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JUN 2013 ISSUE 32

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Page 1: DID YOU KNOW THAT? - KHARAFI NATIONAL 32.… · Corporate FM-I&C Trading IPD FM-IS Instant Access ... as the Umm Al-Hayman WWTP in Kuwait. ... set up in 1996 in Ahmadi in Kuwait

[email protected]

A word from our MDAt Kharafi National, we believe that we must meet our commitments together to health, safety and environment. We also believe that it takes sustained great performance to be a great company. As part of this corporate commitment, we have launched an environmental awareness campaign across all our regional offices termed 'Tarsheed'. Behaving responsibly towards the environment not only benefits our environment, but can simultaneously benefit KN as it saves energy, time and costs. I believe that your participation in this campaign is an important step forward to a more sustainable operation and a better environment for all.

Save EnergyKhar

afi National

Tarsheed Campaign

DID YOU KNOW THAT?Producing steel from recycled steel material saves 75% of the energy needed versus steel made from virgin material.

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Contents

Passive Fire Proofing at ABJ04Projects

Calibration LaboratoryControlling measurement accuracy06

Operations NewsHabshan-511

Installing advanced emissions control technology

Operations News

12

Operations NewsDoha West Power Station, Kuwait13

In KN, the LOTO procedure is safe-operating procedure (SOP) number 15 in the company’s health and safety system, which contains 29 SOPs. As a SOP, the LOTO procedure is obligatory in all appropriate circumstances, such as maintaining, repairing, modifying and adapting equipment. These circumstances also include testing, lubricating and adjusting machinery, as well as general cleaning.

If these procedures, which have been designed to protect personnel, do not fit the circumstances in which work has to be undertaken, the project manager concerned must be informed. He will be responsible to devising specific procedures to fit the particular circumstances.

The LOTO procedure is not a replacement for a client’s safety programmes or the use of the client’s caution and danger notices, but works in parallel with them. The client’s safety procedures and notices must also be adhered to when the LOTO procedure is used.

Kharafi National’s mandatory LOTO procedure is a practical expression of its concern for the well-being of its work-force and its corporate ethos of Safety First.

LOTO (Lock-out / Tag-out) systems established in accordance withprocedures

MEP ServicesProtecting University City08

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Sewage Works & Water Networks16Operations News

EventsEgyptian Power & Electricity Summit 2012

AFED Annual ConferencePPP Investment Summit Kuwait 201320-22

Saving energy during earth-hour 2013

Environmental Responsibility

18

Kuwait’s Offset Programme Creating Awareness at KN23L&D

The LOTO Procedure24HSE

Construction

FM-I&CCorporate TradingIPD FM-IS Instant AccessEPC Fabrication General

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JUN 2013

Transmission is Kharafi National’s corporate newsletter. It contains news and stories about your company. Its purpose is to inform and stimulate.

Kharafi National prides itself on the culture of excellence it brings to every project it undertakes and Transmission is expected to reflect this culture.

Here in Corporate Communications, we would very much appreciate your comments on the content, design and layout of your corporate newsletter. Please send your constructive criticisms to:

Paul D Kennedy, [email protected] Abbas, Unit Head (Branding Unit) [email protected] Benigna, Unit Head (Communication Unit) [email protected]

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As we approach summer, I am pleased at the positive progress the company has made over the past year and a half. Kharafi National has succeeded in becoming both more efficient and more pro-active, successfully delivering existing projects, as well as gaining new awards. KN has been awarded a variety of projects both in Kuwait and in UAE and now, with an enhanced structure for Business Development, we can direct our efforts to expanding even further; already several key members on the board of the Corporate BD team are diligently working to secure projects for awards in 2014. This is in line with the business plan to grow our revenues and profitability across various operations and expand into new markets, namely the KSA, Oman, Iraq, Egypt, Lebanon and other potential countries.

Our plan is to focus on KN’s Facilities Management/Industrial Services business lines which have already successfully achieved some of the key objectives of our strategy to go up the value chain with more complex projects and expand regionally. This strategy is being realized with the recent award of Shuaiba North Power Plant and Subiya Plant where KN, for the first time, is providing the complete operation and maintenance of a power and water plant. The industrial services team is also exporting its capabilities by successfully completing the Borouge shut down in the UAE. Facilities Management/Industrial Services remains a sector with large untapped opportunities and I am happy to see the important and successful steps taken to achieve the targets that have been set.

IPD has also marked an important milestone for Kharafi National, by pre-qualifying for the Abu Rawash Wastewater Treatment Plant in Egypt alone for the first time without being a member of any international consortium. Abu Rawash, upon completion, will be the largest wastewater treatment BOT in the Middle East with a design capacity of 1.6million cu m per day. This project follows pre-qualifications for the important Dairut IPP in Egypt, as well as the Umm Al-Hayman WWTP in Kuwait. These important pre-qualifications will surely re-enforce KN’s reputation as the leading project developer in the region.

We are also very optimistic in the construction sector with the tender announcement of the clean fuel project and other projects around the corner in Kuwait and the UAE. For EPC, we remain on our strategy to be more selective on the projects that would

allow us to showcase our ‘know-how and grow’ in experience and expertise.

