration, and responsibility (e.g., systems,
subsystems, components, tasks, subtasks, and work packages) which include all steps necessary to achieve the
objective.
Function
Essentially, a work breakdown structure is a hierarchical map of your project. Writing down your plan helps you
visualize your overall strategy. You can sketch it out in the form of a flowchart or simply list the tasks in
chronological order.
Initial Breakdown
Define your top-level objective. For example, describe the type of marketing campaign you wish to launch.
Meeting this objective means the project has been successful. Next, divide your top-level objective into its
constituent tasks. For instance, your marketing campaign will require a design phase, followed by production and
implementation phases. Call these your midlevel tasks.
Further Breakdown
Divide your midlevel tasks into their constituent tasks. For example, a design phase might consist of fact-finding
meetings with your client to determine the preferred focus of the marketing campaign, planning sessions with your
marketing staff to strategize your advertising approach and a follow-up meeting with the client to get final
approval to implement the campaign. Continue dividing the tasks until you reach a level of simplification that
allows a single worker or dedicated team of workers to handle each task.
Work breakdown structure, WBS, captures all the elements of a project in an organized fashion. Breaking down
large, complex projects into smaller project pieces provides a better framework for organizing and managing the
project. WBS can facilitate resource allocation, task assignment, responsibilities, measurement and control of the
project. Includes:

1. Function oriented structure

 Transporting
 Conveying
 Storing
2. Product oriented structure
 Feasibility study
 Engineering
 Identifying Suppliers
 Purchasing
3. Location oriented structure
 Site selection
 Site preparation
 Layout design
 Civil work
 Erection
fig.17: WBS
5.2 Organizational Breakdown structure (OBS)

Organizational Breakdown structure represents hierarchy or chain of commands of company managing the project.
OBS contains departments or discipline, supplier, project team or personnel.

fig.18: OBS
The plant activity can be categories on the above general schemes based on our activities as shown on the table
1.The ENGINEERING actives can be categories in WBS under level 2 of product oriented structure and level 3
of engineering activites.Here,the sub activities are stated from 1.1-1.8.
The PURCHASING activity of can be categorized in WBS under level 2 of product oriented structure and level 3
of Marketing .Here, the sub activities are stated from 2.1-2.12.
The FABRICATION OF ITEMS activity of can be categorized in WBS under level 2 of product oriented
structure and level 3 of Engineering .Here, the sub activities are stated from 3.1-3.10.
The TRANSPORTATION from supplier to the construction site activity can be categorized in WBS under level 2
of function oriented structure and level 3 of Transportation .Here, the sub activities are stated from 4.1-4.5.
The CIVIL WORKS activity of can be categorized in WBS under level 2 of location oriented structure and level
3 of Civil works .Here, the sub activities are stated from 5.1-5.5.
The COMMISSIONING activity of can be categorized in WBS under level 2 of product oriented structure and
level 3 of engineering activites.Here,the sub activities are stated from 7.1-7.3.
The Project MANAGEMENT activity can be categorized in all WBS but the site management activity is only
required in the civil work activity, plant erection and commissioning activity of the tasks and corresponding WBS.

To reduce the duration of the project and resource allocation the last task time and resource in the last task 8, can
be distributed in all the levels of activities lifting with the available time for training.
Similarly the managerial levels under the resource column can also be categories to the above OBS .
Before we are going though the WBS/OBS Matrix let as summarize the task activity with under bellows tables:
Table .1 Task of the project
NO. 50MW Gas - Steam Plant TASK

1 ENGINEERING
1.1 Basic design
1.2 Project management
1.3 Detailed engineering building
1.4 Detailed engineering civil works
1.5 Detailed engineering gas cycle system
1.6 Detailed engineering steam cycle system
1.7 Submission and approval of engineering set of drawings
1.8 Permit and authorizations based on basic design
2 PURCHASING
2.2 B.O.M and take-offs
2.3 Request for proposal
2.4 Gathering of proposals
2.5 Competitive proposal analysis
2.6 Order
2.7 Expediting and item pre-test to the suppliers plant
2.8 Contracting between local bidder
2.9 Contracting between Manufacturer
2.10 L/C permit approval
2.11 Shipping Documents collection
2.12 Transiting,tax and freight clearing
3 FABRICATION OF ITEMS
3.2 HRSG and diffuser
3.3 Stack
3.4 Gas treatment and compression station
3.5 Gas turbine
3.6 Generator and gear box set
3.7 Steam turbine
3.8 Steam boiler
3.9 Steam condenser
3.10 Transformer station
TRANSPORTATION from supplier to the
4 construction site
4.2 Factory Ex-work transportation to Europian port
4.2 Sea transportation from Europian sea port to Djibouti

4.3 Djibouti clearance and handling

4.4 Inland transportation to Dallol
4.5 Custom Inspection at the site
5 CIVIL WORKS
5.2 Site management
5.3 Site installation
5.4 Plant civil works
5.5 Construction control room and office building
6 PLANT ERECTION
6.2 Site management
6.3 HRSG and diffuser erection
6.4 Stack erection
6.5 Gas treatment and compression station erection
6.6 Gas turbine erection
6.7 Generator and gear box set erection
6.8 Steam turbine erection
6.9 Steam boiler Erection
6.10 Steam condenser erection
6.11 Transformer erection
7 COMMISSIONING
7.1 Commissioning and testing
7.3 Site management
8 MANAGEMENT
7.5 Site management
Table .1 Task of the project
Table .2 Task of the project with given resource and time
Unit cost Work in

NO. 50MW Gas - Steam Plant TASK Resource Name
per hr. hr.
1 ENGINEERING
1.1 Basic design Project Eng. 90 800
specialized Eng. 70 1600
1.2 Project management project manager 120 125
1.3 Detailed engineering building specialized Eng. 70 320
Project Eng. 90 40
1.4 Detailed engineering civil works specialized Eng. 70 660
Project Eng. 90 68
1.5 Detailed engineering gas cycle system specialized Eng. 70 1200

Project Eng. 90 200

1.6 Detailed engineering steam cycle system specialized Eng. 70 980
Project Eng. 90 180
Submission and approval of engineering set of
1.7 drawings Owner
1.8 Permit and authorizations based on basic design Project Eng. 90 120
2 PURCHASING
2.2 B.O.M and take-offs specialized Eng. 70 80
2.3 Request for proposal purchsing agent 65 60
2.4 Gathering of proposals Subcontractor 200
2.5 Competitive proposal analysis purchsing agent 65 60
Technical 50 20
specialized Eng. 70 50
2.6 Order purchasing agent 65 60
Expediting and item pre-test to the suppliers
2.7 plant specialized Eng. 70 32
Technical 50 40
2.8 Contracting between local bidder Bider
2.9 Contracting between Manufacturer Bider
2.10 L/C permit approval Bider
2.11 Shipping Documents collection Bider
2.12 Transiting,tax and freight clearing Bider
3 FABRICATION OF ITEMS
3.2 HRSG and diffuser Supplier
3.3 Stack Supplier
3.4 Gas treatment and compression station Supplier
3.5 Gas turbine Supplier
3.6 Generator and gear box set Supplier
3.7 Steam turbine Supplier
3.8 Steam boiler Supplier
3.9 Steam condenser Supplier
3.10 Transformer station Supplier
TRANSPORTATION from supplier to the
4 construction site
Factory Ex-work transportation to Europian
4.2 port Bider
Sea transportation from Europian sea port to
4.2 Djibouti Bider
4.3 Djibouti clearance and handling Bider
4.4 Inland transportation to Dallol Bider
4.5 Custom Inspection at the site Bider
5 CIVIL WORKS
5.2 Site management site manager 85 300

5.3 Site installation Technical 50 480
5.4 Plant civil works Subcontractor
5.5 Construction control room and office building Subcontractor
6 PLANT ERECTION
6.3 HRSG and diffuser erection Technical 50 8.75
6.4 Stack erection Technical 50 5
6.5 Gas treatment and compression station erection Technical 50 5
6.6 Gas turbine erection Technical 50 8.125
6.7 Generator and gear box set erection Technical 50 6.5
6.8 Steam turbine erection Technical 50 5.625
6.9 Steam boiler Erection Technical 50 1.875
6.10 Steam condenser erection Technical 50 5
6.11 Transformer erection Technical 50 5.5
7 COMMISSIONING
7.1 Commissioning and testing Technical 80 700
7.4 Project Eng. 90 180
7.5 specialized Eng. 70 300
7.6
8 MANAGEMENT (training )
Normal working day=Working hour/working hour /day=working hour/8
Normal cost=working hour*min. resource*productivity index*unit rate
Crushing days=working hours with max.resource/8
Crushing cost=working hours with max.resource *productivity index*unit rate
Table .2 Task of the project with given resource and time
Normal
Normal Producti Work in Crushing
wor Min. Min. Max. Max.
cost Pro./i vity/ hr.wit cost Crushing
NO. kin resourc re. /t , resource res /t
in . inde max. in days
g e /t PI /t PI
Eurr x resource Eurro
day
1
1

