METHOD STATEMENT

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 Contents

1. Purpose
2. Execution Activities
3. Definitions
4. The applied standards
5. Composition of the Buildings Auxiliary Equipment
6. Auxiliary Equipment
7. Lightning Protection and Earthing
8. LV Distributions, Light and Power Installations
9. Materials and Workmanship
10. Design and Construction
11. Tools
12. Packing, Shipping, Transport and Lifting Devices
13. Inspection and testing
14. Quality Assurance
15. Drawings and Documentations
16. Special Requirements

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 1. Purpose
The main purpose of the construction is supply of the consumers via 35/10 kV substation with uninterrupted
and safe electrical energy. The useful life of equipment in existing Mingachevir substations is nearing completion,
and the construction of new substation will be carried out within the scope of this contract.

This Method Statement is developed by Bakelektro OJSC (the Company or the Bidder) on the basis of regulations of
Republic of Azerbaijan and Employer’s (Azerishiq Open Joint Stock Company or OJSC) requirements perContract ICB No:
AI/ADB – 4.1 (or Lot 1) Design, supply and installation of 35/10 kV 2x10 MVA capacity “Ilisu”, "Shamakhi" and “Oghuz”
substations (the Project).

The Project was worked out using the successful methods used for numerous past turn key projects (see EXP-1 and
EXP-2). Normally, the Company (the Bidder) updates its documentation during the Project implementation phase. For this
project the Company plans to do the same. Due to the proprietary nature of some of our execution processes this document
contains summary of standard execution methods.
1. Establishing Preliminary Health & Safety (including Fire Safety) and Environmental protection standardsatSite
2. Establishing Loading Unloading access means at Site
3. Establishing temporary Living, Operations, and Storage facilities at Site
4. Site grounds preparation for new construction and plant new electric equipment
5. Procuring and placing required leased heavy/medium equipment/jigs and light weight
6. Training of all Site workers for Health & Safety (including Fire Safety) and Environmental protection Site
requirements/standards
7. Decommissioning of old equipment, facilities without disrupting power to customers of the Employer
8. Engineering execution solutions and organizational execution activities for all Works
9. Contract and quality requirements fulfillment
10. Adaptation and updating of “Execution Manual” to this Project for each Works to be performed and completed.

2. Execution Activities
All works listed will be in accordance with Contract requirements and project design documentation which were
approved by the Employer. All activities shall be performed in accordance with occupational H&S policy,Environmental
Protection policy stated in the Contract and will be approved by the Employer.
Execution activities of this Project will use the initial Execution Manual to guide the foreman and technical workers
supporting Construction and Electric Works listed in Table 2 and Table 3 of this offer document.

The Contractor and its Project team during listed execution activities will fully comply with the contract/Employer
requirements and standards as listed in this document.

3. Definitions
H&S Health and Safety
EMC Electro Magnetic CompatibilitThe Project relevant Site Construction Works Organization and
execution tasks are tabulated in Table 2 below.

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4
The Project relevant Site Electric Works Organization and execution tasks are tabulated in Table 3 below.

№ Electrical Installation Task Description - LOT 1

1 Site take over

2 Establish Health & Safety(H&S) at Project Work site including perimeter safety wall
Mobilization Works (container, warehouses, dressing room, worker room etc. Also see
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Mobilization Schedule in detail)

4 Electrical Installation Works

Transferring four 35kV and one 10kV power lines: These lines will be disconnecting from the
existing substation(inside the new substation work area). They will stay connected to the
4.1 strengthened pylon. New buried underground wires will be laid (outside the new substation work
area but parallel to the safety wall ) from (corresponding to four 35kV and one 10kV power lines
) the pylon to the old substation.
4.2 Decomissioning of existing equipments and handing over to AZERISIQ
4.3 Establishing Earthing for the substation
4.4 Site outdoor lighting and lightning protection system
4.5 Installation of factory accepted power transformers (35/10 kV, 10 MVA)
4.6 Installation of factory accepted low voltage distribution cabinet and panel
4.7 Installation of factory accepted convertor 110 V DC module
4.8 Indoor lighting and weak current system
4.9 Installation of factory accepted auxiliary power transformers (10/0.4 kV,630 kVA)
4.10 Installation of 35 kV factory accepted metal clad feeder sets
4.11 Installation of 10 kV factory accepted metal clad feeder sets
4.12 Installation of 10kV and 35kV outgoing cables and their sealing ends
Installation of factory accepted Protection and Control/Relay cabinets and panels inside the
4.13
building
4.14 Installation of factory accepted compensation cabinets and panels
4.15 Multi-use interconnecting factory accepted cables( 35 kV 3(1x185)mm² CU XLPE)
4.16 Multi-use interconnecting factory accepted cables( 10 kV 3(1x300)mm² CU XLPE)
4.17 Installation of factory accepted Protection and Control multi-conductor cables inside the building
4.18 Site tests
4.19 User and maintenance training for the equipment and special tools and documentation
4.20 Employer acceptance
We will submit progress reports every month per 1.16.5. of the tender requirement(as hardcopy
Note 1
(i.e. Paper) and softcopy (i.e.CD Rom)
The final documentation is to be submitted per 1.16.3. of the tender(Hardcopy as 4-fold paper in
Note 2 Azeri and 1-fold in English and Softcopy as CD Rom), within eight weeks after completing the
commissioning.
We will submit Operation and Maintenance Instructions per 1.16.4.of the tender(4-fold in Azeri
Note 3
1-fold in English) for the equipment and special tools

4. The applied standards

Project components and materials, except where otherwise indicated, shall be developed and produced in accordance with the
latest edition of the new standards published by the following organizations:

ISO International Organization for Standardization

IEC International Electro technical Commission
EN European Committee for Standardization

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 DIN German Institute for Standardization
VDE German Commission for Electrical, Electronic & Information Technologies
BSI British Standards Institution
GOST State Standardization (CIS countries standards)
SNİP Construction Norms & Regulations
PUE The Rules of Installation of Electrical Devices
PTEES Technical Operation of Electrical Devices

All technical procedures of the Client shall be observed.