I would like to conclude on a very positive and optimistic note: KN has endured many challenges in the past few years with the turbines on our backs and with a regional and international political and economic crisis that we, despite our strength, were not immune to. Today, I realize that the challenges we faced have transformed KN into an extremely efficient company for its size. Therefore, I would like to thank the staff and management for working as a team to achieve our vision. I truly remain confident of the great future that lies ahead for Kharafi National.

Samer G Younis

Vice Chairman & Managing Director

Message from the Vice Chairman & Managing Director

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ABJ is fabricating massive quantities of structural steel products such as modular process skids, pipe-racks and piping at its facilities in Mina Abdullah, Kuwait, for a new gas plant on Shetland in the north Atlantic, as described in the last issue of Transmission.

The products are being coated with FIRETEX M90, from the internationally recognised Leigh’s Paint, a solvent-free thick-film intumescent coating that swells up when it is exposed to heat and offers protection against fires on structural steel for up to two hours.

About 20,000sq m of structural steel is being coated with this passive fire proofing (PFP) material which is effective against the types of fires experienced in the oil and gas industry, including hydrocarbon-fires where temperatures can reach 1100 degrees centigrade and even jet-fires that result from the continuous release of liquid or gaseous fuel.

M90 is an example of active insulation, ie insulation that undergoes chemical and physical changes when exposed to fire. Being an intumescent, the coating expands several times in the presence of fire and forms a char. A char is the solid

Kharafi National’s fabrication subsidiary has added passive fire proofing to the range of advanced technologies it can use to satisfy the needs of its clients. But what is PFP and how does it work?

... by Operations Manager (Fabrication Services) K Viswanathan

Passive Fireproofing at ABJ

ABJCORPORATE DEVELOPMENTS

material that remains after light gases have been released during the initial stage of combustion. A char is a poor conductor of heat, so it retards the transfer of heat and thus the spread of the fire.

By retarding the spread of a fire, PFP coatings can be crucial in keeping escape routes open and thus preventing loss of life. These coatings also control the spread of a fire and minimise the damage it can cause. However PFP is a very expensive method of protection due to the heavy cost of the coating materials and their application.

M90 comes as two components that have to be combined during application, for which skilled applicators are required. The most critical aspect of the application is achieving the correct ratio between the two components, which has to be done very quickly as the drying time is only five minutes.

JUN 2013

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ABJCORPORATE DEVELOPMENTS

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ABJ applies the PFP coating using special plural-component airless spray pumps that can cover 60sq m per machine per shift. KN imported four plural pumps from Germany at the cost of KD100,000. When these pumps are in use, the major component is flowing constantly while the minor component is injected at higher pressures. Advanced sensing technology allows the pumps to compensate for fluctuations in pressure, which results in highly accurate mixing in the correct ratios.

As well as the plural pumps, skilled operators are necessary. KN brought trainers in from the UK to qualify ABJ personnel to the requisite level. All its operators are now certified in accordance with the standards of the Society for Protective Coatings in the USA (http://www.sspc.org) ... a first of its kind for Kuwait.

As a qualified PFP applicator and with all necessary equipment available in-house, ABJ can now offer clients a full range of services in PFP coatings.

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JUN 2013

Assurance that a monitoring and measuring device provides accurate results is provided by calibration, ie by comparing the performance of the device with a reference standard (the standard performance expected from that device), and then adjusting the device as necessary.

The KN Calibration Laboratory was set up in 1996 in Ahmadi in Kuwait to provide calibration services for KN projects. It also provides these services to external customers. Branch laboratories were opened in Egypt in 2002 and in the UAE in 2003. In 2009, the main laboratory in Kuwait was relocated to KN Industrial City in Mina Abdullah.

The Calibration Laboratory does more than merely calibrate monitoring and measuring devices. All the measuring devices needed on KN projects are purchased by the labs, stored and issued to projects as they are needed. The projects return them when they have finished using them or the devices are due for re-calibration. Overall control of KN’s monitoring and measuring devices by the labs ensures quality, accuracy and reliability during all the phases of a project’s ... construction, installation, testing and commissioning.

The Calibration Laboratory provides a vast range of inspection, testing and measuring instruments ... more

Kharafi National’s Calibration Laboratory is a centre of excellence for the calibration of a very wide range of monitoring and measuring devices to fulfil the requirements of KN projects and external customers.

... by Calibration Lab Manager Pajak Kazimierz

Controlling measurement accuracy

CALIBRATION LABORATORY SUPPORT SERVICES

than 7,500 different types of devices ... to KN projects. ISO 9001 requires that all these devices be calibrated periodically. The labs tests approximately 12,500 instruments a year and issues calibration certificates for 4,500 of KN’s own instruments and 8,000 instruments belonging to third-parties. The latter work generates significant income.

The labs can handle almost all types of calibrations,electrical, mechanical (dimension, pressure, mass and torque), temperature, humidity and chemical, in accordance with ISO standards. Its services include infrared thermography for predictive maintenance, power quality analysis that measures all electrical parameters, and vibration analysis for rotating equipment such as motors, pumps, generators etc.

The Calibration Laboratory is fully computerised, with applications covering more than 1,000 procedures. These enable the accuracy of an instrument to be calculated automatically against standard data for that instrument. In some tests local conditions, such as ambient temperature and barometric pressure, are taken into account to ensure the highest degrees of accuracy.

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The labs provide a single window calibration solution for all KN projects. Indeed, 95% of the instruments used by KN are calibrated in-house and only 5% are subcontracted to external companies such as Kuwait Survey Company and Behbehani for surveying equipment, and to the Kuwait Air Force Metrology Branch for a few other instruments.