1.1 100 72000 1 1 1 1 1 1 800 72000 100

200 88480 3 0.79 2.37 6 0.56 3.36 800 188160 100
1.2 15.6 15000 1 1 1 1 1 1 125 15000 15.6
1.3 40 22400 2 1 2 6 0.56 3.36 106.7 25088 13.3
5 3600 1 1 1 1 1 1 40 3600 5
1.4 82.5 46200 2 1 2 6 0.56 3.36 220 51744 27.5
8.5 6120 1 1 1 1 1 1 68 6120 8.5
1.5 150 84000 2 1 2 6 0.56 3.36 400 94080 50
25 18000 1 1 1 1 1 1 200 18000 25
1.6 122.5 68600 2 1 2 6 0.56 3.36 326.7 76832 40.8
22.5 16200 1 1 1 1 1 1 180 16200 22.5
1.7 0
1.8 15 10800 1 1 1 1 1 1 120 10800 15
2 0 0 0
2.1 15.625 15000 1 1 1 1 1 1 125 15000 15.625
2.2 10 5600 2 1 2 6 0.56 3.36 26.7 6272 3.3
2.3 7.5 3900 2 1 2 4 0.65 2.6 30 5070 3.75
2.4 25
2.5 7.5 3900 2 1 2 4 0.65 2.6 30 5070 3.75
2.5 1000 2 1 2 8 0.56 4.48 5 1120 0.625
6.25 3500 1 1 1 6 0.56 3.36 8.3 1960 1.0
2.6 7.5 3900 2 1 2 4 0.65 2.6 30 5070 3.75
2.7 4 2240 1 1 1 6 0.56 3.36 5.3 1254.4 0.7
5 2000 1 1 1 8 0.565 4.52 5 1130 0.6
2.8 5
2.9 5
2.1
0 10
2.1
1 3
2.1
2 5
3
3.1 15.625 15000 1 1 1 1 1 1 125 15000 15.6
3.2 60
3.3 40
3.4 85
3.5 180
3.6 130
3.7 200
3.8 70
3.9 110
3.1
0 95
4
4.1 15.625 15000 1 1 1 1 1 1 125 15000 15.6
4.2 7
4.2 15
4.3 7
4.4 5
4.5 5
5
5.1 15.6 15000 1 1 1 1 1 1 125 15000 15.6
5.2 25500 1 1 1 1 1 1 300 25500 37.5
5.3 60 24000 2 1 2 15 0.56 8.4 64 26880 8
5.4 154
5.5 122
6
6.1 15.6 15000 1 1 1 1 1 1 125 15000 15.6
6.2 37.5 25500 1 1 1 1 1 1 300 25500 37.5
6.3 70 345.625 3 0.79 2.37 15 0.56 8.4 1.75 735 0.21875
6.4 40 250 2 1 2 15 0.56 8.4 0.7 280 0.1
6.5 40 197.5 3 0.79 2.37 15 0.56 8.4 1 420 0.125
6.6 65 406.25 2 1 2 15 0.56 8.4 1.1 455 0.1
6.7 52 256.75 3 0.79 2.37 15 0.56 8.4 1.3 546 0.1625
222.187
6.8 45 5 3 0.79 2.37 15 0.56 8.4 1.125 472.5 0.1
6.9 15 74.0625 3 0.79 2.37 15 0.56 8.4 0.375 157.5 0.0
6.1
0 40 250 2 1 2 15 0.56 8.4 0.7 280 0.1
6.1
1 44 217.25 3 0.79 2.37 15 0.56 8.4 1.1 462 0.1
7 0
7.1 87.5 44240 3 0.79 2.37 8 0.56 4.48 262.5 94080 32.8
7.2 15.625 15000 1 1 1 1 1 1 125 15000 15.6
7.3 37.5 25500 1 1 1 1 1 1 300 25500 37.5
7.4 22.5 16200 1 1 1 1 1 1 180 16200 22.5
7.5 37.5 16590 3 0.79 2.37 6 0.56 3.36 150 35280 18.8
7.6
8
8.1 15.625 15000 1 1 1 1 1 1 125 15000 15.6
8.2 37.5 25500 1 1 1 1 1 1 300 25500 37.5
Table .3 WBS/OBS Matrix with min. resource leveling

TRANSPO
RTATI
ON
from
FABRIC supplier
ATION to the PLANT MANAG
OF construc CIVIL ERECTI COMMISS EMENT
WBS/OBS ENGINEERING PURCHASING ITEMS tion site WORKS ON IONING (training )
project
manager 1 1 1 1 1 1 1 1
site
manager 1 1 1 1
Project Eng. 6 1
specialized
Eng. 10.37 4 2.37
technical 3 2 20.22 2.37
purchasing
agent 6
Eg.On the Engineering sub activity of the WBS and specialized engineer of OBS there will be :
3 resources with productive index 0.79 base design activity =2.37
2 resources with productive index 1 detail engineering activity =2
2 resources with productive index 1 detail engineering civil work =2
2 resources with productive index 1 detail engineering gas cycle =2
2 resources with productive index 1 detail engineering steam cycle =2
Therefore, we will have a total of 10.37 resources across WBS/OBS Matrix.
Table .4 WBS/OBS Matrix with max.. resource leveling
TRANSPO
RTATION
from
FABRIC supplier to
ATION the PLANT MANAG
OF construction CIVIL ERECT COMMISS EMENT
WBS/OBS ENGINEERING PURCHASING ITEMS site WORKS ION IONING (training )
project
manager 1 1 1 1 1 1 1 1
site
manager 1 1 1 1
Project Eng. 6 1
specialized
Eng. 10.37 4 2.37
technical 9 2 20.22 2.37
purchasing
agent 7.8

CHAPTER SIX
6. PROJECT SCHEDULING AND COST ANALYSIS

6.1 Project Scheduling Methods
Project scheduling is used to plan and control a project efficiently and economically .with project scheduling we
can characterize the activity and, monitor the project.
Includes Gant charts, Critical path method (CPM), Program evaluation and Technical Review (PERT).[1]
i.Gant Charts
Gant Charts a tool used to schedule plan and control our activity. Activities are listed on the vertical axis, and
elapsed time is recorded in the horizontal axis.
ii.Critical Path method (CPM)
A critical path is the one which connects the events having zero total float (TF) or a minimum slack time.
TF = LS – ES= Lf – Ef
Earliest start (ES): The earliest time that an activity can begin when all preceding activities are completed as
rapidly as possible.
Latest Start (LS): The latest time an activity can be initiated without delaying the minimum project competition
time.
Earliest finish (EF): The sum of ES and activity duration Dij
Latest Finish (LF): The Ls Added to the duration Dij
We have scheduled our project with the help of MsProject software program based on the following consideration:
1. Project management and Site management activities indicated on the task is distributed according to the activity
requirement.
2. Subcontractor activity and cost shall be covered and carried out by the owner upon our supervision.
3. Some activities tasks crushing time is round up by considering practical condition.
4. All the activities are crushed based on the max. given resource .
5. The civil work is executed before the equipments are erected to reduce the project duration.
6. We use the maximum available units of technicians in normal condition to be 8.
7. Normal working hour is considered to be eight hours per day, five days in a weak and holidays are off.

Table .5 MsProject work schedule before crashing
No. TASK Duration Predecessor Resource

50MW Gas - Steam Plant
WBS/OBS Matrix 1319
days
1 ENGINEERING 490 days
Specialized
eng.[237%],project
1.1 Basic design 300 days manager
1.2 project management 125 days 3 Project management
project manager, site

1.3 Detailed engineering building 45 days 3 manager[200%]
site manager[200%],project
1.4 Detailed engineering civil works 91 days 3 manager
site manager[200%],project
1.5 Detailed engineering gas cycle system 175 days 3 manager
Detailed engineering steam cycle site manager[200%],project

1.6 system 145 days 3 manager
Submission and approval of
1.7 engineering set of drawings 20 days 3 project eng.
Permit and authorizations based on
1.8 basic design 15 days 9,7,8,5,6 project manager
483.25
2 PURCHASING days
2.1 B.O.M and take-offs 10 days 10
2.2 Request for proposal 7.5 days 12
2.3 Gathering of proposals 25 days 13
16.25
2.4 Competitive proposal analysis days 14
2.5 Order 7.5 days 15
Expediting and item pre-test to the
2.6 suppliers plant 9 days 16
2.7 Contracting between local bidder 5 days 16
2.8 Contracting between Manufacturer 5 days 16
19,18,17,41,42,
2.9 L/C permit approval 10 days 43
31,24,25,26,27,
2.1 Shipping Documents collection 3 days 28,29,30,32
2.11 Transiting,tax and freight clearing 5 days 36
3 FABRICATION OF ITEMS 220 days
3.1 HRSG and diffuser 60 days 20