All relevant standards (GOST, IEC, DIN, etc.) shall be provided to the Client/ the representative of the Client.
Furthermore, all work shall comply with the current situation and the local standards of Azerbaijan.
Other standards-compliant materials can be used with the permission of the Client; these standards shall guarantee high
quality. In this case, it is required to provide the tables of equivalent/differences between the proposed standards, and the
abovementioned ones

The Company upon award will submit two (2) copies of its compliance listing to the Employer.

5. Composition of the Buildings

The following construction and installation works are considered at the substation site:

Table 2
Name of the buildings and facilities Remarks
1 35 kV closed distribution device One storey, H = 4.76 m
2 One storey, H = 4.76 m
3 35/10 kV, 10 MVA pressure transformer (2 pcs.) In an open air (outdoor)
4 Water reservoirs (2 pcs) Underground, volume 100 m³ for
each
5 Oil holder Underground, volume 38m³
6 Security post One storey, H = 3 m
7 Stone fence Height H=2.2m
8 Entrance gate Metal gate H=2.4m
9 Lightning protection Lightning transmitters

The size of the plot of land allocated for construction is 40.0 x 40.0 m (0,16 ha).

The construction of 35/10 kv substation includes:

- 35/10 kv 10 MVA transformer foundations;
- 35 kv Closed Distribution Device (CDD);
- 10 kv CDD;
- Fire fighting water reservoir 100 m3
- Reservoir for potable water 100 m3
- Oil holder 38 m3
- Security Post
During the installation of distribution devices of 35/kv substation the following principal electrical schemes shall be
followed:
- 35 kv Distribution Device – with 2 switch sectioned bus bar scheme;
- 6 kv Distribution Device – 2 switch sectioned bus bar scheme;
- 35 kv and 6 kv Distribution Devices shall be closed (indoor) type.

Relay protection, automation, control and special consumption panels shall be located in the Closed Distribution
Device building.
35/6 substation 110 V shall be work under DC.
Special circuits of substation are feeding from 2 (two) 63 kVA 6/0.4 kv special consumption transformers;
Voltage and control cables shall be laid through cable channels, pipes and shelfs.
Protection of substation against lightning stroke shall be implemented via lightning arrestor
The Contractor will fully comply with these execution and supply requirements and standards where applicable.

All equipment of substation shall be connected to SCADA Remote Control system (Protocol No. 104)
- RTU equipment shall be installed;
- Communication equipment with IES 68 850-104 shall be connected;
- Local and distant terminals shall be equipped with UPS.

Firefighting Protection system shall installed in Substation;

Communication lines shall be installed in in Substation;
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 Water and waste water lines shall be installed in substation;
Renovation works shall be considered in substation;
Furthermore, 2 unit 35 kv slots and protection system shall be installed in feeding substation.

6. Auxiliary Equipment
All auxiliary equipment required for operation and safety must be supplied, even if not explicitly indicated the
Contractor will have to includeamong others; All types of auxiliary relays for control, protection, alarms, contact multiplication
etc. as well as terminals, wiring material, contact sensors, measuring instruments, cable platforms, cable ducts, insulators,
copper bars, insulating elements, etc.
The Contractor will fully comply with these requirements and standards where applicableand will discuss up to date
alternatives for Employer to consider.

7. Lightning Protection and Earthing

7.1. Lightning protection
The protection installations shall comply with the applicable regulations. Lightning protective rods of galvanized steel
shall be used. The surge protection according to EMC standards for sensitive devices shall be tested during the detailed
planning and provided, if necessary.
The external lightning protection is always realized by means of lightning rods. The rods are to be installed on the
gantries. The Contractor shall be required to prove this protection is sufficient by the way of calculation.
The lightning rods shall be supplied hot-galvanized and fixed to the corresponding support structures by means of the
adequate constructional measures. The sufficient static design has to be proved. The scope of supply of the lightning
protective posts also includes the supply of all necessary fastening material to install the rods on towers or poles.
For the electrical service buildings, a separate lightning protection consisting of lightning Stainless steel rods and
arresters shall be realized. It is connected to the earthing system.
The Contractor included lightning protection in its bid price and willfully comply with these requirements and standards
where applicable.

7.2. Earthing
The earthing system shall be realized in compliance with the latest applicable standards and regulations. The earthing
system has to take into consideration all new components to be installed. The reserve panels are to be taken into account
when the earthing system is designed.

The earthing network in the substation shall be laid underground in a depth of 0.5 – 0.8 m under consideration of the
following technical conditions:

 Conductor material: tin-plated Cu (copper) cable 120 mm²

 Mesh width: 8 – 10 m
 Connection of protective and service earth
 Earthing of all structural parts
 Connection with earthing system of the service building

Each earthing connection of HV components shall be connected by means of a double wire connection to the next
earthing bus over the shortest distance available. For devices in multi-pole arrangement at least two separate earthing
connections (each as double wire connection) shall be provided. Both earthing connections for multi-pole arranged devices are
connected to different earthing buses.

Connections at nodes or cable lugs shall be pressed or grouted. Over-ground laid earthing cables shall be painted
with black varnish.
In the control building, all plant components are star-shaped or radially earthed. Cable shields are laterally applied.
The fence including gates is provided with separate earth (to be installed outside the plant). Moreover the earthing
system in the complete overhead transmission section has to be designed and installed according to the applicable IEC
recommendations.
For the earthing of the arresters, additional rod earth electrodes shall be used. The steel concrete armored or
reinforcement of the transformer foundations and all other foundations are to be integrated in the earthing system. Connecting
points in the earth are welded and protected against corrosion.

