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Coastal Andhra Power Ltd

4000 MW Krishnapatnam
Ultra Mega Power Project,
(UMPP) Andhra Pradesh,
India
Lenders’ Independent
Engineer

Techno – Commercial Proposal

August 2008

Mott MacDonald
Coastal Andhra Power Ltd Mott MacDonald

Coastal Andhra Power Limited

4000 MW Krishnapatnam
Ultra Mega Power Project,
(UMPP) Andhra Pradesh,
India
Lenders’ Engineer

Techno Commercial Proposal

August 2008

abc
Mott MacDonald
A-20, Sector 2,
NOIDA - 201301,
Uttar Pradesh
India

Tel 00-91-120-2543582 - 85
Fax 00-91-120-2543562

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List of Contents

Sections and Appendices

1 Introduction 1

2 Capability and Experience 3


2.1 Mott MacDonald 3
2.2 Energy Sector 3
2.3 Mott MacDonald India 5
2.3.1 Expansion 6
2.3.2 Utilisation of Resources of Mott MacDonald Group 6
2.3.3 Range of Activities, Services and Sector expertise 7
2.3.4 Company Structure 7
2.3.5 Financial Standing 8
2.3.6 Staff and Resources 8
2.4 Experience with Supercritical Technology 9
2.5 Experience of Working with Asian Development Bank (ADB) 10
2.6 Global Experience acting as Lenders’ Independent Engineer 10
2.7 Relevant Experience for Coal Fired Power Plant 10
2.8 Experience in Other Asian Countries 12
2.9 Lender Engineer’s Experience in India 14
2.10 Experience in Indian Electricity Market 14
2.11 Other Thermal Power Generation Experience in India 14
2.12 Relevant Environmental Experience 16

3 Scope of Work and Methodology 17


3.1 Scope of Work 17
3.1.1 Approach 18
3.2 Phase I: Project Due Diligence 18
3.2.1 Data Collection 18
(i) At Commencement 18
(ii) Site Inspection 19
3.2.2 Evaluate Project 19
3.2.3 Design Concept Review 19
3.2.4 Review Project Contracts 20
(i) Project Contracts 20
(ii) Guarantees and LD’s 22
(iii) Financial model technical review 22
3.2.5 Coal Supply and Transportation Arrangements 22
3.2.6 Water supply arrangements 23
3.2.7 Port Service Agreement 23

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3.2.8 Power Purchase Agreement 23


3.2.9 Project Management Review 23
3.2.10 Operation and maintenance (O&M) Review 23
3.2.11 Review of Permits and Licenses 23
3.2.12 Technical Due Diligence Report and Schedule 23
3.3 Phase II: Monitoring and certification of the Construction and Performance Test until
Project Completion 24
3.3.1 Overview 24
3.3.2 Construction Commencement 24
3.3.3 Quarterly Progress Review 24
3.3.4 Quarterly Review Report 25
3.3.5 Performance Tests 25
(i) Test Procedures 25
(ii) Performance Tests 25
(iii) Project construction Completion verification 25
3.4 Phase III: Operational Review (Optional services) 26
3.4.1 Operations Monitoring and Budget Review 26
3.5 Project Schedule 26

4 The Team 27
4.1 Introducing the Team 27
4.2 The Team’s Experience 27

5 Commercial 30
5.1 Phase I: Project Due Diligence 30
5.2 Phase II: Monitoring and certification of the Construction and Performance Test until
Project Completion 30
5.2.1 Construction Periodic Review 30
5.2.2 Post Completion Status Report 31
5.2.3 Workshop Inspections (Optional) 31
5.2.4 Performance Testing 31
5.3 Phase III- Operation and Maintenance Period (Optional services) 32
5.4 Expenses 33
5.5 Taxes and Duties 33
5.5.1 Service Tax 33
5.5.2 Fringe Benefit Tax 33
5.6 Withholding Tax 33
5.7 Terms of Payment 33
5.7.1 Phase I: Project Due Diligence 33
5.7.2 Phase II: Monitoring and certification of the Construction and Performance Test
until Project Completion 33
5.7.3 Phase III: Operation and Maintenance Period Service 34
5.8 Validity 34

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5.9 Terms of Contract 34


5.10 Liability 34

Appendix A Mott MacDonald’s Experience with ADB A-1

Appendix B Mott MacDonald’s Lenders’ Engineer Experience B-10

Appendix C Selected Mott MacDonald Power Generation Project Experience C-1

Appendix D Selected Mott MacDonald India’s Power Generation Experience D-4

Appendix E Lenders’ Environmental Adviser Experience E-1

Appendix F Lenders’ Engineer’s Scope of Work 1

Appendix G Mott MacDonald’s Terms and Conditions 10

Tables

Table 2-1: Recent Project Closures 10

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1 Introduction

Mott MacDonald is delighted to present this Proposal for the role of Lenders’ Engineer (LE) for the
Coastal Andhra Power Limited (CAPL)’s 4000 MW imported coal based Krishnapatnam Ultra Mega
Power Project in Nellore district, Andhra Pradesh, India. This proposal is in response to Asian
Development Bank’s letter of 18th July 2008 inviting Mott MacDonald to submit its proposal.

Mott MacDonald is one of the world’s largest firms of consulting engineers, with over 12,000 staff
and experience in over 140 countries. Independent through being owned by its staff, the firm delivers
world-class engineering and project management solutions in energy, water, transport, buildings, and
education.

We are very well qualified to provide LE services and value to this project. In particular:
• We have very wide experience acting as lenders’ independent engineer and in supporting
the successful financial closure of robust projects.
• We have worked with multilateral funding agencies and financial institutions like World
Bank, IFC, ADB, PFC, ABN AMRO, Bank of America, State Bank of India as lender
engineer for number of generation projects
• We also appreciate the environment concerns and have advised on environment issues to
many lenders like IFC, ABN AMRO, ADB, World Bank, etc.
• Our staffs have extensive experience in super-critical coal fired power plants.
• We understand key commercial drivers acting on project developers and lenders in the
private power sector, requiring a flexible approach to finding solutions to issues.
• Our excellent reputation amongst lenders provides confidence and we have a strong track
record on projects that have successfully achieved financial close within tight timetables.
• Our strong presence in India and working for Power Utilities, IPPs, FIs, and Regulators in
India allows us to bring understanding of Indian conditions and local requirements to our
work.
• We confirm that all information gathered in the course of fulfilling the scope of work shall
be treated as confidential and will not be released or otherwise used without the
authorization of Coastal Andhra Power Limited.
• We also confirm that there will not be any conflict of interest with the involvement of
Mott MacDonald as Lender’s Engineers.

Mott MacDonald prides itself on providing services that focus not only on the technical features of the
project, but also on the interactions between the commercial requirements and the allocation and
evaluation of project risk. We have also built strong relationships with lenders on the basis of
providing impartial and unambiguous advice.
For this project we will make use of the skills available in India and in UK, and bringing in all-round
engineering skills and in-depth experience acquired working on several Indian Projects.
This Proposal is intended to demonstrate why Mott MacDonald is the best choice for this assignment,
and is structured as follows:
• Section 2 details of our relevant capability and experience
• Section 3 provides our approach and methodology
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• Section 4 proposes the team we would use to undertake the work


• Section 5 presents our Commercial Proposal.

Mott MacDonald would like to thank Asian Development Bank for the opportunity to present our
proposal for this project. We believe we have much to contribute and look forward to discussing this
opportunity further.

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2 Capability and Experience

2.1 Mott MacDonald

Mott MacDonald is a world-class multi-disciplinary consultancy engaged in development, touching


many aspects of everyday life from energy, transport, water and the environment to building, industry
and communications.

We are a wholly independent international company, based in the UK, with turnover in excess of US $
1 billion, over 12,000 staff and global experience spanning 140 countries.

Mott MacDonald operates from offices in centres throughout the UK and in countries across Europe,
Asia and the Pacific, the Middle East, Africa and the Americas. This wide geographical network
means we can bring our skills and resources closer to our clients wherever they or their projects are
based.

Mott MacDonald comprises several management units based at different locations in the UK. The
management unit specialising in the energy sector is located in the coastal town of Brighton, south of
London.

This energy unit covers all the main elements of project development. Business strategy and business
planning, feasibility studies, engineering design and specification, construction supervision,
commissioning, quality assurance, inspection and rehabilitation work.

2.2 Energy Sector

Our experience in the energy sector is second to none amongst the world's major engineering
consultants. We have played a leading role in the electricity sector restructuring in Ukraine, Malaysia,
Indonesia, Thailand, Philippines, Pakistan, Northern Ireland, Ireland, Singapore, Iran and Qatar where
we advised the respective government on the financial/technical options best suited to the country in
question, as well as regulatory, efficiency and contractual issues. We have been involved in regulatory
reviews of electricity utilities, which have been corporatised or privatised and have advised various
major investors on prospective power station and distribution company acquisitions. Additionally we
are involved with the development of privately funded power projects throughout the world as
independent advisers to both owners and lenders.

In particular, our services include the following:

• Power plant engineering - power plant investigations, optimisation of power plant designs, fuel
optimisation/selection, power plant rehabilitation, plant performance studies, acceptance and
commissioning tests, quality assurance, steam utilisation and efficiency studies, electrical
protection selection and settings, fault level calculations.

• Power system studies – generation and transmission planning studies, generation master plans,
transmission expansion studies, power system fault condition modelling, despatch modelling.

• Restructuring – guiding government and electricity utilities through the complex process of
unbundling to a system of competition, advising on institutional framework, company
organisation, financial performance, training and preparation of companies for sale.
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• Electricity markets – design and implementation of pooling systems (i.e. Scheduling &
Despatch, settlements) technical and procedural documentation (i.e. Grid code, Distribution code,
market operating rules) trading contracts.

• Regulation – technical, financial and organisational performance of electricity companies,


technical standards, quality standards, retail tariff’s, transmission pricing.

• Contracts – power purchase agreements, fuel purchase agreements, ancillary service agreements,
and maintenance agreements.

• Acquisitions – valuation of power plant, transmission system and distribution system assets, due
diligence reviews, preparation of sales documentation, evaluation of company performance,
investment requirements, efficiency improvements.

• Environment – site selection studies, planning application support, environmental impact studies,
environmental action planning, flue gas desulphurisation, NOx control, water and gas clean up,
atmospheric dispersion modelling, and studies of noise and other impacts.

• Project development – advice on electricity market trends, power system requirements, financial
viability, site selection and environmental issues to lenders and SK Powers.

• New entrants – feasibility studies, functional specifications, market analysis, despatch studies,

• Market analysis – demand forecasting, market research for new technologies and new products,
competitor analysis.

• Least cost planning – generation and transmission planning, distribution system planning,
demand side management, loss reduction reviews, investment plans.

We are pleased to provide further details in the sections below of our relevant experience, which
includes:
• our global experience in acting as Lender’s Independent Engineer
• our experience in India
• selected Mott MacDonald thermal power generation project experience
• relevant environmental experience.

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2.3 Mott MacDonald India


Mott MacDonald Private Ltd (MMPL) is a wholly owned company of Mott MacDonald Group, UK.
As a wholly owned
company of Mott Group Company Mott MacDonald Group
MacDonald Group UK,
MMPL is able to draw Trading Company Mott MacDonald Ltd

on world-class technical
and managerial resources Regional Unit Mott MacDonald International

comprising about 12,000


staff in more than 140 Regions Asian Central and
Europe Europe Middle Asia
strategic centres world-wide. West East East
Sub
Pacific
Africa South
Continent America
The Global operation
structure of the Mott
MacDonald group and Group Companies * MMP Mott
its relationship with MMPL Pakistan MacDonald
is illustrated in figure-2. Pvt Ltd. Pvt Ltd.

Figure 1 Mott MacDonald Global Operation Structure

CUSTOMER FOCUS
MMPL firmly believe the best way to secure the future is by
continually improving and expanding our services to our
customers. Total client satisfaction is paramount - and that
is why MMPL places total emphasis on team-working with
clients, tailoring each aspect of a project to their precise
requirements. MMPL’s operations strive hard to deliver the Delhi
highest possible level of customer care, the best value for Bikaner
Jaipur Lucknow
money and the most appropriate solutions - all backed by Jhansi
the drive, innovative imagination and resourcefulness that Ahmedabad Bhopal Kolkata
make Mott MacDonald Private Ltd a world-class company. Raipur
MMPL’s operational strategies and values are best Bhubhaneshwar
Mumbai
described as PRIDE –Progress, Respect, Integrity, Drive Hyderadad
and Excellence. A committed workforce and strong
relationships with key customers are central to delivering
Mangalore
the strategic plan Mysore
Bangalore
Chennai

Thiruvananthapuram

Figure-2 DMM Office Locations

PROFESSIONAL EXCELLENCE
As a wholly owned subsidiary of Mott Macdonald group MMPL is committed to the group’s aim of
achieving Professional Excellence in all the works. Professional Excellence is all about advancing and
continuously improving Mott MacDonald Group processes, product and services to sharpen its leading
edge in Marketplace, develop its people and grow the intellectual capital so vital to sustain the group

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future. It is inextricably linked with costumer care and business development and together they form
the key driver for business growth- which is why professional excellence is central to every group
works and is corner stone of group’s vision, mission and values. To support these aims group is
increasingly channeling increased effort into promoting Professional Excellence practice around the
global company and encouraging knowledge management as an effective tool for learning how to do
things in a better way.

HUMAN RESOURCE DEVELOPMENT


MMPL with its corporate office located in Mumbai is a professionally managed employee owned
company with the management being overseen by the Management Groups. The company has a strong
and committed human resource base of more than 1000 professional, whose skills and experience are
continuously enhanced by the companies’ commitment to trainings – both in-house and off shore at
Mott Macdonald Group offices

2.3.1 Expansion
MMPL has 4 main offices (Delhi, Ahmedabad, Mumbai and Chennai) and 14 offices and 50 project
offices at various places within
India has undertaken projects in
over 20 states in India and other
over seas countries for a wide
range of clients including
St Petersburg Government institutions and
Vancouver Calgary
Dublin Cambridge authorities, Government
Croydon
Cork Brighton Prague
Seattle Mississauga
Montreal
Bucharest
Departments, Urban Development
Buffalo Boston Alma Ata
Pleasanton Chesterton New York
Pittsburgh Millburn Lisbon
Sofia
Athens Beijing Seoul
Departments, Urban Local Bodies,
Los Angeles
San Diego Dallas
Tri
Lahore New Delhi
poli Cairo Dubai DohaKarachi Kathmandu
Tripoli
Shanghai Private Sector Developers,
Riyadh Abu Dhabi
Muscat
Taipei
Dhaka HongKong international development agencies
Mumbai
Jeddah Bangkok Manil
Manilaa like ADB, World Bank, DFID,
KualaLumpur
Accra Singapore JBIC and various financial
Kampala Mombasa
Jakarta institutions. Recently well
Windhoek equipped offshore water
Brisbane
Maputo
Adelaide
engineering design center has
Maseru Perth Auckland
Sydney been established in Ahmedabad
Melbourne
Wellington Branch, Building design center and
Transmission & Distribution Center at
Chennai. Plans are afoot to set up
Figure-3 Mott MacDonald Group Global Presence off-shore Transportation design
center at Delhi Branch. These
offshore Engineering design centers through collaborative engineering shall provide international
standard design and technical inputs to Mott MacDonald group of companies and other multinational
companies.. These collaborative engineering centers will go a long way in enhancing the vision, skills
and experience of MMPL’s Human resources.

