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Ormat Technologies, Inc. · IPO:  S-1/A · On 9/28/04 · EX-10.5.3

Filed On 9/28/04, 9:30am ET   ·   Accession Number 950136-4-3123   ·   SEC File 333-117527

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  As Of                Filer                Filing    For/On/As Docs:Size              Issuer               Agent

 9/28/04  Ormat Technologies, Inc.          S-1/A                 90:15M                                    Capital Systems 01/FA

Initial Public Offering (IPO):  Pre-Effective Amendment to Registration Statement (General Form)   —   Form S-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-1/A       Amendment 1 to Form S-1                             HTML   3.29M 
 2: EX-1.1      Form of                                             HTML    194K 
11: EX-10.1.10  Amendment # 1 to Loan Agreement                     HTML     27K 
12: EX-10.1.11  Capital Note                                        HTML     22K 
13: EX-10.1.12  Amendment No. 1 to Capital Note                     HTML     22K 
14: EX-10.1.13  Guarantee Fee Agreement                             HTML     22K 
15: EX-10.1.14  Reimbursement Agreement                             HTML     25K 
16: EX-10.1.15  Services Agreement                                  HTML     40K 
 3: EX-10.1.2   Amended and Restated Bridge Loan Agreement          HTML    100K 
 4: EX-10.1.3   Bank Hapoalim Credit Facility Agreement             HTML    386K 
 5: EX-10.1.4   Credit Agreement Dtd 12/31/02                       HTML    730K 
 6: EX-10.1.5   Credit Agreement Dtd 12/18/03                       HTML   1.09M 
 7: EX-10.1.6   Eximbank Credit Agreement                           HTML    557K 
 8: EX-10.1.7   Indenture                                           HTML    703K 
 9: EX-10.1.8   First Supplemental Indenture                        HTML     39K 
10: EX-10.1.9   Loan Agreement                                      HTML     38K 
84: EX-10.10    Indemnification Agreement                           HTML     46K 
17: EX-10.2.1   Purchase and Sale Agreement                         HTML    360K 
18: EX-10.3.1   Power Purchase Contract                             HTML    121K 
23: EX-10.3.11  Amended and Restated Power Purchase and Sale Agmt   HTML    237K 
24: EX-10.3.13  Power Purchase Contract                             HTML    197K 
25: EX-10.3.14  Amendment No. 1 Power Purchase Contract             HTML     64K 
26: EX-10.3.16  Power Purchase Contract Dtd 4/16/85                 HTML    206K 
27: EX-10.3.17  Amend 1 to Power Purchase Contract Dtd 10/25/85     HTML     46K 
28: EX-10.3.18  Amend 2 to Power Purchase Contract Dtd 12/20/89     HTML     25K 
29: EX-10.3.19  Interconnections Facilities Agreement               HTML     77K 
30: EX-10.3.20  Interconnection Facilities Agreement                HTML     35K 
31: EX-10.3.21  Interconnection Facilities Agreement                HTML     58K 
32: EX-10.3.22  Interconnection Agreement                           HTML     31K 
33: EX-10.3.23  Plant Connection Agreement                          HTML     58K 
34: EX-10.3.24  Plant Connection Agreement                          HTML     96K 
35: EX-10.3.25  Transmission Service Agreement                      HTML     87K 
36: EX-10.3.26  Plant Connection Agreement                          HTML     53K 
37: EX-10.3.27  Plant Connection Agreement                          HTML     61K 
38: EX-10.3.28  Plant Connection Agreement                          HTML     64K 
39: EX-10.3.29  Plant Connection Agreement                          HTML    186K 
19: EX-10.3.3   Power Purchase Contract                             HTML    111K 
40: EX-10.3.30  Plant Connection Agreement                          HTML    187K 
41: EX-10.3.31  Transmission Service Agreement                      HTML     81K 
42: EX-10.3.32  Transmission Service Agreement                      HTML     83K 
43: EX-10.3.33  Transmission Service Agreement                      HTML     85K 
44: EX-10.3.34  Transmission Service Agreement                      HTML    100K 
45: EX-10.3.35  Plant Amendment No. 1                               HTML     28K 
46: EX-10.3.39  Agreement Addressing Renewable Energy Pricing       HTML     74K 
47: EX-10.3.40  Amnd No.1 to Agrt Address Renewable Energy Pricing  HTML     58K 
48: EX-10.3.41  Agreement Addressing Renewable Energy Pricing       HTML     72K 
49: EX-10.3.42  Amend No. 1 to Agrnt Addr Renewable Energy Pricing  HTML     64K 
50: EX-10.3.43  Energy Services Agreement                           HTML     79K 
51: EX-10.3.44  Purchase Power Contract, Dated March 24, 1986       HTML     92K 
52: EX-10.3.45  Firm Capacity Amendment                             HTML     78K 
53: EX-10.3.46  Amendment to Purchase Power Contract                HTML     32K 
54: EX-10.3.47  Third Amendment to Purchase Power Contract          HTML     76K 
55: EX-10.3.48  Performance Agreement                               HTML    167K 
56: EX-10.3.49  Agreement to Design 69 Kv Transmission Lines        HTML     79K 
20: EX-10.3.5   Amendment #1 to Power Purchase and Sales Agreement  HTML     49K 
21: EX-10.3.6   Settlement Agreement                                HTML     37K 
22: EX-10.3.7   Power Purchase Contract Dtd 4/16/85                 HTML    155K 
57: EX-10.4.1   Ormesa Blm Geothermal Resources Lease               HTML    160K 
63: EX-10.4.12  Lease Agreement, Dated 3/17/64                      HTML     89K 
64: EX-10.4.13  Lease Agreement, Dated 2/16/64                      HTML     72K 
65: EX-10.4.18  Geothermal Lease Agreement, Dated 7/18/79           HTML     79K 
66: EX-10.4.19  Lease Agreement                                     HTML     82K 
58: EX-10.4.2   Ormesa Blm License for Electric Power Plant         HTML     42K 
67: EX-10.4.20  Lease Agreement, Dated 6/14/71                      HTML     56K 
68: EX-10.4.21  Lease Agreement                                     HTML     63K 
69: EX-10.4.23  Geothermal Lease Agreement                          HTML     55K 
70: EX-10.4.24  Geothermal Lease Agreement, Dated 8/31/83           HTML    128K 
71: EX-10.4.26  Geothermal Resources Lease - Guisti                 HTML     55K 
72: EX-10.4.27  Amendment to Geothermal Lease                       HTML     27K 
73: EX-10.4.28  Second Amendment to Geothermal Lease                HTML     39K 
74: EX-10.4.29  Geothermal Resources Sublease                       HTML    144K 
59: EX-10.4.3   Geothermal Resources Mining Lease, Dated 2/20/81    HTML    126K 
75: EX-10.4.30  Klp Lease                                           HTML    265K 
76: EX-10.4.31  Klp Lease Amendment No. 1                           HTML    341K 
77: EX-10.4.32  Second Amendment to Klplease                        HTML     25K 
60: EX-10.4.4   Geothermal Lease Agreement, Dated 10/20/75          HTML     55K 
61: EX-10.4.5   Geothermal Lease Agreement                          HTML     78K 
62: EX-10.4.6   Geothermal Resources Lease, Dated 11/18/83          HTML     77K 
78: EX-10.5.1   Engineering, Procurement and Construction Contract  HTML    434K 
79: EX-10.5.3   Engineering, Procurement and Construction Contract  HTML   1.00M 
80: EX-10.5.4   Patent License Agreement                            HTML    144K 
81: EX-10.7     Executive Employment Agreement of Lucien Bronicki   HTML     70K 
82: EX-10.8     Exec Employment Agreement of Yehudit Bronicki       HTML     75K 
83: EX-10.9     Executive Employment Agreement of Yoram Bronicki    HTML     82K 
85: EX-23.1     Consent of Independent Accountants                  HTML     22K 
86: EX-23.3     Consent of Dani Falk                                HTML     21K 
87: EX-23.4     Consent of Edward Muller                            HTML     21K 
88: EX-23.5     Consent of Lester P. Silverman                      HTML     21K 
89: EX-23.6     Consent of Jacob Worenklein                         HTML     21K 
90: EX-99.3     Material Terms Deviations                           HTML     21K 


EX-10.5.3   —   Engineering, Procurement and Construction Contract
Exhibit Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
116Contractor
"Owner
117Owner's Technical Requirements
1261. General
1492. Mechanical Plant
1563. Geothermal Fluid System
1594. Generator
1635. Transformers
"Standard
1666. Switchgear
1717. Dc System and Ups
1738. CABLING, EARTHING, and MOTORS
1819. Control and Instrumentation
18510. Protection and Revenue Metering
19011. Civil and Structural Works
19812. Services
258Ormat
260Section 0 - Ormat's Quality, Environmental, Health and Safety Policy
"Section 1 - Introduction
284Performance Tests
317Drawings

This exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

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Exhibit 10.5.3 ENGINEERING, PROCUREMENT AND CONSTRUCTION CONTRACT DATED OCTOBER 3, 2003 BY AND BETWEEN CONTACT ENERGY LIMITED "OWNER" AND ORMAT PACIFIC INC. "CONTRACTOR" PAGE 1
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ARTICLE 1 - DEFINITIONS...........................................................................1 ARTICLE 2 - EPC CONTRACT DOCUMENTS..............................................................13 ARTICLE 3 - CONTRACTOR RESPONSIBILITIES.........................................................13 ARTICLE 4 - OWNER RESPONSIBILITIES..............................................................33 ARTICLE 5 - EXTENSION OF TIME...................................................................36 ARTICLE 6 - COMPENSATION AND PAYMENT............................................................39 ARTICLE 7 - COMMISSIONING AND TAKE OVER.........................................................44 ARTICLE 8 - CHANGES.............................................................................53 ARTICLE 9 - ACCESS AND REVIEW BY OWNER..........................................................58 ARTICLE 10 - TESTING............................................................................63 ARTICLE 11 - WARRANTIES.........................................................................67 ARTICLE 12 - REMEDIES...........................................................................76 ARTICLE 13 - SECURITIES.........................................................................80 ARTICLE 14 - CARE OF THE WORK; TITLE............................................................83 ARTICLE 15 - INSURANCE..........................................................................85 ARTICLE 16 - DISPUTE RESOLUTION.................................................................86 ARTICLE 17 - INDEMNIFICATION....................................................................88 ARTICLE 18 - ASSIGNMENT.........................................................................90 ARTICLE 19 - SUBCONTRACTORS.....................................................................91 i
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ARTICLE 19A - PERSONNEL.........................................................................95 ARTICLE 20 - SUSPENSION.........................................................................96 ARTICLE 21 - TERMINATION........................................................................98 ARTICLE 22 - FORCE MAJEURE.....................................................................104 ARTICLE 23 - CONFIDENTIALITY...................................................................106 ARTICLE 24 - NOTICES...........................................................................107 ARTICLE 25 - MISCELLANEOUS.....................................................................108 ii
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LIST OF SCHEDULES Schedule A Owner's Technical Requirements Schedule B Contractor's Technical Proposal Schedule C Milestone Payment Schedule Schedule D Performance Tests Schedule E Project Schedule Schedule F Warranty Procedures Schedule G ORMAT Industries Ltd. Guaranty Schedule H Form of Performance Bond Schedule I Cancellation Fee Schedule J Drawings iii
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This ENGINEERING, PROCUREMENT AND CONSTRUCTION CONTRACT is made and entered into this _____ the day of ____________, 2003 by and between Contact Energy Limited, a New Zealand limited liability company with offices at Wellington, New Zealand ("Owner") and ORMAT Pacific Inc., a Delaware corporation acting through its New Zealand branch with offices at Taupo, New Zealand ("Contractor"). RECITALS A. Owner holds or will hold rights to use land at Wairakei, New Zealand, and to use certain of the geothermal resource underlying the land, resource consents and certain other associated rights, consents, commitments and facilities necessary for the construction, testing, generation and maintenance of an 14.38 MW (net) geothermal power plant. B. Owner desires Contractor to design, engineer, procure, construct, fabricate, install, commission, start-up and test a new 14.38 MW (net) geothermal power plant at Owner's site located in Wairakei, New Zealand. C. ORMAT Industries Ltd. has agreed to design, manufacture and supply certain equipment necessary for the construction of the geothermal power plant under the terms and conditions of the Supply Contract (as defined below) with Owner entered into contemporaneously with this agreement. D. Contractor is willing to supply certain other equipment and perform the services set forth herein, upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter contained, the parties hereby agree as follows: ARTICLE 1 - DEFINITIONS Unless the context otherwise requires, the following terms when used herein or in any Schedule hereof shall have the meanings set forth below: 1
