Project Status Review VF

Termozipa Life Extension &
BEPP Colombia
Project Status Review
06/06/2017
Termozipa Life Extension & BEPP Colombia
AGENDA
1. PROJECT STATUS (current scope included in the HO):
a) Permitting status a new lay-out for the installations

b) Procurement status
c) Contractual issues
d) Schedule
e) Budget
f) Owner Engineering Organization

2. ADDITIONAL SCOPE OF WORKS FOR E&C
a) New scope: Dump and ash-management, coal reception installations

b) Expected role from E&C for the activities that will not be handed over to E&C but under an “on-demand” basis
support
c) Updating of HO document
1. PROJECT STATUS
A) PERMITTING STATUS AND NEW LAY-OUT FOR THE INSTALLATIONS (1/6)

Permit restrictions related to project scope / related activities are summarized in the table below:
TENDER STATUS OBSERVATIONS
Water Rights (concesión de Permitting process finished, just waiting This permit is conditioning the future operation of the
agua) for the signature of the Chief of CAR power plant itself, but not specifically the project activities.
Current permit is up to 30.07.2018 (12,5 m3/s).
Water discharge (permiso Last information requested for the renewal The approval of this permit is needed for the intervention in
de vertimiento) of this permit submitted last 24.04.2017 the cooling water tower discharge.
Deforestation permit Submission carried out last 30.05.2017 The approval of this permit is needed to start construction
(aprovechamiento forestal) (expected time for approval 6 months) activities. No criticalities found.
MMA (Medidas de Manejo The permission requested is to It is needed to start any kind of works inside the river
Ambiental) complement the existing one including the protected area (zona de Ronda). Not necessary if
new equipment outside such limit.
Emission Permit (Permiso In force up to 2019. The renewal has to be If not acquired, it is a restriction for the start-up of any new
de emisiones) requested at least one year before the emission points
expiration date.
1. PROJECT STATUS

Therefore, the main permit restriction of the project is related to the erection works within the river side protected
area (“Zona de Ronda”), where a relevant part of the existing PP installations are built nowadays. The permitting
strategy was to submit all project interventions to the Authorities through the MMA (Medidas de Manejo Ambiental),
providing a lay-out with all the new environmental equipment to be installed. This document was submitted last
07.04.2017.
The lay-out included by that time foreseen the use of the 4 existing stacks, with a long-duct routing because of the
current distribution of the equipment. That solution (considering just the 4 existing stacks) was easy to process as
was based on the assumption that no major changes (regarding the current emission permit in force) were foreseen
with no new emission sources to consider (in fact, while keeping the emission-source points, the emission values
will improve).
An alternative lay-out for the project has been issued by Engineering in May 2017; this proposal is considering two
new stacks and also a by-pass to the existing ones just for transitional periods; this layout is optimizing the duct
routing with related cost saving, both, from a technical and economical point of view (CAPEx related to erection and
OPEx related to operation), being a much more efficient solution.
HSEQ/Legal have identified a more risky scenario for the new lay-out: the problem is that the current emission
permit is in force up to 2019, and a renewal has to be requested to the Authorities in 2018; According to HSEQ the
fact that we would be introducing 2 new additional points could not be properly understood by the Authorities, and
the permit approval could be delayed with a potential impact in the schedule of works.
1. PROJECT STATUS

Last feedback provided by Legal/HSEQ is informing that they will do their best to convince the Authorities regarding
the lay out, but for this lay-out it could be requested: 1) the fulfillment of the emission levels in all the stacks
and/or a CEMs systems; 2) the approval of the new emission permit before the start of operation.
E&C has insisted in the fact that this new layout is the best technical solution and the most efficient one
(also from a environmental point of view), and this message has to be clearly delivered to the Authorities.
We have also offered our availability to meet with the Authorities and to explain all the details/benefits.
The works affected by this permit (MMA) would be the following:
New water production plant (WPP) Not affected (as it is outside the river protected area)
Magaldi Units 4 and 5 not affected (outside the river protected area),
while units 2 and 3 (to be started in June 2018) are conditioned
DNOx Assuming just PM (most probable scenario), not affected (as it
could be considered as maintenance works)
DSOx SDA/FF/BF for units 4 and 5 not affected (outside the river
protected area), while SDA/FF/BF for units 2 and 3 (to be started
in September 2018) are conditioned.
Approval of the emission permit will be also needed.
1. PROJECT STATUS
1. PROJECT STATUS
1. PROJECT STATUS
1. PROJECT STATUS
B. Procurement status (1/6)