The labs adhere to ISO standards of ‘traceable calibration’ in all their work. This means that the master equipment used by the Calibration Laboratory to calibrate instruments must themselves be assessed for accuracy. For this, KN sends its master equipment to the UK, USA, the Netherlands and the UAE for checking against instruments that are known to meet primary standards.

The high calibration standards attained by KN’s labs are ensuring that about two-thirds of the works undertaken by the labs involve third-party instruments. Major clients in Kuwait include KOC, KNPC, ABB, Equate, Siemens, Hyundai and Kuwait Flour Mills. Much of KN’s success in calibration is attributed to the unit’s team of fully-trained and highly experienced engineers and technicians.

In addition, KN invests heavily in inspection, testing and measuring instruments. For example, it recently acquired two Olympus iPLEX LX videoscopes which will enable ABJ Fabrication Services to undertake remote visual inspections. It has also purchased two cable test vans for medium and pilot cables required by FM Industrial Maintenance for the laying of 11KV medium voltage cables on behalf of Kuwait’s MEW (see Operations News in this issue).

To further enhance its reputation for quality calibration services, KN Calibration Laboratory is currently undergoing ISO 17025 Laboratory Accreditation, which will provide formal recognition of technical competence in specific tests and measurements.

CALIBRATION LABORATORY SUPPORT SERVICES

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JUN 2013MEP SERVICESPROJECTS

Sabah Al-Salem University City is the most ambitious construction project ever undertaken by Kuwait University (see box). At KU’s new campuses in Shadadiya, Kuwait, KN is installing all the electro-mechanical services for the civil defence shelters being constructed by Al Ahmadiah Contracting & Trading Company.

The west campus will contain 14 underground civil defence shelters, 9 of which will be topped by two levels of overhead (decked) parking that will include 5 electrical sub-stations, on a site of just over 48,000 square metres. The east campus will have 12 underground shelters but only 4 will have overhead decked parking (with 2 electrical sub-stations), spread over 45,000sq m.

The shelters have been designed to C4 standards (see box), which means that they are intended as public civil defence shelters against conventional, nuclear, biological and chemical threats.

On both sites, KN’s scope of work includes the complete execution of the mechanical, electrical and plumbing (MEP) services for all the shelters and decked parking. The scope includes installing critical equipment such as blast-resistant valves and gas-tight sleeves for bringing the electro-mechanical

Protecting University CityKharafi National is entering a new area of expertise with contracts to execute the electro-mechanical services for the civil defence shelters at Sabah Al-Salem University City.

... Project Managers Tarek El Yamani and Mohamed Al-Ajamy explain

services through the walls of the shelters as well as special filtration units with built-in alarm systems that can automatically detect chemical warfare agents.

KN also has to test and commission both systems, as well as connect the MEP services to the other infrastructural utilities. The project, which began in December 2012, will take about 41 months to execute, after which KN will operate and maintain the works for two years.

Despite its apparent simplicity, the project presents a challenge. The MEP services for the shelters have to conform to the strict specifications laid down by the civil defence authorities in Kuwait, which are based on Finland’s very stringent regulations.

These specifications oblige KN to study the project thoroughly and then use its understanding to co-ordinate closely with the other service contractors, as well as the main contractor, to ensure that the special sleeves for the cabling and ducting, which are critical for the integrity of the shelters, are correctly fitted.

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MEP SERVICESPROJECTS

Sabah Al-Salem University CityKuwait University (KU) is building a campus that will integrate all its colleges for arts, humanities, sciences, engineering and medicine on a single six million square metre plot of land in Shadadiya, south-west of Kuwait City. The ten-year master plan envisages an eventual population of 39,000 students.

This vast area ... Sabah Al-Salem University City ... is being divided into two segregated campuses, one for male students and the other for females, in accordance with Kuwait’s new policy of segregation at higher level institutes of education. Purpose-designed for the harsh local climate, the women’s and men’s campuses will be divided by a landscaped ‘oasis’ of water pools and green mounds in the centre of University City.

Each campus is being organised along a student ‘galleria’, an outdoor weather-protected urban street that will link all major functions of that campus. Individual campus buildings, one each for the various schools, will be grouped as a series of leaves that radiate out from the central spine formed by the galleria.

To prepare young Kuwaitis for the future development of their country, Sabah Al-Salem University City will contain world-class educational facilities equipped with the most advanced learning resources.

Civil Defence SheltersA civil defence shelter is a hardened building that shields its occupants against from explosions, toxic gases, biological and chemical agents, and nuclear radiation, which may arise from war, terrorism or industrial accidents.

To protect and sustain life, the shelters must be able to withstand blasts and shocks, and must be air- and gas-tight. They need filtration systems that deliver clean air yet cannot be breached by toxic gases. They must also be self-sufficient in terms of power and water. Shelters are classified as C1, C2, C3, or C4 according to the degree of protection they provide.

C1 is the highest level of protection and is used for military command centres, C2 is used for control centres, and C3 for airports and VIP buildings. Though C4 provides the weakest form of protection it is nevertheless a very effective defence against a wide range of threats.