3.2 Stack 40 days 20

Gas treatment and compression
3.3 station 85 days 20
3.4 Gas turbine 180 days 20
3.5 Generator and gear box set 130 days 20
3.6 Steam turbine 200 days 20
3.7 Steam boiler 70 days 20
3.8 Steam condenser 220 days 20
3.9 Transformer station 95 days 20
TRANSPORTATION from supplier
3.1 to the construction site 42 days
Factory Ex-work transportation to
3.11 Europian port 5 days 21
Sea transportation from Europian sea
3.12 port to Djibouti 15 days 34
3.13 Djibouti clearance and handling 5 days 35
3.14 Inland transportation to Dallol 7 days 36,22,21
3.15 Custom Inspection at the site 5 days 37
4 CIVIL WORKS 729 days
4.1 Site management 300 days 38 site manager
4.2 Site installation 30 days 16 technical[200%]
4.3 Plant civil works 154 days 16
Construction control room and office
4.4 building 122 days 16
123.66
5 PLANT ERECTION days
26.29
5.1 HRSG and diffuser erection days 47 technical[237%]
5.2 Stack erection 20 days 45,52,49 technical[200%]
Gas treatment and copression station 21.36
5.3 erection days 48 technical[237%]
5.4 Gas turbine erection 32.5 days 38 technical[200%]
27.77
5.5 Generator and gear box set erection days 38 technical[237%]
24.03
5.6 Steam turbine erection days 51 technical[237%]
5.7 Steam boiler Erection 8.01 days 38 technical[237%]
5.8 Steam condenser erection 20 days 50,38 technical[200%]
5.9 Transformer erection 23.5 days 46 technical[237%]
33.75
6 COMMISSIONING days
33.75 technical[237%],Specialized
6.1 Commissioning and training days 53,4,40 eng.[237%],project eng.

The resource is allocated based on Productivity index given by .
From the above table (table 5.) one can understand the following parameters.
i.The total duration of the project with normal given parameter is 1319days which is equal to 3.6years.
With eight working hour and five days working day in the weak.
ii.The duration of the main tasks is equal to the indicated value e.g. engineering main activity spent 490days .
iii.The resource is indicated on the resource column. The value is the product of the performance index *Normal
resource given.
Table .6 MsProject work schedule after crashing
No. TASK Duration Predecessor Resource

50MW Gas - Steam Plant 1094.05
WBS/OBS Matrix days
1 ENGINEERING 325 days
Specialized eng.[336%],project
1.1 Basic design 200 days manager
1.2 project management 125 days 3 Project management

project manager,site
1.3 Detailed engineering building 18.3 days 3 manager[336%]
Detailed engineering civil site manager[336%],project

1.4 works 36 days 3 manager
Detailed engineering gas cycle site manager[200%],project

1.5 system 75 days 3 manager
Detailed engineering steam site manager[200%],project

1.6 cycle system 63 days 3 manager
Submission and approval of
engineering set of
1.7 drawings 20 days 3 project eng.
Permit and authorizations
1.8 based on basic design 15 days 9,7,8,5,6 project manager
2 PURCHASING 458.3 days
2.1 B.O.M and take-offs 3.3 days 10
2.2 Request for proposal 3.8 days 12
2.3 Gathering of proposals 25 days 13
2.4 Competitive proposal analysis 5.4 days 14
2.5 Order 3.8 days 15
Expediting and item pre-test to
2.6 the suppliers plant 1.3 days 16
Contracting between local
2.7 bidder 5 days 16
Contracting between
2.8 Manufacturer 5 days 16

2.9 L/C permit approval 10 days 19,18,17,41,42,4

3
31,24,25,26,27,2
2.1 Shipping Documents collection 3 days 8,29,30,32
Transiting,tax and freight
2.11 clearing 5 days 36
3 FABRICATION OF ITEMS 220 days
3.1 HRSG and diffuser 60 days 20
3.2 Stack 40 days 20
Gas treatment and
3.3 compression station 85 days 20
3.4 Gas turbine 180 days 20
3.5 Generator and gear box set 130 days 20
3.6 Steam turbine 200 days 20
3.7 Steam boiler 70 days 20
3.8 Steam condenser 220 days 20
3.9 Transformer station 95 days 20
TRANSPORTATION from
supplier to the
3.1 42 days
construction site
Factory Ex-work transportation
3.11 to Europian port 5 days 21
Sea transportation from
Europian sea port to
3.12 Djibouti 15 days 34
Djibouti clearance and
3.13 handling 5 days 35
3.14 Inland transportation to Dallol 7 days 36,22,21
3.15 Custom Inspection at the site 5 days 37
4 CIVIL WORKS 729 days
4.1 Site management 300 days 38 site manager
4.2 Site installation 0.07 days 16 technical[800%]
4.3 Plant civil works 154 days 16
Construction control room and
4.4 office building 122 days 16
5 PLANT ERECTION 6.25 days
5.1 HRSG and diffuser erection 2.1 days 47 technical[800%]
5.2 Stack erection 1.05 days 45,52,49 technical[800%]
Gas treatment and copression
5.3 station erection 1.05 days 48 technical[800%]
5.4 Gas turbine erection 1.05 days 38 technical[800%]
Generator and gear box set
5.5 erection 2.1 days 38 technical[800%]
5.6 Steam turbine erection 1.05 days 51 technical[800%]
5.7 Steam boiler Erection 1.05 days 38 technical[800%]
5.8 Steam condenser erection 1.05 days 50,38 technical[800%]
5.9 Transformer erection 1 day 46 technical[840%]
6 COMMISSIONING 33.75 days
technical[448%],Specialized
6.1 Commissioning and training 33.75 days 53,4,40 eng.[336%],project eng.

The under bellow table is extracted form the MsProject work schedule of critical tasks.
Table .7 MsProject work schedule Critical path activities detail
50MW Gas - Resour

NO. Steam Plant ce 1 2 3 4 5 6 7 8 9 10 11 12 13
TASK Name
Project
1.1 Basic design Eng. 90 800 100 72000 1 1 1 1 1 1 800.0 72000.0 100.0
specialized
Eng. 70 1600 200 88480 3 0.79 2.37 6 0.56 3.36 800.0 188160.0 100.0
Detailed engineering specialized

1.3 building Eng. 70 320 40 22400 2 1 2 6 0.56 3.36 106.7 25088.0 13.3
Project
Eng. 90 40 5 3600 1 1 1 1 1 1 40.0 3600.0 5.0
Permit and
authorizations based Project
1.8 on basic design Eng. 90 120 15 10800 1 1 1 1 1 1 120.0 10800.0 15.0
specialized
2.2 B.O.M and take-offs Eng. 70 80 10 5600 2 1 2 6 0.56 3.36 26.7 6272.0 3.3
purchsing
2.3 Request for proposal agent 65 60 7.5 3900 2 1 2 4 0.65 2.6 30.0 5070.0 3.8
subcontrac
2.4 Gathering of proposals tor 200 25
Competitive proposal purchsing
2.5 analysis agent 65 60 7.5 3900 2 1 2 4 0.65 2.6 30.0 5070.0 3.8
technical 50 20 2.5 1000 2 1 2 8 0.56 4.48 5.0 1120.0 0.6

specialized
Eng. 70 50 6.25 3500 1 1 1 6 0.56 3.36 8.3 1960.0 1.0
purchsing
2.6 Order agent 65 60 7.5 3900 2 1 2 4 0.65 2.6 30.0 5070.0 3.8
L/C permit
2.10 approval bider 10
Shipping Documents
2.11 collection bider 3
Transiting,tax and
2.12 freight clearing bider 5
Factory Ex-work
transportation to
4.2 Europian port bider 7
Sea transportation
from Europian sea port
4.3 to Djibouti bider 15
Djibouti clearance and

4.4 handling bider 7
Inland transportation
4.5 to Dallol bider 5
Custom Inspection at
4.6 the site bider 5
site
5.2 Site management manager 85 300 37.5 25500 1 1 1 1 1 1 300.0 25500.0 37.5
subcontrac
5.4 Plant civil works tor 154
Steam condenser
6.10 erection technical 50 5 40 250 2 1 2 15 0.56 8.4 0.7 280.0 0.1
Commissioning and
7.1 testing technical 80 700 87.5 44240 3 0.79 2.37 8 0.56 4.48 262.5 94080.0 32.8

Reference No.of the table.
1-Unit cost /hr
2. Work in hour
3. Normal working days=Work in hour/8
4. Normal cost in Euro=Work in hour*Normal resource*PI
5.Normal resource
6. Productivity index(PI)
7. Normal resource at normal time=Normal time *PI
8. Max.resource
9. Productivity Index
10. Max.resource/PI=Max.resource*PI
11. Working hour with max.resource=Work in hr.Min.resource/Max.resource
12. Crushing cost in Euro=Max.work in hr*Max.resource
13. Crushing days=working hour with max.resource/8.
The sum of costs under column 4=Normal cost of project=€289070
Normal CP days=1319
Crashed duration days=1094
Crashed cost=normal cost*(normal duration day-crashed duration days)0.12
=€289070*(1319-1094) 0.12
=€553,687.76
Corporate overhead cost is given by €10000/day
Therefore, the total corporate overhead cost will be €10000/day*(1094)=€10,940,000.00