The Contractor will realize all earthing requirements where applicable and in compliance with the latest applicable
standards and regulations.

8. LV Distributions, Light and Power Installations

The scope of supply and services includes the complete AC/DC installation including AC/DC main distributions, sub-
distributions, sockets/receptacles, lamps and light switches, DC emergency lighting and all necessary cable.

Cable installation shall be over-ground in HDPE conduits. Other than in the control room, in office rooms and in other
rooms, cables are to be installed under the surface.

The Contractor willexecute all supply and assembly services to complete AC/DC installation including AC/DC main
distributions, sub-distributions, sockets/receptacles, lamps and light switches, DC emergency lighting and all necessary cable.
The Contractor will conduct all supply and services in compliance with the latest applicable standards and regulations.

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 8.1. AC main distribution
The switchgear 0.4 kV shall be designed as type-tested, factory assembled control equipment cabinets and shall be
arc-resistant and protected against direct contact with hazardous components.

The 0.4 kV switchgear shall have two incoming cables from the auxiliary transformers. Connection shall be made by
cable NYY 2(4 x 185 mm²).

Each of both incoming cables shall be equipped with one circuit breaker with motor drive 110 V DC including magnetic
and thermal overcurrent release and a time delay.

Each of the connections shall be equipped with one voltmeter including voltage selector switch without zero position,
3 ammeters with max. Indication and fitted current transformers.

The 0.4 kV switchgear technical data are as follows:

 Rated insulating voltage Ui: 1000 V AC

 Rated operating voltage: 400 V
 Rated current: 1000 A
 Rated short-time current density: 50 kA
 Control voltage: 110 V DC
 Surface treatment: powder-varnished

Main distribution system shall have 20% reserve facility for future use.

The Contractor will execute all supply, test and site assembly services outlined in this Section (or
Section 9.1). The Contractor will conduct all its execution services in compliance with the latest applicable standards and
regulations.

8.2. Socket Outlets

Single-pole socket outlets with earthing contact shall be installed in each room. The number shall depends on the
room size. As an average, one double socket outlet shall be provided for every four meters wall length.

The Contractor will includesingle-pole socket outlets with earthing contactevery four meters and this is included in the
bid price and willfully comply with these requirements and standards where applicable.

8.3. Lighting
8.3.1. Indoor lighting
The lighting in the control room shall be integrated in the suspended ceiling. The lighting in all rooms are to be
equipped with energy saving lamps: Control room with neutral white’, social rooms with‚ warm white and all other rooms shall
have daylight white lamps.

8.3.2. Emergency lighting

The emergency lighting shall be either integrated in the lamps for the normal lighting or separately installed.
Additionally above each door, the emergency exit is indicated by emergency lighting. The emergency lighting switches-on
automatically when the power supply fails.

8.3.3. Outdoor lighting

The outdoor lighting shall be consist of natrium vapor gas discharging lamps, each of 120 W, which are switched-on at
normal case by photocell-switch. The total area of the switchgear shall be provided with an illuminance level of 20 Lux. A sub-
distribution for the lighting is installed in the switchgear. The cables are laid at gantry structures in HDPE conduits.

The Contractor will fully comply with these execution and supply requirementsof Section 9.3and standards where
applicable.

9. Materials and Workmanship

9.1. Quality of Materials
All materials supplied under this Contract shall be new of first-class quality, suitable for the purpose, free from defects
and imperfections, and of the classifications and grades in conformity to the latest issue of the respective IEC and EN.

The material shall be suitable for working under the conditions specified and shall withstand the variations of
temperature and atmospheric conditions arising under working conditions without distortion or deterioration in the setting up of
undue stresses in any parts and also without affecting the suitability of the various parts of the works for which they were
designed.

The Contractor will fully comply with these execution and supply requirements and standards where applicable. Also
the Contractor shall not use toxic materials such as Helon, PCB (Polychlorinbyphenyl) and Asbestos.

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 9.2. Standard dization of Equuipment
The Contractor sh hall be responnsible for the standardization
s n of all small mechanical
m an
nd electrical eq
quipment, matterials
and devices. Where electrical sockets are specified Azerbaijan
A stanndard sockets shall be usedd. Single phase sockets shaall be
16A with eartth plug if nothing else is spe
ecified.

Whe ere nothing elsse is specified

d, LV power fu
uses above 633 amps shall be of high ruptuuring capacity
y cartridge, typ
pe NH
gl, according to DIN VDE 0636
0 and IEC 60295. All fusse bases shalll have a load switching
s capa
acity and a the
ermal rating equal
e
to the rating of
o the largest fuse it can acccommodate.
Miniature circcuit breakers shall
s replace fuses
f in contro
ol and power circuits
c 63 amps and below.. Steel and concrete poles have
h
to meet the Employer
E standards.

The Contractor will fully complyy with these exxecution and supply
s require
ements and sta
andards where
e applicable.
9.3. Surface Treatment
T and d Painting

Befoore painting orr filling with oill or compound

d all un-galvan all be thoroughly cleaned, free from rust,
nized parts sha
scale, burrs, grease and moisture
m and all external rough surfaces on
o castings shaall be filled.

Succcessive coatss of paint shall be applied to a clean, dry and

a properly prepared
p surfa
ace. Each coatt shall be
compatible with
w the preced ding coat and the coat to follow.

hade of all painted external surfaces shall be subject off approval by tthe Employer..
The colour and sh

The following min

nimum painting
g requirements shall apply to
t all ferrous parts
p unless th
he Contractor can
c show, to the
t
satisfaction of
o the Project Manager
M that any alternative he proposes
s is in all respe
ects equal or superior to the
e specified
requirementss:

The Contractor will fully complyy with these exxecution and supply
s require
ements and sta
andards where
e applicable.