To minimise the vulnerability of exposed areas, public defence shelters are partially or fully buried in the ground and their entrances are equipped with doors that are blast-resistant and gas-tight. They also have very sophisticated air-filtration systems which not only provide air for breathing but also for cooling the back-up power systems and other equipment. Preserving the integrity of the air is vital for the preservation of the lives of persons in the shelter.

The air-filtration system has blast-resistant and gas-tight valves that shut tight whenever the air pressure outside the closed shelter changes dramatically, as it would were there were an explosion nearby. The integrity of the shelter is also preserved by the use of air- and gas-tight sleeves where electric cables, pipes and ducts enter through the gas-tight walls.

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JUN 2013DECEMBER 2012

Operations news

Bayan Palace is the main palace of the Amir of Kuwait, where visiting heads of state are entertained and accommodated. The palace contains large office and residential buildings of high architectural merit, as well as a majestic mosque, set among well-maintained gardens. Since it helped refurbish the palace after the liberation of Kuwait more than 20 years ago, Kharafi National has long been associated with the maintenance of its facilities. In mid-January this year, the company began work on the construction of a new administrative building within the precincts of the palace.

The client is the Amiri Diwan and the architects are Naser Berosly Consultant Office. As the main contractor, KN’s scope of work covers design, construction and maintenance. Construction will require about 850 employees at the peak. A time-scale of just 16 months makes this a fast-track project, which is expected to consolidate the company’s relationship with the Amiri Diwan.

While major projects such as the construction of Habshan-5 in the UAE and the power stations in Egypt are winding down, the reputation Kharafi National gained on these projects is helping the company generate plenty of new work in the construction of refinery facilities, facilities management and industrial maintenance. KN is also extending its areas of expertise into advanced technological areas such as state-of-the-art emissions control.

Construction at Bayan Palace

FM - I & COPERATIONS NEWS

Facilities Management-Institutional & Commercial

KN has begun constructing the new administration building in Kuwait’s Bayan Palace

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The construction of the Habshan-5 Process Plant, the largest project ever undertaken by Kharafi National in the oil and gas sector, has finally reached the commissioning stage.

The mechanical completion certificate for phase one, which covers five process units and related substations, instrument and equipment shelters, and operation and maintenance shelters, has been received from the owner. The second phase is expected to be handed over in the second quarter of 2013.

With just over 96% of the work completed, the project has attained an extraordinary 61.9 million man-hours without a lost-time incident. This singular achievement is due to KN’s culture of safety and the willingness of its highly committed employees to take personal responsibility for an incident and injury-free project.

The timely completion of phase one, with strict implementation of KN’s professional standards of safety and quality, has been recognised by GASCO, the owner, and the Tecnimont and JGC Joint Venture, the main contractors, proving once more that Kharafi National can successfully manage mega-projects in the oil and gas sector.

The process plant built by KN at Habshan in the UAE is impressive in size and complexity

CONSTRUCTIONOPERATIONS NEWS

Habshan-5

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JUN 2013EPCOPERATIONS NEWS

Installing advanced emissions control technologyKharafi National is achieving another first in Egypt and North Africa with the installation, testing and commissioning of state-of-the-art emissions control technology for all the heavy-duty gas turbines in the power plants in El-Shabab, Damietta and West Damietta which were built by KN.

The emission control equipment is being supplied by GE who also originally supplied the turbines for the plants. The technology uses Dry Low NOx (DLN) combustors which pre-mix air and fuel before combustion. This lowers emissions much more than traditional methods based on the injection of water and steam.

The main function of the DLN conversion is to reduce the emission of nitrogen oxide (NOx) to as little as 25 parts per million. Other emissions will also be reduced. These include dry gas (to a low of 15%), excess oxygen, and sulphur dioxide.

Once the DLN combustors have been installed, the power plants will satisfy the standards of the Environmental, Health & Safety Guidelines for Thermal Power Plants of the World Bank Group. These guidelines represent good international industry practice (GIIP) and are used by the World Bank’s International Finance Corporation when appraising projects.

As well as ensuring compliance with GIIP, the new technology will improve the durability and performance of the turbines. It will also extend their availability as the intervals between necessary inspections and down-time for maintenance will be lengthened significantly.

Conversion at Al-Shabab and Damietta power plants began earlier this year and is expected to be finished by mid-summer. The installation of DLN technology at West Damietta will be undertaken later in 2013.

The success of this project will not only enhance Kharafi National’s reputation for respecting its environmental responsibility but will add to the wide range of technologies KN is confident it can handle.

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Maintenance works for PIC in Shuaiba

Doha West Power Station, Kuwait

Petroleum Industries Company KSC, which is wholly owned by the State of Kuwait, produces, markets and distributes petrochemicals. PIC has a vast petrochemical complex in Shuaiba in southern Kuwait.

After a four-month mobilisation period, KN’s FM Industrial Services began work in February 2013 on a 48-month contract to maintain the mechanical, electrical, instrumentation and civil works at PIC’s plants and facilities in Shuaiba. The scope of work covers the supply of manpower and the provision of services under a contract that will run until February 2017.

KN will have from 250 employees on this project which will rise to at least 500 during peak times such as shut-downs. KN is also obliged to supply additional temporary manpower when additional maintenance activities are required.

The scope of work includes scaffolding, painting and insulation works, pipe fabrication and welding, the removal and installation of flanged valves and blinds, as well as the supply of equipment and materials.

The comprehensive nature of this lengthy maintenance contract reflects the trust major clients in Kuwait have in KN’s capabilities.