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"APPLICATION SOFTWARE" means all application programs, whether in electronic read only devices or otherwise, including data and utilities designed, developed or created by or on behalf of Contractor to be installed and/or supplied as part of the Works and its associated documentation. "BANK BILL BID RATE" means the average New Zealand dollar 90 day bank bill bid rate (rounded upwards to the nearest second decimal place) as appearing at 11.00 am or as soon as practicable thereafter on the relevant day in Wellington on page BKBM of the Reuters screen. "BASE DATE" means June 23, 2003. "BEST ENDEAVOURS" means that the party shall promptly and diligently use all the resources and take all steps available to it which a prudent, determined and reasonable person, acting in its own interests and with a genuine desire to achieve the intended outcome, would take. "BRINE RETURN TEMPERATURE" means the half-hourly arithmetic average of the temperature of the Geothermal Fluid measured every minute over a half hour period downstream of the Binary Plant at the Terminal Point where it is returned to the reinjection system. "BINARY PLANT" means the binary power plant and all related and ancillary work to be provided by Contractor and the Supplier, and taken over by Owner under this EPC Contract as part of the Permanent Works. "CHANGE" means any change to the requirements or obligations of this EPC Contract. "CHANGE IN LAW" means the enactment, adoption, promulgation, modification or repeal after the Base Date of any Law (except regarding taxation) or to the Designation or any Standard that establishes requirements adversely affecting Contractor's costs or schedule for performing the Work. "COMMENCEMENT DATE" means the date of this EPC Contract. 2
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"CONSENT" means any consent, permit, licence, approval or the like, including the Owner's Consents. "CONTRACTOR'S CHANGE" means a Change requested by the Contractor and agreed by Owner in terms of ARTICLE 8 (Changes). "CONTRACTOR'S EQUIPMENT" means all equipment, apparatus, machinery, vehicles and other things required for the execution and completion of the Works and the remedying of any defects, but excludes Temporary Works, Plant and Permanent Works. "CONTRACTOR'S REPRESENTATIVE" means the person designated by Contractor pursuant to SECTION 19A.2 (Contractor's Representative) to act as its representative. "CONTRACTOR'S TECHNICAL PROPOSAL" means Contractor's proposal for meeting the Owner's Technical Requirements, and comprises the Contractor's preliminary design and specification for the Binary Plant and Contractor's proposals generally for carrying out the Works as set forth in SCHEDULE B. "CORRECTED NET POWER OUTPUT" means the lowest of the Measured Net Power Output results, as corrected for deviations from the Guarantee Conditions using the Correction Curves, of the six tests comprising a single Net Power Output Performance Test as described in section 1.5.9 of EXHIBIT D (Performance Tests). "CORRECTED PRESSURE DROP" means the highest of the Measured Pressure Drop results, as corrected for deviations from the Guarantee Conditions using the Correction Curves, of the six tests comprising a single Net Power Output Performance Test as described in section 1.5.9 of EXHIBIT D (Performance Tests). "CORRECTION CURVES" means the curves and mathematical formulae set forth in SCHEDULE D (Tests) and used for the purposes of calculating the Corrected Net Power Output and the Corrected Pressure Drop. "COST" means all expenditure necessarily, reasonably, properly and actually incurred (or to be incurred) by Contractor, whether on or off the Site, excluding any allowance for overhead, margin, profit and similar charges. Overhead for these purposes 3
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means expenses required for the general overall running of Contractor's business, including administrative, financial and office expenses and supervision. "DAY" means a calendar day. "DEFAULT RATE" means, in any month, the Bank Bill Bid Rate appearing on the first business day of the month (namely the first day of the month in which banks in Wellington are ordinarily open for business) plus three percent per annum, calculated daily and capitalised monthly. "DEFECTS CORRECTION PERIOD" means the period referred to in SUBSECTION 11.2.1. "DESIGN RANGE" means the design range of operating conditions for the Binary Plant as set forth in section 1.3.1 of SCHEDULE A (Owner's Technical Requirements). "DESIGN AND OTHER INFORMATION" means the documents specified in SUBSECTION 9.4.1. "DESIGNATION" means the Taupo District Council's designation for road under the Resource Management Act 1991 and relevant accompanying conditions relating to the ETA, as described section 1.3.2(v) and Exhibit B9 of SCHEDULE A (Owner's Technical Requirements). "DISPUTE" means any dispute or difference of any kind whatsoever which shall arise between Owner and Contractor in connection with or arising out of this EPC Contract (including without limitation any disputes or differences concerning the terms of the Supply Contract) or the carrying out of the Works, including any dispute or difference as to any instruction, order, direction, certificate or valuation by the Owner's Representative, whether during the progress of the Works or after its completion and whether before or after the termination, abandonment or breach of this EPC Contract. "DOCUMENT" means:(a) any writing on any material; (b) any information recorded or stored by whatever means including electronically or on tape; and (c) sound recordings and visual recordings (including photographs and films). 4
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"DRAFT AS-BUILT DRAWINGS" means markups (through hand interlineations or other similar means) of Contractor's major construction drawings for the Binary Plant marked to show as-built details of control and electrical systems and approximate locations of other material components of the Binary Plant that are reasonably relevant to the operation and maintenance of the Binary Plant. "DRAWINGS" means the drawings in SCHEDULE A (Owner's Technical Requirements), SCHEDULE B (Contractor's Technical Proposal), SCHEDULE J (Drawings) and such other major drawings related to the Works provided by Contractor to Owner under this EPC Contract. "FAIL SAFE" means a feature which ensures that the absence of any critical control or safety component, system, signal or function will not result in any unsafe condition. "EPC CONTRACT" means this Engineering, Procurement and Construction Contract together with the Schedules attached hereto, which shall, taken as a whole, define the rights and obligations of the parties hereunder. "EPC CONTRACT PRICE" means the total firm fixed lump sum price, payable to Contractor by Owner as set forth in SECTION 6.1 hereof and as adjusted pursuant to the provisions of this EPC Contract. "EQUIPMENT" means the equipment that is to be provided by Supplier to Owner pursuant to the Supply Contract. "ETA" means the Eastern Taupo Arterial Highway to be constructed by the Taupo District Council and Transit New Zealand, part of which is to run through the Wairakei Station and close to and/or through parts of Site 3 and Site 4. "FINAL ACCEPTANCE" means satisfaction by Contractor or waiver by Owner of the conditions set forth in SUBSECTION 11.2.6, which will occur on the date specified in the Final Acceptance Certificate. "FINAL ACCEPTANCE CERTIFICATE" means the certificate issued under SUBSECTION 11.2.6. 5
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"FORCE MAJEURE" shall have the meaning assigned to that term in ARTICLE 22. "GEOTHERMAL FLUID" means the geothermal brine to be supplied at the Geothermal Fluid Terminal Point in accordance with the interface data set forth in section 1.3.1 of SCHEDULE A (Owner's Technical Requirements). "GEOTHERMAL FLUID TERMINAL POINT" means the Geothermal Fluid interface point defined in section 1.2.3 and Exhibit A2 of SCHEDULE A (Owner's Technical Requirements). "GEOTHERMAL GROUP CONTROL ROOM" or "GGC" means Owner's existing control room which forms part of the Wairakei Station and which contains control facilities and personnel for operation and management of Owner's geothermal power stations and associated facilities. "GRID" means the transmission network including related substations currently owned and operated by Transpower. "GST" means Zealand Goods and Services Tax pursuant to the Goods and Services Tax Act 1985. "GUARANTEE CONDITIONS" means the conditions and parameters in section 1.3.4 of SCHEDULE A (Owner's Technical Requirements). "GUARANTEED NET POWER OUTPUT" means 14,380 kW being the minimum net amount of power measured in kW produced by the Binary Plant at Guarantee Conditions measured at the plant's revenue meters when all the Binary Plant's auxiliaries are operating as normal with no supplementary power supply. "GUARANTEED PRESSURE DROP" means 2.2 barg being the maximum brine system pressure drop across the Binary Plant as measured at the applicable Terminal Points for Geothermal Fluid supply and return at Guarantee Conditions. "HAZOP REVIEW" (otherwise known as a hazard and operating review) means a formal, systematic examination of the design for the Binary Plant and interconnected 6
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systems to identify matters which could lead to hazards, operability problems, nuisances or environmental harm in respect of the Binary Plant, Wairakei Station or their surroundings. "INDUSTRY ARRANGEMENTS" means the applicable electricity industry arrangements and includes: (a) the New Zealand Electricity Market rules, the Metering and Reconciliation Information Agreement, and the Multilateral Agreement on Common Quality Standards; or (b) the electricity rulebook governed by an electricity governance board established by electricity industry participants (to the extent such rulebook supersedes the arrangements in paragraph (a)); or (c) industry rules made by an Electricity Governance Board established under the Electricity Act 1992 (to the extent such rules supersede the arrangements in paragraph (a)). "INTELLECTUAL PROPERTY RIGHTS" means any right to, and any interest in, any patent, design, trade mark, copyright, trade secret and any other proprietary right or form of intellectual property (protectable by registration or not) in respect of any know-how, technology, concept, idea, data, program or other software (including in source and object codes), specification, formula, drawing, programme, design, system, process, logo, mark, style or other thing, conceived, used, developed or produced by any person. "KW" means kilowatts. "LAW" means statutes, regulations, codes, consents, ordinances, district and regional plan requirements, grid operator standards and codes, permits, rules, orders, judicial and administrative decisions and interpretations to the extent they have jurisdiction on performance of the Works under this EPC Contract, including Transpower's "Connection Policy" or substitute or equivalent document from time to time, the "Asset Owner Performance Obligations" (AOPO), Transpower's requirements as owner and operator of the Grid and the Industry Arrangements. 7
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"LOCAL CONTROL ROOM" means the HMI control room for the operation of the Binary Plant which is to be designed and constructed by Contractor and to be located adjacent to the Binary Plant. "MEASURED NET POWER OUTPUT" means net amount of power in kW produced by the Binary Plant measured at the Binary Plant's revenue meters when all the Binary Plant's auxiliaries are operating as normal with no supplementary power supply. "MEASURED PRESSURE DROP" means the brine system pressure drop across the Binary Plant measured at the Terminal Points for supply and return of Geothermal Fluid. "MILESTONE" means the completion of a discrete part of the Works or the occurrence of an event identified as such in the Milestone Payment Schedule. "MILESTONE PAYMENT SCHEDULE" means the milestone payment schedule for payment of the EPC Contract Price, as set forth in SCHEDULE C. "MW" means megawatts. "OPERATING CONSUMABLES" means electric power, working fluid, water, chemicals, lubricants, filters, lamps, light bulbs and other consumable materials used to construct, commission, test and operate the Binary Plant. "OPERATING PERSONNEL" means the Owner's Personnel hired by Owner to operate the Binary Plant and to be trained by Contractor under SECTION 3.1(O). "OWNER'S CHANGE" means a Change requested by Owner and agreed by Contractor in terms of ARTICLE 8 (Changes) or other Change or event designated as an Owner's Change in this EPC Contract. "OWNER'S CONSENTS" means the Consents obtained or to be obtained by Owner for the Works identified in SCHEDULE A (Owner's Technical Requirements). "OWNER'S PERSONNEL" means the staff, labour and other employees of Owner, including the Owner's Representative, and any other personnel notified to Contractor by Owner from time to time. 8
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"OWNER'S PLANNED OUTAGE SCHEDULE" means Owner's schedule of planned outages of the Wairakei Station, as updated and provided by the Owner to the Contractor from time to time. "OWNER'S REPRESENTATIVE" means the person designated by Owner to act as its representative in all respects to this EPC Contract under SECTION 4.1(H) and having the powers contained in SECTION 4.2. "OWNER'S TECHNICAL REQUIREMENTS" means the purpose, scope, design, performance expectations and other technical criteria for the Works specified in SCHEDULE A. "PERFORMANCE GUARANTEES" means Guaranteed Net Power Output, Guaranteed Pressure Drop and the performance guarantees for reliability for the Binary Plant set forth in SCHEDULE D (Performance Tests). "PERFORMANCE TESTS" means the handling trials, Net Power Output and Pressure Drop tests, and Reliability Run set out in SCHEDULE D (Performance Tests) to demonstrate that the Binary Plant meets the Performance Guarantees. "PLANT" means all materials, supplies, apparatus, machinery, parts, tools, components, spares, appliances, vehicles and appurtenances intended to form or forming part of the Permanent Works. "PERMANENT WORKS" means the permanent works to be designed, specified, procured, manufactured, assembled, installed, tested, completed, commissioned and repaired by Contractor in accordance with this EPC Contract, and includes the Binary Plant and all related and ancillary work identified in or to be reasonably inferred as being within the work required of the Contractor under this EPC Contract. "POST-TAKE OVER WORKS" means the Works described in SECTION 7.9 (Post-Take Over Works). 9