9.4. Insulating Oil and Gass

All electrical
e equip
pment requirinng insulating oil
o or other insuulation or gas shall be furnisshed with the first filling inclluding
flushing, if required. The Contractor
C shall also furnish an excess of 10 % of the ne et amount of ooil or liquid req
quired for each h
component.
The insulating oil shall not conttain matters th hat are not biodegradable su uch as PCB ettc.
The Contractor sh hall endeavour to employ, as a far as practiicable, one typpe and make o o only for all the
of insulating oil
electrical equuipment.
SF6 6 gas shall commply with the requirements
r of IEC 60376.. The high pressure cylinderrs for shipmen nt and storage e of
the SF6 gas shall comply withw the appliccable national regulations.
All the necessary pipes, couplin ngs, flexible tu
ubes and valve es for couplingg to the switch g or evacuating all
hgear for filling
the gases or oil to be used d, with all nece
essary instructtions for the sttorage of this equipment,
e sh
hall be provide ed.
The Contractor will fully complyy with these exxecution and supply
s require
ements and sta andards where e applicable.

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 9.5. Cable installation

All cables within the substations are laid in concrete cable channels, respective surfaces concrete trays and plastic
pipes.
In the channels, the cables are laid on galvanized cable trays and fixed by plastic tapes. Correct bending radiuses
must absolutely be ensured.
All cables that are laid at structures, gantries or towers, are laid in HDPE conduits. All cable entries and bushings will
be closed with fire-proof material.

The Contractor will fully comply with these execution and supply requirements and standards where applicable.

10. Design and Construction

10.1. General Requirements
All apparatus shall be designed to ensure reliable and safe operation under the atmospheric conditions prevailing at
site and under sudden variations of load voltages, and short circuits of the system.

In no part of the equipment, including busbars, connection, isolators, fuses, contacts and cable boxes shall the
temperature rise exceed the values specified in the relevant IEC or equivalent Standards.

Corresponding parts liable to renewal shall be interchangeable. When required by the Project Manager, the
Contractor shall demonstrate the compliance with this requirement. All apparatus shall operate without undue vibration and
with the least practicable amount of noise.

Means shall be provided for the easy lubrication of all bearings and where necessary, of any mechanism or moving
part. Grease lubricators shall be fitted with hexagon nipples. All mechanisms shall, when necessary, be constructed of
stainless steel, brass or gunmetal to prevent sticking due to rust or corrosion.

All taper pins used in any mechanism shall be of the split type. All connections and contacts shall be of sample
section and surface for carrying continuously the specified full load currents without undue heating and shall be secured by
bolts or set screws of sample size fitted with locking devices of approved type and material.

All rubbing or wearing surfaces shall be machine surfaced. Joints employing a gasket material shall be so constructed
that the packing is maintained under sufficient compression in all parts so that an efficient joint can be made without the use of
jointing compounds. Gasket material shall be of the minimum thickness necessary and have approved composition.

All apparatus shall be designed to exclude vermin and insects from entering the equipment.

All outdoor apparatus including bushing insulators and fittings shall be designed so that water cannot percolated
inside.

The Contractor will fully comply with these execution and supply requirements and standards where applicable.

10.2. Erection Marks

All Plant equipment that requires assembly at site shall have distinguishing marks on it to facilitate erection and to
identify the material in relation to drawings, material lists or shipping documents. All marks shall be legible and easily visible.
Where relevant, erection marks shall be stamped before galvanizing and shall be clearly visible after galvanizing.

The Contractor will fully comply with these execution and supply requirements and standards where applicable.

11. Tools
The following three types of tools can be distinguished: Standard tools,Tools for erection and installation,Special tools.

11.1. Standard Tools

A complete set of standard tools shall be supplied for each type of installation to assemble and fix the equipment
supplied under this Contract, together with all special tools required for the adjustment and maintenance of the equipment.

11.2. Tools for Erection and Installation

These tools will be brought to site in order to erect and install the complete supplied equipment.

These tools shall remain the property of the Contractor and will, therefore, after commissioning be re- exported from
Azerbaijan in case of foreign Contractor. Alternatively they could remain partly or completely in the Employer’s country against
payment of an amount mutually agreed upon at a later date between the Employer and the Contractor.

The Contractor will fully comply with Section 12 proving execution and supply requirements and standards where
applicable.

12. Packing, Shipping, Transport and Lifting Devices

12.1. Packing and Shipping

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 The Contractor shall prepare and pack all materials and equipment for shipment in such a manner that they are
protected from damage during shipment, and shall be responsible for and make good any and all damage resulting from
improper packing, whether this is done at his own works or those of any Contractor.

Packing shall give adequate protection to the enclosed materials against mechanical damage during transport to its
final destination, including rough handling during sea, rail and road transport and transition from one mode of transport to
another.

Packing should be stout close-boarded wooden cases of adequate thickness, suitably braced and banded and lined
internally with water-resistant material or equally solid enclosures.

Steelworks sections and similar items may be bundled provided that the ends are adequately protected and the
enclosing bands or wires are robust.

Indoor electrical equipment must be enclosed in welded polythene envelopes inside packing cases and the envelopes
shall be evacuated or have a desiccant inside.

All items in cases or crates shall be secured so that they are not free to move and cannot work loose in transport. If
rotating parts are shipped within their bearings or mountings, they must be adequately braced and restrained to prevent
relative movement. Loose items shall be placed in bags in a case, each bag having stitched onto it a label indicating the
number and nature of its contents. Where a filler material is used in a case to restrict movement or provide additional
protection, it must be inorganic and non- hygroscopic.