2.3.2 Utilisation of Resources of Mott MacDonald Group


With a view to implement the multi-disciplinary projects in India, Mott MacDonald Group, UK has
made available the full range of expertise and resources at the disposal of MMPL being Mott
MacDonald Group Company. These include exchange of professionals as also design, technology and
engineering inputs including highly versatile software. The Company operations in India are headed by
the Managing Director from Mott MacDonald Group, UK since 2001.

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2.3.3 Range of Activities, Services and Sector expertise


specialized in Feasibility Studies, Detail Engineering
MMPL is a multidisciplinary Engineering firm
Design and Construction supervision of almost all types of Industrial and Infrastructure Projects
including Power. As a part of Mott MacDonald Group, UK, accredited with ISO 140001, MMPL as a
company is operating an approved quality assurance system. In order to maintain quality assurance in
services, MMPL have been using the EFQM business excellence model as a framework to strength
project management and meet international standard ISO 9001:14000.

The Company's services cover every stage from pre-investment studies and planning through design,
tender documentation, construction supervision and operation and maintenance. Traditional consulting
engineering services are provided as well as expert technical assistance within all engineering fields.
MMPL is known internationally for being One Stop Integrated Engineering Solution Provider for all types
of infrastructure projects right from concept to commissioning. The range of activities of MMPL covers
the following services.

SERVICES

• Surveys and Mapping • Construction supervision Project • Training


• Master planning Management • B.O.T Studies
• Feasibility studies • Contract Administration • Management Support and
• Detailed Engineering • Technical Assistance Services to Institutional Development
• Rehabilitation & Refurbishment Turnkey Projects • Asset & Facility Management
• Proof Checking • Services during Operation & • Pre-Investment studies
• Accredited Checking Maintenance • Strategic and Financial Planning
• Due Diligence & Lender • T Statutory Inspections • Market Surveys, Research and
Engineer • Testing and Commissioning Risk Assessment
• Technical/Safety Audits
In the context of technical assistance and management support, MMPL has provided services covering
aspects of institutional development and training, management support, and information technology
services, often in connection with decentralization of the public administration.

SECTOR EXPERTISE
MMPL provide above services in almost all infrastructure sectors. MMPL has proven ability to
visualise, plan, implement and manage the projects up to its completion in the following sectors.

• Power • Marine • Residential & Commercial Buildings


• Energy • Tunnels • Institutional Buildings
• Roads & Highways • Irrigation & drainage • Industrial
• Bridges • Dams and Barrages • Hospitals
• Railways • Water Supply & sewerage • Theme Parks
• MRT & LRT systems • Environmental management • Hotels & Resorts
• Aviation • Urban Infrastructure • Leisure & Entertainment

2.3.4 Company Structure


MMPL has different Strategic Business Units each being specialized in different but related field to
provide integrated engineering solution under one roof with core strength of experienced employees.
The Company is organized into four Strategic Business Units
Due to the effective organizational structure shown in figure-4 of the Mott Macdonald Pvt. Ltd., there
is a very close cooperation among the staff of the Divisions for planning and implementation of multi-
disciplinary projects. Also, many training activities trainees involve various Divisions.

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Mott MacDonald Pvt. Ltd.


Management/Reporting Structure

Managing Director
S.Srivastava

Industry & Environment & Management & Power


Buildings Infrastructure Consultancy Division
Mukesj Jain Col. R.S.Pandey S.S.Acharya Mukesh Jain

Fig-4 Organisation Structure

2.3.5 Financial Standing


Mott MacDonald Private Ltd. is a fast growing engineering company with robust financial standing
and impressive financial track record. The Mott MacDonald Pvt. Ltd. has experienced a rapid growth
in last five years and the current annual turnover from consulting business exceeds INR 633 million.

700
633

600
sINR

500
illion

400 381
367
verinM

352
324
297
300
Turno

200

100

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Ye a r

The Mott Macdonald group itself has experienced a rapid growth in recent years and the turnover for
financial year 2005-2006 stands at impressive US $ 1.2 billion. Based on policy of controlled growth
the Mott MacDonald group is well placed and is in strong position to continue sustainable growth. The
group has now adopted a US $ 2 billion turnover target for 2010, which will be delivered through
continued organic growth of 10% per year

2.3.6 Staff and Resources


The in-house staff resources of the MMPL (over 1300) cover the full range of services offered by the
Company. The staffs are well trained and equipped with modern facilities including appropriate
computer software and hardware.

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Additionally, a large number of consultants are registered with the company and are available to
provide specialised services within all fields should the need arise in connection with a particular
project.
For back-stopping and home office support MMPL assigns a senior professional with considerable
experience to co-ordinate the provision of Head Office support related to technical and contractual
matters throughout the project period. Mott MacDonald Group also provides technical advice and
assistance, as required, from its own professional staff (about 10000) and from experts within Group
Companies.
The combined technical resources of the MMPL and other Group Companies is impressive, with
highly qualified specialists in all relevant technical disciplines and ready access to technical databases,
training manuals and information.

2.4 Experience with Supercritical Technology

Below are some experiences on supercritical technology projects:

Longview Power Project – West Virginia,USA


It is a $1.5 billion 775 MW (gross) supercritical (Benson technology) boiler supplied by Foster
Wheeler and a single reheat double-flow power train supplied by Siemens. The project is under
construction in Maidsville West Virginia. It is 17 months into a projected 44 month EPC schedule.
Guaranteed completion is 48 months. We are the Owners Engineer and did the conceptual design for
the Project. Once the Project begins construction, we will provide design and construction oversight.
Ultra Mega Supercritical Technology Project – India

Feasibility of up-grading designs for eight 4000MW supercritical coal plant, India (2006) (British
Foreign & Commonwealth Office (FCO): The project entailed a feasibility analysis to determine the
viability of financing an increase from the RFP in the operating temperature and pressure (and
therefore efficiency) of new planned coal plants in India through carbon revenue under the Kyoto
Protocol Clean Development Mechanism (CDM). The study included the preparation of an outline
CDM methodology, a baseline and monitoring plan, economic analysis and technical pre-feasibility.

Confidential Client – UK

Currently acting as the technical advisor/integrator for the multiple contact packages for a 2 x 800MW
supercritical coal fired power plant in the UK. Our work involves material handling study and the
development of the concept design report. We are also involved in the geo-technical study of the
chosen site.

Project Tiger – Bangkok, Thailand

Owners Technical Advisor for a bid to the Ministry of Energy, Thailand for development of an
800MW supercritical coal fired power plant near Bangkok. Our role included development of the
initial concepts for the power plant, coal and ash handling systems, water treatment systems and the
operation and maintenance strategy. Additionally, we were responsible for the development of the
functional specification for the power plant, to be used in the subsequent EPC tendering and
evaluation process, and the estimating the costing of various balance of plant items, including coal and
ash handling systems, the jetty and plant O&M costs.

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2.5 Experience of Working with Asian Development Bank (ADB)

Mott MacDonald has worked with ADB on large number of projects across the world. A list of
projects where Mott MacDonald worked with ADB is attached as Appendix A:

2.6 Global Experience acting as Lenders’ Independent Engineer

Mott MacDonald has unrivalled experience in acting as technical advisor to project developers and
financiers in the power sector, having advised on over 85 GW of private generation world-wide.
Projects recently reached financial closure are shown in Table 2-1. A full list of our experience as
Lenders’ Engineer is given in Appendix B.

Table 2-1: Recent Project Closures

• Mangalore – 1000 MW Coal fired, Karnataka, India


• Cartagena – 1200 MW Combined Cycle Gas Turbine, Spain
• Sadaf - 240 MW Cogeneration Combined Cycle Gas Turbine, Saudi Arabia
• Salalah and Al Kamil gas fired combined cycle projects, Oman
• Rio Bravo - 500 MW gas fired combined cycle project, Mexico
• Saltillo – 250 MW gas fired combined cycle project, Mexico
• Nowa Sarzyna - 116 MW cogeneration project, Poland
• Teesside - 1800 MW cogeneration project, UK
• Zabalgarbi - 100 MW waste to energy and gas fired project, Spain
• Sutton Bridge - 790 MW gas fired combined cycle project, UK with tolling agreement
• Enfield - 400 MW gas fired combined cycle merchant power project, UK
• Meizhou Wan – 700 MW coal fired, China
• Seeboard Powerlink Power PFI – transfer of the London Underground power generation and
distribution to the private sector
• Jorf Lasfar - 1350 MW coal fired part existing, part new project, Morocco
• Project Wave – Purchase by international oil major of a 50% stake in an international IPP
developer
• Lai Bin B - 700 MW coal fired, China
• Loy Yang A - 2000 MW existing brown coal fired plant and associated mine, Australia
• Asia Power, Sapugaskanda - 48 MW diesel power project, Sri Lanka

2.7 Relevant Experience for Coal Fired Power Plant

MM has unrivalled experience in acting as technical advisor to project developers and financiers in the
power sector, having advised on over 150 GW of private generation worldwide. In addition MM has
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extensive experience in the engineering of coal fired power projects. We have provided below details
of a few projects and a list is attached as Appendix C.

Confidential Client – UK

MM is currently acting as the technical advisor/integrator for the multiple contact packages for a 2 x
800MW supercritical coal fired power plant in the UK. Our work involves material handling study and
the development of the concept design report. MM is also involved in the geo-technical study of the
chosen site.

Project Tiger – Bangkok, Thailand

Owners Technical Advisor for a bid to the Ministry of Energy, Thailand for development of an
800MW supercritical coal fired power plant near Bangkok. Our role included development of the
initial concepts for the power plant, coal and ash handling systems, water treatment systems and the
operation and maintenance strategy. Additionally, we were responsible for the development of the
functional specification for the power plant, to be used in the subsequent EPC tendering and
evaluation process, and the estimating the costing of various balance of plant items, including coal and
ash handling systems, the jetty and plant O&M costs.

Paiton Phase 1 (Unit 7&8), Coal Fired Power Plant First


IPP in Indonesia

Mott MacDonald Limited (through its subsidiary Consortium


Services Limited) has been acting as technical advisor to the
financial advisors and lenders (US Exim, JBIC) for the Paiton
– Phase I Private Power Project, 2 x 615 MW coal fired power
plant in East Java, which was the first IPP in Indonesia. Mott
MacDonald was responsible for the full pre-financing
technical due diligence review and report including environmental assessment, project and contract
agreements review, syndication, monitoring of the project during construction on behalf of the lenders
and for the capital markets refinancing technical report. MM is currently monitoring the sixth
operating year of the Paiton power plant on behalf of the Lenders.

Jorf Lasfar Coal Fired Power plant, Morocco

Mott MacDonald Limited has been acting as the Lender’s


Engineer for financing, construction and commissioning and
operation phase of a 1300 MW coal fired project in Morocco
comprising the purchase of two existing units plus the
construction of two new units. The project comprised the
transfer of two existing coal fired generating units, each rated
at 315 MW net output, plus the construction and subsequent
operation of two additional coal fired units, each rated at 311.4 MW net output. The project achieved
financial close on 12 September 1997. MM is currently monitoring the sixth operating year of the Jorf
Lasfar power plant on behalf of the Lenders.

Meizhou Wan Coal Fired Power Station, China

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This Plant consists of 2 x 362 MW coal-fired power generators, with all the support facilities,
developed, built, owned and operated by Fujian Pacific Electric Company Limited. The Project
sponsors are Lippo China Resources Limited. The Asian Development Bank has also purchased a
minority equity investment in the project. Mott MacDonald as the Lenders’ Technical Adviser, was
responsible for the full due diligence review and report, inclusive of environmental assessment, project
and contract agreements, syndication and monitoring of the project during the construction period and
the early phases of commercial operation.

Laibin Coal Fired Power Station, China

MM acted as the lenders engineer for the pre-financial close,


construction phase and the operation phase of the Laibin B 2
x 360 MW power station in China. Mott MacDonald as the
Lenders’ Technical Adviser, was responsible for the full due
diligence review and report, inclusive of environmental
assessment, project and contract agreements, syndication and
monitoring of the project during the construction period and the early phases of commercial operation.

San Jose 120 MW Coal Fired Power Plant, Guatemala

The San Jose coal fired power plant located near the Pacific
Coast of Guatemala is on 120 MW capacity with cooling by
cooling towers from ground water resources. Coal is imported
to a nearby port and transported to the power plant site by road.
We were the lenders technical and environmental advisor for
this project. The lenders included OPIC and Bank of America.
Our scope of services matched closely that proposed for the
Global Alumina project and included pre-financial close due diligence, monitoring of the construction
and plant testing and the monitoring during the early stages of operation.

2.8 Experience in Other Asian Countries

The Asian Continent is a major market for Mott MacDonald with local office representation in
Indonesia, Singapore, Malaysia, Philippines, Thailand, China, Hong Kong, Taiwan, India, Bangladesh,
India and Pakistan. In addition to the Asian project experience mentioned above, we have undertaken
projects in several Asian countries including but not limited to Malaysia, Philippines, Vietnam and
Indonesia. We have provided details of a few projects.

Island Power CCGT, Singapore

This project is for development of a 745 MW CCGT plant in Singapore on Jurong Island by Intergen.
The project includes for onshore gas receiving station and offshore pipeline to interconnect with the
main Indonesian gas supply pipeline to Singapore. Mott MacDonald was responsible for technical and
environmental due diligence and providing technical advice to the primary lenders, a group of twelve
international commercial and governmental banks and capital fund organisations.

Oil to coal repowering, Asia Pacific

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Working on behalf of a confidential client we completed feasibility studies, costing review,


completion of in principal permitting procedures and completion of an Environmental Impact
Assessment for conversion of a 1000 MW oil fired power plant to 800MW coal fired power plant.
This project included marine ecology study, Review of shipping movements within an existing port
and preliminary design of new coal unloading and handling facilities. Currently the project is being
reviewed by government.

800 MW Coal Fired Power Plant development support, Asia Pacific

Currently we are providing development support for an international power development company
delivering technical design and cost inputs to the bid preparation for a proposed new build coal fired
power plant in Asia Pacific. Should this bid be successful commercially we will proceed to providing
full Owner’s engineer services.

Sengkang Phase I, Indonesia, 135 MW, The project covers a


gas field development, transmission pipelines and a 135 MW
CCGT power plant. Provided independent consulting for the
project tender.

MM appointment followed successful completion of a due


diligence review it carried out on behalf of the lenders — a
syndicate of 11 banks (including ANZ, Credit Lyonnais, The
Royal Bank of Scotland, Toronto Dominion Bank, Fuji Bank
and The Long-Term Credit Bank of Japan) led by Union Bank of Switzerland and BZW.

The power plant, located on the island of Sulawesi, was developed by Energy Equity Corporation of
Australia, El Paso Energy International of the USA and PT Trihasra Sarana Jaya Purnama. It
comprises two gas turbines plus a steam turbine and burns natural. Power is exported via a 36 km 150
kV transmission line to the PLN transmission system.

As well as monitoring and reporting on progress during construction and commissioning, Mott
MacDonald’s role involved providing expert opinion on critical technical, financial and
environmental issues to protect the lenders’ interests.

Kuching Power Project, Malaysia

The Kuching project comprises a 2 x 50 MW coal-fired power


station and 132 kV indoor.