6.2 Machinery Importing and other related Costing
There are different kinds of containers that the unit could be handled as shown in the figure bellow:
1.STANDARD CONTAINERS:
Standard 20'
inside inside inside door door tare
maxi
leng wid hei wid hei capacity wei
cargo
th th ght th ght ght
1,172CuF 4,916lb 47,900lb
19'4" 7'8" 7'10" 7'8" 7'6"
t s s
2.350 2.393 2.342 2.280
5.900m 33.2CBM 2,230Kg 21,770Kg
m m m m
Standard 40'
maxi
cargo
2,390CuF 8,160lb 59,040lb
39'5" 7'8" 7'10" 7'8" 7'6"
t s s
12.036 2.350 2.392 2.340 2.280
67.7CBM 3,700Kg 26,780Kg
m m m m m
2. OPENTOP CONTAINERS:
Opentop 20'
maxi
cargo
5,280lb 47,620lb
19'4" 7'7" 7'8" 7'6" 7'2" 1,136CuFt
s s
2.311 2.354 2.286 2.184 32.23CB
5.894m 2,400Kg 21,600Kg
m m m m M
Opentop 40'
maxi
cargo
8,490lb 58,710lb
39'5" 7'8" 7'8" 7'8" 7'5" 2,350CuFt
s s
12.028 2.350 2.345 2.341 2.274
65.5CBM 3,850Kg 26,630Kg
m m m m m

3.FLATRACK CONTAINERS:
Flatrack 20'
maxi
leng wid hei widt hei capacity weig
cargo
th th ght h ght ht
18'5" 7'3" 7'4" - - - 5,578lbs 47,333lbs
5.620m 2.200m 2.233m - - - 2,530Kg 21,470Kg
Flatrack 40'
maxi
leng wid hei widt hei capacity weig
cargo
th th ght h ght ht
39'7" 6'10" 6'5" - - - 12,081lbs 85,800lbs
12.080m 2.438m 2.103m - - - 5,480Kg 39,000Kg
4.FLATRACK COLLAPSIBLE CONTAINERS:
Flatrack Collapsible 20'

door
w
inside inside inside door tare
i maxi
leng wid hei hei capacity weig
d cargo
th th ght ght ht
t
h
18'6" 7'3" 7'4" - - - 6,061lbs 61,117lbs
5.618m 2.208m 2.233m - - - 2,750Kg 17,730Kg
Flatrack Collapsible 40'
door
w
inside inside inside door tare
i maxi
leng wid hei hei capacity weig
d cargo
th th ght ght ht
t
h
39'7" 6'10" 6'5" - - - 12,081lbs 85,800lbs
12.080m 2.126m 2.043m - - - 5,800Kg 39,000Kg
5.REEFER CONTAINERS:
Reefer 20'
inside inside inside door door tare maxi
leng wi hei wi hei capacity weig carg
th dth ght dth ght ht o
1,000CuF 45,760lb
17'8" 7'5" 7'5" 7'5" 7'3" 7,040lbs
t s
2.275 2.260 2.258 2.216 20,800K
5.425m 28.3CBM 3,200Kg
m m m m g
Reefer 40'
2,040CuF 10,780lb 56,276lb
37'8" 7'5" 7'2" 7'5" 7'0"
t s s
11.493 2.270 2.197 2.282 2.155 57.8CBM 4,900Kg 25,580K

m m m m m g
Reefer High Cube 40'
2,344CuF 57,761lb
37'11" 7'6" 8'2" 7'6" 8'0" 9,900lbs
t s
11.557 2.294 2.500 2.294 2.440 25,980K
66.6CBM 4,500Kg
m m m m m g
6.HIGH CUBE CONTAINERS:
HIGH CUBE 40'

maxi
cargo
2,694CuF 8,750lb 58,450lb
39'5" 7'8" 8'10" 7'8" 8'5"
t s s
12.036 2.350 2.697 2.338 2.565

76.3CBM 3,970Kg 26,510Kg
m m m m m
7. PLATFORM CONTAINERS:
PLATFORM 20'
door
w
inside inside inside i door tare maxi
leng wi hei d heig capacity weig carg
th dth ght t ht ht o
h
52,896lb
19'11" 8'0" 7'4" - - - 6,061lbs
s
2.438 2.233 24,000K
6.058m - - - 2,750Kg
m m g
PLATFORM 40'
door
inside inside inside tare maxi
wi door capacit
leng wi hei weig carg
dt height y
th dth ght ht o
h
12,783lb 86,397lb
40'0" 8'0" 6'5" - - -
s s
12.180 2.400 1.950 39,200K
m m m
-  - - 5,800Kg
g
Among those containers we have selected a 20feet standard container as the unit rate is given and more safety to
disassemble and shipped/loaded the components of the gas steam power plant.
All the plant equipment will be imported from Europe Countries to full file the best requirements of:

1. Short delivery time
2. Affordable quality and standards to have long lasting service time
3. To meet the full guaranties and warranties
4.To minimize the freight cost
In addition those selected companies have very good reputation in manufacturing and distributing similar plant
units’ equipment to different counties.
Therefore, the freight cost to the container is calculated as:
i. First we will calculate each units volume based on the technical specification dimensional.
ii. Second the equivalent 20feet container size is determined by dividing volume found under i to standard 20
feet container size i.e to 33.2m3
iii. The total freight cost will be determined by the number of container by the unit container freight charge
based on the given freight charge which is variable based on container number.
Table .8 A. Container Costs
Max.
Dimension Equivalent
LXWXH in Container Unit Rate in Total Rate
No. Equipment Description M Volume[m3] size&No. Euro in Euro
Control Room and office
1 building equipments 15x4.5x3 202.5 20''x6 2400 14,400.00
Heat Recovery and steam
2 generator equipments 17.5x4x10 700 20''x21 1800 37,800.00
3 Stack Ф2.5x40 196.25 20''x6 2400 14,400.00
4 Compressor 9x4.5x7 283.5 20''x9 2400 21,600.00
5 Gas turbine 12.5x10.5x3.5 459.375 20''x14 2100 29,400.00
6 Generator and gear box 7.5x7.5x3 168.75 20''x5 2600 13,000.00
7 Steam boiler 6.5x4x2 52 20''x2 2600 5,200.00
8 Steam condenser 4x3x3 36 20''x1 2600 2,600.00
9 Steam turbine 5x9x5 225 20''x7 2400 16,800.00
10 Transformer Yard 5x5x4 100 20''x3 2600 7,800.00
Total 163,000.00
Table .9.B. Equipment cost as per the given parameter
Max. Dimension
No. Equipment Description LXWXH in M Qty Unit cost Euro Total Cost in Euro
Control Room and office building
1 equipments 15x4.5x3 1 set 1365.65 92181.375

Heat Recovery and steam generator

2 equipments 17.5x4x10 1 set 3100000 3100000
3 Stack Ф2.5x40 1 set 550000 550000
4 Compressor 9x4.5x7 1 set 4500000 4500000
5 Gas turbine 12.5x10.5x3.5 1 set 4050000 4050000
6 Generator and gear box 7.5x7.5x3 1 set 2900000 2900000
7 Steam boiler 6.5x4x2 1 set 2750000 2750000
8 Steam condenser 4x3x3 1 set 1800000 1800000
9 Steam turbine 5x9x5 1 set 1940000 1940000
10 Transformer Yard 5x5x4 1 set 920000 920000
Total 22,602,181.38
Table .10. C.Materials ,Minor System and Service costs

No. Equipment Description Cost in Euro REMARK
1 Site installation Equipment 550000
2 Excavations and foundations materials 68760 144/sq.m

3 Above Ground structures 1200000
4 Commissioning and training cost 100000
Total 1918760
D. Other import related costs and Inland costs
If we are required to open the L/C and transport the units up to installation place i.e Dallol ,the following
condition of supply will be applied :-
Before going through other import related cost units let describe some points which will affect our impoting
costs.
1. Exchange rate: The birr value Euro is forecasted at the time of payment .we have take the five month leaner
realashinship exchange rate for our estimation at the time of payment.
2.The value of marine insurance is taken to be a quarter percent of 110% of cost and freight price of the good.
3. Custom duty is calculated based on custom rate
4. Transit charge =$1290+Birr720+Birr435 for one 40feet container
5. Transportation cost to Dallol is taken as Birr100/quintal
6.The Surtax value =((Duty rate value+Cost insurance freight+( Duty rate value+Cost insurance freight))*10%
7. Interest rate is on credit base (3%) lasts for 3month for L/C opening .If the bank allow as a equivalent credit
facility for the total submission of the project i.e 3years in compound interest base ,we will be charged an
amount equal to total cost/(i+1)n.

