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Issues and Challenges EE R&M Koradi Unit-6 (210 MW) Experience 1 EE R&M Koradi Unit-6 (210 MW) Experience R&M of 120 MW Units were processed and cancelled in 2005. High costs than the estimated, thereby uneconomical. Congested Layout Doubts regarding foundations 2 EE R&M Koradi Unit-6 (210 MW) Experience IBRD loan of 180 million USD and GEF Grant of 45.4 million USD Maharashtra -Koradi Unit-6 (210 MW) ,West Bengal- Bandel Unit-5 (210 MW), Haryana – Panipat 110 MW two Units. IBRD Loan of 59 million USD and GEF grant of 15 million USD for Mahagenco. Environmental, Social and O&M Practices improvement aspects also considered. Risk factors and mitigation options considered. 3 EE R&M Koradi Unit-6 (210 MW) Experience • Employment of Project Design Consultant • Residual life Assessment • Energy Audit • Scope options • Financial analysis • Detailed Project Report • Tender Specifications. 4 EE R&M Koradi Unit-6 (210 MW) Experience • Employment of Environmental Audit Consultant • Environmental audit and Due Diligence Report • Agreed action plan for Environment, Health & Safety improvement • Implementation of action plan by steps. 5 EE R&M Koradi Unit-6 (210 MW) Experience • Employment of Social Assessment Consultant • Social Assessment Report & Draft CSR Policy • CSR Policy implementation plan • Implementation of action plan by steps. 6 EE R&M Koradi Unit-6 (210 MW) Experience • Employment of O&M practices assessment Consultant (Employed by World Bank) • O&M Practices assessment report • Agreed action plan • Implementation of action plan by steps. 7 EE R&M Koradi Unit-6 (210 MW) Experience • BTG main Plant Package – Two stage bidding • Electrical Package – Single stage bidding • Balance of Plant Package – Single stage bidding 8 EE R&M Koradi Unit-6 (210 MW) Experience Surprises Anticipated surprises handling strategy Pre-shutdown assessment Higher costs Least open ended scope. Quantities defined Unit rates for additional quantities if any Low competition QR inclusive not exclusive for BTG / Based on Subcontractors qualifications for BOP No Rejection in first stage 9 EE R&M Koradi Unit-6 (210 MW) Experience Proper Technical Specifications Employment of Design Consultancy Internal plant meetings/ review by World Bank specialists Design Compatibility Opportunities to bidders for Site visits pre-bidding Pre-bid meetings/clarificati ons/Amendments Proper Commercial Specifications World Bank Standard Bidding Document Functional Guarantee s and Penalties carefully crafted. Credit/Loading for variations in evaluation 10 EE R&M Koradi Unit-6 (210 MW) Experience Proper check at design stage & time lines follow up Employment of Project Implementation Support Consultancy Strong Project group –regular review meetings Coordination between agencies Employment of Project Implementation Support Consultancy Strong Project group –regular review meetings Quality Control Employment of Quality assurance Consultancy Pre-defined Quality procedures. 11 EE R&M Koradi Unit-6 (210 MW) Experience • Difficulty in getting original drawings & data – layouts/foundations / gd2 values/ nameplate details etc. • Layout constraints for addressing low CV coal issue. • Layout constraints for enlargement of ESP • Difficulties in tenderization process. Large number of deviations / clarification process, meetings ,amendments etc. • Human factors. – Prioritization/Manpower/doubts for success. 12 EE R&M Koradi Unit-6 (210 MW) Experience Scaling up of R&M Evaluate & minimize need of RLA Energy Audit. Issue of varied inventories post R&M Standardization of Bidding document Availability in CEA website Simplification & formulation of financial analysis Huge financing costs Exploring cost effective technologies Embedding modern trends like supercritical pressure in R&M 13 EE R&M Koradi Unit-6 (210 MW) Experience Shortage of expertise More projects more – investments – more availability Special incentive programs Regulatory aspects Need of an hour Issue to be taken up with conviction Inability to integrate multivendor activities Coupled with other constraints in public sector Formation of a centralized public undertaking for R&M 14 EE R&M Koradi Unit-6 (210 MW) Experience 15