At the present time Procurement activity is very intense. The following table shows the status and the main
criticalities (where applicable) per tender:
M001 – DNOx (EPC) Technical offer request was issued 6 bidders are taking part in the tender.
on 17.05.2017. Offers delivery A 1-week time extension was requested and has
expected for 02.07.17 been granted.
Some bidders have informally confirmed that are
able to fulfill the emission goals just with PM.
M107 – DSOx (supply) A time extension was granted to join It is being complex to keep the competition as some
STX/FW to the process. Technical bidders stop being interested when realized the
offers expected on 16.06.17; potential presence of sub Korean competitors.
awarding date 30.09.17. Procurement conditions should be also revised.
M022 – WPP (supply) Technical offers received; technical 4 bidders are taking part in the tender. The process
alignment expected for 17.06.17 and has been delayed because of the interventions of
awarding on 13.07.17 TL in the design and procurement phases.
1. PROJECT STATUS
Technical evaluation completed. 2 bidders were directly qualified, and 2 bidders have
S001 – ITO service
Awarding expected next 16.06.17 to complete HS document to be qualified.
Execution time: 3 months from NTP (facilities ready

Z001 – Site Facilities To be awarded shortly
by September 17)
Technical Specification will be ready The timing of this tender is conditioned by the
M004 – BOP 1 (SDA/FF) by 30.10.17. Awarding expected by awarding and the delivery of the technical
28.04.18 information from the supply contract
Technical Offer request issued on

M005 – BOP 2
02.06.17. Awarding expected by The timing of this tender is in the critical path
(Magaldi)
11.09.17
Purchase requisition to be issued on The delay in the tender for the WPP supply forced a
M006 – BOP 3 (WPP) 30.06.17. Awarding expected by separate tender and displaced the COD (with no
11.10.17 major impact as the current WPP is on service)
1. PROJECT STATUS

Technical Purchase Tech Offer Tech Offer Technical Letter of Tech Specif Contract
Specification requisition Reques Receipt Alignm ent Aw ard for Order Issue
M001 - Denox - EPC - SNCR, Coal m ills and interventions on existing boilers
Forecast 30-03-2017 10-04-2017 20-04-2017 02-07-2017 06-09-2017 15-10-2017 05-11-2017 30-11-2017
Actual 07-04-2017 03-05-2017 17-05-2017 - - - - -
M107 - Desox - Supply of SDA, Fabric Filter and Booster Fans
Forecast 15-02-2017 25-02-2017 10-03-2017 16-06-2017 18-08-2017 30-09-2017 10-11-2017 30-11-2017
Actual 20-02-2017 13-03-2017 29-03-2017 - - - - -
M022 - Supply of Water production plant
Forecast 28-02-2017 05-03-2017 10-03-2017 10-04-2017 17-06-2017 13-07-2017 10-08-2017 30-08-2017
Actual 17-02-2017 28-02-2017 24-03-2017 17-05-2017 - - - -
Z001 - Ow ner Engineering Site facilities
Forecast 28-02-2017 10-03-2017 20-03-2017 15-04-2017 05-06-2017 31-05-2017 - 31-05-2017
Actual 06-03-2017 08-03-2017 23-03-2017 02-05-2017 24-05-2017 - - -
S001 - Technical on-site supervision service
Forecast 28-02-2017 05-03-2017 10-03-2017 10-04-2017 30-05-2017 16-06-2017 - 10-06-2017
Actual 17-02-2017 20-02-2017 23-03-2017 07-05-2017 - - - -
M004 - BOP 1: Erection of SDA,Water production plant, Fabric filters and Booster Fans
Forecast 30-10-2017 10-11-2017 20-11-2017 20-01-2018 15-03-2018 28-04-2018 30-05-2018 20-06-2018
Actual - - - - - - - -
M005 - BOP 2 - Erection of Bottom ash extraction system , safeguard
Forecast 10-05-2017 22-05-2017 02-06-2017 15-07-2017 20-08-2017 11-09-2017 30-09-2017 20-10-2017
Actual 12-05-2017 23-05-2017 - - - - - -
M006 - BOP 3 - Erection of w ater production plant
Forecast 22-06-2017 30-06-2017 07-07-2017 16-08-2017 16-09-2017 11-10-2017 30-10-2017 20-11-2017
Actual - - - - - - - -
1. PROJECT STATUS