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"PROJECT SCHEDULE" means the completion schedule for the Plant set forth in SCHEDULE F and as it may be amended from time to time as set forth in SECTION 3.8 (Project Schedule). "PROPRIETARY SOFTWARE" means all computer programs, whether in electronic read only devices or otherwise, including operating systems, data and utilities, supplied without modification by a third party software publishing house (not employed in any capacity to develop application software for the Works) as standard proprietary software available on standard licence terms and conditions, to be installed and/or supplied as part of the Works and its associated documentation. "PUNCHLIST" means a list of minor incomplete or defective items which remain to be completed, prepared in accordance with SECTION 7.1 (Readiness for commissioning) and SECTION 7.2(A)(C) (Take Over). "RELIABILITY RUN" means the reliability run test described in paragraph 1.5.12 of SCHEDULE D (Performance Tests) to establish that the Binary Plant can run reliability for a minimum period of 21 consecutive days. "SCHEDULED TAKE OVER DATE" means the date by which the Binary Plant is required to achieve Take Over, which shall be the later of (a) June 20, 2005 and (b) such later date as may be established in accordance with SECTION 5.1. "SITE" means the site on which the Permanent Works will be located, which is on land more specifically described in section 1.1.3 and 1.1.5 of SCHEDULE A (Owner's Technical Requirements). "SITE 3" means: (a) the cross hatched area labelled "Site 3" as shown on Site Drawing WRK0262 in exhibit A3 of SCHEDULE A (Owner's Technical Requirements) and (b) the hatched areas labelled "Construction/Laydown Area" shown on Site Drawing WRK0262 in exhibit A3 of SCHEDULE A (Owner's Technical 10
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Requirements) together with such additional areas as may, from time to time, be designated by Owner by notice to Contractor for Contractor's use. "SITE 4" means the hatched area labelled "Site 4" shown on Site Drawing WRK 0262 in exhibit A3 of SCHEDULE A (Owner's Technical Requirements)) together with such additional areas as may, from time to time, be designated by Owner by notice to Contractor for Contractor's use. The hatched area labelled "Site 4" includes the construction/laydown area allocation for Site 4. "SOFTWARE" means all computer programs, whether in electronic read only devices or otherwise, including Application Software, Proprietary Software, operating systems, data and utilities and any other software which is not included in Application Software or Proprietary Software installed and/or supplied as part of the Works, and its associated documentation (including user manuals). "STANDARD" means any technical standard, code of practice, specification, rule, industry certification requirement, the Industry Arrangements or the like relevant to the Works, including those specified in the Schedules. "STATION CONTROLLER" means the individual whom is controller of the Wairakei Station from time to time or his or her authorised representative notified by Owner to Contractor from time to time. "SUBCONTRACTOR" means any party (other than Contractor's employees) engaged by Contractor to perform any of the services or supply any item of goods or material pursuant to this EPC Contract. "SUPPLIER" means ORMAT Industries Ltd., an Israeli corporation. "SUPPLY CONTRACT" means the Supply Contract of even date herewith, together with the Schedules attached thereto, by and between Supplier and Owner, as the same may be amended from time to time, under which, among other things, Supplier is providing the Equipment and services to Owner for use in connection with the development, construction, start-up, testing, commissioning and completion of the Permanent Works. 11
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"TAKE OVER" means satisfaction by Contractor or waiver by Owner of the conditions set forth in SECTION 7.2 (Take Over) and the taking over by Owner of the Binary Plant, which will occur on the date specified in the Take Over Certificate or the deemed Take Over pursuant to SECTION 7.5 (Delayed Tests). "TAKE OVER CERTIFICATE" means the certificate issued under SECTION 7.3 (Request for Take Over Certificate). "TEMPORARY WORKS" means all temporary works of every kind required for the carrying out of the Works but not forming part of the Permanent Works. "TERMINAL POINT" means a location where Contractor connects certain elements of the Permanent Works provided under this EPC Contract to Owner's existing plant and equipment forming part of Wairakei Station. All Terminal Points are defined in paragraph 1.2.3 and Exhibit A2 of SCHEDULE A (Owner's Technical Requirements). "THIRD PARTY" means any neighbour, statutory or regulatory authority, or other individual, and/or body which is either provided with goods or services by Owner or is affected or influenced by Owner's activities. Third Parties include but are not limited to Taupo District Council, Transit New Zealand, Her Majesty the Queen acting by and through the Commissioner of Crown Lands, Transpower, Hawke's Bay Network Limited, the Prawn Farm, Huka Jet, NETCOR and the Wairakei Tourist Hotel. "TRANSPOWER" means Transpower New Zealand Limited, or such other owner/s and/or body/bodies appointed to operate or control the Grid. "WAIRAKEI STATION" means Owner's land and improvements in the vicinity of the Site, including the existing geothermal power station, the GGC, the steamfield and all associated facilities (including services provided to Third Parties). "WORKS" means all work which Contractor is required to carry out under this EPC Contract including the provision of all material, goods, things and services which are the responsibility of Contractor under this EPC Contract, including all things of a permanent or temporary nature necessary for the works and whether stated or reasonably implied as being within the work required of the Contractor under this EPC Contract including, 12
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without limitation, the design, engineering, and procurement construction of a 14.38 MW (net) binary power plant on the Site in accordance with this EPC Contract and the administration of the Supply Contract and dealing with the Equipment to be supplied under the Supply Contract as provided herein. "YEAR" means 365 days. ARTICLE 2 - EPC CONTRACT DOCUMENTS 2.1 DOCUMENTS INCLUDED This EPC Contract shall include the documents listed below, which are hereby incorporated herein by reference and which, in the event of conflict, are to be interpreted in accordance with the priority listed below. o These Terms and Conditions o the Owner's Technical Requirements o the other Schedules o any other documents forming part of this EPC Contract. ARTICLE 3 - CONTRACTOR RESPONSIBILITIES 3.1 GENERAL RESPONSIBILITIES Except as provided elsewhere in this EPC Contract, Contractor shall: (a) Perform, or cause to be performed the Works, including providing all labour, materials, tools, supplies, Temporary Works, Contractor's Equipment, documents, Operating Consumables, equipment, transportation, engineering, insurance, technical services and all other things and services necessary and required to satisfactorily design, engineer, procure, construct, install, commission, start up and test the Binary Plant, including verification of the adequacy of the specification of the Equipment, and rectify any defects in the Binary Plant all in accordance with the requirements of this EPC Contract. 13
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(b) Provide personnel necessary for commissioning, start-up and performance testing of the Permanent Works as described herein. (c) Prosecute the Works continuously and diligently in accordance with the Project Schedule (including achievement of Take Over as provided in SECTION 7.2 (Take Over) by the Scheduled Take Over Date), using qualified and competent personnel, and complete the Works in accordance with good design and engineering practice and prudent electrical and mechanical engineering and in accordance with the provisions of this EPC Contract. (d) Ensure that when completed, the Works (and the Equipment) are fit for the purposes for which the Works (and the Equipment) are intended namely the provision to Owner of a 14.38 MW (net, at Guarantee Conditions) binary plant capable to operate safely and lawfully on the Site using Owner-supplied Geothermal Fluid meeting the Design Range and capable of dispatching electricity to the Grid interface with the Wairakei Station all in accordance with the requirements set out in SCHEDULE A (Owner's Technical Requirements). (e) Rectify defects in the Works as soon as practicable during the Defects Correction Period in accordance with SUBSECTION 11.12.3 (Defects Warranty); and (f) Monitor on behalf of Owner as authorized in the Supply Contract the manufacture and delivery of the Equipment by Supplier, arrange for complete handling of all goods and material supplied under this EPC Contract and for the Equipment after delivery under the Supply Contract including, but not limited to inspection, expediting, shipping, unloading, receiving, customs clearance and customs claims. In connection herewith, Owner hereby grants to Contractor the authority to administer the Supply Contract and Contractor agrees to administer the Supply Contract and to enforce on behalf of Owner the Supplier's obligations there under, and Contractor shall administer the Supply Contract in the same way as if the Supplier was a Subcontractor under this EPC Contract. As between Owner and Contractor, Contractor shall be responsible for its acts or omissions in relation to its administration of the Supply 14
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Contract, and shall be responsible for enforcing and obtaining performance by the Supplier of Supplier's obligations under the Supply Contract. (g) Commission, start-up and performance test the Permanent Works in accordance with the Performance Tests. (h) Comply in all material respects with all applicable Standards (including those described in SCHEDULE A (Owner's Technical Requirements) and SCHEDULE B (Contractor's Technical Proposal) and with all applicable Laws and Consents, relating to the Plant and the performance of the Works and be responsible for the adequacy and safety of all Site operations and of all methods of construction. (i) Procure all Consents required for the Works, other than the Owner's Consents, and comply in all material respects with all Consents. Contractor shall not, without Owner's approval, seek to vary or modify any of the Owner's Consents or any of the conditions attaching to them, or to obtain any Consent which is inconsistent in any respect with any of the Owner's Consents or communicate with consent authorities in relation to the Owner's Consents. If it appears that any Consent that Contractor is in the process of obtaining may be issued subject to conditions that will affect the ability of Contractor to comply with any of its obligations under this EPC Contract including on Owner's ability to lawfully and conveniently use the Binary Plant and/or the Wairakei Station, Contractor must notify Owner as soon as reasonably practicable to enable Owner, if Owner elects, to confer with the authorities regarding such possible conditions. Such action by Owner shall not relieve Contractor of any of its obligations under this EPC Contract. (j) complete the Works so the Binary Plant: (i) is capable of being operated in all modes within the Design Range in compliance with the Consents; and (ii) will not hinder or interfere with the ability of the Wairakei Station to operate in accordance with the resource Consents or other statutory or regulatory Consents applicable to the Wairakei Station and in force at the Base Date. 15
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(k) If Contractor becomes aware that an act or omission of Contractor related to the Works is, or is likely to breach any applicable Law, or result in any fine, sanction or enforcement action (whether under the Resource Management Act 1991 or any other law), then Contractor shall immediately notify Owner and Owner may, in its reasonable discretion and without relieving the Contractor of any responsibility in respect of that event issue instructions to Contractor as it reasonably considers appropriate to mitigate the risk identified and Contractor shall comply with such instructions issued by Owner at the expense in all respects of Contractor. (l) Provide all temporary and permanent construction materials, equipment and supplies necessary for commissioning and testing of the Permanent Works until Take Over. (m) Pay for construction utilities (electricity only) required to achieve Take Over except for any initial connection and disconnection costs. (n) Train up to 25 operating and maintenance personnel, of whom up to 5 are senior personnel, designated by Owner at the Site over the time periods identified in SECTION 4.1(I) and during the commissioning and start-up phase of the Binary Plant construction. Such training shall be in conjunction with the normal commissioning and start-up activities employed by Contractor. Each person designated for training by Owner shall be a qualified for their role at the site and shall not be deemed employees or Subcontractors of Contractor. Training shall be conducted as described in section 1.12 of SCHEDULE A (Owner's Technical Requirements). (o) Have a quality system/s that meets the requirements of the ISO9000 series of standards or equivalent in relation to the Works, provide copies and details of that system/s to Owner upon request from time to time and for review and acceptability prior to Take Over, ensure compliance by all Subcontractors with the quality system/s, and implement a system/s that ensures traceability of all critical parts and components of the supplied Plant and equipment and the associated quality records. 16