Mott MacDonald's role included reviewing the technical


specifications and draft contract, developed by the client. This
was followed by a full design review which had to take into
account the differing Chinese and European approaches to the

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design process. Meetings in China and Malaysia with the contractor and the design institute were
arranged to develop and agree the design parameters and agreements. Inspection of the main equipment
was carried out at the manufacturer's works

2.9 Lender Engineer’s Experience in India

Mott MacDonald has been involved in a range of energy developments and other assignments in India
over a number of years and through these has developed relationships with Indian partners and
understanding of the Indian market.
• Salaya Jamnagar, 1200 MW coal fired power plant, Lender’s Engineer
• Mangalore, 1000 MW coal fired power plant, Lender’s Engineer
• Balagarh, coal fired power plant, Lenders’ Engineer
• North Chennai, coal fired power plant (1) Lenders’ Engineer
• North Chennai, coal fired power plant (2), Lenders’ Engineer
• Vizag, coal fired power plant (2), Lenders’ Engineer
• Rajasthan, coal fired power plant, Lender’s Engineer
• Tamil Nadu, coal fired power plant, Lender’s Engineer
• Dahej LNG Terminal, Lenders’ Engineer
• Dabhol CCGT, Due Diligence for asset transfer.

2.10 Experience in Indian Electricity Market

Mott Mac Donald has been involved in numerous assignments in Hydro generation and transmission
distribution of electricity. We provide details of relevant experience in Appendix D.

2.11 Other Thermal Power Generation Experience in India

Mott MacDonald has been involved in a range of energy developments and other assignments in India
over a number of years initially from UK operations and since 2002 through Indian operations.
Examples of projects in which we have had a key role include:

• Salaya Power Station, Gujarat


Mott MacDonald appointed by the Lender’s to assist them in full pre-financial close review of
technical and contractual issues. Mott MacDonald’s continues as advisor, after financial closure is
achieved, to Lender during construction and commissioning stage.

• Mangalore Power Station, Karnataka


Mott MacDonald appointed by the Lender’s to assist them in full pre-financial close review of
technical and contractual issues. Mott MacDonald’s role, as LE, continues up to commissioning
of the project.

• Coal fired Coastal Power Station, Tamil Nadu

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Mott MacDonald advised the developer on the project location and studied its feasibility of the
project. The project shall be using imported coal.

• Raigarh Coal fired Power Station, Chattisgarh


Mott MacDonald advised the developer on the project location and studied its feasibility.

• Luhri Hydro Power Station, Himachal Pradesh


Mott MacDonald was responsible for feasibility study and detailed project report. Mott
MacDonald is currently preparing the tender documents for the project.

• Vizag Power Station, Andhra Pradesh


Mott MacDonald appointed by the Lender’s to assist them in full pre-financial close review of
technical and contractual issues.

• Balagarh IPP, West Bengal


Mott MacDonald appointed by the Lender’s to assist them in full pre-financial close review of
technical and contractual issues for the 500 MW coal fired power plant.

• Neyveli Power Station, Tamil Nadu


Mott MacDonald was responsible for feasibility study, derivation of techno-economic parameters,
financial analysis, negotiations with authorities and contractors and conducting an environmental
impact assessment.

• IPP, Maharashtra
Mott MacDonald was appointed by the owner to review all consents and licenses.

• Anpara C, Uttar Pradesh


Mott MacDonald was appointed by Hyundai Heavy Industries Limited to study the feasibility of
the project.

• Coal fired Power Station, Tamil Nadu


Mott MacDonald was appointed by the Lender’s to assist them in full pre-financial close review
of technical and contractual issues for the proposed 1000 MW coal fired power plant.

• Calcutta Electricity Supply Company (CESC), West Bengal


Mott MacDonald was appointed by CESC to develop least cost generation plan and justify
development of Balagargh coal fired IPP.

• Least Cost Power Development and Investment Plan, Uttar Pradesh


Mott MacDonald was appointed to review the existing generation, transmission and distribution
assets, preparation of power demand forecasts, preparation of medium and long term generation
and transmission plans.

• Generation Study, Government of India


Mott MacDonald was appointed to analyse the future potential of coal fired generation in India.

• Hirakud Hydro Electric Scheme, Orissa


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Mott MacDonald was appointed by Orissa State Electricity Board. The role involved performance
and non destructive testing of load bearing parts, pre-qualification of tenders, preparation of
tender and tender documents, administration of contracts, approval of design, QA Audit, witness
inspections, supervise construction and monitoring.

• Distribution Efficiency Improvement, Uttar Pradesh


As a part of the Master Planning Study for the State of Uttar Pradesh, work was undertaken in
anticipation of the privatisation of the distribution sector. Proposals have been made by other
Consultants to split the distribution assets into a number of companies and the analysis considered
not only long term distribution investment needs, but also improvements in system planning and
operation, maintenance management and technical design standards. The analysis also identified
the extent to which there has been a historic imbalance between investment in generation
compared with transmission and distribution, which has particularly been under-funded.

2.12 Relevant Environmental Experience

Mott MacDonald integrates a full service environmental capability within its engineering teams, and
this plays a role in the majority of our Lenders’ Independent Engineer assignments, as well as
undertaking a wide range of environmental assessments, advising on environmental management, and
environmental due diligence. We provide details of relevant experience in Appendix E.

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3 Scope of Work and Methodology

3.1 Scope of Work

This Section presents our approach and methodology for undertaking the assignment,
including a list of deliverables and an outline schedule for completion of the work.

ADB has provided a detailed and comprehensive Scope of Work for the various phases of
the Project. Scope of Work shall be as provided by the Lenders (enclosed as Appendix ‘F’ to
this Proposal) and with the following clarifications/comments.
Phase I – Project Due Diligence before financial closure
Plant design: Review of design drawings and technical specifications – These are presumed
to be the ones which form part of the EPC Contract documents.

Review of major system design elements completed at the time of due diligence based on
preliminary design data will be done.

The L.E’s interaction with the independent insurance adviser will be limited to providing
certain technical inputs and operational data of the equipment envisaged in the Power Plant.

Review of transmission interconnection facilities will be subject to technical DPR or other


information provided by the Power Grid.

Phase II – Construction monitoring and certification and Performance test

Monitoring tasks include (i) Reviewing critical factory test and inspections for major
equipment and results of factory testing (ii) Evaluating the quality of completed works and
quality control reports (iii) Review that the construction work is performed in accordance
with the approved design.
The foregoing review will be carried out to the extent of bringing out any technical risks to
the Project completion and commercial operation.

We have considered the review of the performance testing of Complete Plant upon
completion. We have presently not included the Site performance testing of the major
equipment components as this would require considerable involvement which we are unable
to assess in the absence of any precise scope in the TOR.

Phase III – Operational Review (Optional)

Review of O&M manual:

Review will consist of carrying out of an overview of the O&M manual. Detailed discipline
wise, system wise and equipment wise review etc is presently not considered but can be
offered on knowing the extent of review required.

Review of O&M Monthly report issued by the Plant Operator will be desktop study (if it is
required to be carried out by LE on monthly basis)

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3.1.1 Approach

In all aspects of our work, our approach is to focus attention on the technical issues which is
most likely to have a significant commercial impact on the lenders and to ensure these are
communicated in a way that is accessible to the non-specialist. Our reporting will
communicate issues clearly, providing to the lenders a useful tool to evaluate potential risks.

We will be proactive and timely in communicating important issues to the lenders as they
arise and will also be available to analyse, interpret and explain matters that the lenders wish
to examine. We are aware of the need to be responsive to the demanding time schedules
often involved in project negotiation. Both prior to and following issue of our draft report
we will interact with the Lenders regularly and communicate issues as they arise.

We will adjust the style and detail of our service in each of the phases as appropriate.

We shall like to mention that as Lender’s Engineer we shall have no authority to direct the
Project Company or the Contractors or any staff working on the project. Thus our role as
LE shall be limited to review and report to the Lenders any issues which may have impact
on the project. So where ever the scope of work requires LE to “ensure” we have, in our
offer, taken a deviation and considered only “review and advice”.

The methodology presented below is geared to reflect the Scope of Work as far as possible

3.2 Phase I: Project Due Diligence

3.2.1 Data Collection

(i) At Commencement

From experience gained from previous assignments of this type, we find that early
discussions with the lenders are critical for the rapid mobilisation of the LE team. Therefore
we will attend the kick-off meeting with the lenders and other project participants
immediately following appointment. The key objectives of this meeting will be:
• finalise the scope of services to be provided
• to establish liaison procedures and lines of contact with the Lenders, legal counsel and
any financial adviser
• to understand any particular concerns that the Lenders may have so that special attention
can be given to the resolution of these issues
• to gain a more detailed understanding of the latest status of the Project development
• to discuss the format and content of our report, and delivery timescales.
• to discuss preliminary data and information required from the lenders – all the input data
for the service shall be supplied by lenders / Project Company ( CAPL)

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(ii) Site Inspection

The LE will conduct a site visit to meet and communicate with the lenders, lenders’ financial and legal
advisors, and appropriate officials, as necessary, to obtain information in support of its review. The
LE will visit the Project site to assess the overall suitability of the site to accommodate the Project
being considered. In particular, the following aspects will be reviewed: site topography and site plan;
transportation systems, access roads and other similar issues; interconnection to off-site facilities and
the ability of these facilities to accommodate Project needs.

During the site visit, discussions will be held with the Project Company (CAPL), ascertain the supply
of adequate workforce and skills; the capability and experience of the construction contractors (in
particular of each member of the EPC Consortium); organisational structure of the EPC Consortium
and ability to deliver a power plant meeting Owner’s requirements. We would also discuss further the
Project Company’s ability to operate the plant and adequacy of the Technical Support Agreement, if
any, for the overall operation and maintenance of the plant.

Our proposal is that the Project Manager, an environmental specialist and two power plant engineers
(mechanical or electrical) undertake the site visit and will be on site for three days.

3.2.2 Evaluate Project

We will prepare a comprehensive checklist of documents required for review in relation to the Project
and forward this to the Company immediately following our appointment. It is essential that this
information is provided quickly by the Company for the Phase 1 due diligence time frame to be met.

We have assumed that all documentation that we require can be sourced through the Company.

3.2.3 Design Concept Review

Major equipment components and systems will be reviewed by mechanical, electrical, civil/structural,
and process engineers with regard to suitability of the Project site; location of the Project site, the
proposed transmission line and other electrical transmission interconnections; engineering
arrangement; technology selected; construction plans and operation and maintenance plans.

This task will include the following:


• Review of the technical specification of the Project in light of with prudent industry
standards, including pertinent technical issues.
• Identify any major equipment component or system design and any other design
information available during due diligence that does not appear to meet design,
performance or operating requirements or fails to adhere to prudent industry standards.
• The interface with off-site transmission lines, water lines, fuel lines and other items of a
similar nature will be evaluated.
• Review and assess the reasonableness of the Project schedule and critical path including
analysis of all third party deadlines.
• Comment on the likelihood of achieving major Project milestones in accordance with the
EPC Contract and pro-forma.

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• Determine whether adequate provisions have been made for design, equipment
procurement, fabrication, shipment, installation, start-up and testing.
• Identify potential causes of delay and their potential impacts on the schedule and
potentials for cost overruns.
• Examine the EPC Contractor’s proposals forming part of the EPC Contract to confirm
that it is clear what is to be provided and to what technical codes and standards.
• High level review of the plant design to compare with normal industry practice and .
• Review the proposed site layout and, through visiting the site, confirm that the plans are
reasonable.
• Review the proposed construction arrangements, including the role of the Owner’s
Engineer, to gain confidence in construction quality.
• Review the proposed performance testing arrangements to confirm they determine plant
performance appropriately to the duty it will undertake, and that adequate demonstration
or other means are in place to confirm a reliable plant will be provided.
• Review the proposed warranty arrangements versus industry norms.

3.2.4 Review Project Contracts

(i) Project Contracts

We will review the contracts defining the project to confirm that they provide a clear definition of the
risk allocated to the owner and that this risk is capable of being managed adequately. Our focus will
be on the correct representation of technical capabilities and issues in the commercial deal, and in the
reasonableness of the obligations placed on the parties.

Starting with the Power Purchase Agreement, we will:


• Gain an understanding of the overall commercial drivers upon the Project.
• Assess the Project’s obligations under the PPA and evaluate the Project’s technical
adequacy for satisfying such obligations, including specifically any obligations in case of
unscheduled outage.
• Evaluate the adequacy of possible LDs and Bonus and their caps.

Review of EPC Contract will include the following activities:


• To review and comment on the scope of supply and technical provision in the EPC
Contract including, qualifications of the Contractor, qualification and selection of
primary subcontractors, the ability of the construction contractors and Owner to meet
design, schedule and all other contractual requirements, provisions for all performance
testing and acceptance criteria, performance guarantees and warranties, change order
procedures, review and approval procedures for periodic drawdown requests, lay down
and scheduling provisions, Project interconnection facilities and interconnection
requirements, retention amounts, performance bonds, liquidated damages, buy down or
buy out provisions, liquidated damage caps, and total liability provided by the EPC
Contractor, compliance of the EPC Contractor’s guarantees with permits requirements
and contractual obligations.

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• Assess technical risks including review of budgetary provisions for delays and cost
overruns not covered by insurance and contractor penalties suggest technical conditions
that lenders should request in order to mitigate technical risks and issues.
• Review the track records of the Boiler and turbine manufacturer
• To comment on the conformity of the proposed EPC Contract relative to prudent industry
standards and specifically with regard to the conditions for each milestone payment
(confirming measurability and adequacy of milestones as a measure of progress).
• To comment on comprehensiveness and consistency of the EPC Contract vis-à-vis the
Project Company’s obligations under the other Project agreements.
• To review compensation terms and methods of payment relative to industry standards;
also comment on requirements for performance bonds and the level of liquidated
damages (“LDs”).
• To Review and comment on EPC Contract’s performance test requirements to confirm
that the Project will be technically able, as designed, to meet all performance tests
required under the EPC Contract, performance-testing schedule is appropriate and the
Project can meet the testing milestones (if available), performance tests are adequate to
reasonably assure pro forma assumptions will be attained, performance tests address
coordinated completion of the power plant, transmission line, and related
interconnections, assess remedies available to Owner if plant is unable to achieve
performance levels, EPC Contractors’ warranties and suitability of these provisions.
• To Review whether the Plant and equipment ordered will enable the Project to be in
compliance with the environment laws of India, ADB’s Environmental (including
relevant plant performance standards) involuntarily resettlement and indigenous people’s
policies as well a s environmental and social standards required by other foreign lenders.
• To review the EIA
• Review of drawdown schedule to check whether each monthly/quarterly cash drawdown
is consistent with the Project schedule and requirements under EPC or various contracts.

Finally, we will review the overall adequacy and consistency of the Project Documentation, through
the following activities:

• To review all available Project agreements for the purpose of identifying missing,
inconsistent, or unresolved technical issues. The LE will review and comment on the
consistency of the various contract provisions among the Project contracts; including an
assessment of the Project Company’s obligations under the PPA with the EPC
Contractor’s obligations under the Construction Contracts, capability of the Project as
designed to meet the Project’s operating, contractual and licensing requirements,
conformance of the cost and performance input to the Project pro forma with the
anticipated performance guarantees to be provided by the various contracts, EPC
Contractors’ and Owner’s insurance, in conjunction with Independent Insurance
Consultant’s Report.
• To review the schedule of the Project, considering the compatibility among milestones of
the Construction Contracts, consents and approvals, PPA and other contracts.

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(ii) Guarantees and LD’s

In relation to guarantees and LD’s, we will comment on the level of performance guarantees and
liquidated damages for delays and performance deficiencies available to the Project, and sufficiency to
pay costs incurred by Project because of delays or reduced performance.

(iii) Financial model technical review

We would expect to receive an electronic version of the financial model to review. We would evaluate
this checking not only the technical inputs but also their correct application within the model.
However, we will not undertake a check of financing aspects nor will we audit the model.