All surfaces liable to corrosion shall be thoroughly cleaned and special steps adapted to the nature of the materials
and the time interval between packing and unpacking shall be taken to prevent corrosion. These steps may constitute the
greasing on surfaces, the application of a protective coat, enclosure of the items in a hermetically sealed container, the addition
of vapour phase inhibitor paper to the package or other approved means.

Steps shall be taken to ensure that moisture, moulds, insects or rodents cannot damage insulated materials. Items
that include materials liable to be damaged by moisture shall be packed in hermetically sealed containers in which silica gel, or
some other approved desiccant has been inserted.

Cases shall be marked with large lettering to show which side of the case is to be up, and if the contents are fragile,
marked “FRAGILE” in large letters with the international wineglass symbol. Packages shall be marked with their place of
destination in such a way that rough handling or the effect of weather cannot remove or obliterate the marking. Each item shall
be marked with its gross weight and, for all lifts over two(2) tons, marks on the cases shall show the correct positions for the
slings.

Special steps shall be taken to guard against theft during transport. No small items such as padlocks nameplates and
so forth that could be torn off or unscrewed shall be accessible.

Cases, crates, barrels and drums shall be banded in such a manner as to obstruct the theft of any of the timber used
for packaging and the bands shall be so secured that they are not rendered ineffective by shrinkage of the wood.

A descriptive and fully itemized list shall be prepared of the contents of each packing case. A copy of this list shall be
placed in a waterproof envelope under a metal or other suitable plate securely fastened to the outside of one end of the case,
and its position indicated by stencilling on the case. Where appropriate, drawings showing the erection markings of the items
concerned shall be placed inside the case.

All stencilled markings on cases and crates, or other markings on descriptive metal tabs fixed to cable drums, bundles
of structural steel works and so forth, shall be applied in two places with a material which cannot wash off and shall be
additional to any erection or other marks or impressions which may be specified elsewhere.

Shipping marks are to be stencilled in oil based paint in block letters and symbols. When unobstructed flat smooth
surfaces of sufficient size are not available on the case for the shipping marks they are to be stencilled on marine-ply notice
boards of adequate size and of at least 6 mm thickness securely fastened to the packing case.

12.2. Cable / Conductor Drums

Cables/conductors shall be wound on non-returnable seasoned wooden drums provided with lagging of adequate
thickness and treated to an approved international standard. Drums with an outside diameter exceeding 2.0 meters and an
outside width exceeding 1.4 meters shall not be used. The central hole of the drums shall be reinforced with a steel plate of
thickness not less than 10 mm, or be fitted with suitable steel hub bushing to suit an axle diameter of 95 mm.

The drums shall be new and sturdy in construction so as to withstand several times loading and unloading, transport
on rough roads, storage for five (5) years in tropical areas and hauling and handling during field erection etc. In the event that
the drums are received at the destination in damaged condition thereby, preventing rolling out of cable, the Contractor shall
supply extra drums at his own cost.

Internal and external surfaces of the drum shall be painted with bitumen based paint. A layer of waterproof material
shall be provided on the barrel under the cable and on the inner surfaces of the flanges. Another layer of waterproof material
shall be provided over the outer layer of cable under lagging.

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 Drums shall be adequately protected by securely fastening substantial wooden battens around the periphery. These
battens shall be secured by means of steel tap bindings.

Cables/conductors shall be securely fastened around the periphery of the drum. Cables/conductors shall be supplied
with both ends properly capped, and protected against damage. Each drum and one of each cable length shall bear a metal
label detailing manufacturer's name, specified voltage and type and length of conductor.

Cable/conductor ends on the drum shall be protected (sealed) against water and humidity ingress. Cable drums shall
be closed so that the cable is protected against sun radiation during long-term outdoor storage.

Each drum shall be marked with:

 Serial number Cable/conductor type Length of cable/conductor
 Arrow to show the correct direction for rolling Manufacturer’s name
 Year of manufacture Weight

12.3. Transport
The Contractor shall be deemed responsible for the following:
 To load and transport the equipment and material from the place of manufacture whether, this is at own works or this of any
Contractor, to delivery place in Azerbaijan.
 To off-load, clear and transport to site all plant, equipment, etc., including temporary storage.
 To obtain permission from relevant authorities to use airport or site unloading, highway and bridge and facilities required for
transport of his equipment.
 To insure to the full value of the equipment and material for freight, for securing and forwarding of all shipping documents and
for the payment of all shipping and unloading documents and charges.
 To obtain and verify all information specified regarding transport limitations.
 To obtain and verify all information specified regarding adequate handling equipment four unloading the heaviest pieces of
equipment.
 To bear all costs of repair of replacement of the equipment arising from damage during transport and unloading; To select
proper routes to meet his needs and shall bear all extra costs resulting from the selection of such routes.
 The Contractor shall inform the Employer of the anticipated shipping date by a 30 days written notice containing identifications,
symbol, description, weight and sizes of material in the shipment.

12.4. Lifting Devices

The Contractor shall provide bolts with shackles at conveniently selected spots of equipment order to facilitate the
handling and lifting of supplied equipment.

The Contractor shall make his own arrangements and enquires with regards to the loading, unloading and transport of
all Construction equipment and material required for the works.

The Contractor will fully comply with Section 13 proving execution and supply requirements and standards where
applicable.

13. Inspection and testing

13.1. Basic Principles
All materials and equipment used in the Contract Works are subject to inspection by the Employer.

The inspection and test shall comply with the requirements specified in the relevant of the General Conditions of
Contract.