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(p) Prepare detailed monthly progress reports on progress of the Works for the period ended on the last day of the previous month to Owner as reasonably required by Owner. Such reports shall include without limitation: (i) all work achieved during the preceding month including Milestones achieved; (ii) any significant events or achievements in the Works including the results of any tests; (iii) significant events planned for the following month; (iv) progress of the Works against programme, identifying any actual or potential slips in progress against programme and the likelihood that Take Over will be achieved by the Scheduled Take Over Date; (v) means of rectifying any delay; (vi) any notices of non-conformance and the extent to which there is any outstanding non-conformance. (q) Provide special tools, and operating and commissioning supplies which are required for commissioning, start-up, and performance testing of the Permanent Works until Take Over. (r) Not less than six (6) months prior to the Scheduled Take Over Date, provide to Owner draft operation and maintenance manuals (which shall incorporate the manuals of the Equipment) and prior to Take Over, provide at least two (2) copies of job books, operation and maintenance manuals (which shall incorporate manuals of the Equipment), operating data and Draft As-Built Drawings to Owner in a sufficient state of completion and containing sufficient detail to enable Owner to operate and maintain the Binary Plant properly, safely, lawfully and without hindrance and without reliance in any way on Contractor and not later than six (6) months after Take Over, provide to Owner four copies of the final operation and maintenance manuals (which shall incorporate 17
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manuals of the Equipment), operating data and detailed as-built Drawings and specifications. (s) Exercise, in the design and specification of the Works and the verification of the adequacy of the specifications of the Equipment, and generally in connection with Contractor's responsibilities under this EPC Contract the skill and care to be expected of a qualified and competent designer, engineer and contractor experienced in work of similar nature and scope as the Binary Plant. (t) Design, install, construct, commission, test and complete the Binary Plant using proven up to date good practices and which are consistent with the provisions of the Supply Contract and this EPC Contract. (v) At Owner's request, at any reasonable time up to Take Over, Contractor shall participate in the conceptual design review and in the subsequent Site located dedicated design review with Owner's Personnel regarding the design of the means of integrating the Binary Plant with Owner's existing Wairakei Station HMI system, and provide at the Site one control engineer for a period of up to one week in the 12 months following Take Over to assist and advise Owner regarding Owner's coordination and integration of the Binary Plant with the existing Wairakei Station HMI system. 3.2 EMERGENCIES In emergencies affecting the safety or protection of persons or the Work, Contractor, without special instruction or authorization from Owner, may take all reasonable actions to prevent such threatened damage, injury, or loss. This provision is not intended to limit Contractor's rights under any other provisions hereof, including, without limitation, ARTICLE 8 (Changes). 3.3 HEALTH AND SAFETY IN EMPLOYMENT ACT ("HSEA") 3.3.1 Contractor warrants to Owner that during Contractor's activity on the Site, up to and including Take Over of the Binary Plant, Contractor shall ensure that no act or omission by Contractor: 18
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(a) in contravention of the HSEA causes a significant hazard, harm or serious harm to any employee of Contractor or any person at or in the immediate vicinity of the Site; or (b) is a breach of any duty or obligation of Contractor under the HSEA; or (c) does or is likely to give rise to the issue of an improvement or prohibition notice, enforcement proceedings or a prosecution under the HSEA against Owner, Contractor, or the Subcontractor. The words and phrases used in this clause shall have the same meaning as is ascribed to them in the HSEA. 3.3.2 Contractor undertakes that before a Subcontractor commences work on the Site Contractor shall obtain similar warranties as those stated in SUBSECTION 3.3.1 from that Subcontractor in relation to the subcontracted Work. 3.3.3 Contractor shall indemnify and keep indemnified Owner from all costs, damages, fines, penalties and expense incurred or suffered by Owner in respect of any breach of the HSEA and/or conviction or proceedings instigated against Owner pursuant to the HSEA directly or indirectly related to a breach by Contractor of any of the warranties set out in SUBSECTION 3.3.1. 3.3.4 If Contractor becomes aware that it is or may be in breach, or is likely to be in breach of any of the warranties in SUBSECTION 3.3.1 or any Subcontractor is or may be in breach of or is likely to breach the matters set out in the agreement between Contractor and Subcontractors pursuant to SUBSECTION 3.3.2, then Contractor shall immediately notify Owner of such a breach or anticipated breach and, in relation to any breach or anticipated breach in relation to any of the Work or subcontracted Work, Contractor shall consult with the Owner's Representative to avoid, remedy or mitigate such breach or anticipated breach. 3.3.5 Contractor, pursuant to the warranties given in SUBSECTION 3.3.1, shall have regard to the contents of the safety programme agreed 19
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between Owner and Contractor in accordance with SCHEDULE A (Owner's Technical Requirements). The safety plan submitted shall meet the requirements of HSEA and any other applicable Laws, be suitable for the conditions of the Site, the Works, the Wairakei Station and be consistent with Owner's site and safety rules. A copy of the agreed safety programme shall be kept at the office of Contractor. 3.3.6 Contractor shall nominate a safety officer who shall be approved by Owner, which approval shall not be unreasonably withheld, to be responsible for the safety at the Site and in respect of Contractor's operations in the Wairakei Station, and such officer shall be available or be represented by a designee on the Site during business hours after the commencement of the Works at the Site and on call after hours. 3.3.7 If Contractor fails to comply with the obligations set out in this clause, Owner may require Contractor to suspend the Works until the failure is rectified. In the event of such suspension Contractor shall comply with its obligations under ARTICLE 20 (Suspension) but Contractor shall not be entitled to any extension of time under SECTION 5.1 (Extension of Time) or otherwise, payment of any costs (including Cost) or any adjustment of the EPC Contract Price as a result of such suspension. 3.3.8 Contractor shall ensure that all its employees and Subcontractors that will be working in the Wairakei Station: (i) attend the local induction course and receive training on Owner's safety procedures; (ii) are advised of any revision to Owner's safety procedures that are provided to Contractor; (iii) comply at all times with Owner's safety procedures; and (iv) request clarification of any of Owner's safety procedures, including all access authorisations, that they do not understand. 20
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If Owner reasonably considers any person employed by Contractor or any Subcontractor is not complying with Owner's site safety procedures, Owner may, or may require Contractor to, remove that person from the Wairakei Station. 3.4 PROJECT REPRESENTATION Contractor has reviewed the provisions of the Supply Contract and warrants that the combination of the Works and the Equipment are adequate so that the Permanent Works, when completed in accordance with this EPC Contract, will meet the Owner's Technical Requirements. 3.5 ACCESS CONDITIONS (a) Contractor shall have investigated and satisfied itself as to the suitability and availability of access routes to the Site and the Wairakei Station. (b) Where Contractor wishes to have other access or intrusion onto or over land adjoining either the Site or the Wairakei Station, then arrangements must be made by Contractor and such access or intrusion will be entirely at Contractor's risk and cost. Contractor shall keep Owner informed in respect of negotiations for any such arrangements and Owner's consent shall be required for any such arrangements (which consent shall not be unreasonably withheld). 3.6 CONDITIONS AFFECTING THE CARRYING OUT OF THE WORKS (a) Contractor shall be deemed to have: (i) inspected the Site and surrounding locations, including surface conditions to the extent a qualified and competent designer, engineer, and contractor experienced in works in similar nature and scope as the Binary Plant would have; and (ii) familiarised and satisfied itself with respect to: (1) the nature of the Works and the areas where the Works is to be carried out; 21
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(2) the Designation and the effect that it will have on the Wairakei Station, the Site and the Works; (3) the general and local conditions with respect to weather, environment, transportation, access, waste disposal, lay down areas, handling and storage of materials and residue, availability and conditions of roads, climatic conditions and seasons, surface physical conditions at the Site, the Wairakei Station and the surrounding area; (4) the location of all pipes, cables, utilities works and similar hazards on or about the Site, the Wairakei Station and the surrounding area; and (5) hydrological and geotechnical matters as identified in Site hydrological and geotechnical studies which may affect the carrying out of the Works, in existence at or before the Commencement Date and to have taken all such matters into account in the EPC Contract Price such as qualified and competent designer, engineer, and contractor experienced in works in similar nature and scope as the Binary Plant would have. (b) Except as otherwise expressly provided for in clause (c) below and elsewhere in this EPC Contract, Contractor shall not be entitled to an extension of time under SECTION 5.1 (Extension of Time) or otherwise, payment of any costs (including Cost) or to any adjustment of the EPC Contract Price as a result of any unforeseen difficulties or costs. (c) Notwithstanding clauses (a) and (b), Contractor shall have no responsibility for, and shall be entitled to an Owner's Change under ARTICLE 8 (Changes) for, any material delays or costs resulting from the discovery of subsurface conditions being materially different from that ordinarily and reasonably expected at the Site, including load bearing of the subsoil being materially less than one would ordinarily and reasonably expect in the locality of the Site, or for unforeseen obstructions, or for the 22
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presence of any hazardous materials, or from any material inaccuracy in any material designs, drawings or other information provided by Owner; provided, however, that if such event would also constitutes an event of Force Majeure then Owner may elect to not proceed with the Owner's Change in having Contractor remedy the consequences of such event and instead deal with impact of such event in accordance with the provisions of ARTICLE 22 (Force Majeure). For the avoidance of doubt, based upon the September 26, 2003 geotech study of the Site provided by Owner, Supplier and Owner acknowledge that Site ground stabilization work (e.g., pilings) is required to remedy the soil and subsurface conditions identified in that report and that such Works will be performed by Contractor as an Owner's Change to be implemented pursuant to ARTICLE 8 (Changes) (except that Contractor notes that there will be no change to the Scheduled Take Over Date) on an open book basis (both as to Costs and scope of work) with Owner paying Contractor its Costs for such Works plus 10% plus GST in accordance with SECTION 8.5 (Adjustments), which amounts shall be in addition to the EPC Contract Price specified in SECTION 6.1 (EPC Contract Price). 3.7 [INTENTIONALLY OMITTED] 3.8 PROJECT SCHEDULE (a) Contractor shall maintain the relationship between progress and payment established by Contractor's draft Project Schedule contained in SCHEDULE E (Project Schedule) and the Milestone Payment Schedule contained in SCHEDULE C (Milestone Payment Schedule). (b) At the end of the first month after the date of this EPC Contract and monthly after that, Contractor shall submit to Owner in terms of SECTION 9.4 (Design and other Information Review) a three month rolling Project Schedule detailing the work to be carried out during the following three months. The initial updated Project Schedule shall reflect the Scheduled Take Over Date and other dates specified in this EPC Contract. In addition, all Project Schedule updates shall, without limitation, show significant events for the following three months, reflect the timing of Contractor's planned interfaces with the various interface points identified in SCHEDULE A (Owner's Technical Requirements), demonstrate how any delay is to be recovered and show activities for rectifying any 23