Our review will include validating technical assumptions in the financial model:
• Adequacy of output and capacity assumptions.
• Plant Load factor assumptions versus commitments made in the relevant agreement and
to confirm reasonableness from the perspective of plant capability.
• Fuel consumption assumptions taking into account all of the above.
• Performance degradation over time and its recovery at overhauls.
• Reasonableness of labour and maintenance cost assumptions, including treatment of
major overhauls.
• Correctness of capital cost representation.
• Adequacy of working capital requirements taking into account payment terms under the
contracts.

3.2.5 Coal Supply and Transportation Arrangements

We will review the fuel supply and transportation agreements and our analysis shall include
the following:

• Review the long term coal availability from the coal mines identified for the project.
It shall involve study of coal mine reserve data and mine development plan made
available to LE including discussions with coal suppliers.
• Review the Coal supply agreements and T&C of coal supply, reasonableness of
termination provisions, commercial implications of force majeure conditions and
the consistency with the Project contract/documents.
• We shall also review the quality of coal in relation to the provisions in the PPA,
project contracts and Environment requirements.
• Identify any fuel supply infrastructure and/or transportation constraints of any party
involved in fuel supply and project based on the information available.
• Review and comment on milestones for satisfactory progress on construction of any
fuel supply infrastructure required for delivery of fuel to the project, identifying
incompatibilities of any required infrastructure with requirements of project.
• Assess the adequacy of fuel measurement facilities to satisfy requirement of fuel
related agreements.
• Review and comment on fuel sampling procedures.
• Check that all identified and listed fuel related permits which the project or fuel
related third parties must obtain in order for the project to receive delivery of fuel
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and operate are obtained; discuss any issues associated with any of these permits
that may affect the project’s construction schedule or operation.

3.2.6 Water supply arrangements

LE will review and comment on the water supply arrangements for the Project including the
provisions for adequate water supply to the project throughout the year and availability of
reliable water supply source of suitable quality for the full term of the Lender’s loan, also
arrangement of construction water .

3.2.7 Port Service Agreement

We shall review the PSA and comment on their appropriateness given the technologies. Assess the
reasonableness of the termination provisions and alternative arrangements. Assess any other
preconditions required and to be taken care to deliver fuel to the Project. Review force majeure
conditions and comment on their consistency with other Project contracts / documents.

3.2.8 Power Purchase Agreement

We shall review the PPA (One PPA signed by CAPL with the group of Power procurers) in
conjunction with the project design. In our review, we shall focus on the project’s ability to meet its
obligations under the PPA.

3.2.9 Project Management Review

LE will review and comment on the proposed project implementation by the Project Company
including qualifications of the Project management to monitor the construction progress.

3.2.10 Operation and maintenance (O&M) Review

LE will review and comment on the proposed arrangements for operation of the Plant,
mainly the following:
• Operation and maintenance structure of the Project Company, Long term operational
Planning
• Adequacy of the O&M Costs
• Staffing arrangements and operator training programmes
• Spare parts requirements & maintenance programmes

3.2.11 Review of Permits and Licenses

We will review the permitting schedule and all available permits or permit applications.

3.2.12 Technical Due Diligence Report and Schedule

We propose the following schedule:

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• within 2 Weeks from receipt of initial payments - submission of Information


Request and mobilisation Kick off meeting and receipt of complete set of identified
project documents, Site visit and meetings with key players
• 6 weeks from start of LE service: Issue of “Fatal Flaw” Report
• 8 week from start of LE service: Issue of Draft Due Diligence Report
• 10 weeks from start of LE service-: Receipt of Comments of Lenders/ Project
Company
• 14 weeks from start of LE services: Issue of Final Draft Due Diligence Report after
incorporating a single set of Client comments.

3.3 Phase II: Monitoring and certification of the Construction and Performance
Test until Project Completion

3.3.1 Overview

The second phase of our work would be aimed at monitoring the implementation of the project to
report on the overall project progress and cost and that it is being undertaken in a fashion which will
not impair the performance of the completed plant.

3.3.2 Construction Commencement

We will participate in a construction monitoring kick-off meeting with the Project participants to
explain the purpose and scope of the LE’s services and to establish working arrangements including:
• Lines of communication
• Documentation requirements
• Reporting, certification and payment procedures.

We will integrate the kick-off meeting with our first construction progress monitoring visit to site and
thus minimise our expenses.

3.3.3 Quarterly Progress Review

Our construction monitoring services will include review, comment and confirmation of
construction progress and conformance with preliminary design and specifically:
• Quarterly Project review site visit including meeting at the Project site to assess
construction progress and review of Progress reports prepared by Sponsor’s /EPC
Contractor’s Engineer.
• Identify and report to the Lenders any changes or events that could lead to deviations in
the Project schedule and costs from the agreed targets due to unforeseen events.
• Observe and verify that the construction is proceeding according to schedule and prudent
industry practices, review and comment on Project Company management’s organization
and control of work in progress.
• Review drawdown requests and supporting documentation, Issue of Certification of
disbursements as per loan agreements.
• Observe that the construction progress matches the cash disbursement schedule

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• Report on the measures taken by the Contractors demonstrating the adherence to the
agreed upon construction environmental, health and social and safety standards
• Observe and report that operation arrangement and training is under way
• Towards the end of the Project construction and prior to project completion verification,
review the final “Punch” lists

3.3.4 Quarterly Review Report

We confirm that we will prepare quarterly reports for the lenders, based on the quarterly
site review visits, findings of the site visits and monthly construction progress reports
provided by the Sponsor and the Contractors.

3.3.5 Performance Tests

(i) Test Procedures

With regard to the performance Guarantee Performance Test procedures, LE will:


• Review the testing methodology and schedule prepared by the Contractors in accordance
with applicable test codes and standards, procedures specified in EPC Contract, PPA and
related documents of the complete Plant.
• Confirm the test methodology developed by the Contractor is appropriate to accurately
demonstrate plant performance and is compliant with the Construction Contract.
• Develop a plan to monitor performance testing.
It is assumed that same tests procedure shall be adopted for all the five generating units.

(ii) Performance Tests


• Verify Performance test results and furnish special overall Lenders performance test
Report.
• Verify calculations correcting plant performance to guarantee conditions.

(iii) Project construction Completion verification

LE will verify the following:


• The Project has been completed in accordance with the Project Contracts.
• facility design versus actual installation
• the adequacy of facility interconnection for fuel, power, water and other requirements.
• Compliance with prescribed health, safety and social standards.
• Required governmental permits and licenses for construction and operation are in place.

Project Construction Completion Certificate will be issued on fulfillment of the above mentioned
conditions by the Project Company.

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3.4 Phase III: Operational Review (Optional services)

3.4.1 Operations Monitoring and Budget Review

A team of two staff shall visit the power plant six months after Commercial Operation date and on a
yearly basis thereafter. The team shall include an Power Plant Engineer and an Environment Expert.
The team shall assess the Plant’s environmental and health safety performance against prescribed
standards as described in project documentation. It shall review the, O&M budget, station outage
records, report on recurring problems with proposed corrective actions to improve plant availability
and operation etc and submit report to Client (Lenders)

The team shall also assist the Lenders in reviewing the O&M budget and actual expenses up to the
visit of its team. The findings shall be reported to the Lenders.

3.5 Project Schedule

We understand that project’s major milestones are scheduled as follows:

• Major Contracts - Under award

• Expected Financial Closure - January 2009

• Project Commissioning - 2012 to 2013

• LE’s engagement up to - 2014

Our proposal is based on above project schedule.

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4 The Team

4.1 Introducing the Team

We propose a team for this assignment that combines experience of working IPPs, detailed knowledge
of thermal power projects, and experience of working as LE. Our team covers all the requirements
necessary to satisfy the project as indicated in the information provided in the Terms of Reference. .
Details of our proposed team are given below:

Our proposed team leaders are as follows:


• Project Director: Sadiq Shafiq
• Power Plant Expert: N K Balasubramanian
• Project Manager: Sandeep Suri
• Boiler Expert: Alf Thomas (Mott Mac
Donald UK Office)
• Turbine Expert: Roderick Edwards
(Mott Mac Donald UK Office)

• Desalination Plant expert Graham Bateman (Mott Mac Donald UK


Office)
• Environmental Scientist David Boyland (Mott Mac Donald UK
Office)
• Electrical Engineer: Sandeep Suri
• Mechanical Engineer: A K Das
• Civil Engineer: H N Singh
• Commercial and Contracts: Amit Mukherjee
• Coal Expert Dargo Associates, UK
A brief description of each team member is given below; full CVs are available on request.

4.2 The Team’s Experience

All members of our team have experience of working in an advisory capacity in the private sector
generation market, and all are familiar with the proposed technology.

Sadiq Shafiq is a mechanical engineer with long experience in the development of power projects.
Currently he is Project Director for two thermal power projects of 1050 MW and 1200 MW capacity
where MM is acting as Lender Engineer. He is also heading the team which is providing LE services
to GE Financial Services for two thermal power projects. In addition to that he is Project Director for
775 MW hydro power plant for which is being designed by MM. Sadiq has been involved in
development studies, due diligence of number of thermal power projects which included 2x500 MW
for Malaxmi Ltd., 2x 500 MW Anpara ‘C’ for Hyundai Heavy Industries, 355 MW CCGT Kondapalli
Power Project of LANCO.

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N K Balasubramanian has wide and rich experience in Indian power sector. He has worked with
equipment manufacturer, project developer as well with consulting organisation. It gave him insight of
requirements of various players involved in the power project development. He has been involved in
design of boilers of large thermal power projects while working with BHEL. In NTPC he rose to
become Director and was involved in development of large thermal power projects. As President –
Power RPG he was involved in all the issues related with the development of large thermal power
projects as IPP. He is also providing Technical Leadership to Lender Engineer team for 1050 MW
power project being funded by PFC and another coal fired project of 1200 MW where SBI is funding
the project. In addition to that, he is also involved in preparation of detailed project report for a 600
MW coal fired power project.

Alf Thomas is a boiler specialist with over thirty years post graduate experience in the power
industry and has worked extensively in the design and engineering of conventional oil, gas and coal
fired boilers and heat recovery steam generators. He graduated with a degree in Mechanical
Engineering from Wolverhampton Polytechnic. Recent experience includes technical manager for the
fast track evaluation of turnkey tenders and subsequent contract negotiations for a super-critical
power plant in Australia comprising 2 x 420 MWe , boiler specialist advising the owner of two
supercritical coal fired reheat boilers on the possible causes of furnace tube failures and remedial
measures, project manager for the evaluation and contract negotiations then project manager for the
management, design review, works inspections and supervision of construction and commissioning for
a coal fired combined heat and power plant in Poland.

Roderick Edwards is a steam turbine engineer with experience in thermal power plant
thermodynamic analysis, mechanical design and repair and maintenance. In particular he has in depth
knowledge and experience of the repair and maintenance of a major OEM’s legacy fleet. Previously he
has worked in South Africa as lead engineer responsible for the analysis and repair of the majority of
major turbine shaft line components following the catastrophic failure of a 660MW coal fired unit.
Another speciality is the thermodynamic analysis and cycle optimisation of conventional and
combined cycle plant for power generation, industrial cogeneration and power and water plants
located worldwide. He has a good working knowledge of the leading modelling packages including
GateCycle, GTPro, and GTMaster. He is an Associate Member of the IMechE. He has also specialised
in repair, upgrade and maintenance of a wide variety of steam turbo machinery. While working with
Alstom, he provided technical expertise for power stations of varying age and capacity both in the UK
and around the world.

Graham Bateman is a process specialist with considerable experience in membrane processes for
water and wastewater treatment. Process design and project management of water treatment systems
including desalination. He is an M.S.c in water pollution control technology. He is member of the
Royal Society of Chemistry, Member of both the European and International desalination association
and winner of numerous awards relating to his field of work.He has worked on different assignments
relating to desalination technology, demineralisation in the UK, MEA, and North Africa.

David Boyland An environmental scientist with UK and international experience of undertaking


environmental orientated projects in a range of sectors including energy generation and distribution,
oil and gas, and transportation. Has project managed a range of environmental projects demonstrating
exceptional team management and the ability to distinguish the key issues and to communicate them
with clarity. Has an in-depth knowledge on the typical requirements of both national environmental
regulatory agencies and major lending agencies through his experience in both leading EIA teams and
contributing to EIA studies on numerous projects and due diligence reviews. His main project
experience and expertise includes air quality assessment with general experience in environmental due
diligence and environmental impact assessment. Projects have been carried out in Europe, the Middle
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East, the Caribbean, Central Asia, Eastern Europe and South East Asia on behalf of multilateral
agencies, national governments, developers, regulatory agencies and financial organisations.

Sandeep Suri has over 35 years post qualification experience in the power sector. He has worked
with BHEL and undertook design of electrical equipments of thermal power projects. He has vast
experience acting as Owner as well Lender’s Engineer for large thermal power projects. Currently he
is involved in LE services for two projects for GE Energy Financial Services

Ashis Kumar Das, a mechanical engineer, has wide and rich experience in engineering gas turbine
and coal fired power projects. He has expertise on feasibility studies, costing, and engineering of
power projects. He has extensive experience of 18 years with NTPC on major thermal power projects.
He has been involved in feasibility studies, Detailed Project Reports, Cost Estimation and Financial
Analysis, Bid Evaluation, Detailed Engineering of Mechanical Packages and Electrical Packages of
Coal and Gas based Power Projects.

He has been involved with Engineering of Combined Cycle Power Projects for Faridabad (432 MW),
Kawas Stage-II (2X650 MW),Gandhar, Stage-II (2X650 MW), Kayamkulam CCPP (3 X 650 MW),
Coal based Thermal Power Projects for Ramagundam STPP Stage-III (1X500 MW), Rihand STPP
Stage-II (2X500 MW), Kahalgaon STPP-III (3X500 MW) and DVC Koderma TPP (2 X 500 MW),
and many projects.

Ashis is involved in a 2x600 MW coal fired power project based on imported coal on which MM is
appointed as Lender’s Engineer.

H N Singh has over 24 years of rich experience in various fields of thermal power and hydro electric
projects including planning, investigation & studies, pre- award and post award engineering & design,
tender document preparation, tender evaluation, contractor assessment, tender negotiation & award,
post award design & drawing review, contract closing, review of DPR, field engineering and project
management. He gained this experience working with NTPC on large projects.

Amit Mukherjee Amit is a Mechanical Engineer and Chartered Financial Analyst. Amit is an
experienced financial analyst and worked on large projects in India as well abroad too. He has
undertaken financial analysis of a 750 MW CCGT and 600 MW project at UK, 1000 MW CCGT
project at Saudi Arabia and many others. He is recently advising a financial institution on the PPA,
Contracts and financial issues of a 1000 MW coal fired thermal power project in India.

Kamath is an engineer and a Chartered Financial Analyst with 21 years of experience. He has good
experience reviewing Contracts, Financial Models while acting as a Lender Engineer. He has recently
undertto similar exercise on 1000 MW thermal power project for PFC and was also involved in
contracts due diligence of several thermal power projects for Banks and Equity Fund Managers.
Kamath was also the Project Manager when MM was appointed by ICICI as Lender Engineer for
Revival of Dahej’s LNG Facility.

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5 Commercial

5.1 Phase I: Project Due Diligence

We will provide the due diligence services as set out in the Terms of Reference and Section 3 of
technical proposal for a fixed fee of INR 34,50,000.00 (Indian Rupees Thirty Four lakhs and Fifty
Thousands Only) plus UK £ 55,000.00 (UK Pound Fifty Five thousand Only).