There are two relevant risks related to the Procurement status:
1. The displacement of the start of site activities stressing the execution time. Main criticalities:
 Awarding of M107 DSOx supply, impacting the related engineering documents for BOP-1 installation
 Awarding of M005 BOP-2 (Magaldi Installation) and M006 BOP-3 (WPP installation), to release the start of
site activities in 2018
 Awarding of M001 EPC DNOx, just in case SNCR is confirmed (situation not likely to happen)
2. The right execution of the cash flow assigned to 2017 on-time

 The forecast considered for the cash flow has been estimated considering the progress for Magaldi
Contract and the advance payment of main contract supplies
 Approved BIP 2017 BEPP (Mx): 10,1 MEUR
 Approved BIP 2017 OTHERS (Mx): 2,5 MEUR TOTAL: 16,5 MEUR
 Approved BIP 2017 LE (BD): 3,90 MEUR
 In case it is needed, it could be possible to include additional extra budget through the advance payment
for the BOP contracts for Magaldi/WPP or BEPP Engineering (the invoicing of these items is foreseen in
the early months of 2018)
1. PROJECT STATUS
Amount
Date of Accrued Comments
(Meuro)
BEPP
Approved BIP 2017 10,10
Advance payment considered at 20% of the approved

Advance Payment for DSOx supply 7,63 September 2017
amount in the budget for this contract
Advance Payment for DNOx 2,78 October 2017
Total Forecast BEPP 10,40
BEEP Engineering 1,34 December 2017
Advance Payment WPP BEPP 0,17 August 2017
ITO Services 0,03 November 2017
E&C Site Facilities 0,42 November 2017
Minor Contracts (site studies, etc) 0,09 November 2017
Total possible Extra Budget BEPP 2,05
1. PROJECT STATUS
Amount
(Meuro)
OTHERS
Advance Payment for Magaldi* 1,68 June 2017
Others milestones Magaldi’s Contract 0,63 July-December 2017
Total Forecast OTHERS 2,31
Advance Payment BOP Magaldi 0,36 january 2018
Total possible Extra Budget OTHERS 0,36
Amount
(Meuro)
LE
Advance Payment mills revamping 0,32 October 2017
Advance Payment WPP 0,54 August 2017
Purchase order for main equipment WPP 0,22 December 2017
LE Engineering 0,62 December 2017
Total Forecast OTHERS 1,69
Advance payment considered at 20% of the amount
Advance Payment BOP WPP 0,12 january 2018
in the budget for this contract
Total possible Extra Budget OTHERS 0,12
1. PROJECT STATUS
C. Contract issues
Here below a summary list of the main contract issue with Magaldi´s contract issues:
• Problems in the release of the advance payment bond counter-guaranteed by a local (Colombian) bank
• Delay in the engineering progress because of an undersized engineering team (by Magaldi´s side)
• Potential missing activities in the PIM schedule for 16.06.2017
• Potential impact of 160.000 EUR related to transport cost (already advised in the Order Letter)
• Different interpretation of the scope included in the DAP incoterm (and potential related cost impact)
• Relevant impact related to the undersized supervisor endowment considered by Magaldi during the bidding
phase
• Permanent attitude “claim oriented”
A review coordination meeting was held with GP/CM/ENG&TS last 26.05.2017. Attached as Annex 1 “170520
Magaldi (contract issues and criticalities).doc” with the full details of the status of every single issue up to
20.05.2017.
1. PROJECT STATUS
D. Schedule
SCOPE PREVIOUS NEW COD COMMENTS

