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TRANSCRIPT
Jordan Atomic Energy Commission
National Participation
NPP project
Presentation to
Technical Meeting on Industrial Involvement and Localization for New Nuclear Power Plant Construction
26-29 August 2014
Qingdao , China
Ahmad Malkawi
Jordan Atomic Energy Commission
Jordan Atomic Energy Commission
Jordan Country Profile
- Total Area: 89,213 Km2
- Sea Port: Aqaba
- Coastline: 26 Km
- Population: 6,482,081 (July 2013 est.)
60% (15- 64)
35% (below 15)
- Climate: Mediterranean & Arid Desert
- GDP: $31.21 billion (2012 est.)
- Per Capita: $6,100 (2012 est.)
- Annual GDP Growth: 2.8% (2012 est.)
Jordan Atomic Energy Commission
JAEC‘s Current Activities
Jordan’s Nuclear Projects
Uranium Exploration
HRD Nuclear
Power Plant Project
Research Reactor
Subcritical Assembly
Education & Training
Jordan Atomic Energy Commission
Nuclear Research Facilities The JRTR
CP Obtained in August 15th, 2013
Jordan Atomic Energy Commission
NPP Model Two inland NPP that will rely on reclaimed, treated waste water as its
cooling water
This is very similar Palo Verde/USA use of waste water for cooling
We anticipate the need of 25-30 M m3/1,000 MWe unit per year
Jordan Atomic Energy Commission
Key GoJ Decisions, 2014
Establish the Jordanian Nuclear Company
Characterize the Amra site
Rosatom/ASE selected as a Preferred Bidder
Start Phase 1 activities (Definition of Project Parameters) with the Preferred Bidder
Establish, negotiate and secure all viable financing options (e.g., government to government; state-backed utilities, state supported lending organization, etc.) with the Preferred Bidder.
Jordan Atomic Energy Commission
Owner/ Operator
Company JNPC JAEC
Government of Jordan
JNRC
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EPC Contract Signature
First Concrete
COD for Unit 1
Feasibility & Finance Arrangements
Site Characterization & EIA
Site Permit (JNRC) Construction Permit (JNRC)
Negotiations with Preferred Bidder
Phase 2
Phase 1
Final Investment Decision
Construction Ends
Construction Period for Unit 1
Indicative Key Milestones for JNPP
Jordan Atomic Energy Commission
NPP Available Sites - خارطة المواقع
Jordan Atomic Energy Commission
Introduction
In Bid Invitation Specification (BIS) JAEC required 20% share
of total project budget to be given to local industry
JAEC want to increase the share to 30% for the second NPP
units
Local industry should compete in a commercial basis in terms
of price and quality.
Jordan Atomic Energy Commission
Activities
During Sep 1-3,2003.JAEC hosted IAEA workshop in
national participation
Three IAEA expert participate in the work shop Mr.Kang
and two experts from Korea and China
JAEC invited related government institutes and industry
regulators
Different topics in localization and technology transfer
were discussed
Exploring China and Korea experience and lessons
learned
During the meeting, an open half-day for 33
representatives from local industry met with IAEA experts
Jordan Atomic Energy Commission
Jordan Atomic Energy Commission
Meeting with local industry
• JAEC invited about 30 representative of local industry and construction companies for a half day meeting
•Presentations from experts and questions •concern a bout competing the prices, especially of nearby countries due to high energy prices in Jordan.
Jordan Atomic Energy Commission
Workshop recommendations
Set-up of localization planning committee
Establishment of long-term Localization Program
led by Government & project owner
Set-up of policies for promoting national
participation
Selection of one type of NPP and repeated order
for standardization
Improvement of local industry’s capability
14
Jordan Atomic Energy Commission
Actions
For the first recommendation, JAEC requested Prime Ministry
to form a localization committee headed by JAEC, members
from:
-Related Ministries and government institutions
-Industry regulators (chambers of industry)
-Professional societies (Engineers, Contractors)
- R &D institutions
- Future nuclear power company
Other recommendation will be the duty of the committee; first
duty is to conduct a survey for potential local industries to
determined gabs in meeting requirements, quality and training.
Jordan Atomic Energy Commission
localization planning committee suggested members
Jordan Atomic Energy Commission
(Jordan Nuclear Power Company)*
Minister of Industry, Trade and Supplies
Ministry of Public Works and Housing
Ministry of Energy and Minerals Recourses
Ministry of Higher Education and Scientific Research
Ministry of Labour
Jordan Armed Forces
Jordan Standards and Metrology Organization
Jordan Chamber of Industry
Amman Chamber of Industry
Jordan Engineers Association
Jordanian Constructions Contractors Association
King Abdullah II Design and Development Bureau (KADDB)
( Other institutes and experts as needed)
* After company registration
Jordan Atomic Energy Commission
Localization committee Two meetings took place so far, on 22 January and 29 April 2014
Specification, quantities, construction materials, list of equipments,
codes and standards were extracted from ASE Bid in order for the
localization planning committee to identify potential areas and
opportunities were local industry and suppliers can participate
Several meetings conducted with chambers of industry to study
information extracted from Russian Bid
Several meeting took place with Jordan Standards and Metrology
Organization to adapt Russian codes and standards
Jordan Atomic Energy Commission
Activities
• A macro-economic study has been conducted that could assist in establishing policy criteria. The study indicates a threefold benefit to the local economy in terms of the localisation expenditure • Conducting a survey of potential local industries to determined gabs in meeting requirements, quality and training will be conducted by localization committee in Q4/ 2015
Jordan Atomic Energy Commission
Bid Invitation Specification,BIS
• According to BIS, Bidders shall specify the target volume of the local subcontracts planned for the project, • The list of local services shall include a general description of the services and/or equipment to be provided by the local subcontractors
• During bidding process, vendors were provided with an initial list of potential local construction companies that may be qualified to participate in the project.