8. Loading unloading is Birr 10/quintal.
9. Scanning fee =0.07% of CIF value
Estimated exchange rate at the time of payment =€1=Birr 25( a five month forecast)
Freight cost =€ 163000
Equipment cost=€22602181,38
Estimated No. of 20’’ container =74
Price validity =4month
HS code=84068100
Duty rate =5%
No. Elements of cost Cost in Bir
1 Marine and Inland insurance 2,486,239.95
2 Custom Duty 28,580,788.72
3 Sur tax 69,022,604.77
4 Transit Charge 1,007,590.29
5 Bank charge with commercial bank,3%rate 16,951,636.04
6 Inland transportation to DALLOL 1,998,000.00
7 Loading unloading 148,000.00
9 Scanning fee (0.07%) 4000,131.04
12. TOTAL 124,194,990.81
Costs up to now:
Crashed operating cost=€553687---------------------------------------------------------------------1
Corporate overhead cost=€10940600-----------------------------------------------------------------2
Freight cost=€163000-----------------------------------------------------------------------------------3
Equipment cost=€22602181----------------------------------------------------------------------------4
Miner system and service cost=€1918760------------------------------------------------------------5
Other inland cost=Birr 124,194,990.81----------------------------------------------------------------6

Total=€36178228+Birr124,194,990.81----------------------------------------------------------------7
Bank interest for 3years
total cost/(i+1)n=€0.91*36178228+Birr0.91*124,194,990.81=€33108.20+Birr113,017.44----8
Total cost of the plant with out profit and vat=∑(1-8)
=€36.211.336,20+Birr124,308,008.20
We,AAiT will have a turn-key fixed price contract agreement between supplier.
Therefore, The total cost revised will be,P.
P=K*Total cost,where k=1.35
=1.35*total cost=€48.885.303.87+Birr167, 815,811.10

CHAPTER SEVEN
7. RISK ASSESSMENT
7.1 What is risk assessment?
A risk assessment is simply a careful examination of what, in your work, could cause harm to people or business,
so that you can weigh up whether you have taken enough precautions or should do more to prevent harm. Workers
and others have a right to be protected from harm caused by a failure to take reasonable control measures.
Accidents and ill health can ruin lives and affect your business too if output is lost, machinery is damaged,
insurance costs increase or you have to go to court. You are legally required to assess the risks in your workplace
so that you put in place a plan to control the risks.
The following five steps help to assess risk:-
Step 1. Identify the hazards
Step 2. Decide who might be harmed and how
Step 3. Evaluate the risks and decide on precautions
Step 4. Record your findings and implement them
Step 5. Review your assessment and update if necessary
Generally, risk identification, assessment, management and communication are phases of risk analysis. Risk
management is an important aspect for improving project performance and successfully completing projects on
schedule and within cost.
It focuses on addressing uncertainties in a proactive manner in order to minimize threats, maximize opportunities
and optimizes achievement of objectives.
7.2 Risk Break Down Structure
RISK BREAK DOWN STRUCTURE (RBS)
Project Risk
• political risks
• taxation risks
• import export restrictions
• Country commercial risks
• Foreign exchange risks

• Inflation risks
• Country legal risks
• Changes in laws and regulations

• Delays in calculating compensation

• Design risk
• process
• cost
• quality
• Purchasing risk
• main equipment
• auxiliary
• materials
• logistics
• services
• Contract risk
• client side
• business scope
• extra demand
• Civil work risk
• working condition
• completion date
• quality control
• Erection risk
• quality
• safety
• execution


Project risk
Design risk
Purchasing Contract Civil work Erection
risk risk Poltical risk risk risk
Process Main Client side

Taxation Working Quality
equipm conditi
risk
ent on
Cost Auxiliary Business Completion Safety

scope date
Import/
exp
ort Quality
Quality Materials Execution
Extra risk control
deman
d
Country Country
com Logstics legal
merci risk
al risk
Changes in laws
Foreign exchange risk andregulation
Survices
s
Delays in calculating
Inflation risk compensation
7.3 Project Risk Management and Risk Break Down Matrix (RBM)
Is defined by the project management body of knowledge (PMBOK) as: “the processes concerned with
identifying, analyzing the responding to uncertainty [throughout the project life-cycle].
It includes maximizing the results of positive events and minimizing the consequences of adverse events”.
Develop Response: define how you are going to respond to the identified risks; eliminate, mitigate, deflect or
accept.
Document: the risk management plan documents how you propose to tackle risk on your project.
Risk Control: the risk control function implements the risk management plan. This may involve training and
communication, And as the risks and the work environment are continually changing, it is essential to continually
monitor and review the level of risk and your ability to effectively respond.
Risk Control Monitor and Review Document Risk Management Plan include:
 Define Objectives
 Identify Risk
 Quantity Risk
 Develop Response
Risk Control Review Document Risk

Monitor Management Plan
Identify Quantity Risk Develop

Define Response
Objectives Risk
The major task to be performed on the above stapes are:
 Risk identification
 Risk quantification
 Risk response
 Risk control

Level of risk
Cost
Fig.12 Level of risk vs Cost
Level of risk with decreasing level:
• Eliminate risk
• Mitigate risk
• Deflect risk
• Accept risk Uneconomic to respond
For example to deflecting risk – transfers the risk, in part or whole, to another party e.g. Contracting, retention,
bonding and insurance.
7.3.1 Types of Project Contracting
 Fixed price contract
 5 Cost plus contract
 Unit rates contract
 Turnkey contract or design and construct or
EPC contract
 BOOT/BOT/ROT contract

Min. Turn key fixed price
Cclients
flexibi
lity
Cost plus fixed fee
max.
Min. Clients risk Max. Cost+%fee
Fig.13. Contract risk
Risk Mapping: an iterative process of auditing the risk exposure.
1) Analyze risk categories.
2) Estimate level of exposure in terms of size
and degree (measurement).
3) Rank risks in terms of the importance and
allocate the organization’s risk capacity
Let us consider our plant project based on the above risk assessments and management system:
The objective is to estimate the possible max. Cost to cover the risk we will encounter.
The most possible risks we can face are: country commercial risk as listed before, Design risks as listed,
purchasing risk, contracting risk and civil wok risk.
Those risks cannot be eliminated but can be deflected.
Our contract is a turn-key fixed price contract .And the risk level is categorized under deflect risk next to
elimination and mitigation.
Considering the above stated condition under 7.1-7.3(RBS)&(RBM).We can estimate the contingency budget or
the risk premium rate to with the range of 3-5% of the total cost of the project.

That is equal to=0.05*(€48.885.303.87+Birr167, 815,811.10)

=€2.444.265,20+ Birr8,390,790.56
Therefore, the total project cost excluding profit margin and inland 15% vat is equal to
=€51.329.569,07+Birr 176,206,601.70

CHAPTER EIGHT
CONTRACT FORM
Contract Agreement
No.: ( )
Between
Party A.
And
Party B
For
The Supply & Insatallation of 50MW Gas Steam Combined Power plant
Date:

PART A
CONTRACT AGREEMENT FORM
THIS AGREEMENT is made on ____ between (Hereinafter called “The Local Agent") on the one part and --
(hereinafter called "The Supplier,) on the other part for the awarded tender reference-- by (Hereinafter called “The
Purchaser") on date……………
WHEREAS the Purchaser is desirous that certain goods and ancillary services should be provided by the supplier
via, (as Annex-1 and Annex-2) and has accepted by the supplier for the execution and completion of such supply
and the remedying of any defect for the sum of _______ (hereinafter called the Contract price).
NOW, THIS AGREEMENT WITNESSES AS FOLLOWS:
1. In this agreement words and expressions shall have the same meanings as are respectively assigned to them
in the conditions of Contract referred to:
2. The following documents shall be deemed to form and be read and construed as part of this agreement, viz.:
a) Contract form
b) Price schedule (Bill of Quantity), Annex-1 and Annex-2
c) General condition of the Contract
d) Special condition of the Contract
e) Technical particular specifications
3. In consideration of the payments to be made by the purchaser to the supplier as hereinafter mentioned, the
supplier hereby covenants with the purchaser to execute and complete the goods & services and to remedy
defects therein in conformity in all respects with the provision of the Contract.
4. The purchaser hereby covenants to pay the supplier in consideration of the execution and completion of the
goods & services and the remedying of defects therein, the Contract price or such other sum as may
become payable under the provisions of the Contract at the times and in the manner prescribed by the
Contract.
Payment for imported goods
Payment shall be as stipulated under clause __ of the special condition of the Contract
In witness WHEREOF of the parties hereto have caused this AGREEMENT to be executed the day and the
year written in accordance with their respective laws the day & year first signed.
Signed, Sealed and Delivered by the said:

_______________________ __________________________
On Behalf of the local agent and supplier On Behalf of the Suppliers
( ) ( )
Witnesses:
Name Signature Name Signature
1.__________________ ________ 1.______________ ______
2.__________________ ________ 2.______________ ______
3.__________________ ________ 3. ______________ ______
4.__________________ ________ 4._______________ ______
Part B
Annex 1

PROFORMA INVOICE-1
PART C
GENERAL CONDITIONS OF CONTRACT
TABLE OF CLAUSES
1 Definitions
2 Application
3 Country of Origin
4 Standards
5 Use of Contract Documents and Information
6 Patent Rights
7 Performance Security
8 Inspections and Tests
9 Packing
10 Delivery and documents
11 Insurance
12 Transportation
13 Incidental Services
14 Spare Parts
15 Warranty
16 Payment
17 Prices
18 Change Orders
19 Contract amendments
20 Assignment
21 Subcontracts