The Employer and/or his duly authorized representative shall have, at all reasonable times, access to the premises
and /or works of the contractor and/or their sub-contractor(s)/sub-vendors and shall have the right, at all reasonable times, to
inspect and examine the materials and workmanship of the product during its manufacture.

The Contractor shall give the Employer thirty (30) days, written notice of any material being ready for testing. All costs
related to the testing of the Employer, including travel costs, lodging and allowanceshall be paidbyEmployer.

Tests shall be performed in accordance with the relevant IEC standards. In the absence of IEC recommendations the
tests must be equivalent at least to the conditions, provisions and definitions of the above-mentioned standards. The
Contractor shall give at least thirty (30) days’ notice for readiness of equipment for testing at the manufacturer’s works.

The Contractor shall provide all the test equipment and test sets required for carrying out the inspection and tests.
Equipment provided for testing at site shall remain the property of the Employer.

The Contractor shall submit test programs for factory and site testing that is subject to approval by the Employer and
the Employer's Representative. Test methods shall be based on IEC recommendations and standards. The Contractor shall
state the applied standards and test methods. A test program and a test procedure shall be supplied before each individual
test.

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 The test procedure shall specify in detail the tests to be performed, based on the specified requirements. Detailed
documentation (e.g. circuit diagrams, flow charts) of the tested system/equipment shall also be available to the Employer at the
same time. Formats of the test report which are intended to be used shall be submitted for approval together with test program.

The Contractor shall duly consider provisions specified in the Tender Documents as minimum requirements when
preparing the inspection and test plan with respect to type and extent of inspection and tests, to location, orientation and
number of test samples, to frequency and amount of taking samples for statistical quality control and with respect to
acceptance criteria for all QA(Quality Assurance) measures.

The Employer will return a copy of the Contractor's proposed inspection program indicating those inspection stages
for which notification is required. Notification shall be by fax and shall be sent at least 20 days prior to the intended test. If the
Employer and/or the Employer intend to be present at the test he will provide at least 24 hours’ notice and if his representative
does not attend on the notified date the test may proceed unless an alternative date has been requested by the Employer's
Representative.

Within thirty (30) calendar days of completion of each and every test copies of all test records, test certificates and
performance curves shall be supplied for all tests carried out in accordance with the provision of the contract, whether or not
the Employer has witnessed them. Information given on such test certificates and curves shall be sufficient to identify the
equipment and software to which the certificates refer and shall also bear the Contractors' reference and heading.

The test reports shall indicate the tests performed, contract references, the results obtained, instruments used, names
of test personnel, and provide for witnesses' signatures. They shall also be numbered and dated.

For all civil work and steel structures, the respective design calculations and proofs have to be submitted for approval,
in clear and verifiable form. The design safety and the sufficient design of the constructional parts shall be provable clearly and
easily.

All necessary and ordered material tests are to be carried out in the respective local test offices.

The Employer reserves the right to inspect, and if deem to be necessary, to test samples from raw materials
stockpiled for use, in any of the contractor's work sites. In the event of such samples not confirming to the standards given
herein, the Employer may inform same, to the contractor, in writing. On the receipt of such complaint, the contractor shall make
immediate arrangements to remove those unsuitable materials completely from the work site, and replace them with materials
confirming to the standards, at the contractors own expense.

13.2. Factory Tests

The factory test shall be divided into type tests, sample tests, routine tests and special tests.

All main components and equipment offered for and supplied under this Contract shall be type tested.
The Bidder shall include in his Bid type test certificates separately for each such main component and equipment offered. Such
type test certificates shall be issued by independent internationally recognized testing organizations for type tests carried out
on components and equipment which are, in the opinion of the Employer, of identical type or identical in all essential respects
to the equipment offered. If any of the type tests certificates submitted is not applicable to the component or equipment offered,
the reserves the right to require re-testing or the inclusion of additional tests in the routine test program.

Test certificates for all plant and equipment and materials will be required by the Employer, before the Employer
provides the certifying bank with authority to release funds from the letter of credit, upon shipment. The letter of credit will be
set up in such a way that such authority will be required, along with the usual shipping documents, etc.

The tests generally described in the Specifications as routine tests, shall be made on each piece of equipment to be
supplied.

The factory assembled units shall be completely assembled, adjusted and tested at the factory. After assembly the
complete units shall, as far as possible, be tested for operation under design conditions to assure the proper functioning of the
equipment.

13.3. Site Tests

Upon completion of erection of the various parts of the Works, the Contractor shall perform preliminary and functional
tests in order to check the operation of the Plant and its conformity with the Specifications.

The test on completion shall demonstrate: The completeness of the Works

The correctness of the assembly and installation
The safety and reliability of the Works under all operating conditions. The basis on which the test program shall be
compiled are:
 The parameters quoted in the data sheets
 The requirements stated in the Bidding and Contract Documents The requirements of the approved Standards and Codes of
Practice
 All plant shall be inspected and tested for correct positioning, adjustment, clearance and all such items which may affect their
and reliable operation. Test and inspection for correct connection, installation, insulation and grounding shall also form part of
the inspection.

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 The Contractor will fully comply with Section 14 proving execution and supply requirements and standards where
applicable.

14. Quality Assurance

The Contractor (Supplier) shall have established a quality assurance system based on ISO 9001 or 9002. The
Contractor shall include a documentation of the system with a list of current procedures, an organogram of the quality
organization and the name of the quality manager. He shall also submit a list of quality revisions performed the last twelve
months with a list of closed and unclosed findings as well planned revisions the coming twelve months(12).

The Contractor shall submit for approval a program of quality control and inspection procedures to assure that the
product during manufacture and on completion complies with the specified requirements.

The Contractor will fully comply with Section 15 proving execution and supply requirements and standards where
applicable.