COD
Bottom Ash Extraction Unit 4 in July 2018, Unit 5 in September 2018, Unit 2 in
March 2020 January 2019
System (Magaldi) November 2018, Unit 3 in January 2019
Demi Water Plant The impact in the tender for WPP supply, displaced the
August 2018 January 2019
Upgrading tender for BOP with the related postponement
Cooling water towers
July 2019 July 2019 * (*) It depends on permit approval.
discharge
DNOx & Mills Unit 4&5 in August 2019, Unit 2 in October 2019, Unit 3
January 2020 January 2020
revamping in January 2020.
Electrical systems March 2021 September 2020 Scope shared by O&M/E&C under LE Project
DSOx Unit 4&5 November 2020 July 2020

The COD was modified after the agreement taken with
EM for the outages period of the units
DSOx Unit 2&3 August 2020 September 2020
1. PROJECT STATUS
E. Budget (1/4)
The following table summarizes the main budget deviations per contract/scope:
SCOPE / APPROVED
SCOPES NOT INCLUDED / ECONOMICAL DEVIATIONS
CONTRACT AMOUNT (MEUR)
• Not included Transport Costs: 160.000 MEUR
Magaldi (supply) Awarded for 4.194.096 • Custom Broker not considered by Magaldi in DAP INCONTERM: TBD
(excluding spare parts) • Additional site advisory services: 240.000 MEUR (at least)
• Spare Parts not Included
• Commercial offer not received (final valuation pending)
• Relevant interferences with the existing installations, such as the
BOP for Magaldi
1.800.000 reallocation of staircase, demolition of auxiliary buildings, reallocation
Installation
of existing electrical installations, were not properly considered in the
first evaluation
• Commercial offer under evaluation (final valuation pending)
ITO services 2.972.000
• No deviations expected
E&C Site • Contract to be awarded very shortly
400.000
Facilities • No deviations expected
1. PROJECT STATUS
E. Budget (2/4)
SCOPE / APPROVED
• TL intervene during the design phase to request a different design for the WPP
WPP (supply) 3.300.000
with different water production capacity
• No additional water storage was considered (scope expressly excluded in HO)

• The scope considered just an upgrade within the existing installation; the
permitting strategy considered better to build a new installation outside the river
protected area. That means additional civil works, mechanical and electrical
works and new connections with water/power supplies (not considered in HO).
BOP for WPP
600.000 • The existing WPP has to be demolished (scope not included in HO)
Installation • To optimize the construction sequence the following safeguards will be assigned
to this contractor: dismantling of fuel-oil tank (that contains residues of fuel-oil,
not foreseen), relocation of gasoil pumps and pipelines, relocation of condensate
pipe unit 5, ash pumps of unit 4 and 5, removal for installation of new WTP
pumps and related pipes.
1. PROJECT STATUS
E. Budget (3/4)
SCOPE / APPROVED
• A potential saving could be gathered if no SNCR is finally needed to
DNOx EPC 15.467.120
reach the emission limits (330 mg/Nm3); some bidders have
unofficially informed that just PM could be enough to reach the target.
• Historical information from past similar project scopes point out a
potential deviation.
DSOx supply 36.666.328
• The new lay-out could imply a saving of XXX MEUR (app.) regarding
the previous solution because of duct supply and booster fan sizing.
• No CEMs was considered for any stack (new or existing)
BOP for DSOx 19.008.896 • The new lay-out could imply a saving of XXX MEUR (app.) regarding
the previous solution because of the new (optimized) work quantities.
1. PROJECT STATUS
E. Budget (4/4)
SCOPE / APPROVED
• Technical Specification will be ready by January 2018
Extension of DCS 500.000
• No deviations expected
MV/MV • Technical Specification will be ready by August 2018
Transformers and 2.200.000 • Depending on the Power Scheme finally adopted for the project
MV SWGR (under review by ENG&TS), an impact of XXX is expected
A new estimation of the budget assignment (per contract) should be carried out taking into account all the
considerations explained above. As stated in the expense approval for BEPP, an updated valuation should
be performed before placing the main orders. The market price for most relevant BEPP contracts will be
available by September 2017.
1. PROJECT STATUS
F. Owner Engineering Organization (1/5) PE

Calderara E.
An engineering coordination procedure has

been issued to clarify E&TS organization:
• For the technical management of the Local E&TS referent