22 Delays in Supplier’s Performance
23 Liquidated Damages
24 Termination for default
25 Force Majeure
26 Termination for insolvency
27 Termination for Convenience
28 Resolution of Disputes
29 Governing Language
30 Applicable Law
31 Notices
32 Taxes and Duties
1. Definitions
1.1 In this contract, the following terms shall be interpreted as indicated:
a) “The Contract” meant the agreement entered into between the local agent and the supplier,
as recorded in the Contract Form signed by the two parties, including all attachments and
appendices there and all documents incorporated by reference therein;
b) “The Contract Price” means the price payable to the supplier under the contract for the full
and proper performance of its contractual obligations;
c) “The goods” means all of the equipment, machinery, and/or other materials which the
supplier is required to supply to the purchaser under the contract.
d) “Services” means ancillary to the supply of the goods, such as transportation and insurance,
and any other incidental services, and other such obligations of the supplier as covered
under the contract;
e) “The Purchaser” means ---
f) “The Supplier” means the individual or firm supplying the goods under this contract;
2. Application
2.1 These General Conditions shall apply to the extent that provisions in other parts of the contract do
not supersede them.
3. Country of Origin
3.1 Any eligible country
3.2 For the purposes of this Clause “origin” means the place where the goods were mined, grown or
produced, or from which the services are supplied. Goods are produced when through
manufacturing, processing or substantial and major assembling of components, a commercially

recognized new product results that is substantially different in basic characteristic purpose or
utility from its components.
3.3 The origin of goods and services is distinct from the nationality of the supplier.
4. Standards
4.1 The goods supplied under this contract shall conform to the standards mentioned in the Technical
Specifications, and when no applicable standard is mentioned, to the authoritative standard
appropriate to the goods, country of origin and such standards shall be the latest issued by the
concerned institution.
5. Use of Contract Documents and Information
5.1 The supplier not without the purchaser’s prior written consent, disclose the contract or any
provision thereof or any specification, plan drawing, pattern, sample or information furnished by or
on behalf of the purchaser in connection therewith, to any person other than a person employed by
the supplier in the performance of the contract. Disclosure to any such employed person shall be
made in confidence and shall extend only so far, as may be necessary for purposes of such
performance.
5.2 The Supplier shall not, without the purchaser’s prior written consent, make use of any document or
information enumerated in para. 5.1 except for purposes of performing the contract.
5.3 Any document, other than the contract itself, enumerated in para. 5.1 shall remain the property of
the purchaser and shall be returned (in all copies) to the purchaser on completion of the supplier’s
performance under the contract if so required by the Purchaser.
6. Patent Rights
6.1 The supplier shall indemnify the purchaser against all third party claims of infringement of patent,
trademark or industrial design rights arising from use of the goods or any part thereof in the
purchaser’s country.
7. Performance Security
7.1 Within 10 days after the supplier’s receipt of notification of award of the contract, the Supplier shall
furnish performance security to the purchaser in the amount specified in the Special Conditions of
Contract.
7.2 The proceeds of the performance security shall be payable to the purchaser as compensation for any
loss resulting from the supplier’s failure to complete its obligations under the contract.
7.3 The performance security shall be denominated in the currency of the contract or in a freely
convertible currency acceptable to the purchaser and shall be in one of the following forms:
(a) A bank guarantee or irrevocable Letter of Credit, issued by a bank located in the purchaser’s
country or abroad acceptable to the purchaser, and in the form provided in the bidding
documents or another form acceptable to the purchaser; or
(b) A cashier’s check certified check issued a local bank.

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later
than 30 days following the date of completion of the supplier`s performance obligations, including
any warranty obligations, under the contract.
8. Inspections and Tests
8.1 The purchaser or its representative shall have the right to inspect and/or to test the goods to confirm
their conformity to the contract. The special conditions of contract and/or the technical
specifications shall specify what inspections and tests the purchaser requires and where they are to
be conducted. The purchaser shall notify the supplier in writing of the identity of any
representatives retained for these purposes. The purchaser may assign two persons of its technical
person to conduct the necessary inspection of goods at factory of the supplier as per the price
quotation. The inspections and tests may be conducted on the premises of the supplier or its
subcontractor's at the location of factory for which the supplier has quote inspection cost for two of
the purchaser's assigned expert together with the bid. And/or at the goods final destination where
conducted on the premises of the purchaser's or its subcontractor's. All reasonable facilities /costs/
and assistance, including access to drawings and production data, instruments to confirm the
supplied goods shall be furnished by the supplier to the inspectors at no charge to the purchaser.
8.2 Should any inspected or tested goods fail to conform to the specifications, the purchaser may reject
them and the supplier shall either replace the rejected goods or make all alterations necessary to
meet specification requirements free of cost to the purchaser.
8.3 The purchaser’s right to inspect, test and where necessary, reject the goods after the goods` arrival
in the purchaser’s country shall in no way be limited or waived by reason of the goods having
previously been inspected. Tested and passed by the purchaser or its representative prior to the
goods shipment from the country of origin.
8.4 Noting in clause 8 shall in any way release the supplier from any warranty or other obligations
under this contract.
9. Packing
9.1 The supplier shall provide such packing of the goods as is required to prevent their damage or
deterioration during transit to their final destination as indicated in the contract. The packing shall
be sufficient to withstand, without limitation, rough handling during transit and exposure to extreme
temperatures, salt and precipitation during transit and open storage. Packing case size and weights
shall take into consideration, where appropriate, the remoteness of the goods final destination and
the absence of heavy handling facilities at all point in transit.
9.2 The packing, marking and documentation within and outside the packages shall comply strictly
with such special requirements as shall be expressly provided for in the contract and, subject to
Clause 18, in any subsequent instructions ordered by the purchaser.
10. Delivery and Documents
10.1 Delivery of the goods shall be made by the supplier in accordance with the terms specified by the
purchaser in its schedule of requirements and the Special Conditions of Contract.
10.2 For purposes of the contract “FOB, C&F, CIF” and other trade terms used to describe the
obligations of the parties shall have the meanings assigned to them by the current edition of the
International rules for interpretation of the Trade Terms published by the International Chamber of
Commerce, Paris, and commonly referred to as IN COTERMS.
11. Insurance
11.1 The goods supplied under the contract shall be fully insured locally, currency against loss or
damage incidental to marine, inland, transportation, storage and delivery in the manner specified in
the Special Conditions of Contract.

11.2 Where delivery of the goods is required by the purchaser on a FOB or C&F or DDU/DDP A.A.
basis, the supplier/ agent shall arrange and pay for marine insurance, naming the Purchaser as the
beneficiary.
12. Transportation
12.1 Where the supplier is required under the contract to deliver the goods FOB, transport of the goods,
up to and including the point of putting the goods on board the vessel at the specified port of
loading, shall be arranged and paid for by the supplier, and the cost thereof shall be included in the
contract price.
12.2 Where the supplier is required under the contract to deliver the goods C&F or CIF, or to a specified
destination within the country, transport of the goods to the port of discharge or such other point in
the country of destination as shall be specified in the contract shall be arranged & paid for by the
Supplier, & the cost thereof shall be included in the contract Price.
12.3 Where the Supplier is required to effect delivery under any other terms, for
example, by post or to another address in the source country, the Supplier shall be
required to meet all transport and storage expenses until delivery.
12.4 In all of the above cases, transportation of the goods after delivery shall be the responsibility of the
Purchaser, if only quoted by the supplier with the offer.
12.5 Where the supplier is required under the contract to deliver the goods CIF, restriction shall be
placed on the choice of the ocean carrier only to use Ethiopian Shipping Line, unless otherwise
waiver is received from Ethiopian Shipping Line to use any available vessel. Where the supplier is
required under the contract
(i) to deliver the goods FOB, and
(ii) to arrange on behalf and at the expense of the purchaser for ocean transportation on
specified conference vessels or on national flag carriers of the purchaser’s country,
the supplier may arrange for such transportation on alternative carriers if the
specified conference vessels or national flag carriers are not available to transport the
goods within the time period(s) specified in the contract.
13. Incidental Services
13.1 As specified in the Special Conditions of Contract, the supplier may be required to provide any or
all of the following services:
a) Performance or supervision of on-site assembly and/or start-up of the supplied goods;
b) Furnishing of tools required for assembly and/or maintenance of the supplied goods;
c) Furnishing of a detailed operations and maintenance manual for each appropriate unit of the
supplied goods;
d) Performance or supervision or maintenance and/or repair of the supplied goods, for a period
of time agreed by the parties, provided that this service shall not relieve the supplier of any
warranty obligations under this contract; and
e) Conduct of training of the purchaser’s personnel, at the supplier's plant and/or on-site is
assemble, state-up, operation, maintenance and/or repair of the supplied goods.