As reported in the last issue of Transmission, Kharafi National began work on a second five-year contract for the annual maintenance of the instrumentation and control systems at Doha West thermal power generation and water distillation station in Kuwait, on behalf of the Ministry of Electricity & Water (MEW), in June 2012.

On the 16th September 2012, the company began work on its first five-year mechanical maintenance contract at the same plant.

First commissioned in 1982, Doha West has eight power generating units of 300MW each, for a total output capacity of 2400MW. The plant also contains 16 water distillation units, for turning sea-water into clean potable water, with a total output of 115.2 million imperial gallons (MIG) a day.

Maintenance of Doha West is critical ... as the plant is responsible for around 20% of the total power and water produced in the State of Kuwait. Indeed, it is one of the country’s main base load power stations, ie, a power station that has to make a minimum amount of energy available at all times.

KN’s scope of work covers the mechanical maintenance of plant and equipment such as boiler and turbine units, water distillation units, common auxiliary plant, the recarbonation plant and the fuel oil pumping station, during the shut-down period which runs from September to May each year.

Each piece of equipment is to be shut-down in turn, in accordance with the client’s schedule. KN will supply all the necessary technical staff, as well as specialists in the manufacturers’ original equipment. The company expects to have 458 personnel on site at the peak.

The award of this mechanical maintenance contract, along side the renewal of KN’s instrumentation and control contract, means that KN’s reputation in Kuwait for the successful delivery of large-scale industrial maintenance projects requiring specialist skills is second to none.

KN is maintaining PIC‘s petrochemical complex in Shuaiba, Kuwait

FM INDUSTRIAL SERVICESOPERATIONS NEWS

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JUN 2013FM INDUSTRIAL SERVICESOPERATIONS NEWS

Construction of refinery facilitiesOn the first day of 2013, Kharafi National began work on a package of seven projects for Kuwait National Petroleum Company (KNPC) at Mina Abdullah (MAB) refinery in Kuwait.

All seven projects are mechanical in nature but include associated civil, electrical and instrumentation works. This single multi-disciplinary EPC contract, which will provide work for about 50 employees, will take three years to complete.

KN will be undertaking the design, procurement, construction and commissioning of all seven projects. The company will also be responsible for the detailed engineering, which it is sub-contracting to ProU International for Engineering, a KNPC-approved consultancy. Work has already begun on some of the projects.

The first project involves replacing the existing coke surge drum with a larger drum and the design and installation of a new coke feed surge. The second project requires KN to construct side-stream filters for the cooling water system for the refinery’s effluent treatment facilities, and the contract obliges KN to ensure that each piece of equipment can be maintained without disrupting the entire system.

Two of the projects entail upgrades of pumping systems. KN will install a new fresh-water booster pump to augment the existing pumps which lack the required capacity. The fourth project involves replacing high-speed desalter water injection pumps with low-speed pumps. In the fifth project, KN will install sixteen high-efficiency belt-driven air coolers in place of gear-driven fans in crude unit-01.

The last two projects involve upgrades to the refinery’s odour management systems. KN will install auto-drainage systems on four storage tanks and will install new (and modify existing) sample points, sample coolers and sample boxes used to collect samples for laboratory analysis.

Though it has been upgraded several times since it was first built in 1958, MAB refinery will obtain substantial benefits from these projects. The refinery’s effluent will now meet Kuwait Environment Protection Agency specifications before being released into the Arabian Gulf and the problem of odours being released into the atmosphere will be largely resolved.

In addition the corrosion of equipment, due to the use of distilled water instead of fresh water, from

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high salt levels and from chloride, will be much reduced enabling significant savings in maintenance and replacement costs. The new low-speed pumps will also reduce damage due to vibration. All the upgrades will improve overall reliability and product quality.

For KN, this package of projects is challenging on several fronts. All seven projects must be executed without interfering with the integrity of the plant and with zero lost-time incidents in accordance with both KN’s and KNPC’s policies. Two of them must be completed in less than 24 months, during which time all engineering, procurement, construction and commissioning must be carried out.

However, successful execution of the contract will deliver several benefits for KN. Significant experience in EPC projects will be added to the company’s CV. Indeed, the projects will allow KN to enhance its administrative and technical procedures for the execution of EPC projects.

In addition, although a project to construct a new refinery in Kuwait has started, the country’s existing refineries are aging and KN will be well placed to bid successfully for the many upgrades and additions to existing facilities that are likely to be put out to tender in coming years.

Client Expresses Appreciationof KN standards and techniques

KN Scaffolding Unit has received a letter of appreciation from Saipem, the main contractor at Kuwait Oil Company’s booster station BS-160, for the high standards of safety and superb techniques displayed by KN in the design,

engineering, erection and supervision of scaffolding works during the construction of the booster station.

Saipem’s project director praised the positive attitude, professionalism, precision work, commitment and close co-ordination of the scaffolding teams let by Eng Ahmed Abul Hassan and Eng Eslam Abu Taleb.

SAFETY PAYS

FM INDUSTRIAL SERVICESOPERATIONS NEWS

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JUN 2013

Cable-laying for MEW

Sewage Works & Water NetworksMPW and MEW contracts

Facilities Management (Industrial Services-Sewage Works & Water Network) recently secured two new contracts - one from the Ministry of Public Works (MPW) and the other from the Ministry of Electricity & Water (MEW) in Kuwait.