Suarez E.
Project, E&TS assigned a PE that is

responsible for the coordination of the ELE DPL
engineering activities. Milani A.
• The PE is staffed by DPLs one for each I&C DPL

Local E&TS I&C
Penuela C.
global discipline. The DPLs are fully Arrighi L.
assigned to the Project and will be assisted

Local E&TS ELE
Vargas D.
by specialist assigned to the Project, as PRO DPL

Siracusa D. Local E&TS CIV
necessary. Obando C.
• The engineering team includes Local C&E DPL

Local E&TS MEC
Guardiani G. M.
Technical Support personnel as well. Rodriguez Gabriel
• The same E&TS team will handle both LE C&M DPL

Local E&TS PRO
Hurtado J.
and BEPP interventions. MAC: Bassani N.
MEC: De Vincenzi C.
CIV: Ruzzenenti S.
Global E&TS Local E&TS

1. PROJECT STATUS
F. Owner Engineering Organization (2/5)

Several positions of the Project Team have been already assigned, and the Procurement Coordinator and the
Planner & Cost Controller have been awarded in June to local staff. The project team will be updated shortly:
1. PROJECT STATUS

The MH foreseen by ENG to the scope of the current handover are summarized as follows:
These MHs at the current hour rate are equal to 3,41 MEUR (2,85 from ENG Milan + 0,56 from ENG Chile).
That is to say, 44 % of the budget assigned to the Project (7,7 MEUR) for Owner Engineering Costs.
1. PROJECT STATUS

The current status of the consumption of MH (internal for ENG, with cut-off date 30.04.2017, as follows:
APPROVED (MH) FORECAST (MH) ACCRUED (MH)

BEEP + LE/OTHERS (ITA) 30.275 30.275 6.889
BEEP + LE/OTHERS (CHL) 9.483 9.483 911
TOTAL 39.758 39.758 7.800

% 100 % 100 % 19,6 %
START END
01.12.2016 30.11.2020
ELAPSED TIME 150 / 1310 days (11,4%)
1. PROJECT STATUS

Another very relevant issue is that the intercompany contract is still not signed.
A very relevant information regarding the intercompany contract has been delivered, including:
• Drafts for Intercompany Contracts (for Enel Produzione SpA and for Enel Generacion Chile SA)
• The form for the BoD Agenda duly filled
• The contract between Enel Chile and EMGESA for the services provided so far, and a Transfer Pricing
Benchmarking Report.
But still the Country is requesting a comparison study between the services provided with other similar local
(suggested companies INTEGRAL, GOMEZ CAJIAO, INGETEC and CONSULTORIA COLOMBIANA).
The formalization of the intercompany contract for the current scope set in the HO is needed to avoid
potential conflicts and to allow the proper management (and invoicing) of E&C resources.
A. New scope: dump interventions / ash-management

Global Coal TL has confirmed that a new package of additional works could be assigned to E&C for the following
activities:
• Temporary storage area for the ashes in the dump:
 This scope was not considered/included in the HO as a part of the E&C SoW
 It should include the design for the dry ashes (from ESP/Magaldi) and for by-product
• Improvements in the reliability of the current system for ash storage and discharge:
 A proper scope definition should be provided by TL regarding the improvement of the existing system
• Water treatment Plant:
 This scope was expressly excluded in the HO document (as indicated in clause 16 a)
 INGETEC is performing nowadays the initial assessment and the design (with related engineering) for a
new water treatment plant for all water discharges of the power plant. It was agreed that the review and
follow up of these activities will be Managed by Engineering .
• Remedial works for the ash dump
 This scope was not considered/included in the HO as a part of the E&C SoW
 CESI was considered to perform the preliminary studies for the remedial works of the ash dump through
the framework contract in force. This activity was started as a consequence of an ECOs requirement. It
was agreed that the review and follow up of these activities will be Managed by Engineering.
A. New scope: Coal yard and coal reception improvements