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defects and addressing any relevant matters raised in Contractor's monthly progress report under SECTION 3.1(P). (c) In the event that: (i) the Scheduled Take Over Date is extended in terms of SECTION 5.1 (Extension of Time) or (ii) Owner instructs an Owner's Change in terms of ARTICLE 8 (Changes); or (iii) Contractor or Owner considers for any reason that there is or will be a significant deviation between the actual or anticipated progress of the Works and the Project Schedule, Contractor shall submit a further Project Schedule to Owner (subject, with respect to schedule issues arising out of clause (iii) above, to review by Owner pursuant to SECTION 9.4 (Design and Other Information)) revised to take account of such circumstance. Such revised Project Schedule shall identify the likely dates upon which the Project Works will be completed, Milestones achieved and how Contractor proposes to achieve Take Over in terms of Section 7.2 (Take Over) by the Scheduled Take Over Date. 3.9 HAZOP REVIEW (a) Contractor shall: (i) conduct a Hazop Review after the conceptual design and layout stage, and before the issue of process and instrumentation diagrams and single line drawings for construction; (ii) engage appropriately qualified third parties to: (1) train personnel participating in the Hazop Review in the methodology of a Hazop Review; and (2) facilitate the Hazop Review; 24
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(b) Owner will make available, at its cost and in good time as required to permit Contractor to proceed with the Hazop Review in accordance with the Project Schedule, appropriate Owner's Personnel to participate in the training in the Hazop Review methodology and in the Hazop Review. Contractor shall bear all other costs of the Hazop Review and shall make any changes in design identified by the Hazop Review as being required. (c) The participation of the Owner's Personnel in terms of this SECTION 3.9 shall under no circumstances give rise to an entitlement to Cost, an adjustment to the EPC Contract Price or the extension of time under ARTICLE 5 (Extension of Time) or otherwise, nor shall it give rise to any entitlement to a Change. 3.10 INFORMATION TO BE SUPPLIED BY CONTRACTOR (a) Contractor shall keep Owner informed, as reasonably required by Owner, on matters relating to the Works. (b) Until issue of the Take Over Certificate, Contractor shall promptly answer all enquiries reasonably made by and received from Owner, and thereafter through Final Acceptance use reasonable endeavors to assist Owner in any matter which may affect the operation and maintenance of the Binary Plant, if requested to do so by Owner, and at the reasonable cost of Owner unless such matter is part of the Works. 3.11 RETENTION OF DOCUMENTS AND INSPECTION (a) Contractor shall ensure that adequate records are kept to verify that the Works are being carried out in accordance with this EPC Contract, including in accordance with all applicable Laws, Consents and Standards. (b) Contractor shall maintain on the Site until Take Over all material documents in relation to the carrying out of the Works. In addition, Contractor shall retain all such documents for a period of 10 years following Take Over. (c) Contractor acknowledges Owner's right, at Owner's expense and upon reasonable coordination with Contractor, to inspect and take copies of any of the 25
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documents referred to in paragraph (b) for any reason in connection with this EPC Contract, and shall assist Owner, its representatives and any authorised public officers to inspect such documents and shall answer queries or supply information that is reasonably requested by such persons. (d) To the extent that any documents referred to in this SECTION 3.11 are maintained on computer or other electronic storage device, then Contractor shall agree with Owner and adhere to a procedure for backup and off the Site storage of copies of such documents, in an electronic format accessible by Owner. 3.12 INSTRUCTIONS Contractor shall comply with Owner's instructions, directions and notices reasonably in relation to the Works. If Contractor forms the view that any such instruction, direction or notice comprises an Owner's Change under this EPC Contract or a change under the Supply Contract then Contractor shall notify Owner promptly in terms of ARTICLE 8 (Changes) and in any event before giving effect to such instructions. To avoid doubt, no instruction, direction or notice by Owner that is not an Owner's Change shall give rise to an entitlement to any costs (including Cost), an adjustment to the EPC Contract Price or an extension of time under ARTICLE 5 (Extension of Time) or otherwise. 3.13 ATTENDANCE AT MEETINGS Contractor shall attend or be represented (by such on-Site personnel reasonably requested by Owner) at all meetings described in the Schedules (if any) and at all other meetings prior to Take Over reasonably convened by Owner to which Contractor may be summoned. Such meetings will be held as reasonably requested by Owner and coordinated with Contractor to avoid unreasonably interference in the performance of the Works, but not less frequently than once a month. At such meetings Contractor shall advise Owner on all material matters relating to the Works. 3.14 CONSENT OF TAUPO DISTRICT COUNCIL & TRANSIT NEW ZEALAND (a) Contractor acknowledges that one of the Owner's Consents required is the approval of the Taupo District Council to Contractor's proposal setting out the exact 26
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location, design and construction methods expected to be required for Geothermal Fluid pipelines to cross the area of the ETA in order to connect the Binary Plant to the existing reinjection system. This approval will also be required for any other Works that may be proposed upon the ETA. (b) Provided that Contractor has fulfilled in all material respects its obligations in the Schedules to assist Owner in gaining the required approval for Contractor's proposal and Owner has failed to secure that approval from the Taupo District Council by the deadline specified for such item in the Project Schedule, such matter shall be treated as an Owner's Change pursuant to SECTION 8.4 (Owner's Change). 3.15 COMMUNICATION Contractor shall direct all of the following communications (whether written or oral) through Owner: (a) communications with Waikato Regional Council and Taupo District Council or other Third Parties relating to the Owner's Consents and where the Works may affect or be affected by the proposed ETA; (b) communications with Transpower relating to the Works, the Site and/or the Binary Plant (including in relation to dispatch of electricity from the Binary Plant); (c) communications with Transit New Zealand relating to the Works, (except for matters or permits associated with the transportation of equipment to the Site). (d) communications relating to the Works, the Site and/or the Binary Plant with any other person or entity reasonably designated by the Owner from time to time where the Owner (acting reasonably) considers that such communications may affect the Owner's interests. Owner shall use its Best Endeavors to promptly and diligently conduct such communications with such Third Parties in good time as required to permit Contractor to proceed with the Works in accordance with the Project Schedule. 27
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3.16 EMERGENCY ACTION (a) If any emergency arises in relation to the Works and Contractor cannot be contacted or is unable or unwilling to take appropriate and timely remedial action, Owner may take any emergency action it considers necessary. (b) Where Contractor was obliged, under this EPC Contract or otherwise, to take emergency action and Owner takes such action on Contractor's behalf as a result of Contractor's failure to take such action as described in paragraph (a), such action by Owner shall not relieve Contractor of any such obligations and the cost of taking such action shall be recoverable by Owner as a debt due from Contractor. 3.17 CO-EXISTING USE OF THE WAIRAKEI STATION (a) Contractor acknowledges that: (i) Contractor is required to carry out part of the Works in the vicinity of the Site and in the Wairakei Station; and (ii) the Wairakei Station and Owner's power stations at Wairakei, Ohaaki and Poihipi, which are controlled from the GGC, are in use by Owner for the generation and dispatch of electricity onto the Grid, disruption to which has the potential to cause loss to Owner and impose material financial and social costs on others; and (iii) Third Parties rely on Wairakei Station and its environs to provide goods and services including prawn farming and tourism, disruption to which has the potential to have adverse implications for Owner and/or those Third Parties. (b) Contractor shall not interfere with or disrupt Owner's, or the Third Parties' (referred to above), use of the Wairakei Station, which includes an obligation not to interfere with or disrupt the Owner's use of its power stations at Wairakei, Ohaaki and Poihipi, given that the GGC is used to operate those power stations remotely. Without limitation, where any work under this EPC Contract may reasonably interfere with or 28
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disrupt Owner's use of the Wairakei Station, Contractor shall only carry out such work during a planned outage in terms of the Owner's Planned Outage Schedule; provided, however, that Owner shall develop the Owner's Planned Outage Schedule in a manner so as to reasonably permit Contractor to proceed with such Works in accordance with the Project Schedule. If Owner makes any changes to Owner's Planned Outage Schedule and Contractor suffers delay or incurs Cost as a result, Contractor shall be entitled to an Owner's Change therefor pursuant to ARTICLE 8 (Changes): (c) Contractor shall give Owner 7 days notice of Contractor's intention to undertake any activities in the Wairakei Station or to undertake any activities which may reasonably impact on the use or operation of the Wairakei Station, including details of such intended activities. (d) Contractor shall keep Owner updated on a daily basis as to: (i) any changes to Contractor's intentions notified under paragraph (c) (any material changes shall require a further 5 days notice under paragraph (c)); and (ii) once Contractor commences such activities, the progress of such activities. (e) Owner shall be entitled to have an observer present during the carrying out of activities required to be notified by Contractor under paragraph (c); (f) if Owner reasonably considers that there is a real risk that an act or omission by Contractor may disrupt or interfere with Owner's use of the Wairakei Station, and/or Owner's use of its power stations at Wairakei, Ohaaki or Poihipi, given that the GGC is used to operate those power stations remotely, or the dispatch of electricity into the Grid: (i) Owner may instruct Contractor to do or omit anything that Owner, acting reasonably, considers is required in order to overcome such potential disruption or interference. Such instruction may include an 29
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instruction to cease all work, to remove any part of the Works and/or to undertake any work; (ii) Contractor shall immediately comply with any such instruction; and (iii) such instruction shall, if appropriate in the circumstances, be treated as an Owner's Change for the purposes of ARTICLE 8 (Changes). 3.18 CO-EXISTING USE OF THE GGC Without limiting SECTION 3.17 (Co-existing use of the Wairakei Station), Contractor: (a) acknowledges that the Owner will be integrating and connecting the Binary Plant to the GGC, and that eventually the Binary Plant will be controlled from the GGC; (b) acknowledges that the GGC is also used to control Owner's power stations at Wairakei, Ohaaki, and Poihipi so that disruption of the GGC has the potential to cause material financial loss to, and have other adverse implications on, Owner; (c) will avoid any interference with or disruption to Owner's remote control of the Wairakei, Ohaaki and Poihipi power stations from the GGC; (d) will co-operate with Owner and comply with the Schedules in relation to any activities it carries out at or in relation to, the GGC; (e) use competent employees, contractors and Subcontractors who are experienced in work of a similar nature and scope in carrying out all activities at, or in relation to, the GGC. Without limitation to ARTICLE 19 (Subcontractors), Owner will have the right to reasonably approve all such employees, contractors and subcontractors at any time. 3.19 CO-OPERATION (a) Contractor acknowledges that during the carrying out of the Works Owner or a Third Party may wish to carry out work on or adjacent to the Site and/or the Wairakei Station. Contractor shall co-operate and co-ordinate with Owner and any such Third 30
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Party to allow them the reasonable opportunity to carry out any such work with the approval of Owner, provided, however, that Contractor shall not be obligated under this clause to undertake any activity that will unreasonably interfere with Contractor's performance and completion of the Works in accordance with the Project Schedule. (b) Contractor acknowledges that: (i) Taupo District Council and/or Transit New Zealand may wish to construct the ETA in future adjacent to the Site as shown on Site Drawing number WRK 0262 in exhibit A3 of SCHEDULE A (Owner's Technical Requirements) and as described in the Designation. The designating authority or its contractors or agents may therefore wish to undertake investigations, design or construction works for the proposed road at the same time as Contractor is carrying out the Works; (ii) concessionaires and others may from time to time undertake improvements to their facilities on neighbouring lands including neighbouring Wairakei Tourist Park land at the same time as Contractor is carrying out the Works; (iii) and in all cases Contractor shall co-operate with and co-ordinate its activities with Owner and with Third Parties as appropriate and take such actions as are set out in the Schedules or as are reasonable to accommodate these requirements with the approval of Owner. (c) Any Change required by Contractor as a result of complying with its obligations under paragraphs (a) or (b) shall be treated as an Owner's Change pursuant to ARTICLE 8 (Changes). (d) If the Binary Plant is capable of producing electricity prior to Take Over then: (i) Contractor shall either (at Owner's option) allow Owner to generate and dispatch electricity from the Binary Plant onto the Grid, or shall 31