Jordan Atomic Energy Commission
ASE (Preferred Bidder ) & Localization,1
ASE (Preferred Bidder )confirms its interest to involve Jordanian companies in JNPP construction, in • site preparation, • construction of technical and administrative buildings. ASE suggested the following areas to be involved for the project localization: • Natural building materials (sand, gravel, cement raw components, etc.); • Building materials, cement, metal structures; • Qualified labor force in the construction field.
Jordan Atomic Energy Commission
ASE (Preferred Bidder ) & Localization,2
Jordan aim is to cover more areas in localization, for example, 1. Equipment Supply - Tanks, Piping in Turbine Building - Low Voltage Cables, Lighting System 2. Design & Engineering - Field Civil Engineering (limited portion) 3. Preliminary & Supplementary Works - Power Supply System, Tele-Communication Facilities 4. Construction Material & Installation - Painting - Equipment Installation, Cable Installation & Termination 5. Start-up Material Supply & Support
Jordan Atomic Energy Commission
It is planned that a department or unit will be established within JNPC to: • Promote, monitor and assist with the achievement of localisation targets.
• Play an oversight role to ensure continued policy implementation
• Localisation will continue through all applicable phases of the NPP lifecycle, local infrastructure development, manufacturing, construction, operations and maintenance
JNPC & Localization
Jordan Atomic Energy Commission
Strategy to establish the Government to government arrangement related to local
industrial involvement/supply chains
•An Inter-Governmental Agreement (IGA) is currently being drafted and should be signed by year end.
• The IGA will ensure the smooth progress of the project up to commissioning. •The Project Development Agreement (PDA) as well as the Bid Invitation Specification (BIS) clearly specifies this.
Jordan Atomic Energy Commission
How we can decide the percentage of localization and what are the basis of percentage?
• Currently, the Localization percentage target for the project is about 20%
• For a first nuclear power plant in Jordan, this is quite optimistic
• Discussions with the vendor have culminated to very ambitious localization percentage reaching 30% if proper local industry preparation takes place coupled with investment in industry upgrade which might be possible in the 2nd NPP unit
Jordan Atomic Energy Commission
How to manage risk in dealing with legal, cultural and contract issues related to local industrial
involvement from the vendor’s view point
• Jordan has a vast experience in working with foreign
companies in all aspects. • Local vendors have participated in several large projects that were completed in Jordan by foreign firms
• Thus, the risks over the years for foreign vendors having to deal with Jordanian Company have greatly diminished • Risks still exist due to the unique industry (nuclear) as the requirements are slightly different and highly regulated • The products’ shelf life is 60 years and requires special manufacturing processes, and the fact that 2 reactors are being built in Jordan make establishing some industries not feasible
Jordan Atomic Energy Commission
How can you survey the local companies?
•A general sorting for companies that are able to supply materials and components for the Nuclear Power Plant Locally in process before the general survey started with the assistance of the Ministry of Trade and Industry, Amman Chamber of Industry, and Jordan Chamber of Industry
• Then, distributing an applications followed by visits to identify and short-Listed potential industry
• Jordan plans to consult with the communities near to the site and assess their capabilities to promote local economic involvement in the programme during its various phases
Jordan Atomic Energy Commission
Dialogue between vendors owner-operator and potential vendors/suppliers including incentives
to optimize local participation
• Dialogue between owner-operator vendors should start after establishing the project company
• Incentives and subsides are difficult because of Jordan open trade policy and mutual agreements with many other countries
Jordan Atomic Energy Commission
Qualification and selection of local industrial organizations
• In conjunction with our partner/vendor’s expertise, target local industrial sectors are identified
• Through the Ministry of Trade and Industry, Amman Chamber of Industry, and Jordan Chamber of Industry, potential candidates companies and suppliers are qualified • Meetings are conducted with these companies to rate their ability to deliver the product • Eventually, several short lists of candidates are created, - suitable to supply without major upgrades - required major upgrades to be able to be classified “qualified suppliers”.
Jordan Atomic Energy Commission
How to put national involvement on the bidding process?
• The localization percentage has been set in the BIS (Bid Invitation Specification) at a minimum of 20%.
• In addition, This percentage will be set as a floor (bottom target) during negotiations for project development agreement including the IGA, PDA and EPC contract and during project implementation
Jordan Atomic Energy Commission
Vendor’s role in upgrading industrial company competencies in order to meet
nuclear standards
• The Vendor will play a major role in upgrades required for local companies to get to the 20% • There will be a few companies that will require little upgrade • A group of other industrial companies will need more help to provide the product as per the requirements of the vendor
• Cost for upgrading should be agreed upon through negotiations and according to localization policy
Jordan Atomic Energy Commission
Thank You