Global Coal TL has confirmed that, in order to have a coordinated and integrated view and to involve the best
competencies for these activities, the project for the coal reception will be assigned to E&C, including the following
activities:
• Repair activities and maintenance of the existing access to the coal yard
• New truck scale
• Coal sampling installations and on-line software
The details of these activities are being provided by TL these days, and a further technical and economical analysis
will be carried out by engineering shortly
If the activities previously informed in 2A for the dump / ash management and the coal yard improvements
are definitely confirmed, an update of the handover document should be formalized by the parties.
B. Expected role from E&C for the activities that will not be handed over to E&C but under an “on-demand”
basis support
According to the current handover document (see clause 3C) the following activities are not handed over to E&C,
and remain under O&M team execution with eventual support from E&C/TS on demand:
• Interventions in Boilers
• Steam Turbines and Generators
• Water intake (design, installation, commissioning and start-up of rotating screens-multidisc)
• Electrical systems (related to the replacement of existing equipment as is, that are not connected with new
project installation), including: electric generators and excitation systems, power transformers, HV SWGR,
electrical protections, automation and regulation, emergency supply
• Others: ESP recovery, feed water heaters replacement, other equipment refurbishment and essential spare
parts
On the above mentioned activities, E&C is currently supporting and will continue participating actively with the
needed specialists, together with TL and O&M, up to the completion of all the activities.
Any E&C costs regarding this activities will be charged on reimbursable basis by a Report issued to the
Client on a quarterly basis (as specified and regulated by the Intercompany contract).
C. Updating of Handover document:
Update of the SCOPE, including: - The scope not considered or excluded in the current HO doc, but
necessary for Project completion for WPP, DSOx, etc.
- The new scope assigned to E&C for : dump interventions / ash-
management and coal yard improvements
Update of the INVESTMENT, including: - The update of the investment for the needed items not considered
in the current HO
- The additional investment for the new scope signed to E&C
- The additional owner´s engineering cost
- Additional costs related to Taxes, Permitting, etc.
Update of the COD, considering: - The outage strategy agreed with TL/EM
- The current bidding status
- The new scope assignment
Others: Small corrections or inclusions to improve and/or updated the

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BEPP Colombia
Project Status Review

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Termozipa Life Extension &

1. PROJECT STATUS (current scope included in the HO):

a) Permitting status a new lay-out for the installations

2. ADDITIONAL SCOPE OF WORKS FOR E&C

a) New scope: Dump and ash-management, coal reception installations

A) PERMITTING STATUS AND NEW LAY-OUT FOR THE INSTALLATIONS (1/6)

TENDER STATUS OBSERVATIONS

A) PERMITTING STATUS AND NEW LAY-OUT FOR THE INSTALLATIONS (2/6)

A) PERMITTING STATUS AND NEW LAY-OUT FOR THE INSTALLATIONS (3/6)

B. Procurement status (1/6)

TENDER STATUS OBSERVATIONS

B. Procurement status (2/6)

TENDER STATUS OBSERVATIONS

Execution time: 3 months from NTP (facilities ready

Technical Offer request issued on

B. Procurement status (3/6)

B. Procurement status (4/6)

2. The right execution of the cash flow assigned to 2017 on-time

B. Procurement status (5/6)

Advance payment considered at 20% of the approved

SCOPE PREVIOUS NEW COD COMMENTS

DSOx Unit 4&5 November 2020 July 2020

• Commercial offer not received (final valuation pending)

F. Owner Engineering Organization (1/5) PE

An engineering coordination procedure has

• For the technical management of the Local E&TS referent

Project, E&TS assigned a PE that is

engineering activities. Milani A.

• The PE is staffed by DPLs one for each I&C DPL

assigned to the Project and will be assisted

by specialist assigned to the Project, as PRO DPL

• The engineering team includes Local C&E DPL

• The same E&TS team will handle both LE C&M DPL

Global E&TS Local E&TS

F. Owner Engineering Organization (2/5)

F. Owner Engineering Organization (3/5)

F. Owner Engineering Organization (4/5)

APPROVED (MH) FORECAST (MH) ACCRUED (MH)

TOTAL 39.758 39.758 7.800

F. Owner Engineering Organization (5/5)

A. New scope: dump interventions / ash-management

A. New scope: Coal yard and coal reception improvements

C. Updating of Handover document:

Others: Small corrections or inclusions to improve and/or updated the

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