This is on the basis of:


• Delivery of a Preliminary Report
• Delivery of a Draft Due Diligence Report
• Receipt of one set comments (clarifications) to our Draft Report
• Delivery of a Final Draft Due Diligence Report for financial close
• Documents being made available in the English language in a close to final form at the
commencement of the assignment and not being subject to multiple revisions during the
review process.
• A team of 5 engineers visit to site. The team shall include two engineers from our UK office
• Two visits to Mumbai for discussion with Project Company
• Reasonable ad hoc support to the Lenders is included from our “office based” staff. Any
additional work resulting from material issues identified in our review and any (overseas)
meetings required, will be charged on a rates basis, plus expenses plus taxes.
• The fee excludes expenses on travel ( air fare, boarding and lodging, local travel expenses)
• The Lumpsum Fees for the Due diligence services is up to the issue of the Final draft Due
diligence Report and is based on the delivery of the Report within 2008.

5.2 Phase II: Monitoring and certification of the Construction and Performance
Test until Project Completion

5.2.1 Construction Periodic Review

Our construction monitoring service fee is as given below:

Year→ 2009 2010 2011 2012 2013

Monitoring Fee
per visit ( every
quarter)

INR 4,40,000.00 5,30,000.00 6,00,000.00 6,90,000.00 8,00,000.00

UK£ (Only in 1 5145.00 5400.00 5675.00 5955.00 6250.00

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Visit)

• Assumed financial closure in January 2009


• Total Four (4) quarterly project site review visits annually each followed by a Report
• In one of the above four visits in each year the MM team shall also include one engineer
from U.K. All other visits and monthly review to be undertaken by our staff based in India.
• Travelling expenses including air fare, lodging and boarding, local travel expenses are not
included in above fee and shall be additional, payable by client at actual.
• Reasonable ad hoc support as necessary.
• Commissioning of units between 2012 and 2013.
• Monitoring of Punch List will carried out in the above visits.
We have assumed that this phase continues until the commencement of complete plant performance
tests. We reserve the right to review it in line with inflation after this time. Should additional services
be required we would provide them on a time charge basis, plus expenses plus taxes.

5.2.2 Post Completion Status Report

Upon completion of the project construction and testing, we will issue a Post Completion Status
Report for an estimated fee of INR 11, 50,000.00 (Rupees Eleven Lakhs fifty thousand Only). It is
assumed that all the issues including liquidation of “Punch List Items” have been achieved by 2013 for
LE to issue “Project Completion Report.

5.2.3 Workshop Inspections (Optional)

Our man day rates for witnessing the major equipment testing will be INR 13,750.00 (Rupees Thirteen
Thousand, seven Hundred and fifty only) per man day for our staff based in India. This is year 2009
rate and is subject to revision from January of every year. Expenses shall be additional.

5.2.4 Performance Testing

We will provide test phase services as follows:


• Review of test plans/procedures: INR 4, 35,000.00 (INR Four lakhs, thirty five thousand
only) It is based on a single-in-office review. This activity is assumed to be taken up in 2012.
• Attendance at plant performance tests including part of the reliability test (assumed
undertaken sequentially with the performance tests) and reviewing/reporting the results:
• Travelling expenses including air fare, lodging and boarding, local travel expenses are not
included in above fee and shall be additional, payable by client at actual.

Units 1& 2 Units 3,4&5


Commissioning Period 2012 2013

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Performance Monitoring Fee 12,50,000.00 15,00,000.00


(INR) per attendance i.e each
Unit

Our estimate is based on 15 days period for performance testing for each unit to be attended by
our three engineers from Indian office.

Any repeat testing should tests be failed or interrupted will be charged on a time charge plus expenses
plus taxes basis. These fee amounts are valid for performance test being undertaken in the period
specified above. We reserve the right to review after this time.

Should additional services be required we would be pleased to provide them on a rates basis, plus
expenses plus taxes.

5.3 Phase III- Operation and Maintenance Period (Optional services)

Our fee for O&M services as per the methodology shall be based on:
• One visit of two staff team to power plant six months after Commission of each generating
unit
• Commissioning starting in 2012 and all units getting commissioned by 2013
• Services during this phase being undertaken by our staff based in India
• Travelling expenses including air fare, lodging and boarding, local travel expenses are not
included in above fee and shall be additional, payable by client at actual.

Units 1,2 &3 Units 4&5


O&M Service Period 2013 2014
Fee in INR (each Unit) 5,00,000.00 5,75,000.00

Further, desktop review of the O&M Monthly report issued by the Plant Operator will be
carried out at the following Fees:
Units 1,2 &3 Units 4&5
O&M Service Period 2013 2014
Monthly Fee in INR 1,70,000.00 2,00,000.00

These fee amounts are valid for services being undertaken in the period specified above. We reserve
the right to review after this time.

Should additional services be required we would be pleased to provide them on a rates basis, plus
expenses plus taxes.

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5.4 Expenses

All the expenses incurred on the travel of our engineers outside their home office shall be charged at
actual. The expenses include local travel, air travel, lodging, boarding, etc.

5.5 Taxes and Duties

5.5.1 Service Tax

Client shall pay service tax to the LE on the Consultancy fee at a rate prevailing at the time of
invoicing and as per Government of India’s prevailing regulations on service tax. The present rate of
service tax is 12.36%.

All other taxes are included in our fee. However, any additional tax, if levied in future, shall be passed
on to the Client.

5.5.2 Fringe Benefit Tax

Expenses reimbursements may attract Fringe Benefit Tax (FBT) and if so, FBT shall be passed on to
client.

5.6 Withholding Tax

The fee in UK Pound is net of withholding tax. The client shall pay withholding tax, if applicable.

5.7 Terms of Payment

We propose following terms of payments:

5.7.1 Phase I: Project Due Diligence


• Initial payment upon appointment of Lender’s Engineer 30%
• Payment upon submission of ‘Fatal Flaw’ Report 20%
• Payment upon submission of Draft Due Diligence Report 40%
• Payment upon Submission of Final Due Diligence Report 10%

5.7.2 Phase II: Monitoring and certification of the Construction and


Performance Test until Project Completion
a) Advance on financial closure of the project 10% of total
construction monitoring fee (to be adjustable @10% from each subsequent invoices).
b) Four Monthly Review
• Payment upon Submission of site visit report 100% of the visit fee

c) Workshop Inspections (Optional Item)


• 100% Payment for each factory inspection, to be paid based on the invoice raised.
d) Review of performance test plans/procedures: 100% on submission

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e) Initial payment on NTP for performance testing 20% of the performance


monitoring fees

f) On submission of the Performance test Report 80% of the performance


monitoring fees

5.7.3 Phase III: Operation and Maintenance Period Service

a) Advance on the achievement of unit commissioning 10% of total


fee for this phase (to be adjusted @10% from each subsequent invoices).

b) On submission of O&M report 100% of the


visit fee

5.7.4 Payment

Payment to our invoice shall be made within thirty (30) days

5.8 Validity

This offer is valid for 30 days from date of issue.

5.9 Terms of Contract

We have provided our Standard Conditions of Contract (Appendix G) for your consideration.
However we would be pleased to consider your Standard Conditions. We shall also like to discuss
with you the contracting arrangement for involvement of staff from our UK offices.

5.10 Liability

Our liability will be limited to 10% of the total fee value or INR 2, 50,000.00 (Rupees Two Lakhs and
Fifty Thousands Only) for this assignment, whichever is low.

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Appendix A Mott MacDonald’s Experience with ADB


Mott MacDonald’s Experience with ADB

Project Client Completion Description

Completion Year: 2008


Sector Wide Approaches Asian Development Bank 2008 Provide technical assistance by
Programme: Sustainable assessing all significant issues relating
Education Development, to the education sector. Outline
Lao recommendations for sustainable
education sector development.
Advisory/Oversight/Peer Review
Cost: £0.25m

Education Sector Wide Asian Development Bank 2008 Provide technical assistance by
Approach, Lao assessing all significant issues relating
to the education sector. Outline
recommendations for sustainable
education sector development.
Advisory/Oversight/Peer Review
Cost: £0.25m

Completion Year: 2007


Songhua Flood Management Songliao Water Resources 2007 The Songhua River basin covers an
Study, Changchun, Jilin, Commission area of 556 800 km3 and serves a
China population of 53.5 million. The region
experienced severe flooding in 1998.
The project aims to develop a flood
management system for the River.
The role involves leading the team
providing a comprehensive flood
information management support
system based on GIS; developing an
advanced flood forecasting system,
together with a hydrodynamic model
for flood simulation and based on this,
a flood management decision support
system, as well as the detailed
technical assistance and training
needed to support the implementation
of the developed systems.
Feasibility Study/Investigation

Suki Kinari Feasibility SK Hydro (Pvt) Limited 2007 Feasibility study looking at optimising

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Study, North West Frontier the design of the proposed 655 MW


Province, Pakistan hydroelectric plant taking into account
and carrying out topography,
hydrology, geology, siesmic,
environmental and power evacuation
work.
Feasibility Study/Investigation
Cost: £0.43m

Khatlon Flood Management Asian Development Bank 2007 Provide advice and support regarding
Project Preparation, flood management so that an effective
Dushanbe, Tajikistan flood management strategy can be
developed on a river that, due to large
sediment loads, tends to shift its flow
path.
Advisory/Oversight/Peer Review

Khatlon Flood Management Asian Development Bank 2007 Develop an effective flood
Study, Dushanbe, Tajikistan management strategy for Khatlon
Province at national and project level
by balancing structural and non-
structural measures. The study
examines the extreme vulnerability of
the target area as a result of the 2005
flood damage. Review and assess the
existing level of protection against
immediate flood risk, and identify
appropriate and cost effective risk
management measures that could be
implemented.
Feasibility Study/Investigation

Completion Year: 2006

Preparing the Second Health Asian Development Bank 2006 Provided technical assistance to
Sector Project, Mongolia develop a project proposal for the
Second Health Sector Development
Programme to improve health status
by consolidating the achievements of
the first programme and improve
health services in rural areas,
especially for poor and vulnerable
people.
Design
Cost: £0.31m

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Tsinghua Water Due Asian Development Bank 2006 Perform due diligence reviews on four
Diligence Review, China water and wastewater treatment plants
in Dalain, Taizhou and Wuhai.
Advisory/Oversight/Peer Review

Completion Year: 2005

Water and Sanitation Asian Development Bank 2005 Development of a flagship


Programmes, Asia programme to accelerate water and
sanitation coverage in metro cities in
selected DMC's (tentatively India, P R
of China and Indonesia) in order to
achieve the Millennium Development
Goals.
Advisory/Oversight/Peer Review

Kathmandu Valley: Asian Development Bank 2005 To assist the Government of Nepal to
Technical Assistance, Nepal develop and introduce a Private
Sector Participation Scheme (PSP) to
operate the urban water supply and
sanitation systems serving Kathmandu
Valley’s 1.4 million inhabitants. The
project aims to improve the operation
of water and sanitation systems to
both existing consumers and residents
of unserviced areas through improved
efficiency and large scale investment
such as the Melamchi Project, and the
reform of the legal and regulatory
frameworks.
Procurement,
Advisory/Oversight/Peer Review

Completion Year: 2004


Water Resources Asian Development Bank 2004 Feasibility study for proposed water
Development, Tajikistan resources development and
rehabilitation programme. Investigate
the organisational, structural and
operational areas of the water supply
system to assess the current status and
recommend improvements and ways
in implement them.
Feasibility Study/Investigation
Cost: £0.32m

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Karnataka Five Coastal Karnataka Urban 2004 This ADB funded project involves
Towns Development, India Infrastructure design and supervision of integrated
Development and Finance urban infrastructure development in
Corporati five towns of Karnataka. The major
components of the development
include water, sewerage, storm water,
solid waste management, urban roads
and slums.
Design, Supervision of Construction
Cost: £69.87m

Mysore City Development Karnataka Urban 2004 An ADB funded project that involves
Plan, Karnataka, India Infrastructure design and supervision of urban
Development & Finance infrastructure development in three
Corporation towns. The key components of the
project include water, storm water,
solid waste, sanitation, slums, roads
and housing.
Feasibility Study/Investigation,
Design, Supervision of Construction
Cost: £25.41m

Completion Year: 2003


Emergency Flood Ministry of Water 2003 The rehabilitation of Phnom Penh
Rehabilitation Project, Resources and forms a major part of the US$53
Cambodia Meteorology million Emergency Flood
(MOWRAM) Rehabilitation Project, funded by the
Asian Development Bank (ADB) to
restore key infrastructure damaged by
severe flooding in 2000. Providing
technical advice and assistance to
MOWRAM for the flood control and
irrigation component of the project.
Involves undertaking design reviews,
helping prepare tender and contract
documents, evaluating bids and
assisting MOWRAM in addressing
environmental and social issues,
including the preparation of
resettlement plans. Monitoring
construction and monthly payment
certifications are among other duties.
Also undertaken a number of capacity
building duties during the project such
as training national engineers,
reviewing current design practices and
developing MOWRAM's capability in
contract administration.
Feasibility Study/Investigation,

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Design, Supervision of Construction,


Operation and Maintenance,
Advisory/Oversight/Peer Review,
Project Management, Construction
Management
Cost: £5.00m

Capacity Building for Asian Development Bank 2003 Institutional and professional capacity
Teacher Education, Nepal building for teacher education in
Nepal. This included developing
training programmes and materials for
teacher educators as well as teachers,
covering management, pedagogy,
multi-grade teaching, social analysis
and programme content. Procurement
of essential equipment for a modern
TE system.
Procurement, Training,
Advisory/Oversight/Peer Review,
Project Management
Cost: £0.31m

Completion Year: 2002

Water Studies in Asian Asian Development Bank 2002 Technical assistance for a study on the
Cities, Philippines water situation in 21 Asian cities to
increase stakeholder awareness of
urban water sector issues in
developing countries and to provide
policymakers with better strategies for
urban poor access to water. Study
results were discussed at a regional
consultation workshop, and
conclusions presented to the 3rd
World Water Forum in Japan, March
2003, under the Water and Cities
theme of UN-Habitat.
Advisory/Oversight/Peer Review

Water Infrastructure, China Asian Development Bank 2002 Together with colleagues from the
Mott Connell HK office, to evaluate
three water infrastructure projects
(two wastewater treatment works and
one water treatment works) in the
north-east region of China and review
the technical, operational and
financial viability of the three water
infrastructure projects for the end
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client, a consortium of lenders led by


the ADB.
Advisory/Oversight/Peer Review

PRC Water Infrastructure Asian Development Bank 2002 Acting as the Lender's Technical
Development Project, Hong Adviser on the PRC projects of China
Kong Water Company.
Advisory/Oversight/Peer Review
Cost: £0.04m

Nepal Secondary Education Asian Development Bank 2002 Project preparation of the second
II, Kathmandu secondary education sector
programme.
Design

Completion Year: 2001

Capacity Building Ministry Asian Development Bank 2001 Technical assistance role, in
of Water Resources and (ADB) association with other consultants,
Meteorology (MOWRAM), included helping MOWRAM and
Cambodia other stakeholders prepare a draft
National Water Sector Profile and
established an effective planning and
implementation capacity. Provided
assistance in developing procedures
for sustainable management of
irrigation systems, created a system to
determine human resource database
and development needs and the
financial and administrative capacity
to implement projects.
Advisory/Oversight/Peer Review
Cost: £0.50m