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comply with Owner's instructions in relation to generation and dispatch of electricity from the Binary Plant; and (ii) if Contractor suffers delay or incurs Cost as a result, Contractor shall be entitled to an Owner's Change therefor pursuant ARTICLE 8 (Changes). 3.20 SECURITY Contractor shall be responsible for security of the Site prior to Take Over. This obligation includes keeping unauthorised persons off the Site. 3.21 CONTRACTOR'S OPERATIONS ON THE SITE AND WAIRAKEI STATION (a) Contractor shall confine all of its operations (including Contractor's Equipment and all its personnel) to the Site and, only to the extent necessary for carrying out the Works, the Wairakei Station. (b) Contractor shall comply with all reasonable security requirements of Owner in relation to the Wairakei Station. (c) During the carrying out of the Works Contractor shall keep the Site and the Wairakei Station free from all wreckage, rubbish, unnecessary obstruction, and shall store or remove from the Site and the Wairakei Station any Contractor's Equipment, surplus materials and Temporary Works which are no longer required. (d) Upon the issue of the Take Over Certificate and as part of the Post-Take Over Works, Contractor shall: (i) clear away and remove all Contractor's Equipment, surplus materials, wreckage, rubbish and Temporary Works relating to the Works; (ii) leave the Site and the Binary Plant, and with respect to the Works, the Wairakei Station, in a clean and safe condition; and (iii) reinstate all construction/laydown areas relating to the Works. 32
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However, Contractor may retain on the Site, in a tidy and orderly manner in a place designated by Owner for the duration of the Defects Correction Period, such Contractor's Equipment as is required for Contractor to fulfill its obligations under this EPC Contract. ARTICLE 4 - OWNER RESPONSIBILITIES 4.1 GENERAL RESPONSIBILITIES Owner shall, at Owner's cost and expense and not as part of the EPC Contract Price payable to Contractor: (a) Be responsible for making any and all arrangements for any sale and purchase of electricity to be generated by the Binary Plant, and for ensuring that Transpower enters into agreements allowing for the connection of the Binary Plant and the delivery of electricity generated by the Binary Plant at the high voltage interface point specified in SCHEDULE A (Owner's Technical Requirements) in good time to permit commissioning, start-up, testing and operation of the Binary Plant in accordance with the Project Schedule. (b) Arrange for and obtain all Owner's Consents in good time as required by Contractor to permit Contractor to proceed with the Work in accordance with the Project Schedule, on terms acceptable to Owner, and in accordance with the terms of this EPC Contract, and to pay for all fees associated therewith. Without derogating from the aforesaid, Contractor, upon Owner's specific request, will provide all necessary technical information to Owner regarding the Works to aid Owner in its efforts to obtain such consents and permits. (c) Provide the Site, including space for all construction facilities, lay-down, storage and disposal areas, roads and other means of access to Contractor in good time to permit Contractor to proceed with the Work in accordance with the Project Schedule, subject to ARTICLE 3 (Contractor Responsibilities) and in particular SECTION 3.5 (Access Conditions) and SECTION 3.6 (Condition affecting the carrying out of the Works). (d) Obtain and provide the supply of Geothermal Fluid in accordance with the Design Range to the Geothermal Fluid Terminal Point after being given the 33
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requisite 3 day prior notice of testing under SECTION 10.2 (Notice of Testing) and in good time to permit commissioning, start-up, testing and operation of the Binary Plant in accordance with the Project Schedule. If Contractor notified Owner in its Commissioning and Performance Testing PLAN provided pursuant to paragraph 1.2.1 of SCHEDULE D (Performance Tests) that it requires Geothermal Fluid in addition to the volume per hour specified in the Design Range and Owner has confirmed to Contractor the technical feasibility and cost of making the additional supply if any, Owner shall on demand of Contractor supply up to the agreed additional volume of Geothermal Fluid and Contractor shall pay Owner the agreed cost of providing it. Owner shall be entitled to interrupt the supply of Geothermal Fluid but such interruption shall be treated as an Owner's Change pursuant to ARTICLE 8 (Changes). (e) Accept the Geothermal Fluid for return to the reinjection system or other disposition following its use by Contractor at the Terminal Point, provided the temperature exceeds the minimum Brine Return Temperature of 85(Degree) C. (f) Perform the obligations of Owner under the Supply Contract so that Supplier can make available the Equipment furnished by Supplier in accordance with the Supply Agreement to Contractor (on behalf of Owner), for incorporation in the Works. (g) Provide access to electricity, water and communications at the Terminal Points specified in SCHEDULE A (Owner's Technical Requirements) in good time to permit construction, commissioning, start-up, testing and operation of the Binary Plant in accordance with the Project Schedule. (h) Designate an Owner's Representative who shall act as a single point of contact with Contractor in all matters on behalf of Owner. Contractor may require replacement of Owner's Representative on reasonable grounds, which shall be described to Owner. Owner may from time to time appoint alternative or additional persons to act in place of the Owner's Representative and shall give Contractor written notice of such appointment. Contractor shall act on the instructions of the following people, and no others: 34
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(i) the Owner's Representative (or any alternate or additional persons notified by Owner to Contractor under this clause); and (ii) in relation to any matter which may affect the Wairakei Station, the Station Controller or the Owner's Representative (or any alternate or additional persons notified by Owner to Contractor under this clause). (i) At least four (4) months prior to commencement of Contractor's commissioning activities, provide up to 5 senior operating and maintenance personnel and at least two (2) months prior to commencement of Contractor's commissioning activities, provide up to 25 regular operating and maintenance personnel, all for training by Contractor as provided pursuant to SECTION 3.1(N), and for commissioning, start-up, performance testing, and operation through Take Over. Owner and Owner's operation and maintenance personnel shall provide reasonable cooperation with Contractor in allowing Contractor to conduct all testing activities, including the Performance Tests, to complete the Work and to perform all of Contractor's warranty obligations in a timely and cost efficient manner. (j) Promptly (but not later than ten (10) days from delivery) approve, or provide written comments to the extent necessary to, all Design and Other Information submitted to Owner for approval or comment pursuant to ARTICLE 9 (Access and Review by Owner). (k) Owner shall be the importer of record and consignee for all goods and materials supplied under this EPC Contract and the Equipment and shall be responsible for all New Zealand taxes, duties and levies associated therewith. Owner hereby grants to Contractor the right to act as Owner's agent, including executing documentation on Owner's behalf, for purposes of accomplishing the importation of all goods and materials for the Binary Plant into New Zealand under this EPC Contract and the Supply Contract, including the Equipment, and the processing of such goods and materials through customs. 35
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4.2 RESPONSIBILITIES OF OWNER'S REPRESENTATIVE The Owner's Representative is authorized to: (a) give a decision, opinion or consent; or (b) express satisfaction or disapproval; or (c) determine value; or (d) otherwise take action which may affect the rights and obligations of Owner or Contractor. The Owner's Representative shall consult with Contractor in an endeavour to reach an agreement before exercising such authority. If agreement is not achieved, the Owner's Representative shall exercise such authority reasonably. If Contractor has a Dispute with the determination made by the Owner's Representative, such Dispute shall be resolved as provided in ARTICLE 16 (Dispute Resolution). Until any contrary determination is made pursuant to ARTICLE 16 (Dispute Resolution), Contractor shall proceed with the decisions and instructions given by the Owner's Representative. Owner shall be entitled to replace the Owner's Representative from time to time upon giving prior written notice to Contractor. ARTICLE 5 - EXTENSION OF TIME 5.1 EXTENSION OF TIME 5.1.1 In addition to any of its rights to recover additional Costs it incurs upon the occurrence of the following events as provided in other provisions of this EPC Contract, Contractor shall be entitled to an extension to the Scheduled Take Over Date and other dates in this EPC Contract to the extent that Contractor is or will be delayed either before or after such dates by any of the following causes: (a) an Owner's Change; 36
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(b) a Change in Law; (c) a Force Majeure event; (d) subject to ARTICLE 3 (Contractor Responsibilities), physical conditions or circumstances at the Site, which are materially adverse and would not be reasonably foreseeable by an experienced contractor; (e) delay to any tests required for Take Over as a result of: (i) the failure of Owner to provide the Geothermal Fluid that meets the Design Range or to accept Geothermal Fluid not less than 85(Degree) C after it has been run through the Binary Plant for reinjection or other disposal; or (ii) the failure by Transpower (arising other than as a result of a breach or failure by Contractor or Supplier to comply with their respective obligations under this EPC Contract and Supply Contract, as appropriate) to transport and/or take the electrical power generated by the Binary Plant as a result of carrying out such tests or Binary Plant commissioning; (f) any unreasonable delay, impediment or prevention by Owner other than the exercise of Owner's rights under this EPC Contract or the Supply Contract; (h) a delay to Supplier for which Supplier is entitled to an extension of its Delivery Schedule pursuant to Section 5.1 of the Supply Contract, provided that: (i) the delay does not arise as a result of a default or failure by Contractor or Supplier; 37
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(ii) the ability of Contractor to achieve Take Over by the Scheduled Take Over Date is actually affected by the delay. Contractor will only be entitled to an extension of the Scheduled Take Over Date to the extent of such effect; (iii) the delay could not have been prevented or overcome by the exercise of foresight, care and diligence of a professionally qualified and competent contractor experienced in work of a similar nature and scope as the Works; (iv) Contractor and/or Supplier as the case may be has used its Best Endeavours to mitigate the delay, including making such reasonable changes to the timing, method, and sequence of the Project as Owner may propose and finding alternative suppliers, and offering them assistance; and (v) Contractor and/or Supplier as the case may be has advised Owner of the potential for delay as soon as the potential became apparent, or would have become apparent to a qualified and competent contractor experienced in work of a similar nature and scope to the particular work in question. Notwithstanding that Contractor has not claimed an extension of time, Owner may at any time and from time to time by notice to Contractor as an Owner's Change pursuant to ARTICLE 8 (Changes) extend the Scheduled Take Over Date. 5.1.2 If Contractor believes that it is entitled to an extension of time under this SECTION 5.1, Contractor shall give notice to the Owner's Representative of the same as soon as reasonably practicable and in any event within 5 days of the day when Contractor learns of the delay. Contractor shall keep such contemporary records as may be reasonably necessary and feasible to substantiate such delay, either at the Site or at another location reasonably acceptable to the Owner's Representative and shall provide such information to the Owner's Representative as he or she shall reasonably require. 38
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Contractor shall permit the Owner's Representative to inspect such records during Contractor's normal business hours, and shall (if requested) provide the Owner's Representative with a copy of such records 5.1.3 Within 14 days of such notice (or such other period as may be agreed by the Owner's Representative), Contractor shall submit supporting details of the delay. Except that, if Contractor cannot submit all relevant details within such period because the cause of delay is continuing or such details are not yet reasonably available, Contractor shall submit interim details at intervals of not more than 14 days (from the first day of such delay) and final supporting details of its application within 14 days of the last day of delay. If Contractor fails to meet any such time periods, Contractor shall notify Owner as soon as reasonably practicable. Contractor's failure to meet the time periods specified in this SECTION 5.1 shall not affect Contractor's right to the extension of time unless such failure has materially prejudiced the ability of Owner to rectify or mitigate the causes or consequences of the delay in which case the extension of time granted to Contractor shall not include any periods of delay that could reasonably have been avoided if not for such failure to give notice. 5.1.4 The Owner's Representative shall proceed to agree upon or determine such extension of time as may be due. The Owner's Representative shall promptly notify Contractor accordingly. ARTICLE 6 - COMPENSATION AND PAYMENT 6.1 EPC CONTRACT PRICE 6.1.1 For the performance of the Work, Owner shall pay Contractor, in the manner and at the times hereinafter specified, the EPC Contract Price in the amount of Eight Hundred Thirty Thousand United States Dollars (U.S. $830,000) and Seven Million Five Hundred Twenty-Two Thousand Four Hundred Forty-Seven New Zealand Dollars (NZ$7,522,447). The EPC Contract Price is net of all applicable New Zealand taxes (other than the New Zealand income taxes of Contractor, and New Zealand employee-related taxes of Contractor, all of which the Contractor shall be responsible to pay), duties and levies including without limitation any New Zealand property taxes such as rates 39