The first contract is for emergency road maintenance works in Jahra Governorate. It is similar to the contract with the MPW for asphalt works which KN is currently executing. This contract will run for two years.

The second contract is a repeat contract with the MEW for improvements and additions to existing water networks in all areas of Kuwait. KN’s scope of work on this two-year contract includes the installation of new house connections and the transfer and updating of existing connections. Under this contract, KN will also be installing new pipelines to service consumers as well as pipelines to deliver both fresh and brackish water to government installations, works that include the construction of manholes and thrust blocks as needed.

Kharafi National began work on a three year contract with the Ministry of Electricity & Water (MEW) in Kuwait for the laying of 11KV medium voltage cables in October 2012.

KN’s scope of work includes the excavation of trenches and pits, and the supply of pipes to carry the cables. Once the new 11KV and pilot cables have been laid, KN will back-fill the excavated areas, replacing tiles and slabs and re-asphalting as necessary. The scope also includes the reinforcement and re-routing of existing cables.

As well as joining the cables, KN will be installing in-door cable terminals for the MEW’s consumers and out-door terminals (such pole boxes) as required. KN expects to have 120 employees working on this contract, which will consolidate the company’s reputation with the MEW.

Successfully executing a project such as this is a test of corporate capabilities as it requires Kharafi National to deploy highly-skilled cable jointers, as well as the tools and equipment needed to finish the work according to the client’s schedule. Indeed, finishing on time is very important in enabling the client, the MEW, to connect the power grid to its consumers. In addition, the personnel working on the project need to have an intimate knowledge of Kuwait’s road and sub-stations as the work covers all geographical areas in the country

FM INDUSTRIAL SERVICESOPERATIONS NEWS

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Massive new tower cranes Equipment Division has ramped up its project support services by supplying and erecting, for the first time in Kuwait, eight massive tower cranes. The cranes are for one of KN’s prestigious contracts, the construction of the Al-Shadadiya fast track phase of the Sabah Al-Salem University project.

Sabah Al-Salem University City is the most ambitious construction project ever undertaken by Kuwait University and will cover an area of six million square metres. This vast area is being divided into two segregated campuses, one for male students and the other for females, in accordance with Kuwait’s new policy of segregation at higher level institutes of education.

A total of eight units are being installed at the two campuses. The capacities of the cranes will range from 6 to 10 tons. The mast heights will vary from 35 to 60 metres and the jib lengths from 50 to 60 metres.

Transporting and erecting these cranes is a huge task. The heavy components were delivered to Kuwait by sea in 49 containers and offloading them took a full seven days. Despite adverse weather conditions, installation only took about a month and was a joint effort between the Equipment Division’s Technical and Rigging Team and a team from Instant Access.

Congratulations to All Scaffolders on Habshan-54 million cu m erected without an LTI

The quantity of scaffolding erected at the Habshan-5 project in the UAE without an LTI (lost time incident) currently amounts to more than four million cubic metres. In achieving this milestone, the team from KN Scaffolding Unit, led by Eng Walid Hosny, has worked entirely using KN’s own internal resources. The complex nature of scaffolding at Habshan-5 was a challenge

EQUIPMENT DIVISIONOPERATIONS NEWS

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JUN 2013ENVIRONMENTAL RESPONSIBILITYCORPORATE

Saving energy during EARTH-HOUR 2013

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Kharafi National’s commitment to preserving the Earth as a human habitat was broadened this year when energy consumption was reduced at four KN sites during Earth Hour 2013.

Encouraging households and businesses to turn off non-essential lights and equipment for one hour on one day in the year raises awareness about the need to take action on climate change. This annual global event takes place in 135 countries. It is coordinated by a small team in Sydney, Australia, where the event was founded.

Earth Hour 2013 took place on the 23rd of March. In the UAE, the chosen hour was from 8:30pm to 9:30pm. KN organised shut-downs of lighting and equipment at Rihan Heights district cooling plant in Zayed Sports City, the Souk (central market) in Abu Dhabi, ADIA’s new headquarters, and Al-Zeina Development during this hour. KN operates, maintains and manages the facilities at these locations.

The shut-downs were planned thoroughly, the usual practice at KN, and only lighting and equipment that did not affect public safety was turned off. During the shut-downs, personnel were standing by with emergency power supplies to cope with any unforseen emergencies. None arose.

All four shut-downs achieved significant savings in energy, as well as related reductions in carbon dioxide emissions. The shut-down at Rihan Heights DCP saved 53.39 kilowatt-hours (KWh) while, at the Central Market, the savings were 406KWh. In ADIA HQ, the energy saved was 2,525KWh, and at Al-Zeina project it was 1,820 KWh ... giving overall energy savings of 4,804 kilowatt-hours with an equivalent reduction in emissions of carbon dioxide of 2, 619kg.

For more information on Earth Hour, its mission and achievements, check out: www.earthhour.org.