Strategy For Improved Asian Development Bank 2001 Technical assistance project to
Flood Management, prioritise investments in the flood
Tajikistan management sector, including
installation of hydrometeorological
database system and review of
hydrometric networks, hydraulic
engineering practices, disaster
preparedness, flood forecasting
systems and institutional
arrangements.
Advisory/Oversight/Peer Review
Cost: £0.25m

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Agricultural Rehabilitation Asian Development Bank 2001 Assisted the Government of Tajikstan
Project, Tajikistan to prepare a project to reduce poverty
in selected areas of the country. This
was to be achieved by rehabilitation,
critically needed rural irrigation,
water supply and sanitation
infrastructure, raising agricultural
productivity, improving access to
markets and ultimately increasing
incomes and food security.
Advisory/Oversight/Peer Review
Cost: £0.50m

Private Junior Secondary Asian Development Bank 2001 Education project designed to enhance
School Project: Phase II, (ADB), Government of the capacity of private junior
Indonesia Indonesia (GOI) secondary education in order that it
can compete more favourably with
government schools. Involved tender
training, inspection, provision of
physical inputs and upgrading school
facilities.
Training, Advisory/Oversight/Peer
Review
Cost: £1.50m

Completion Year: 2000

Private Junior Secondary, MOEC, Asian 2000 Improve the quality, efficiency and
Indonesia Education Project Development Bank relevance of private junior secondary
education provision. The project will
assist the Government of Indonesia to
meet its universal primary education
targets through promotion of the
private sector.
Cost: £0.77m

Completion Year: 1999

Indonesia Senior Secondary Asian Development Bank, 1999 SSEP encompasses interventions in
Education Project Government of Indonesia teacher education, revision of
secondary school curricula and
fellowships as well as the
management of a school construction
programme.
Training, Advisory/Oversight/Peer
Review

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Basic Education Text Book Asian Development Bank 1999 Provision of technical assistance.
Project, Cambodia Three consultants, text book
development, aid management, data
information systems to the Ministry of
Education.
Training, Advisory/Oversight/Peer
Review
Cost: £0.29m

Zhejiang Shanxi Water Asian Development Bank 1999 Develop a project for funding by the
Supply: Phase II, China client. Proposed project to supply
three areas: Wenzhou, Ruian and
Pingyang. Total population two
million. Schemes include raw water
intake and transmission, water
treatment and distribution.
Feasibility Study/Investigation,
Training

Ho Chi Minh Water Supply Asian Development Bank 1999 Lenders (bank's) engineering for
Advisor to ADB, Vietnam (ADB) consortium including to facilitate
financial close on a proposed BOT
project comprising a water treatment
plant at Thu Doc.
Advisory/Oversight/Peer Review
Cost: £80.00m

Senior Secondary Asian Development Bank, 1999 The secondary education scheme
Education, Indonesia Government of Indonesia encompasses teacher education,
revision of the secondary school
curricula and fellowships as well as
management of an extensive school
construction programme.
Advisory/Oversight/Peer Review
Cost: £0.55m

Completion Year: 1998


Higher Education, Indonesia Asian Development Bank 1998 This project aims to improve the
quality, efficiency and relevance of
higher education provision in order to
better meet the human resource needs
of the country. Involved the
development of selected universities
and in promoting linkages both
between universities and the

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community at large.
Advisory/Oversight/Peer Review
Cost: £100.00m

Higher Secondary Education Asian Development 1998 Project aims at resolving the well
Sector, Bangladesh Bank/United Nations documented problems of higher
Development Programme secondary education sub-sector by
providing technical assistance in
teaching methods and quality,
examination reform, curriculum
reform school re-structuring,
management, support programmes,
financing and female participation.
Training
Cost: £1.40m

Ports Upgrading Project, Asian Development Bank 1998 Study to assess upgrading
Bangladesh requirements of ports of Chittagong
and Mongla, including container
handling, environmental management
and land transport links.
Feasibility Study/Investigation
Cost: £300.00m

Water Resources in West Asian Development Bank 1998 Completion of project preparation
Nusa Tengarra, Indonesia activities for Pandanduri Swangi and
Mujur dams on the Island of Lombok,
including updating costs and
reviewing institutional aspects.
Advisory/Oversight/Peer Review
Cost: £77.50m

Completion Year: 1997


ADB Irrigation System Asian Development Bank 1997 Completion report and evaluation of
Improvement, Philippines (ADB) the irrigation systems improvement
project, covering five irrigation
schemes in Mindanao.
Feasibility Study/Investigation

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Appendix B Mott MacDonald’s Lenders’ Engineer Experience


Project Client Services
North Chennai III, India Dresdner Kleinwort Lenders’ Engineer for pre-construction due
525 MW Benson diligence, construction and performance test
monitoring and operations monitoring.

Adapazari, Turkey OPIC, ExIm Bank Lender’s Engineer. Project evaluation, pre-construction
775 MW due diligence, construction, commissioning and
operations monitoring.

Izmir, Turkey OPIC, ExIm Bank Lender’s Engineer. Project evaluation, pre-construction
1550 MW due diligence, construction, commissioning and
operations monitoring.

Gebze, Turkey OPIC, ExIm Bank Lender’s Engineer. Project evaluation, pre-construction
1550 MW due diligence, construction, commissioning and
operations monitoring.

Shuweihat S1 LE, United Barclays Capital Lender’s Engineer. Pre-financial close technical due
Arab Emirates diligence study, construction and commissioning
1500 MW, 100 MIGD monitoring.

Laibin B, China HSBC, BZW, Credit Lenders Engineer on a coal fired station being
700 MW Agricole Indosuez developed as an IPP. Monitoring and supervision of the
construction and operation of the plant.

Immingham, UK Royal Bank of Scotland, Technical advice and assistance during the design and
750 MW Conoco Global implementation/construction phase.

Saudi Aramco 1 - 3, Saudi Bank Saudi Fransi, Technical due diligence review of three separate
Arabia International Power plc cogeneration power plants, to be built under one IPP, for
990 MW Saudi Aramco. Our report is for a syndicate of Saudi
Arabian Banks, lead by Bank Saudi Fransi.

Ankara, Turkey BNP Paribas, ExIm Bank Lender’s Engineer. Responsibility includes project
760 MW evaluation, pre-construction due diligence, construction,
commissioning and operations monitoring. Plant is now
in commercial operation.

Energy from Waste Projects, UniCredit Banca Lenders' technical and environmental adviser for three
Italy Mediocredito waste to energy projects in Sicily, including monitoring
of both construction and performance testing.

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Coastal Andhra Power Ltd Mott MacDonald

Project Client Services


TermoPernambuco, Brazil Inter-American Appointed as independent engineer to undertake
540 MW Development Bank technical due diligence on the proposed Pernambuco
(IADB) power project that consists of the construction, operation
and maintenance of a 540 MW gas-fired combined cycle
power plant.

Sadaf, Saudi Arabia Industrial Bank of Japan, We have been selected to act as Lenders' Technical
240 MW CMS Generation advisor for the Sadaf Co-Generation Project in Saudi
Arabia being developed by CMS Generation.

Rio Bravo 3 & 4, Mexico International Finance Appointed by lenders to undertake due-diligence review
500 MW Corporation (IFC) of two 500 MW CCGT power stations owned by Edf.
Risk assessment, construction monitoring and post
completion performance review.

Ibiritermo, Brazil Ibiritermo SA Appointed as lenders engineer for an international


consortium of governmental export credit agencies.

North Sea Interconnector, National Grid Co. Acting as independent technical advisor for the
Norway proposed North Sea Interconnector (Norway - UK)
prior to selection of the project lender (Stage 1) and as
lender's technical advisor to financial close.

Rybnik, Poland Bank Austria, As an independent engineer, we are working for the
Creditanstalt AG lenders, on the sale of the controlling interest in an
existing coal-fired polish power station to a US
development consortium. (NRG and Marubeni).

Edenderry NRG Provided support to the Lenders to allow the client to


acquire Edenderry Power Station. The plants have been
technically and financially assessed to determine the
financial model inputs and therefore the overall viability
of the project.

Brigg NRG Lenders’ support to allow the client to acquire


240 MW Edenderry Power Station. Technical and financial
assessment of plants to determine financial model inputs
and therefore overall viability of project.

EDF Construction International Finance Construction monitoring of two CCGT power plants on
Monitoring, Mexico Corporation (IFC) behalf of the lenders, including commissioning and
performance testing monitoring.

SEPCOL Operations National Development Lenders Engineer for the operational phase monitoring
Monitoring, Pakistan Finance Corporation of diesel power station owned by Southern Electric
117 MW (NDFC) Power Company Limited (SEPCOL). Technical advice
to lenders in the form of four quarterly reports.

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Coastal Andhra Power Ltd Mott MacDonald

Project Client Services


El Paso Plant, Brazil OPIC Lenders' Engineer for the Due Diligence Phase of a 500
500 MW MW combined cycle power plant developed by El Paso
Energy.

Zabalgarbi, Spain Credit Agricole Indosuez Lenders’ Engineer services. Technical due diligence of
100 MW a waste to energy project.

Barking Deutsche Bank Technical advisor to the lending banks for the 1000 MW
1000 MW Combined Cycle Power Station at Barking. Project
involves the tracking of the performance of the plant
(operations/maintenance/performance) relative to
anticipated and report on events affecting the same.

Killingholme, UK Bank of America As part of due diligence exercise, advised on inputs to


650 MW financial model. Plant capital & O&M costs were
assessed against Mott MacDonald’s experience and
results from an in-house costing model.

Saltillo, Mexico Deutsche, Société Lenders’ Engineer services, including detailed review of
250 MW Génerale, IFC environmental and planning aspects of the scheme.
Phase II involved construction monitoring and
performance test reviews.

San Jose, Guatemala Nationsbank Monitor construction progress at the site through
120 MW quarterly reports and visits. Also performance testing
will be monitored.

Rio Bravo, Mexico Deutsche Bank, IFC, Soc Lenders’ Engineer services including complete
1000 MW Gen commercial and technical risk assessment, construction
monitoring and post completion performance review.

Belagargh, India IFC, ANZ, CDC, ADB Technical advisor to lenders regarding contract
500 MW documents to achieve financial closure of this project.

Gitaru 3, Kenya Kenya Power Company Optimisation of third unit in Gitaru Power Station.
80 MW Ltd (KPC) Preparation of tender specifications, tender and contract
award. Review of contractor's designs and supervision
of erection and commissioning.

Vizaghapatnam, India ANZ Investment/HSBC Continuation of lender technical advice for contracts
1050 MW Investment required to achieve financial close for Vizaghapatnam
power station.

North Chennai, India Credit Suisse First Lenders engineer role for 1 000 MW coal fired power
1050 MW Boston plant project.

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B-12
Coastal Andhra Power Ltd Mott MacDonald

Project Client Services


Sutton Bridge, UK Enron Lenders’ Engineer services including complete
790 MW commercial and technical risk assessment, construction
monitoring and post completion performance review.

Sengkang Phase I, Indonesia UBS, Barclays Capital The project covers a gas field development,
135 MW transmission pipelines and a 135 MW CCGT power
plant. Involved in the independent consulting for the
project tender.

North Chennai II, India ABN AMRO, CSFB, Due diligence services in the role of Banker’s Technical
1050 MW ABB Structured Finance Advisor to examine potential environmental liabilities
associated with construction and operation of the plant.

Sengkang, Indonesia UBS, Energy Equity Lenders’ Engineer for 135 MW CCGT/OCGT project
135 MW Corp utilising a GE 6Fa turbine.

Sapugaskanda IPP - IFC, CDC, DIE Review of the first year of operations of a 51 MW diesel
Operation Phase, Sri Lanka power station for the project lenders.
51 MW

Rockfort, Jamaica Jamaica Private Power Independent engineer services. Acted as a technical
60 MW Company agent for the lenders of the project finance. Reviewed
contractor's designs, attended all project meetings and
reported to lenders on progress and status of project.

Coastal Habibullah, Confidential Client Lender’s Engineer. Risk assessment, construction


Pakistan monitoring and post completion performance review.
130 MW Plant comprised LM 6000 Gas Turbines.

Uch, Pakistan Duetsche Morgan Feasibility study, conceptual design and technical
586 MW Grenfell advisory role.

Karaganda, Kazakhstan EBRD Lenders’ Engineer. Reported to lenders on the


475 MW investment plant, the assets and the technical input to
the financial model. Assessed fuel delivery, heat and
electrical distribution for investment in energy
efficiency.

CDC Quetta IPP Phase II, Commonwealth Lenders technical advisor role for project
Pakistan Development Corp. implementation of 128 MW CCGT.
128 MW (CDC)

Nowa Sarzyna, Poland Bank of America, Independent engineers role for the client for the 116
116 MW WestLB MW Cogen project, currently in operations monitoring
phase.

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B-13
Coastal Andhra Power Ltd Mott MacDonald

Project Client Services


Jorf Lasfar, Morocco Banque Nationale de Technical adviser to the lender’s financing this coal
1392 MW Paris (BNP), ABN Amro fired power plant, comprising two existing units plus the
construction of two new units. Currently monitoring
operational phase of plant.

Teesside, UK Canadian Imperial Bank The plant is a 1 725 MW combined cycle power station
1700 MW of Commerce which also exports steam to the adjacent KI chemical
works. The project comprises eight gas turbines rated at
145 MW, eight dual pressure supply.

Killingholme, UK NRG Lenders’ technical adviser for potential purchaser of this


650 MW CCGT.

Phnom Penh, Cambodia International Finance Bank's engineer for the development, to financial close,
Corporation (IFC) of a 60 MW gas turbine combined cycle, which will
supply two thirds of the power for Phnom Penh city.
Project should be followed by work during construction
and operation under a new contract.

Puqi, China Consortium of Lenders engineer on this coal fired green field plant in
600 MW International Banks Hubei province. Mott MacDonald reviewed project
development status, technical, environmental issues and
power purchase contracts.

Bin Qasim, Pakistan NDFC Technical and commercial appraisal of the BOT project.
320 MW Carried out on behalf of NDFC as administrators of the
private sector funding initiative.

Nuevo Centrale, Argentina Enel/SACE Due diligence services in the role of Lenders’ Technical
Advisor. Including the development of the bank’s
general environmental guidelines for future loan
approval based on the World Bank guidelines.

Arcos de la Frontera, Spain Enron, Banco de Lenders' Engineer.


800 MW Santander, Royal Bank of
Scotland

Ebute Barges, Nigeria Confidential Client Technical appraisal of the AES Ebute Barges power
project in Lagos on behalf of lending banks.

Altamira III & IV, Brazil US ExIm Lenders’ Engineer services.


1036 MW

Changzhou, China Consortium of Lenders engineer; reviewed design principles, operation


45 MW International Banks and maintenance costs, power purchase agreements and
environmental approval for the light oil fired co-
generation plant.

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B-14
Coastal Andhra Power Ltd Mott MacDonald

Project Client Services


Dongguan Houjie, China Consortium of Lenders engineer reviewed documentation on operation,
66 MW International Banks maintenance, off-take and environmental issues for the
medium speed diesel plant located in Guangdong
province.

Decosol, Spain Union Bank of Independent Engineer for the Project Financiers,
12.3 MIGD Switzerland advising upon the project agreements, financial model,
and review of all technical aspects.

Thetford Power Plant Bank of Scotland Full independent appraisal of Fibrothetford's proposal to
38 MW build a power plant at Thetford, Norfolk, which was
intended to burn poultry litter and wood chips.
Responsible for monitoring progress with respect to
payment milestones, closely involved with
environmental aspects of the project, having provided
design solutions for certain ground contamination
problems.