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assessed against the Works or the Plant and the payment of any such taxes, duties and levies (other than the New Zealand income taxes, and New Zealand employee-related taxes, of Contractor) shall be the responsibility of Owner. Contractor shall provide reasonable cooperation to Owner to reduce Owner's exposure to any tax, duty or levy. 6.1.2 The EPC Contract Price (plus any GST, and less any withholding required by law) shall be full payment for performance of all of Contractor's obligations under and in connection with this EPC Contract, and Contractor shall be deemed to have satisfied himself as to the correctness and sufficiency of the EPC Contract Price. The EPC Contract Price includes Contractor's income taxes and employee-related taxes of the Contractor and withholding taxes that Owner may be required by law to withhold from any payment due to Contractor. 6.1.3 The EPC Contract Price shall be adjusted only as expressly provided for in this EPC Contract and shall not be adjusted for other changes in the cost of equipment, materials, labour or other inputs or currency exchange rates. 6.1.4 The parties agree: (a) That they are independent parties dealing at arm's length with each other in relation to the matters contemplated by this Contract. (b) For the purposes of Division 2 of Subpart EH of the Income Tax Act 1994, the parties confirm that the EPC Contract Price does not include any capitalised interest and it is the consideration the parties would have agreed, on the Commencement Date, if payment was required in full at the time the first right in the contracted property was transferred or the services were provided. 6.1.5 For the avoidance of doubt, the parties acknowledge and agree that: (a) any interest on overdue payments is separate from and does not form part of the EPC Contract Price; and 40
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(b) the gross EPC Contract Price includes any early completion payment under SECTION 6.5 (Early Completion Payment), taxes, levies or duties paid by the Owner under this Contract. 6.2 PAYMENT 6.2.1 Schedule C hereto sets forth the Milestone Payment Schedule, which is intended to cause payments to approximate the value of Works performed by Contractor. Contractor shall invoice Owner on achievement of Milestones in accordance with the Milestone Payment Schedule. Each payment shall be allocated pro rata between the United States Dollar and the New Zealand Dollar portions of the EPC Contract Price (and paid in such currency). 6.2.2 Upon the execution of this EPC Contract by the parties, Contractor may issue its first invoice for payment of the first milestone under the Milestone Payment Schedule. Thereafter on or before the tenth (10th) day of each month, Contractor shall furnish Owner's Representative a detailed progress invoice for payment based on Milestones achieved or due under SECTION 6.5 (Early Completion Payment), during the period ending on the last day of the previous month accompanied by the documents described under the Milestone Payment Schedule for which payment is demanded and any other documents as required under SECTION 6.4 (Preconditions to Milestone payments) (such invoice, and each invoice under this contract, is to include Contractor's New Zealand registration number for GST purposes, and other information to comply with the requirements for a "tax invoice" in section 24 of the Goods and Services Tax Act 1985). 6.2.3 Upon accomplishment of the Milestone entitled "Delivery of Final Documentation" in the Milestone Payment Schedule, Contractor shall submit an invoice to Owner's Representative, summarizing and reconciling all previous invoices and payments in the amount of the EPC Contract Price less payments to date. Owner shall pay the amount of the EPC Contract Price outstanding in full within ten (10) days of receipt of such invoice, subject to SUBSECTIONS 6.2.4 and 6.2.5 below. 6.2.4 Owner's Representative shall verify that the invoices submitted under SUBSECTION 6.2.2 OR 6.2.3 and the documents submitted pursuant to 41
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SUBSECTION 6.2.2 in support of the claim for payment, and shall, within ten (10) days of their receipt, either approve said invoice or give written notice within such period of errors or disputes with said documentation. Contractor shall be entitled to payment of an instalment only when it has met the applicable pre-conditions, if any, in SECTION 6.4 (Preconditions to Milestone Payments) and achieved all of the requirements of the relevant Milestone in conformity with the requirements of this EPC Contract. If Owner's Representative fails to approve the invoice for release of the Milestone payment or to provide the notice regarding errors or Disputes in the documentation within such period, in the absence of the invoice and the documents being patently false or inaccurate, the invoice and the accompanying documentation shall be deemed conclusive evidence sufficient for the release of such Milestone payment. In the case Owner's Representative provides written notice of errors or Disputes in said documentation within the period described herein Contractor shall resubmit the corrected progress invoice and/or documentation, and the above described approval process shall reapply. 6.2.5 Subject to meeting the requirements of SECTION 6.4(A) and (B), Owner shall pay Contractor the first payment due under the Milestone Payment Schedule within ten (10) days of the receipt of Contractor's invoice. With respect to all invoices thereafter, Owner shall pay Contractor on or before the 5th business day following Owner's approval or deemed approval of the invoice or any undisputed portion thereof pursuant to SUBSECTION 6.2.4 plus the GST, less any set-off for amounts which are due and owing to Owner from Contractor under this EPC Contract. When a set-off sum is in Dispute the parties shall promptly refer the matter for determination under the Disputes resolution procedure set forth in ARTICLE 16 (Dispute Resolution) and any moneys set-off and subsequently determined to be payable shall thereupon be paid together with interest for late payment. 6.2.6 If any Punchlist items remain to be completed upon Take Over, Owner's Representative may determine to withhold an amount from the remaining Milestone payments equal to up to one and a half times the reasonably estimated value of all Punchlist items remaining on an agreed upon punch list, with each such withheld amount to be paid to Contractor upon satisfactory completion of each such Punchlist item, 42
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Contractor to accumulate claims and send invoices to Owner therefor no more frequently than on a monthly basis. 6.2.7 If there is any Dispute about amounts invoiced and not paid, and the Dispute is not resolved within ten (10) days of notice by Contractor of such Dispute, the parties shall promptly refer the matter for determination under the disputes procedure in this EPC Contract and any moneys set-off and subsequently determined to be payable shall thereupon be paid together with interest for late payment from the date payment was originally due to the date of payment at the Default Rate. 6.3 INTEREST All monies not paid under this EPC Contract (including liquidated damages) by the due date for payment shall bear a late payment charge from the date payment was due to the date of payment at the Default Rate, unless such payment has been disputed and the Dispute has been resolved in favour of the paying party. 6.4 PRECONDITIONS TO MILESTONE PAYMENTS The preconditions referred to in SUBSECTION 6.2.4 are: (a) Contractor must have provided to Owner prior to the first Milestone payment the NZ$ Denominated L/C and the US$ Denominated L/C and the parent company guaranty to Owner as provided in ARTICLE 13 (Securities); (b) Contractor must have produced to Owner evidence confirming that Contractor has in place the insurances required in SECTION 15.1(A) (Contractor's Insurances) prior to the payment of the first Milestone payment, evidence that Contractor has in place the insurance required in SECTION 15.1(B) prior to the payment of Milestone payments occurring immediately prior to the date that Supplier is scheduled to first deliver Equipment to Owner FOB (Incoterms 2000) pursuant to the Supply Contract and evidence that Contractor has in place the insurance required in SECTION 15.1(C) and (D) prior to the payment of Milestone payments 43
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occurring after Contractor has commenced performance of the Works at the Site; and (c) Contractor is current in providing the monthly progress reports pursuant to SECTION 3.1(Q), provided, however, that any issues regarding the adequacy of the contents of such reports shall be resolved pursuant to ARTICLE 16 (Dispute Resolution) or other provisions of this EPC Contract and shall not be a basis for withholding or delaying payment of any Milestone. 6.5 EARLY COMPLETION PAYMENT In addition to the EPC Contract Price, Owner shall pay to Contractor upon the successful completion of the Reliability Run the sum of One Hundred Eighty Nine Thousand New Zealand Dollars (NZ$189,000) (plus GST if any and less any withholding required by law)if Contractor commences a Reliability Run prior to May 1, 2005 (as that date may be extended pursuant to ARTICLE 5 (Extension of Time) or ARTICLE 8 (Changes)) and successfully completes that Reliability Run. For purposes of this SECTION 6.5, Contractor may commence the Reliability Run when it has successfully accomplished the handling trials, satisfied the Performance Guarantees for the net power output and brine pressure drop output performance tests described in SUBSECTION 1.5.9 of SCHEDULE D (Performance Tests), and the Binary Plant can be operated lawfully, provided, however, that the noise test set forth in SECTION 1.5.13 of SCHEDULE D (Performance Tests) does not need to be completed prior to the commencement of the Reliability Run. ARTICLE 7 - COMMISSIONING AND TAKE OVER 7.1 COMMISSIONING 7.1.1 READINESS FOR COMMISSIONING Not earlier than 7 days (but not later than 4 days) before Contractor considers the Binary Plant will be ready for commissioning, Contractor shall give notice to Owner indicating the date on which Contractor believes the Binary Plant will be ready for commissioning. The Binary Plant is ready for commissioning when: 44
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(a) Contractor has completed the Works up to commissioning in accordance with this EPC Contract, apart from completion of insulation, painting, final grading and gravel, drainage or any other incomplete or defective items which do not affect the mechanical, electrical or structural integrity, or the safe and lawful operation, of the Binary Plant. Contractor shall participate in an inspection of the Works with Owner in order to jointly identify such incomplete or defective items; (b) Contractor has included the incomplete or defective items referred to in paragraph (a) in an initial Punchlist and Owner has approved (in its reasonable discretion) the initial Punchlist (the same time period and procedure set forth in SECTION 9.4 shall apply to Owner's review, approval or objections to the initial Punchlist proposed by Contractor); (c) the Binary Plant may be operated in accordance with all applicable Laws, Consents and Standards, and without damage to the Works generally (including the Binary Plant itself), the Grid, the Wairakei Station, or anything else on or off the Site, and without injury to any person; (d) Contractor has complied with its obligations under SCHEDULE A (Owner's Technical Requirements) in relation to commissioning; (e) the Binary Plant is ready for initial operation, adjustment and testing; (f) Contractor has submitted, in accordance with SECTION 9.4 (Design and Other Information Review), a detailed Commissioning and Performance Testing Plan pursuant to paragraph 1.2.1 of SCHEDULE D (Performance Tests), including Contractor's requirements regarding the volume of Geothermal Fluid to be supplied by Owner at specified times, and Owner has issued or pursuant to SECTION 9.4.3 is deemed to have issued a notice of no objection in respect of it; and (g) Contractor has provided to Owner all test certificates, approvals and the like required from statutory or regulatory authorities before the Binary Plant may be commissioned. 45
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7.1.2 NOTICE BY OWNER Within 7 days after receipt of notice pursuant to SUBSECTION 7.1.1 (Readiness for commissioning), Owner shall give notice to Contractor advising either that Owner: (a) has no objection to Contractor commissioning the Binary Plant (with or without conditions); or (b) objects to Contractor commissioning the Binary Plant because any of the conditions in SUBSECTION 7.1.1 (Readiness for commissioning) have not been satisfied and specifying the conditions objected to and the basis for such objection. If Owner fails to provide such notice within such 7 day period, Owner shall be deemed to have no objection to Contractor commissioning the Binary Plant (with or without conditions). 7.1.3 COMMISSIONING/CORRECTIVE MEASURES (a) If Owner gives or is deemed pursuant to SUBSECTION 7.1.2 (Notice by Owner) to have given notice that it has no objection to Contractor commissioning the Binary Plant, Contractor shall proceed to commission the Binary Plant in accordance with any conditions attaching to the notice and the Commissioning and Performance Testing Plan. (b) If Owner gives notice that it objects to Contractor commissioning the Binary Plant, Contractor shall undertake corrective measures and/or perform any work required to comply with the conditions of SUBSECTION 7.1.1 (Readiness for commissioning), then give notice to Owner again under SUBSECTION 7.1.1 (Readiness for commissioning). 7.2 TAKE OVER The Binary Plant shall be ready for Take Over when: 46