ENVIRONMENTAL RESPONSIBILITYCORPORATE

KN technicians being briefed thoroughly at ADIA HQ in preparation for Earth Hour 2013

KN staff at the entrance to ADIA’s new headquarters during Earth Hour 2013

Lights at Al-Zeina Development in the UAE prior to Earth Hour 2013

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JUN 2013EVENTS CORPORATE

Egyptian Power & Electricity Summit 2012

FM Expo at the Big 5

Kharafi National was the lead sponsor of the annual Egyptian Power & Electricity Summit which was held in Cairo, Egypt, from the 30th of September to the 3rd of October 2012. The summit brought government departments, production, transmission and distribution companies, contractors, design consultants, international vendors and local manufacturers together to discuss the future of the Egyptian power and electricity sector. The discussions focused on the ambitious targets contained in Egypt’s latest five-year development plan and how these could be best achieved.

Kharafi National took part in the FM Expo at the Big 5 which was held at the Dubai World Trade Centre from the 5th to the 8th November 2012. FM Expo was the facilities management segment of the Big 5 2012, an exhibition and networking event for the construction industry in the Middle East, which attracted more than 2,000 visitors from 60 countries. It was organised by dmg :: events, an international event organizer.

KN became a member of MEFMA, the Middle East Facilities Management Association, in 2012. Since then its share of the FM market has grown rapidly. FM Expo at the Big 5 enabled KN to network with key clients in the FM industry and to showcase the company’s know-how and vast experience in facilities management in the region. It also gave the company an opportunity to access the latest products, technologies, innovations, techniques and industry practices in facilities management.

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EVENTS CORPORATE

AFED Annual Conference

Kharafi National was the gold sponsor of the annual conference of the Arab Forum for Environment and Development which was held in the Phoenicia Intercontinental Hotel in Beirut on the 29th and 30th of November 2012.

AFED is a not-for-profit regional non-governmental organization that brings experts from civil society, the business community and the media together to discuss and promote prudent environmental policies and programmes across the Arab region.

The discussions at the 2012 conference focused on ‘Survival Options - Ecological Footprint of Arab Countries’, the fifth in a series of annual reports produced by AFED on the state of the Arab environment. As a basis for the analysis contained in the report, AFED commissioned Global Print Network to create an Arab Ecological Footprint and Bio-capacity Atlas using the most recent data.

The findings of the AFED report indicate that the demand for nature’s products and services in the 22 member states of the Arab League amounts to more than twice what the ecosystems in these countries can supply, and that this imbalance is placing limits on their future growth and wellbeing.

The report analysed the challenges arising from the state of food security, water and energy in these countries taking into account the main drivers such as their populations and patterns of production and consumption. The report suggests alternative paths to development and states that regional cooperation and the sound management of resources are the main options for survival ... all matters that were debated vigorously at the conference.

PMV Live at the Big 5PMV Live was the largest showcase in the Middle East during 2012 for plant, machinery and vehicles. Co-located with the FM Expo, it too took place from the 5th to the 8th November at the Dubai World Trade Centre and was also organised by dmg :: events. Kharafi National was a sponsor and Instant Access, KN’s equipment leasing and sales arm, was a major exhibitor.

PMV Live was a sit-and-feel event; it provided potential buyers with an opportunity to get really close to a vast range of earthmoving, lifting, power generation and other construction equipment, and more than 9,000 visitors did so. By using the exhibition to demonstrate the superb brands of construction equipment which it represents in the Gulf, Instant Access increased its client base significantly.

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JUN 2013

PPP Investment Summit Kuwait 2013Kharafi National was the platinum sponsor of the second annual public-private partnership (PPP) summit at the Hilton Resort, Kuwait, on the 4th and 5th of February 2013. The summit was organised by IQPC, an international event management firm.

The primary focus of the two-day conference was on the changes that will take place in the structure of future projects in Kuwait and how the public sector is evolving from being an operational actor to behaving more as a regulatory player in the PPP market. Presentations on these matters were made in the mornings, while workshops were conducted during the afternoons.

The Partnership Technical Bureau (PTB) is the main government authority responsible for the implementation of PPP projects in Kuwait. During his presentation, President Adel Mohammad Al-Roumi of PTB stated that, due to the increasing demand for power and water in Kuwait, the main focus of future projects will have to be on PPP projects in the power and water sectors.

President Al-Roumi also noted that satisfying the demand for more power and water will in turn make additional capacity for the management of solid waste and wastewater necessary. To secure the necessary resources, the PTB and major players in the power and water sectors are working together to find a sustainable PPP structure.

A presentation on the PPP structure applied at KN was made by Dr Ibrahim Alghusain, General Manager of the Utilities Development Company (UTC) and Director of Infrastructure Projects Development at KN. Under the first BOT contract of its kind in Kuwait, UTC constructed and is operating through KN the Sulaibiya Wastewater Treatment and Reclamation Plant in Kuwait.

Dr Alghusain explained the transition from a classic two dimensional project structure, where the owner or client and the contractor are bound by only one or two contracts, to a three dimensional project structure which consists of several players and contracts and for which a special purpose company (SPC) needs to be created.

Dr Alghusain also addressed the regional challenges of project financing. He highlighted the fact that, with the advent of PPPs, the private sector is also in transition, just as much as public sector clients or owners, but from being a simple contractor to an investor in a PPP.

EVENTS CORPORATEEVENTS CORPORATE

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Kuwait’s Offset Programme... Creating Awareness at KN

L&DCORPORATE

Kuwait’s Counter-trade Offset Programme is highly relevant for companies that submit bids in conjunction with foreign partners for large value projects to government entities in Kuwait. In late November 2012, Kharafi National undertook an initiative to create awareness of Kuwait’s offset programme among managers.