Laibin, China GEC Alstom and Due diligence services in the role of Banker’s Technical
700 MW EDF/HSBC Advisor to examine potential environmental liabilities
associated with construction and operation of the plant.

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B-15
Coastal Andhra Power Ltd Mott MacDonald

Appendix C Selected Mott MacDonald Power Generation Project


Experience
Project Sponsors Role
Kollnes and Karsto, Norway
Naturkraft Owner’s Engineer
(400 MW CCGT each)

Rio Bravo 3 and 4, Mexico


EDF Lenders’ Engineer
(2 x 500 MW CCGT)

Sadaf, Saudi Arabia


CMS Lenders’ Engineer
(240 MW + 510 t/hr Steam)

Shuweihat, Abu Dhabi


(1500 MW CCGT + mgd CMS Lenders’ Engineer
desalination)

Altamira III & IV, Brazil


Iberdrola Lenders’ Engineer
(1036 MW CCGT)

TermoPernambuco, Brazil
Iberdrola Lenders’ Engineer
(500 MW CCGT)

Immingham, UK
Conoco Owner’s and Lenders’ Engineer
(750 MW CCGT)

Shoreham, UK
South Coast Power Owner’s Engineer
(400 MW CCGT)

Bilbao, Spain Conceptual and Basic Design of Major


BAIA Ute
(800 MW CCGT) Equipment and Balance of Plant Items

Araucària, Brazil
El Paso Lenders’ Engineer
(460 MW CCGT)

Arcos de la Frontera, Spain


Enron Lenders’ Engineer
(800 MW CCGT)

Nuevo Centrale Independencia,


Enel Lenders’ Engineer
Argentina (219 MW CCGT)

Killingholme, UK
NRG Lenders’ Engineer
(650 MW existing CCGT)

Saltillo, Mexico
Electricité de France Lenders’ Engineer
(250 MW CCGT)

Adapazari, Gebze and Izmir,


Intergen, ENKA Lenders’ Engineer
Turkey (4000 MW CCGT)

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C-1
Coastal Andhra Power Ltd Mott MacDonald

Project Sponsors Role


Fife Power, Scotland
EIF Investment Appraisal Advice
(180 MW CCGT)

Takoradi, Ghana
Volta River Authority Owner’s Engineer
(350 MW CCGT)

Alba Power Station 4, Bahrain Aluminium Bahrain


Owner’s Engineer
(650 MW CCGT) B.S.C. (c)

Montenero di Bisaccia, Italy


Montenero Energia Srl Owner’s Engineer
(400 MW CCGT)

Confidential Project, Holland


Confidential Client Owner’s Technical Advisor
(2 x 400 MW CCGT)

Jurong Refinery CHP


Desalination Project, Singapore
Keppel Fells Energy Owner’s Technical Advisor
(470 MW CCGT and 30 MIGD
Desalination)

Arrubal and La Plana del Vent,


Spain Gas Natural SDG SA Owner’s Engineer
(2 x 800 MW CCGT)

Fujairah Water and Power,


UAE Doosan Heavy Industries
Technical Advisor
(500 MW CCGT ands 100 MIGD and Construction Limited
Desalination)

Umm Al Nar Privatisation,


UAE International Power Global
Engineering Services
(1550 MW CCGT and 95 MIGD Developments Limited
Desalination)

Core Venture 1, Saudi Arabia


(2 x 2000 MW CCGT and Exonmobil and BP Amoco Technical Advisor
150 MIGD Desalination)

Rio Bravo, Mexico


EDF International Lenders’ Engineer
(495 MW CCGT)

BBIC
Barking, UK (1000 MW CCGT) Lenders’ Engineer
CU Power International

Teesside, UK (1 725 MW CCGT) Enron Lenders’ Engineer

Sutton Bridge, UK Bond Underwriter’s Engineer and


Enron
(790 MW CCGT) Advisor to third Party Equity

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C-2
Coastal Andhra Power Ltd Mott MacDonald

Project Sponsors Role


Marmara Ereglisi, Turkey
Enron Lenders’ Engineer
(475 MW CCGT)

Uch, Pakistan Tenaska, Midlands Power


Lenders’ Engineer
(586 MW CCGT) International

Enfield, UK
NRG and Indeck Lenders’ Engineer
(400 MW CCGT)

Nowa Sarzyna, Poland


Enron Lenders’ Engineer
(115 MW CCGT)

Phnom Penh IPP2, Cambodia Cambodia Power Co.


Lenders’ Engineer
(60 MW CCGT) (Mosbacher & Beacon Hill)

Brigg, UK
Regional Power Generators Lenders’ Engineer
(240 MW CCGT)

Corby, UK East Midlands Electricity


Owner’s and Lenders’ Engineer
(350 MW CCGT) Hawker Siddeley Power

Sengkang, Indonesia
Energy Equity Corp Lenders’ Engineer
(135 MW CCGT)

Coastal Habibullah Quetta,


Pakistan Coastal Lenders’ Engineer
(130 MW CCGT)

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C-3
Coastal Andhra Power Ltd Mott MacDonald

Appendix D Selected Mott MacDonald India’s Power Generation


Experience

Project Client Completion Description


Preparation of Master Plan Neyveli Lignite 1995 NLC commissioned
for Neyveli Area, Tamil Corporation Ltd. preparation of Master
Nadu Plan for the
development of the
Lignite Mines in
Neyveli area including
lignite’s utilization in
Power Generation.
MM prepared the
Master Plan for Power
Generation area
matching the
development of mines
and lignite production
with Power
Generation. Based on
the Lignite output it
was advised to install
power projects with
combined installed
capacity of around
10,500 MW. These
projects to be
developed at different
period and at various
locations. The study
included site selection,
capacity determination
of power plants,
infrastructural
requirements,
preparation of
technical
specifications, power
evacuation system,
cost estimation and
financial analysis of
the projects

355MW (ISO) Combined Lanco Industries 1998 This is one of the first
Cycle Power Project Limited power projects under
Kondapalli, Andhra to be commissioned

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D-4
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description


Pradesh. under IPP route in
India. MM was
involved with the
project from concept
and assisted the
developer from
selection of project
site, pre – feasibility
study, preparation of
detailed project report
to render assistance for
getting clearance from
Central Electricity
Authority. This project
is in commercial
operation.

2x250 MW Coal fired J.K. Corp. Ltd. 1995 MM was involved


thermal power project at with the project from
Durgapur, Orissa. concept and assisted
the developer from
selection of project
site, pre – feasibility
study, preparation of
detailed project report
to render assistance for
getting clearance from
Central Electricity
Authority.

120MW diesel power Shapoorji Pallonji 1998 MM was involved


project, Pithampur Kheda, with the project from
Madhya Pradesh. the concept and
assisted the developer
in selection of site,
capacity. Pre-
feasibility study,
Detailed Project
Report, Assistance in
clearance for the
project from CEA&
MoE&F, Preparation
of Power Purchase
Agreement,
Preparation of
technical

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D-5
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description


specifications and
invitation of bids from
EPC contractor, bid
evaluation and
negotiations and
award of EPC
Contractor and
Preparation of O&M
philosophy

1x210 MW Panipat IESTL (B.K. Modi 1997 Feasibility study of the


Thermal Power Project Group Company) power plant and
Haryana. preparation of bid,
Detailed Project
Report, General
Assessment of
equipment already
delivered by BHEL,
etc.

1x250 MW Lignite Based ST Power Systems 1994 1x250 Mw Lignite


Power Plant, Neyveli. Inc. USA Based Power Plant at
Neyveli (Zero Unit)
was awarded to client
as an IPP. ST Power
System Inc. engaged
PMM as consultant in
association with
Ewbank Preece, U.K
(now Mott
MacDonald) for
development studies
including preparation
of Project Report,
Specifications for
power plant,
Environment Impact
Assessment study.

360 MW Combined Cycle Kedia Power 1997 Advised developer on


Power Project at Jhabua, issues related to
Madhya Pradesh Development of
Power Project under
IPP. Reviewed the
Detailed Project
Report of the Project
as well the
specifications of the

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D-6
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description


power plant.

36 MW Diesel Power ST Power Systems 1996 MM was involved


Project, Jodhpur, Rajasthan Inc., USA with the project from
the concept and
assisted the developer
in selection of site and
carried out Pre
feasibility study of the
power project.
Detailed Project
Report was prepared
and assistance was
provided to the
developer during
discussions with
prospective Lenders.

128 MW Diesel Power Wartsila India 1998 Detailed Project


Plant, Kozikhode, Kerala Report was prepared
for the Project. This
project is under
commercial operation.

2x500 MW Anpara-C, Uttar Hyundai Heavy 1998 Advised Hyundai


Pradesh Industries Co. Ltd., Heavy Industry on
Korea Electricity
Privatization issues in
India. Undertook
development studies
for the project and
prepared Detailed
Project Report.

2x287 MW Bhilai Power M/s Larsen & 1998 Study for coal supply
Project Toubro including specification
the coal quality for the
purpose of optimum
design, higher
availability and
operational flexibility
of steam generator and
associated equipment
and systems. Establish
the characteristics of
washed coal available.
Examine the economic
wash ability prospects.

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D-7
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description


Assess impact on the
design engineering
and performance of
the plant with coal
supplied from
alternative sources.

2x536 MW Bhadrawati Ispat Denro Limited Advised the IPP on


Thermal Power Plant critical Power
Project’s performance
indicators like heat
rate, specific fuel
consumption,
availability, etc.

30 MW Combined Cycle Hindustan 1999 Detailed Project


Power Plant (Captive Newsprint Limited Report
Generation)

150(100+50) MW M/s Bhiwadi 1997 Feasibility Study


Combined Cycle Power Generation Ltd.,
Plant (Kedia Group
Promoted
Company)

80 MW Coal Based Captive Duncans Industries 1998 Feasibility Study of


Power Plant Ltd, Fertilizer the power plant for
Division captive power
requirement and
process steam of 75
Tonnes/hr at a
pressure of 17 kg/cm² /
25 kg/cm² (at
saturation
temperature).

200 MW Diesel Power Krishak Bharati Co- 1998 Feasibility Study


Project Operative Limited

2x210 MW Korba West Madhya Pradesh 1997 Reviewed the Project


Extension Electricity Board Report submitted by
the IPP to MP Govt.
and advised MP Govt.
on technical and
financial viability of
the project.

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D-8
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description

105.66 MW Diesel Power Samalpatti Power 1998 Detailed Project


project Company Report

2500 MW combined cycle Vavasi Oil and Gas 1999 Feasibility Study
combustion turbine Pvt. Ltd.

4x25 MW Diesel Power Independent Power 1998 Detailed Project


Projects Pvt. Ltd. (Joint Reports and
venture of Kontek Environment Impact
Abbadi SDN BHD Assessment Studies
and Autoways
Construction SDN
BHD, Malaysia)

250 MW Coal based Ircon International 1999 Feasibility Study for


Thermal Power Project Limited Captive Power Project
for supply to Indian
Railways

128 MW Heavy Fuel Diesel Kerala State 1997 Detailed Project


Power Plant Electricity Report
Board/BHEL

60-150 MW Diesel Power Gwalior Power 1998 Detailed Project


Plants Private Limited Report

2x250 MW Thermal Power Madhya Pradesh 1997 Reviewed the Project


Project Electricity Board Report submitted by
the IPP to MP Govt.
and advised MP Govt.
on technical and
financial viability of
the project.

240 MW Combined Cycle Oswal Projects 2000 Preparation of EPC


Power project, Australia Limited Bid Document
(Operation and
Maintenance
Agreement, Plant
Construction
agreement and
Manufacturer/Data/Ca
talogue)

500 MW Thermal Power Indian Farmers 2003 Advised on the


Project Cooperative Limited viability of the project

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D-9
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description


to assist IFFCO in
taking decision on
investment.
Also advised on Joint
Venture Participation.

12 MW Captive Thermal Gujarat Positra Port 2001 Detailed Project


Power Project Infrastructure Report
Limited

720 MW Badarpur Thermal Government of 2006 In consortium with


Power Project India SBI Caps advising
Govt. of India on
Disinvestment in the
Power Project.

3x660 MW Inverkip Power Confidential 2004 Due Dilligence and


Project, Scotland, UK advise on Relocation
of Power Project in
India

Three Power Generating Confidential 2004 Due Dilligence and


Plants in India with total advise on investment
installed generating on the projects
capacity of around 450 MW

2 x 520 MW Thermal Navbharat 2006 Prepared Detailed


Power Plant, Orissa Project Report

2 x 45 MW Captive Monnet Power 2007 As Lender Engineer


Thermal Power Project undertaking visits to
power plant during
construction stage and
advising Lenders on
project progress
1000 MW Thermal Power Globeleq 2007 Due diligence of a
Plant,Orissa proposed power plant.
The due diligence
exercise is undertaken
to assist developer in
making investment
decision
7 Thermal Power Plant Reliance Energy 2007 Pre- feasibility studies
2 x 300 MW to 6 x 660 of the power plant
MW including financial
analysis

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D-10
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description


1015 MW Nagarjuna Power Finance On going Lender Engineer to
Thermal Corporation PFC under taking due
Power Plant –diligence prior to
financial closure. The
responsibility includes
construction
monitoring testing &
commissioning and
O&M advise

22 MW Captive Thermal GE Energy On going Lender Engineer


Power Plant Financial Services advising on
manufacturing &
construction quality,
project schedule,
performance testing,
commissioning and
disbursement of funds
95 MW Gas Engine Power Citi Group 2007 The power plant is
Plant operational.
Undertaking due
diligence of the power
plant through project
documentations like
various contracts as
well operational
records. The study is
being carried out to
assist client in its
investment decision
making.
126 MW Coal Based Power Citi Group 2007 Undertook due
Project diligence of the
project. The study was
carried out to assist
client in its investment
decision.
GE Energy
36 MW Coal Based Power Financial Services
On-going
Project Undertook due
diligence of the
project. The study was
carried out to assist
client in its investment
decision.

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D-11
Coastal Andhra Power Ltd Mott MacDonald

Project Client Completion Description

1200 MW Coal Based VISA Power On - going Feasibility Study and


Power Project Detailed Project
Report
1500 MW Coal Based Nuziveedu Seeds On-going Feasibility Study
Power Project, Tamil Nadu Ltd.