13.2 Prices charged by the supplier for the preceding incidental services, if not included in the contract
price for the goods, shall be agreed upon in advance by the parties and shall not exceed the
prevailing rates charged to other parties by the supplier for similar services.
13. Spare Parts

14.1 As specified in the Special Conditions of Contract, the supplier may be required to provide any or
all of the following materials and notifications pertaining to spare parts manufactured or distributed
by the supplier:
a) Such spare parts as the purchaser may elect to purchase from the supplier, provided that this
election shall not relieve the Supplier of any warranty obligations under the contract: and
b) In the event of termination of production of the spare parts:
(i) Advance notification to the purchaser of the pending termination, in sufficient time to
permit the purchaser to procure needed requirements; &
(ii) Following such termination, furnishing at no cost to the purchaser, the blueprints, drawings
and specifications of the spare parts, if and when requested.
15. Warranty
15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most
recent or current models and incorporate all recent improvements in design and materials unless
provided otherwise in the contract. The supplier further warrants that the goods supplied under this
contract shall have no defect arising from design, materials or workmanship (except insofar as the
design or material is required by the purchaser's specifications) or from any act or omission of the
supplier, that may develop under normal use of the supplied goods in the conditions prevailing in
the country of final destination.
15.2 This warranty shall remain valid for at least 12 months after the goods, or any portion thereof as the
case may be, have been delivered (and commissioned) to the final destination indicated in the
contract, or for at least (18 months) after the date of shipment from the port of loading in the source
country, whichever period concludes earlier, unless specified otherwise in the Special Conditions of
Contract.
15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this
warranty.
15.4 Upon receipt of such notice, the supplier shall, with all reasonable speed, repair or replace the
defective goods or parts thereof, without costs to the purchaser other than, where applicable, the
cost of inland delivery of the repaired or replaced goods or parts from the port of entry to the final
destination.
15.5 If the supplier, having been notified, fails to remedy the defects(s) within a reasonable period, the
purchaser may proceed to take such remedial action as may be necessary, at the supplier`s risk and
expense and without prejudice to any other rights which the purchaser may have against the
supplier under the contract.
16. Payment
16.1 The method and conditions of payment to be made to the supplier under the contract shall be
specified in the Special Conditions of Contract.
16.2 The supplier’s request(s) for payment shall be made to the purchaser in writing, accompanied by an
invoice describing, as appropriate, the goods delivered and services performed, & by shipping
documents, submitted pursuant to Clause 10, and upon fulfilment of other obligations stipulated in
the contract.
16.3 Payments shall be made promptly by the purchaser within upon submission of an invoice/claim by
the Supplier.
16.4 The currency or currencies in which payment is made to the supplier under this contract shall be
specified in the Special Conditions of Contract subject to the following general principle; payment
will be made in the currency or currencies in which the contract price has been stated in the
supplier’s bid, as well as in offer currencies in which the supplier had indicated in its bid that it
intends to incur expenditures in the performance of the contract and wishes to be paid.
17. Prices
17.1 Prices charged by the supplier for goods delivered and services performed under the contract shall
not, with the exception of any price adjustments authorized by the Special Conditions of Contract,
vary from the prices quoted by the supplier in its bid.
18. Change Orders

18.1 The purchaser may at any time, by a written order given to the supplier pursuant to clause 31, make
changes within the general scope of the contract in any one or more of the following:
a) Drawings, designs or specifications, where goods to be furnished under the contract to be

specifically manufactured for the purchaser;
b) The method of shipment or packing;
c) The place of delivery; or
d) The services to be provided by the supplier.
18.2 If any such change causes and increase or decrease in the cost of or the time required for, the
supplier's performance of any part of the work under the contract, whether changed or not changed
by the order, an equitable adjustment shall be made in the contract price or delivery schedule, or
both, and the contract shall accordingly be amended. Any claims by the supplier for adjustment
under these clauses must be assented within thirty (30) days from the date of the supplier's receipt
of the purchaser's change order.
19. Contract Amendments

19.1 Subject to clause 18, no variation in or modification of the terms of the contract shall be made
except by written amendment signed by the two parties.
20. Assignment
20.1 The supplier shall not assign, in whole or in part, its obligations to perform under the contract,
except with the purchaser’s prior written consent.
21. Subcontracts
21.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under the contract if
not already specified in his bid. Such notification, in his original bid or later, shall not relieve the
supplier from any liability or obligation under the contract.
21.2 Subcontracts must comply with provisions of clause 3.
22. Delays in the Supplier’s Performance

22.1 Delivery of the goods and performance of services shall be made by the supplier in accordance with
the time schedule specified by the purchaser in its schedule of requirements.
22.2 An unexcused delay by the supplier in the performance of its delivery obligations shall render the
supplier liable to any or all of the following sanctions: forfeiture of its performance security,
imposition of liquidated damages, and/or termination of the contract for default.

22.3 If at any time during performance of the contract, the supplier or its sub-contractor(s) should
encounter conditions impeding timely delivery of the goods and performance of services, the
supplier shall promptly notify the purchaser in writing of the fact of the delay, its likely duration
and its cause(s). As soon as practicable after receipt of the supplier’s notice, the purchaser shall
evaluate the situation and may at its discretion extend the supplier’s time for performance, in which
case the extension shall be ratified by the parties by amendment of the contract.
23. Liquidated Damages
23.1 Subject to Clause 25, if the supplier fails to deliver any or all of the goods or perform the services
within the time period(s) specified in the contract, the purchaser shall without prejudice to its other
remedies under the contract, deduct from the contract price, as liquidated damages, a sum
equivalent to (_0.1%_) percent of the undelivered price of the delayed goods or unperformed
services for each week of delay until actual delivery or performance, up to a maximum deduction of
(10%) of the delayed goods or services contract price. Once the maximum is reached, the purchaser
may consider termination of the contract.
24. Termination for Default

24.1 The purchaser may, without prejudice to any other remedy for breach of contract, by written notice
of default sent to the supplier, terminate the contract in whole or in part;
a) if the supplier fails to deliver any or all of the goods within the time period(s) specified in
the contract, or any extension thereof granted by the purchaser pursuant to clause 22; Or
b) if the supplier fails to perform any other obligations(s) under the contract.
24.2 In the event the purchaser terminates the contract in whole or in part, pursuant to Para. all, the
purchaser may procure, upon such terms and in such manner as it deems appropriate, goods similar
to those undelivered, and the supplier shall be liable to the purchaser for any excess costs for such
similar goods. However, the supplier shall continue performance of the contract to the extent not
terminated.
25. Force Majeure
25.1 Notwithstanding the provisions of Clauses 22, 23, 24, the supplier shall not be liable for forfeiture
of its performance security, liquidated damages or termination for default, if and to the extent that,
its delay in performance or other failure to perform its obligations under the contract is the result of
an event of force majeure.
25.2 For purposes of this clause, “Force Majeure” means an event beyond the control of the supplier and
not involving the supplier`s fault or negligence and not foreseeable. Such events may include, but
are not restricted to, acts of the purchaser either in its sovereign or contractual capacity, wars or
revolutions, fires, floods, epidemics, quarantine restrictions and freight embargoes.
25.3 If a force majeure situation arises, the supplier shall promptly notify the purchaser in writing of
such condition and the cause thereof. Unless otherwise directed by the purchaser in writing, the
supplier shall continue to perform its obligations under the contract as far as is reasonable practical,
and shall seek all reasonable alternative means for performance not prevented by the Force Majeure
event.
26. . Termination for Insolvency
26.1 The purchaser may at any time terminate the contract by giving written notice to the supplier,
without compensation to the supplier, if the supplier becomes bankrupt or otherwise insolvent,
provided that such termination will not prejudice or affect any right of action or remedy which has
accrued or will accrue thereafter to the purchaser.
27. Termination for Convenience

a. The purchaser, may by written notice sent to the supplier, terminate the contract,

in whole or in part, at any time for its convenience. The notice of termination shall specify that
termination is for the purchaser's convenience, the extent to which performance of work under the
contract is terminated, and the date upon which such termination becomes effective.
27.2 The goods that are complete and ready for shipment within 30 days after the supplier`s receipt of
notice of termination shall be purchased by the purchaser at the contract terms and prices. For the
remaining goods, the purchaser may elect:
a) to have any portion completed and delivered at the contract terms and prices; and/or
b) to cancel the remainder and pay to the supplier an agreed amount for partially completed
goods and for materials and parts previously procured by the supplier.
28. Resolution of Disputes

28.1 The purchaser and the supplier shall make every effort to resolve amicable by direct informal
negotiation any disagreement or dispute arising between them under or in connection with the
contract.
28.2 If, after thirty (30) days from the commencement of such informal negotiations, the purchaser and
the supplier have been unable to resolve amicable a contract dispute, either party may require that
the dispute be referred for resolution to the formal mechanisms specified in the Special Conditions
of Contract. These mechanisms may include, but are not restricted to conciliation mediated by a
third party, adjudication in an agreed national or international forum, and/or international
arbitration. The mechanism shall be specified in the Special Conditions of Contract.
29. Governing Language
29.1 The contract shall be written in the language of the bid, as specified by the purchaser in the
instructions to bidders. Subject to clause 30, that language version of the contract shall govern its
interpretation. All correspondence and other documents pertaining to the contract, which are
exchanged by the parties, shall be written in the same language.
30. Applicable Law
30.1 The contract shall be interpreted in accordance with the laws of the Purchaser’s Country.
31. Notices
31.1 Any notice given by one party to the other pursuant to the contract shall be sent in writing or by
telegram or telex/fax and confirmed in writing to the address specified for that purpose in the
Special Conditions of Contract.
31.2 A notice shall be effective when delivered or on the notice’s effective date, whichever is later.
32. Taxes and Duties