... Learning & Performance Manager Robert Fogelman explains

To help diversify the private sector, create high-skill jobs for nationals, and encourage the transfer of advanced knowledge-intensive technologies into the country, the Kuwait government established a counter-trade offset programme in July 1992.

The programme requires foreign companies that enter into ‘large’ supply contracts with government institutions to invest in projects beneficial to Kuwait, whether on their own, as members of local partnerships or consortiums or by participating in an investment fund established under the programme. Initially managed by the Ministry of Finance in Kuwait, since 1992, the programme has been run by the state-owned National Offset Company (NOC).

KN’s initiative to create awareness of potential offset obligations among its decision-makers took the form of a seminar conducted by Ernst & Young. The event was linked to all operational areas via a video conferencing facility so that awareness of the issues involved could be spread throughout the company.

The presentation covered a wide range of offset-related issues, including:

- the guidelines available on the offset programme- the applicability of the programme to various projects- pricing alternatives allowed under the programme- bond requirements and other obligations- the practical application of the programme- special issues relating to joint ventures and consortium agreements

The presentation was followed by a lively question-and-answer session which lasted longer than the presentation itself ... indicating a genuine desire to understand the core concepts of the programme and the obligations to which it can give rise. Many of the questions centred on existing KN contracts and the need to review those that might be affected by an offset obligation.

The offset awareness initiative at KN was very successful. It made managers conscious of the need to work with the NOC in establishing offset obligations arising from particular contracts and to agree and sign related memoranda of understanding to express how these obligations will be met.

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JUN 2013

The LOTO ProcedureThe Lock-out—Tag-out (LOTO) procedure is designed to protect personnel carrying out repair, maintenance, modification or other works on plant and machinery, and is mandatory at all Kharafi National work-sites and installations.

... Corporate Department Manager (HSE) Don Brown explains

HSECORPORATE

Electrical and mechanical hazards are ever present in project sites and workshops. High voltage electricity, hot oils and other fluids, and moving parts such as blades, propellers, chains, conveyor belts, and so on can hurt, incapacitate and even kill persons working on machinery.

The only way to nullify these hazards is to ensure that all sources of energy are identified and cut-off before any maintenance or other work begins on a particular machine, ie make sure that it has been isolated and cannot be started up.

Very often work-place incidents arise from over-confidence, ie from an I have done this many times before and nothing happened attitude that can be fatal ... where electricity is concerned it only takes one incident for a fearful price to be paid.

The Lock-out—Tag-out (LOTO) procedure is designed to make sure that a piece of machinery is fully isolated before work on it commences. The procedure is controlled by the maintenance team.

First a lock is put on the breaker for the electricity supply to the machine. A tag or note is also attached to the breaker explaining why and by whom it has been locked-out. Then an attempt is made to start the machine. This tests whether it has been isolated 100% from its power supply.

After this test has taken place, then (and only then) a lock is also placed on the machine’s controls. This provides double insurance that the machine can be worked on in full safety.

If a single person is working on the machine, he controls the keys to the locks. However, if several persons are involved then their supervisor or foreman keeps the keys in his possession. In both cases this prevents the locks being opened and the machine started until the work has been finished.

To ensure that this procedure is carried out assiduously, written records must be kept of all locks and tags applied using the LOTO register. This register shows, for all lock-outs, their location, inspection and current status.

All close-outs (ie, when the machinery is de-isolated) must also be recorded in the register. Without the close-outs, operations are not allowed to restart the machinery, even if this causes a delay in production.

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Contents

Passive Fire Proofing at ABJ04Projects

Calibration LaboratoryControlling measurement accuracy06

Operations NewsHabshan-511

Installing advanced emissions control technology

Operations News

12

Operations NewsDoha West Power Station, Kuwait13

In KN, the LOTO procedure is safe-operating procedure (SOP) number 15 in the company’s health and safety system, which contains 29 SOPs. As a SOP, the LOTO procedure is obligatory in all appropriate circumstances, such as maintaining, repairing, modifying and adapting equipment. These circumstances also include testing, lubricating and adjusting machinery, as well as general cleaning.

If these procedures, which have been designed to protect personnel, do not fit the circumstances in which work has to be undertaken, the project manager concerned must be informed. He will be responsible to devising specific procedures to fit the particular circumstances.

The LOTO procedure is not a replacement for a client’s safety programmes or the use of the client’s caution and danger notices, but works in parallel with them. The client’s safety procedures and notices must also be adhered to when the LOTO procedure is used.

Kharafi National’s mandatory LOTO procedure is a practical expression of its concern for the well-being of its work-force and its corporate ethos of Safety First.

LOTO (Lock-out / Tag-out) systems established in accordance withprocedures

MEP ServicesProtecting University City08

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[email protected]

A word from our MDAt Kharafi National, we believe that we must meet our commitments together to health, safety and environment. We also believe that it takes sustained great performance to be a great company. As part of this corporate commitment, we have launched an environmental awareness campaign across all our regional offices termed 'Tarsheed'. Behaving responsibly towards the environment not only benefits our environment, but can simultaneously benefit KN as it saves energy, time and costs. I believe that your participation in this campaign is an important step forward to a more sustainable operation and a better environment for all.

Save EnergyKhar

afi National

Tarsheed Campaign

DID YOU KNOW THAT?Producing steel from recycled steel material saves 75% of the energy needed versus steel made from virgin material.

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