4x600 MW (Supercritical ) India Bull On-going Review of Detailed


Coal Based Thermal Power Project Report, Plot
Project, Maharashtra Plan, Preparation of
Technical &
Commercial
Specification and EPC
Bid Evaluation
3x388 MW CCGT Power GVK On-going Preparation of
Project, Andhra Pradesh Technical &
Commercial
Specification and EPC
Bid Evaluation
DPR 1200 MW Sheshadari Sheshadari Power, On-going Detailed Project
Aandhra Pradesh Hyderabad Report

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D-12
Coastal Andhra Power Ltd Mott MacDonald

Appendix E Lenders’ Environmental Adviser Experience


Project Country Client Description
Nueva Central Argentina Italian Export Credit Agency Independent appraisal of technical, financial and environmental
Independencia (SACE) and the Brazilian liabilities associated with a proposed 220 MW gas fired combined
Development Bank (BNDES) cycle plant. Developed general environmental guidelines for
future loan approval by BNDES.
Baku-Tblisi-Çeyhan Oil Azerbaijan, Georgia World Bank (IFC) Independent environmental appraisal of a proposed major
Pipeline and Turkey infrastructure development from off-shore oil and gas facilities in
the Caspian Sea to onshore facilities at Baku via 1,760 km of
pipeline to a new oil terminal at Çeyhan on the Mediterranean Sea.
Shuweihat S1 Power and Abu Dhabi, United Barclays Capital Two part technical and environmental due diligence and audit of
Desalination Arab Emirates the world’s largest power and desalination plant. The due
diligence was undertaken pre-Financial Close with the audit
undertaken during the construction and commissioning phases.
Dubai Aluminium Smelter Dubai, United Arab Dubai Aluminium Co. Ltd. Environmental audit and compliance appraisal.
Emirates
Power and Desalination Kuwait, United Client Confidential Due diligence audit as Lenders’ technical adviser for a CCGT
Plant Arab Emirates power plant and desalination facility.
Maritza East III Bulgaria Entergy Independent Environmental Audit of an 840 MW coal fired power
plant, in accordance with the procedures of the European Bank for
Reconstruction and Development, to identify the actions necessary
to bring the plant into compliance with Bulgarian and European
Union standards for environmental protection.
UEG Araucária, Curitiba Brasil Overseas Private Investment Due diligence with detailed environmental and permitting review
Corporation and the Export Import of the 470 MW CCGT power plant, developed by El Paso Energy
Bank of the United States and COPEL, including dedicated gas-conditioning equipment.
Mei Zhou Wan Power China Intergen/IFC Environmental audit of the construction phase for a 700MW coal
Station fired power plant in the Fujian Province of China. The audit
included a review of the environmental management system and
general environmental performance, with recommendations made
to improve environmental performance.

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E-1
Coastal Andhra Power Ltd Mott MacDonald

Project Country Client Description


Lai Bin Power Station China GEC Alstom and EDF/HSBC 700MW coal fired station. Due diligence services in the role of
Banker’s Technical Adviser to examine potential environmental
liabilities associated with construction and operation of the plant.
REMU, Utrecht, Energy Holland Confidential client Electricity, gas and hot water heating distribution systems in the
Distribution Utility city of Utrecht and surrounding areas. Pre-transaction due
diligence review for potential purchaser, including considerations
cost liabilities associated with contaminated land and the presence
equipment with hazardous substances (asbestos, pcb-oils, halons,
cfc etc)
Project Dragon Hong Kong Lenders’ Consortium led by Bank Pre-acquisition due diligence of a major Asian power plant
of America and ABN Amro portfolio comprising 22 power projects. The study involved the
appraisal of key environmental liabilities and culminated in the
preparation of a report for submission to the credit committee of
the four main project lenders.
Csepl Power Station Hungary NRG Technical and environmental due diligence of a gas fired CCGT
power plant.
Balagarh Power Station India Hanjung JV Company Limited, Environmental review as part of an overall technical-commercial
Asian Development Bank (ADB) due diligence of an Engineering, Procurement and Construction
and International Finance (EPC) tender document for four 135 MW coal fired steam turbine
Corporation units.
Belagarh Power Station India CESC 1000MW coal fired station. Due diligence services in the role of
Banker’s Technical Adviser to examine potential environmental
liabilities associated with construction and operation of the plant.
Vizag Power Station India National Power 1000MW coal fired station. Due diligence services in the role of
Banker’s Technical Adviser to examine potential environmental
liabilities associated with construction and operation of the plant.
North Chennai (Stage III) India PSEG 500MW coal fired station. Due diligence services in the role of
Power Station Banker’s Technical Adviser to examine potential environmental
liabilities associated with construction and operation of the plant.
Intergen’s World-wide India, China, Shell Five schemes under construction. Due diligence inspections for
portfolio of power Phillipines, the client, prior to their acquisition of a major shareholding in the
generating facilities S.America energy company.

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Project Country Client Description


Restructuring of Electricity Indonesia Credit Suisse First Boston Environmental Review of all generating facilities in the Java-Bali
Supply Industry network, Indonesia, as part of a Technical Review for a strategic
stake sell off. Assessed current compliance with Indonesian and
International Funding Agency environmental standards and
guidelines. Identified any current or future environmental liabilities
associated with the various generating plant (including oil, coal and
gas fired steam plant, CCGT, geothermal and hydroelectric).
Jamaica Public Service Jamaica International Finance Corporation Technical advisers undertaking an environmental due diligence
Company for project corporate debt financing. The work included review of
the company and project environmental management systems.
Undertook site visits to the existing assets and construction project
in Jamaica to assess environmental liabilities and compliance.
Mombasa Private Sector Kenya World Bank / PwC Financial, economic, engineering, environmental and social
Participation appraisal team providing an independent review of the proposed
privatisation of the water supply and treatment, distribution and
waste water treatment facilities for the Mombasa and Coastal
Region of Kenya.
Central Anáhuac, Mexico International Finance Corporation Technical and environmental due diligence of a proposed 500
Tamaulipas MW CCGT plant to be developed by Electricité de France (EDF).
Key environmental issues were reviewed including emissions to
the atmosphere and the discharge of industrial effluent.
Central Saltillo, Coahuila Mexico International Finance Corporation Technical and environmental due diligence, including a detailed
environmental and permitting review, of a proposed 250 MW
CCGT plant developed by Electricité de France (EDF). The
environmental assessment process applied to the project was
evaluated according to the requirements of national requirements
and IFC Guidelines.
Central Anáhuac Mexico International Finance Corporation Investment risk appraisal of a proposed 500 MW CCGT plant to
be developed by Electricite de France at Central Anáhuac,
Tamaulipas, Mexico.

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Appendix F Lenders’ Engineer’s Scope of Work

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Appendix G Mott MacDonald’s Terms and Conditions

MOTT MACDONALD LIMITED

SERVICES CONTRACT

THIS CONTRACT entered into this ............................ day of ..................... between


............................................................................................... having its principal office at
........................................................................................................................ (hereinafter called "the
Client") and MOTT MACDONALD PVT. LIMITED, Consulting Engineers, having its Registered
Office at ……………………………… (hereinafter called "the Consulting Engineer").

WHEREAS the Client has determined the need to procure the services described, in this Contract,
subject to the terms and conditions hereinafter set forth;

WHEREAS nothing contained herein shall be construed as establishing or creating a relationship of


master and servant or principal and agent,

NOW THEREFORE the parties hereto hereby agree as follows:

1.0 Scope of Service

1.1 The services to be performed by the Consulting Engineer under this present Contract
(hereinafter called “the Services") are those described in the Scope of Services attached in
Appendix A hereto.

2.0 Commencement of Services and Duration of Contract

2.1 The appointment of the Consulting Engineer shall commence from the date of this Contract
or from the time when the Consulting Engineer shall have begun to perform for the Client
any of the duties specified in Appendix A.

2.2 The Consulting Engineer shall commence the Services in accordance with Appendix B, and
shall carry out the Services in a manner most suited to the requirements of the Contract and
in accordance with the schedules and time limits specified in Appendix B.

2.3 The Services shall be a maximum duration of ......... years ( ) unless required otherwise.

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3.0 Law Governing the Contract

The Contract shall be governed by and be construed in accordance with the laws, customs
duties and taxes of ................ which shall mean the present laws, customs duties and taxes
and any amendments thereto or new laws passed during the continuance of this Contract.

4.0 Duties of the Consulting Engineer and the Client

4.1 The Consulting Engineer shall exercise all reasonable skill, care and diligence in the
discharge of its duties under this Contract.

4.2 The Consulting Engineer shall:

(a) regularly report to, and obtain direction and guidance from, the Client on all matters
relating to the Services undertaken;
(b) promptly comply with such reasonable instructions as may be issued from time to
time by the Client in connection with the performance of the Services.

4.3 The Consulting Engineer shall keep and maintain accurate and complete accounts in respect
of expenditure incurred under this Contract in such form and detail as shall be satisfactory to
the Client for the purposes of making payment or settlement of accounts under this Contract.

4.4 The Client shall supply to the Consulting Engineer, without charge and in such reasonable
time as not to delay or disrupt the performance by the Consulting Engineer of its duties
under this Contract, all necessary and relevant data and information in the possession of the
Client.

4.5 The Client shall give his decision on all sketches, drawings, reports, recommendations,
tender documents and other matters properly referred to him for decision by the Consulting
Engineer in such reasonable time as not to delay or disrupt the performance by the
Consulting Engineer of his duties under this Contract.

4.6 Neither during the period of this Agreement, nor for a period of six months thereafter, shall
either the Consulting Engineer or the Client make, promise or discuss an offer of
employment, contract for services or any like arrangement, with any member of the other
party’s staff unless such action has been specifically agreed in writing between the Client
and the Consulting Engineer beforehand.

5.0 Payment

5.1 The Consulting Engineer shall invoice the Client in accordance with the payment schedule

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specified in Appendix D. Payment of such invoices shall be made within thirty (30) days of
invoice submission and in respect of payments not received within such thirty (30) days the
Consulting Engineer shall be entitled to charge interest at the rate of 2% above the base
lending rate from time to time of the Natwest Bank Plc.

5.2 In the event of any services being required supplementary to those detailed in Appendix A
or for any additional services, alterations or modifications as agreed between the Parties and
resulting from the Client's specific requests which cause amendments to the Services or
termination of this Contract, the Consulting Engineer shall receive additional remuneration
which shall be computed on a time basis in accordance with the rates specified in Appendix
C together with all reimbursable costs incurred.

6.0 Confidentiality and Ownership of Documents

6.1 All documents, statistics, reports, data and other information provided to, created, obtained
or made available to the Consulting Engineer in connection with or by virtue of this
Contract shall be treated as confidential by the Consulting Engineer, and the Consulting
Engineer shall not be entitled to use or make copies of them for any purpose that is not
related to the Contract without the consent of the Client.

6.2 The copyright in all drawings, reports, specifications, bills of quantities, calculations and
other documents provided by the Consulting Engineer in connection with the Services shall
remain vested in the Consulting Engineer, but the Client shall have a licence to use such
drawings and other documents for the purposes of the project of which the services form a
part. Save as aforesaid, the Client shall not make copies of such drawings or other
documents nor shall he use the same in connection with the making or improvement of any
works other than those comprised in the project of which the Services form a part without
the prior written approval of the Consulting Engineer and upon such terms as may be agreed
between the Client and the Consulting Engineer.

6.3 The Consulting Engineer shall have the right, subject to the Client's approval, which shall
not be unreasonably withheld, to publish descriptive articles with or without illustrations,
with respect to the Services either on his own account or in conjunction with other parties
concerned.
7.0 Assignment and Sub-Contracting

7.1 Except with the prior written consent of the Client the Consulting Engineer shall not:

(a) in whole or in part assign, transfer or otherwise dispose of, his rights or obligations
under this Contract;

(b) sub-contract, or otherwise transfer responsibility for, the whole or part of the Services.

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8.0 Liability of the Consulting Engineer

8.1 The Consulting Engineer shall abide by, and take all measures necessary to enable him to
comply with, all laws and regulations in force in any place where the Services are to be
wholly or partially performed.

8.2 The Consulting Engineer shall only be liable for the consequences of errors and omissions
arising from gross negligence on his part or on the part of his employees to the extent and
with the limitations referred to hereunder.

8.3 The Consulting Engineer's liability hereunder as stated in Clause 8.2 shall be limited to the
10% of the total remuneration received for the relevant part of the Services proved to be
deficient pursuant to Clause 8.2 or Rs. 2,50,000.00 (Indian Rupees Two Lakhs and Fifty
Thousand Only) whichever is low.

8.4 The Consulting Engineer shall have no liability whatsoever in respect of legal rights of third
parties unless such rights have been specifically brought to the attention of the Consulting
Engineer by the Client by prior written notice.

8.5 The Consulting Engineer shall not be liable by way of indemnity or by reason of any breach
of this Contract or of statutory duty or by reason of tort (including but not limited to
negligence) for any loss of profit, loss of use, loss of production, loss of contracts or for any
financial or economic loss or for any indirect or consequential damage whatsoever that may
be suffered by the Client.

9.0 Force Majeure

9.1 The Consulting Engineer shall not be responsible for any delay or failure to perform his
obligations, under the Contract if the delay or failure is attributable to force majeure.

9.2 In the event of force majeure which makes it irresponsible or impossible for the Consulting
Engineer to perform in whole or in part his obligation under this Contract he shall use all
reasonable endeavours to notify the Client in writing and the Contract shall be suspended
from such event. In such circumstances the time for completion shall be suspended until the
circumstances no longer apply plus a reasonable period not exceeding 42 days for
resumption of the Consulting Engineer's obligations.

9.3 In the event of force majeure which delays performance of the whole or a substantial part of
the Services for more than sixty (60) days, either party shall have the right, by notice in
writing to the other party, to terminate this Contract.

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9.4 For purposes of this Clause, an event of force majeure shall mean an unforeseen and
unavoidable event beyond the reasonable control and contemplation of the party invoking
the existence of such an event.

10.0 Termination of Contract

10.1 The Client may, upon giving not less than thirty (30) days notice in writing to the
Consulting Engineer, terminate this Contract if the Consulting Engineer has failed to comply
with its obligations under this Contract.

10.2 The Client may, at its option upon giving not less than ninety (90) days notice in writing to
the Consulting Engineer, terminate this Contract if it is in the interest of, or for the
convenience of, the Client to do so.

10.3 The Consulting Engineer may terminate this Contract if the Client has, within a period of
forty-five (45) days after the due date, failed to pay any amount due to him and in respect of
which no dispute has arisen.

10.4 If this Contract is terminated under Clause 9.0 or 10.0, the Client shall be liable only for
payment, to the Consulting Engineer, in accordance with the payment provisions of this
Contract, for the Services actually rendered prior to the effective date of termination
together with such other amount incidental to termination as may be reasonable in the
circumstances.

11.0 Disputes

11.1 Any dispute or difference arising out of or in connection with this Contract, including those
considered as such by only one of the Parties, shall, unless it is amicably settled, be referred
to the arbitration of a person to be agreed upon between the Client and the Consulting
Engineer or, failing agreement within 45 days of a nomination by one of the parties, the
President of the Chartered Institute of Arbitrators, London.

The Arbitrator's decision shall be final and binding on both parties.

12.0 Modification or Amendment

12.1 Except by mutual agreement in writing between the parties, no change, modification or
amendment shall be made to this Contract.

13.0 Expiry Date

13.1 Unless terminated under Clause 9.0 or 10.0, this Contract shall expire upon completion of

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the Services and the discharge of all obligations arising out of or under this Contract.

14.0 Channel of Communications and Notices

14.1 Any communication, notification, submission, notice, demand or request under this Contract
shall be deemed to have been duly transmitted if it shall have been delivered by hand, first
class mail, cable, telex, or facsimile by either party to the other at the appropriate address
indicated below or at such other address as that other party may have indicated:.

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For the Client:

For the Consulting Engineer:

NOW THESE PRESENTS WITNESS and it is hereby agreed and declared by and between the parties
hereto as follows:

The Client hereby appoints the Consulting Engineer and the Consulting Engineer accepts the
appointment on the conditions as laid down in this Contract and Appendices annexed hereto and made
a part hereof.

FOR THE CLIENT FOR THE CONSULTING ENGINEER

_____________________________ _______________________________

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APPENDIX A

Contract dated ______________________________________________________

SCOPE OF SERVICES.

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APPENDIX B

Contract dated ______________________________________________________

COMMENCEMENT OF SERVICES AND DURATION OF CONTRACT.

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APPENDIX C

Contract dated ______________________________________________________

REMUNERATION AND PAYMENT.

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APPENDIX D

Contract dated ______________________________________________________

PAYMENT SCHEDULE

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