32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other
such levies imposed outside the purchaser’s country.
SECTION D
SPECIAL CONDITIONS OF CONTRACT
TABLE OF CLAUSES
1 Definition (Clause 1)
2 Performance Security (Clause 7)

3 Inspection and Tests (Clause 8)
4 Delivery and documents (Clause 10)
5 Insurance (Clause 11)
6 Spare Parts (Clause 14)
7 Warranty (Clause 15)
8 Payment (Clause 16)
9 Resolution of disputes (Clause 28)
SECTION D
SPECIAL CONDITIONS OF CONTRACT
1. The following Special Conditions of Contract shall supplement the General Conditions of Contract.
Whenever there is a conflict, the provisions herein shall prevail over those in the General Conditions of
Contract. The corresponding clause number of the General Conditions is indicated in parentheses.
2. Performance Security (Clause 7)
The performance security shall be in the amount of 10% of the Contract price to be issued through local
bank being valid for at least 6 (six) months from the date of signing the contract agreement.
3. Inspection and Tests (Clause 8)

The Purchaser requires the following inspection procedures and tests:
At the presence of the supplier’s representative, the goods shall be subject to joint inspection by the
buyer’s technical staff in a way convenient to the type of goods.
The purchaser may assign two persons of its technical person to conduct the necessary inspection of goods
at factory. As per the supplier inspection cost for these persons.
4. Delivery and Documents (Clause 10)
a) For Imported Goods. Upon shipment, the supplier shall notify the purchaser
by cable or fax the full details of the shipment including contract number,
description of goods, quantity; the vessel, the bill of loading number and dare,
port of loading, date of shipment, port of discharge, etc.. The supplier
shall mail the following documents to the Purchaser, through L/C issuing bank:
(i) Five Original chambered invoice & Five copies of the supplier's invoice showing goods
description, quantity, unit price, total amount.
(i) . 3 (three) Original and (five) Copies of the negotiable, clean on board bill of lading marked freight
prepaid or paid at destination based on the agreement and (three) copies of non-negotiable bill of
lading;
(ii) . 5 (five) Original & (ten) 10 Copies of packing list identifying contents of each package
(iv). Manufacturer’s warranty certificate and supplier’s/manufacturer inspection certificate;

(v) Inspection certificate issued by factory
(vi). Certificate of Origin.
(vii) Copies of all the above documents shall be sent by DHL or any fastest possible means direct to
the purchaser.
The above documents should be received by the purchaser at least two weeks before arrival of goods at
the port and if not received, the supplier will be responsible for any consequent expenses due to
delay.
5. Insurance (Clause 11)
The marine insurance shall be in an amount equal to 110% of the CIF value of the goods from warehouse to
warehouse on All Risks basis including War Risks and Strike clauses.
6. Spare Parts (Clause 14)
Supplier shall carry sufficient inventories to assure ex-stock supply of consumable spares such as gaskets,
plugs, washer’s, o-rings, etc. Other spare parts and components shall be supplied as promptly as possible
but in any case within six months of placement of order and establishment of Letter of Credit.
7. Warranty (Clause 15)
In partial modification of the provisions, the warranty period shall be for at least 12 months from date of
commissioning, whichever occurs earlier.
8. Payment (Clause 16)
Payment for Imported Goods
Payment of foreign currency portion shall be made in the following manner,
(i) On shipments; 90% of the contract price of the goods shipped shall be paid through Irrevocable
Letter of Credit established in favour of the supplier in a bank in his country, on submission of
documents specified in Clauses 10 and
on receipt of goods; 10% of the contract price of goods received shall be paid through the bank
within 30 days of receipt of goods and after final inspection up issuance of the bank by the
Acceptance Certificate by the Purchaser’s representative to the Bank. Or 100% of the L/C value
shall be paid upon presentation of complete shipping documents to the bank, provided the supplier
furnished 20% performance security bond.
ii) Payment of Local Currency Portion shall be made in (currency) within thirty (30) days of
presentation of claim supported by certificate from the Purchaser declaring that the goods have
been delivered and that all other contracted service have been performed.
b) Payment for domestic services shall be made in local currency as follows:
(i) The local expense of supplier experts shall be paid in local currency and the remaining
balance will be effected with foreign currency after complete installation and
commissioning of the units .
9. Resolution of Disputes (Clause 28)

9.1 The dispute resolution mechanism to be applied pursuant to clause 28 of the General Condition
shall be as follows:
a) In the case of dispute between the purchaser and a supplier which is a national of the
purchaser’s country, the dispute shall be referred to adjudication/arbitration in accordance
with the laws of the purchaser’s country; and
b) in the case of a dispute between the purchaser and a foreign supplier, the dispute shall be
settled by arbitration in accordance with the provisions of the UN CTTRAL arbitration
rules.
CHAPTER NIINE
CONCLUSION AND RECOMMENDATION
9.1 Conclusion
We have proposed the general design build construction proposal for the supply of 50mw capacity gas-steam
power plant which is intended to be installed at Dallol, Afar region in Ethiopia.
The section we have tried to see are the general requirement, gas-steam combined cycle, plant equipment
specification, work breakdown & organizational breakdown structure up to the commissioning & testing of the
power plant, project scheduling & cost analysis, project risk assessment & what our contract form look like.
Generally, our proposal for the offer of design build construction of 50mw gas-steam power plant requested by our
client (EEPCO) is acceptable & we are happy to clarify any comments up on request.
9.2 RECOMMENDATION
We would like our client to reconsider their budgetary value & project profit based their power selling capacity
using project analysis techniques (net present value, internal rate of return & benefit cost ratio) within the pay back
period.
Since the area is desert, our client has to give very serious consideration for the capacity building on human
resource facility.
Since one of our critical raw materials for the boiler is water, our client has to provide a good quality source of
water (borehole).

Reference
1. Daniel Kitaw; Industrial Management and Engineering Economy; Addis Ababa University Printing Press,
2009
2. Lecture Note
3. Siemens AG, Energy sector oil & gas division, Wolfgas-reute-platz
4. Aalborg engineering, www.aalborg-engineering.com, Denmark
5. Coope power system, support@cybectec,com

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50MW Gas Steam Combined Power Plant Proposal

Addis Ababa University

Instructor Dr.Birhanu Beshah

Advisor Ameha Mulugeta

By Mesay D.G Page 1

Date: February 27, 2013

Ethiopian Electric Power Corporation (EEPCO)

Addis Ababa, Ethiopia

Re: Dallol Power Station Construction Project –Request for proposal

By Mesay D.G Page 2

Chapter: One Page

By Mesay D.G Page 3

By Mesay D.G Page 4

By Mesay D.G Page 5

1.1 Letter of Acceptance

Date: February 27, 2013

Ethiopian Electric Power Corporation (EEPCO)

Addis Ababa, Ethiopia

Re: Dallol Power Station Construction Project –Request for proposal

By Mesay D.G Page 6

2. GENERAL REQUIREMENT OF THE PROJECT

2.1 Scope of the project

1. Control room and office building block

2. Heat recovery steam generator and diffuser

4. Gas treatment and compression station

6. Generator and gear box set

10. Transformer yard

2.2 Required Technical Specifications

By Mesay D.G Page 7

 Basic design of the power plant layout in the attachment 2.

 Cost of supply and equipment

2.3 Condition of supply and required documentation

2. Work Break Down Structure(WBS)

3. Organizational Break Down Structure(OBS)

5. Cost Breakdown Structure (CBS)

7. Risk assessment (RBS,RBM)

i. The interest rate on overdraft is worth 8% and on credit3%

ii. Payment will be made:

b.5% engineering approval

By Mesay D.G Page 8

c.60% based on erection progress

d.15% final testing and completed

e.10% as a guarantee 6months after completion

iii. Payment from the client is 90days after invoicing

Iiii.Payment due to suppliers are due 60days after good receiving

3. UNDERSTANDING OF COMBINED CYCLE GAS-STEAM POWER PLANT

3.1. Combined Cycle

How a Gas Turbine Works:

By Mesay D.G Page 9

Fig.1. Gas turbine

Description of Gas turbine:

 Fuel is burned in the gas turbine

Gas Turbine Cycles

Fundamentals of Thermodynamics Applied to Thermal Power Plants

A. Simple Brayton Cycle

By Mesay D.G Page 10

Heat addition: qH = h3 - h2 = CP(T3 - T2)-------------------------------------------------------(1)

By Mesay D.G Page 12

Fig. 4 Pressure ratio

By Mesay D.G Page 13

Fig. 6 Pressure ratio comparison between ideal and actual

By Mesay D.G Page 14

The Simple Rankine Cycle