15. Drawings and Documentations

15.1. General
The drawings in the bidding documents supplied by the Employer shall be used for designing the works, but shall not
be used for construction purposes or for furnishing materials. The drawings in the Bidding Documents do not show the limits of
the scope of supply and works.

The Contractor shall submit to the Employer: drawings, design data, samples, patterns, models, as may be called for therein,
or as The Employer may reasonably require or as requested in the Detailed Technical Specifications.

The sequence of submission shall be such that information is available for review of each document when it is
received. The Contractor's drawings and design data shall be submitted formally and bearing the Contractor's official
verification confirming that the information shown thereon has been checked by the Contractor and is correct for use in the
work, except the drawings of a preliminary nature furnished for information only, which shall be clearly identified.

Before submitting any drawings for review, the Contractor shall obtain The Employer s' acceptance of thelist of
drawings he proposes to submit.

All drawings from the very first set sent by the Contractor to The Employer shall bear a serial number corresponding to
a drawing classification plan to be agreed upon by the Contractor and The Employer.

Each document must have a uniform, unique document number, issue date, revision date, and revision status.

The bidder shall submit with their offers all documents required to explain the work offered by them; these are:
 Layouts, sections
 Apparatuses and devices images/lists/drawings
 These documents shall include all necessary general data (electrical data, general design, weights etc.).

During Design, Engineering, Manufacture and Erection Phase, the Contractor shall prepare all necessary drawings
and documentations and to submit for approval to The Employer (2-fold):

a. Overall single line diagram

b. Layout drawings
c. Section drawings
d. Civil work drawings
e. Equipment data and descriptions
f. Wiring diagrams

15.2. Drawings and Calculations

 Terminal diagrams
 Device technical data
 Lists of equipment
 Cable lists

The sizes of all documents and drawings shall comply with the ISO standards, i.e.

 A1 594 mm x 841 mm
 A2 420 mm x 594 mm
 A3 297 mm x 420 mm
 A4 210 mm x 297 mm

Special size to be used is A4 in height and A0 in length. All drawings and calculation sheets should fold down to a size
in keeping to the A4 of that series (297 x 210 mm) unless exceptionally otherwise agreed with the Employer.

Each drawing shall have a title block at the lower right hand corner. At least the following information shall be
displayed with the title block:
i. Contractor's and Subcontractor's name Employer name
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 ii. The Project name
iii. The name of the Engineer
iv. Brief description of contents of drawing (Maker’s name, Date etc.) The Employer's drawing number including revision index
v. Maker's drawing number and revision index First date and revision dates
vi. Scale and scale bars
vii. Identifier for the kind of document according the corresponding identifier list
viii. The north pole shall be indicated on all geographical layout drawings.
ix. Letters and figures shall be clear, uniform, and evenly spaced.
x. The line widths and height of lettering shall be such that A3 reductions from A1 will be of good quality and easy to read.

The schematic diagrams, apparatus and cable lists shall have a size of A4 except for the transparency copies of
schematic diagrams that shall be in A3. Scales to be used on the drawings shall be 1:10, 1:20, 1:40, 1:50 and multiples of this
series.

All drawings specially made for this project including civil work drawings, mechanical drawings, layoutdrawings and
circuit diagrams shall be compiled on a computer aided drawing system and as part of the as built documentation be handed
over on a CD with a format readable in Auto-cad version 14 or another format to be agreed upon.

The graphical symbols on electrical drawings, diagrams, and other documents shall be in accordance with IEC
Publications or national standards.

Before submitting any drawings for review, the Contractor shall obtain the Employer acceptance of the list of drawings
he proposes to submit. The reviewed drawing list shall include those components procured from others.

The civil work drawings have to comply with the results from the design calculation and include all dimensions that are
required for the execution of the constructional or civil work and for the examination of the calculation.

The dimensions of the constructional components, their reinforcement/armouring and assembly parts shall be shown
clearly. Reference shall be made to related drawings. Particularly to be indicated: density class, surface requirements and final
surface treatment of the concrete. Reinforcement/armouring drawings shall indicate: steel type, quantity, diameter, shape and
location of reinforcement, concrete covering of reinforcement, support of upper reinforcement, minimum diameter of bending
rolls.

Concerning the finished parts, the suspensions for transport and mounting, dead load of single finished parts and
required pressure strength at the time of transport or mounting shall be indicated.

Drawings and documentation shall be prepared and available completely and clearly enough to enable the local
erection personnel to work with it without any problems.

Supplementary modifications have to be mentioned in the drawings and all concerning drawings have to be modified
accordingly.

15.3. Final Documentation

The final documentation is to be submitted as Hardcopy (4-fold paper in Azeri and 1-fold in English) and Softcopy (CD
Rom), within eight weeks after completing the commissioning, completely, updated, for each station and plant; as paper copies
and on data carriers.

15.4. Operation and Maintenance Instructions

The Contractor shall submit to the Employer for review complete and detailed Operation and Maintenance Manuals
(4-fold in Azeri 1-fold in English) for the equipment and any special tools which form part of the Contract with three months
before the complete commission of each voltage level parts separately.

These instructions shall be provided by the Contractor in the substations each in a metal
cabinet attached to the supply.

15.5. Progress Reports

The Contractor shall submit to the Employer detailed Progress Report every month and latest on the fourth of the
following month. The report shall be submitted as hardcopy (i.e. Paper) and softcopy (i.e. CD Rom). The following items shall
be indicated in the reports:

On design, such as: layouts; terminating schedules, programming, charts etc.

On purchasing (orders to subcontractors) -Each individual order shall be recorded and one copy of it shall be attached
to the report. The Employer reserves the right to ask for copies of internal orders On shipment -All shipments during the
reporting period shall be listed
On work progress at site -Completed work and work in progress for each item of plant Include a comparison between
the desired status and the actual status of the time schedule

15.6. Contractor's Staff

The expatriate manpower of the Contractor employed at the site shall be listed for the reporting period for each
individual category, such as: manager, supervisor, worker, etc. in accordance to the Employer regulations.

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 15.7. Delays
Any delays, or expected delays, in manufacture or erection of equipment shall be recorded and its influence on the
completion date shall be explained in the reports.

15.8. Construction / Erection

The Contractor is responsible that updated documents, each 2-fold, are available at The Employer / The Employer
site in time.

The local project manager of the Contractor is responsible for all work. He has authority to instruct and sign on behalf
of his company.

The construction and erection work shall be supervised by professional site managers with extensive skills and
experience in the work related with distribution networks. They have to see for the orderly performance of the work according
to the technical documents, especially the pegging out of the foundations, the installation of the components according to time
schedule and the QA/QM.

The language at sites is English and Azeri. If the site managers do not speak these languages, the Contractor has to
provide for the respective interpreters for the whole time without extra costs.

For the performance of the work, local companies may be engaged by placing orders to subcontractors for
construction and erection work. In this case, the Contractor has to provide for own, competent personnel in sufficient number to
supervise subcontractors’ work.

The subcontractors have to be approved by The Employer and to be contracted by the Contractor within four (4)
months after order award.

Since the project concerns new installation works, which are within residential electricity-supplied areas, the
necessary shutdowns have to be applied and discussed in advance with The Employer. Increased efforts and costs due to
necessity of repeated shut-downs have to be considered in the unit prices for the work.

During the work, all instructions of the security personnel from The Employer have to be followed. The Contractor has
to plan shutdowns, one week in advance after agreement with The Employer.

15.9. Commissioning
Prior to pre-commissioning and commissioning tests are to be performed in the plants for all devices and equipment
supplied for the project. It also includes existing plant components which are in relation to equipment.

Besides all function tests, these tests include as a minimum synchronism measurements for circuit breakers,
secondary and as far as possible primary injection tests at protection relays, Control systems tests, capacity test for each
battery cell, test of all ground systems related to this project.

The commissioning tests shall be carried out by the Contractor in presence of The Employer. The costs resulting there
from are to be borne by the Contractor.

The corresponding commissioning program indicating type and time of the tests has to be submitted within eight (8)
weeks prior to the scheduled time of execution to The Employer for approval.

All devices and measuring instruments required for the commissioning tests are to be provided by the Contractor.

The Contractor shall submit to the Employer, within two months after commissioning of the substation, theprice sheets
of all the imported equipment and materials. This is for the accounting official registration purpose of the project components by
the Employer.

The Contractor will fully comply with Section 16 proving execution and supply requirements and standards where
applicable.

16. Special Requirements

The service life of the buildings and facilities to be constructed shall be no less than 25 years. The buildings and related
structures compatible with existing shall be made of fire and corrosion-resistant materials.
The substation shall be connected to a centralized SCADA system, and for this purpose, the Contractor shall fulfil technical
and other requirements stipulated in the agreement.
Construction period shall be 365 days. The earlier completion shall not resulted in any bonuses to the Contractor.
During the construction, the relevant standards of the Republic of Azerbaijan shall be used and construction work shall be
carried out safely. The buildings shall meet relevant standards of the Republic of Azerbaijan.

The information on the location of the buildings at the construction site, personal protective devices, technical specifications,
designing, etc. shall be provided according to the Preliminary Design Documents, drawings, specific technical requirements
and the scope of work included in the tender documents developed by the Client. The special technical requirements have
been added to these specifications (Annex 1).
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Standards and rules applied during the construction shall follow on the regulations applicable in the territory of the Republic of
Azerbaijan.
Equipment installation should be performed by experienced professionals. Equipment and materials used in the construction
of the substation shall meet the standards reflected in Standards section of the technical specifications. Prior to commissioning,
the facilities installed shall be tested.
Goods, materials, equipment used in the construction of the substation and the detailed description of the construction are
given in the scope of tender documents.
Buildings and devices (equipment) shall meet the regulations of the Republic of Azerbaijan in terms of fire protection and
safety.
Prior to commissioning, the Contractor shall provide two (2) sets of maintenance and operation manuals drawn up in two
copies in Azerbaijani language.
Upon completion of the work, the Contractor shall submit to the Client two copies the as built- drawings reflecting the actually
carried out work.
As a condition for contract award, successful Bidder shall submit a copy of valid license issued by the Ministry of Emergency
Situations of the Republic of Azerbaijan on installation, set-up and repair of power plants, equipment and facilities and a copy
of valid license issued by State Committee of Urban Planing and Architecture of the Republic of Azerbaijan on design works of
the bidder (if the bidder is a single entity) or at least one JV partner of the bidder (if the bidder is a JV) before the contract
award. The Employer shall provide necessary assistance to the successful bidder in obtaining the license within a reasonable
time as may be required.
During the installation and testing of any equipment, the Contractor shall ensure all necessary protective measures for
protection of personnel working on the site. The protective measures, if necessary, shall include the installation of warning
signs in the territories, or fencing of those territories.
The Contractor shall be liable for carrying out the electrical installations and works by the qualified personnel and in
accordance with standard procedures and testing requirements. For this reason theContractor shall have the certified staff who
is able to work under high voltage conditions. Prior to supplying energy to any parts of the equipment, comprehensive
inspection shall be carried out for any substances which may cause short circuit to the facility.
In the course of construction of the substations, the seismicity of the region should be taken into account.
The Contractor will fully comply with Section 16 proving execution and supply requirements and standards
where applicable.

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