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(a) Contractor has completed all Performance Tests and the results are within or better than the thresholds for performance identified in SECTION 10.5 (Failure to pass the Performance Tests); (b) Contractor has completed the Binary Plant, except for (i) the Post-Take Over Works, (ii) completion of the final as-built drawings and operation and maintenance manuals; and (iii) any construction that cannot reasonably be completed due to the occurrence of any of the events described in SUBSECTION 5.1.1(E) OR (F) (Extension of Time); (c) the Binary Plant can be used for its intended purposes and operated properly and conveniently by Owner, without further reliance on Contractor and in accordance with all applicable Laws, Consents and Standards; (d) Contractor has furnished Owner with or has obtained such Consents or waivers from governmental authorities having jurisdiction that permit Owner under applicable Law, Consents, and Standards to operate the Binary Plant (e) Contractor has paid all delay and performance related liquidated damages to Owner due in terms of ARTICLE 12 (Remedies) save only those subject to a Dispute then submitted for resolution pursuant to ARTICLE 16 (Dispute Resolution) and, if the Binary Plant has been accepted under SECTION 10.5(A)(3) (Failure to pass the Performance Tests), Contractor has paid to Owner any amount due to Owner to reflect the adjustment to the EPC Contract Price under SECTION 10.5(B) (Failure to pass the Performance Tests); (f) Contractor has trained all operation and maintenance personnel as required under SECTION 3.1(N); (g) Contractor has given Owner the following documents and information: (i) draft operating and maintenance manuals; 47
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(ii) training manuals; (iii) software end user licences, passwords, codes and other similar items necessary for the operation and maintenance of the Binary Plant; (iv) Draft As-Built Drawings; and (v) documents required to satisfy all applicable regulatory approvals necessary for Owner's operation of the Binary Plant; (h) The Hazop Review has been carried out and any issues identified have been rectified. 7.3 REQUEST FOR TAKE OVER CERTIFICATE 7.3.1 Not earlier than 7 days before Contractor considers the provisions of SECTION 7.2 (Take Over) will be met, Contractor shall give notice to Owner requesting a Take Over Certificate. Such request shall contain all such documentary evidence and other information in sufficient detail to enable Owner to determine whether the provisions of SECTION 7.2 (Take Over) have or will be (as applicable) met. 7.3.2 Owner shall within 7 days after receiving Contractor's request: (a) if Contractor has met all of the requirements of SECTION 7.2 (Take Over), issue a Take Over Certificate to Contractor stating the date on which Contractor met the requirements of SECTION 7.2 (Take Over); (b) if Contractor has not met one or more of the requirements of SECTION 7.2 (Take Over), reject the request, giving reasons and identifying the work required to be done by Contractor to enable the Take Over Certificate to be issued. Contractor shall then complete this work before issuing a further notice under SECTION 7.3 (Request for Take Over Certificate); or 48
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(c) if Contractor has not met all of the requirements of SECTION 7.2 (Take Over) but Owner wishes to take over the Permanent Works notwithstanding such failure, Owner may issue a Take Over Certificate stating the date on which the Owner took over the Permanent Works identifying those requirements of SECTION 7.2 (Take Over) which remain outstanding. In the event of Take Over in these circumstances, Contractor shall not be relieved of the obligation to meet all of the requirements of SECTION 7.2 (Take Over) and shall meet such requirements as soon as practicable following Take Over. 7.4 RESPONSIBILITY FOR THE PERMANENT WORKS Owner shall take complete possession and control of the Permanent Works and assume responsibility for the daily operation of the Binary Plant upon Take Over. Owner and Contractor shall reasonably coordinate and cooperate with each other to provide Contractor access to the Site at reasonable times to avoid unreasonable interference with Owner's operation and maintenance of the Binary Plant for the purpose of completing Punchlist items, remedying any defects, fulfilling any other outstanding obligations of Contractor under this EPC Contract or performing the corrective work described in SECTION 12.8 (Make Right Obligation). 7.5 DELAYED TESTS (a) If the Performance Tests are not satisfactorily completed by the Scheduled Take Over Date due to the occurrence of any of the events described in SUBSECTION 5.1.1(D) OR (E) (Extension of Time) (solely for purposes of this Section, the term "Scheduled Take Over Date" shall not be extended due to the occurrence of such SUBSECTION 5.1.1(D) OR (E) events, but shall reflect any other extensions thereof made pursuant to the other provisions of this EPC Contract) then Contractor shall be entitled to issue a notice to Owner under SECTION 8.5 as if the failure to complete the tests was an Owner's Change. 49
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(b) In the event that SUBSECTION 5.1.1(E) or (F) applies and the Owner fails or refuses to remedy the relevant SUBSECTION 5.1.1(E) or (F) event within 30 days of such Scheduled Take Over Date then Contractor shall be entitled to payment of the relevant Milestone(s) as if the Performance Tests had been successfully completed and Take Over had occurred. If Owner is able to remedy the relevant event within 90 days of such Scheduled Take Over Date, Contractor shall, subject to SECTION 7.6 (Binary Plant Degradation) and upon Owner's request, conduct the delayed Performance Tests and otherwise comply with the provisions of SECTION 7.2 (Take Over) and ARTICLE 10 (Testing). If Contractor is required to incur additional Costs as a result of maintaining personnel and equipment on standby to do so it shall be entitled to claim for reasonable reimbursement of those Costs as an Owner's Change pursuant to ARTICLE 8 (Changes). In the event that Owner is unable to remedy the relevant event within 90 days of the Scheduled Take Over Date then Take Over and the successful full completion of all of the Performance Tests shall be deemed to have occurred and Contractor shall be entitled to payment of the relevant Milestone(s) for Take Over, the accomplishment of such Performance Tests and related matters. 7.6 BINARY PLANT DEGRADATION (a) If geothermal fluid has been run through any part of the Binary Plant due to a request by Owner to operate the Binary Plant under SECTION 3.19(D) resulting in a cumulative operating period of more than six (6) weeks, Contractor may require that the parties jointly open and inspect the Binary Plant prior to the Performance Tests being carried out. Subsequent to the inspection: (i) if the Binary Plant is in good, clean and reasonably as-installed condition, Contractor will proceed within a reasonable period of time to conduct the Performance Tests not previously completed; or (ii) if the Binary Plant is not in good, clean and reasonably as-installed condition, prior to the conduct of the Performance Tests, 50
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Contractor will notify Owner accordingly and with the agreement of Owner (not to be unreasonably withheld) within a reasonable period of time clean and repair the Binary Plant (as Contractor reasonably deems appropriate) at Owner's expense and then conduct such tests; and (iii) if the Parties agree that the Binary Plant can not be cleaned and/or repaired to a standard to enable the Performance Tests to be carried out, the testing protocols and requirements shall be revised accordingly to adjust for the constraints which prevent such tests from being performed as originally defined and within a reasonable period of time Contractor shall conduct such revised tests. 7.7 REPLACEMENT PERFORMANCE BOND Upon Take Over Contractor may submit to Owner a replacement performance bond issued by the same bank, provided that it has the same or better credit rating, or other financial institution meeting the criteria specified in SECTION 13.1 (Security Provided on Behalf of Contractor) and in the same form as the performance bonds issued under SECTIONS 13.1(A) and 13.1(B) but for an amount representing 5% of the sum of the EPC Contract Price and the Supply Contract Price at Take Over. Upon receipt of such bond, Owner shall release the NZ$ Denominated L/C and the US$ Denominated L/C issued under SECTIONS 13.1(A) and 13.1(B). 7.8 INDUSTRY AND GRID REQUIREMENTS If the Binary Plant upon Take Over does not satisfy the technical requirements of all Industry Arrangements Contractor shall, if requested by Owner, provide all information necessary for Owner to seek an equivalence arrangement or dispensation. Contractor shall also reimburse all Owner's reasonable out-of-pocket costs associated with both any application for an equivalence arrangement or dispensation and any charges imposed thereafter. Owner shall not be obliged to apply for an equivalence arrangement or dispensation and any application, or decision not to apply for an equivalence arrangement or dispensation shall not limit Owner's rights or remedies. 51
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7.9 POST-TAKE OVER WORKS After Take Over, Contractor shall promptly and diligently perform the following Works to completion: (a) Upon Take Over, Contractor shall prepare a final Punchlist that identifies all incomplete or defective items of the Works and present the same for approval by Owner (acting reasonably) applying the same time period and approval procedure set forth in SUBSECTION 7.1.2 to the final Punchlist proposed by Contractor and the parties referring any Dispute over the composition of the final Punchlist for resolution pursuant to ARTICLE 16 (Dispute Resolution) without delaying Take Over. Approval by Owner of the Punchlist shall not relieve Contractor of any of its obligations under this EPC Contract and Contractor shall promptly and diligently complete all items of the Works included in the final Punchlist approved by Owner as provided above. (b) Contractor shall transfer all applicable Consents related to the Works and Binary Plant to Owner in a form which enables the benefit of them to be used by Owner, including: (i) Building Act 1991 code compliance certificate(s); (ii) all certification under the Electricity Act 1992 and Hazardous Substances and New Organisms Act 1996; (iii) all certification of pressure equipment and cranes; and (iv) all other certificates required for operation or maintenance of the Works which are within Contractor's obligations; (h) Contractor shall give Owner all documents and information required to be provided under this EPC Contract, including: (i) all documents required by the Schedules; and 52
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(ii) Plant specifications and descriptions. (i) Contractor shall provide to Owner all special tools identified in the Contractor's Technical Proposal; (j) Contractor shall remove all Contractor's and Subcontractor's personnel, supplies, equipment, waste materials, rubbish and temporary facilities, except those reasonably required for performance of correction work during the Defects Correction Period, from the Site and the Wairakei Station; (k) Contractor shall give Owner all information required as specified in SCHEDULE A (Owner's Technical Requirements) for Owner's final fixed asset register with respect to the Binary Plant; 7.10 FINAL DOCUMENTATION Not later than six (6) months after Take Over, Contractor shall provide to Owner four copies of the final operation and maintenance manuals (which shall incorporate manuals of the Equipment) and detailed as-built Drawings and specifications for the Binary Plant. ARTICLE 8 - CHANGES 8.1 CHANGE All Changes shall be recorded in a written instrument signed by the Owner's Representative and Contractor and shall not be implemented by Contractor without such written instrument. 8.2 EFFECT OF CHANGE No Change shall in any way vitiate or invalidate this EPC Contract. 53
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8.3 REQUEST Either party may request a Change under this ARTICLE 8 (Changes) by written request to the other party, provided however, that neither party may request or require changes or deletions which, in the aggregate, reduce the combined EPC and Supply Contract Prices by more than fifteen percent (15%). 8.4 OWNER'S CHANGES (a) At any time prior to issuing the Take Over Certificate, Owner may instruct Owner's Changes. Contractor shall promptly implement any such Owner's Change. (b) If Owner requests a proposal in respect of a contemplated Owner's Change, or if Contractor is of the view that an instruction given by Owner comprises an Owner's Change, the following provisions shall apply: (i) within 14 days after Owner's request, or such longer period as Owner allows, Contractor shall prepare and submit to Owner a detailed proposal relating to the contemplated Owner's Change, including: (1) a description of how the Change would be implemented, including (where relevant) the proposed design and/or work to be performed; (2) any additional Cost or Cost saving and Contractor's proposal for any adjustment to the EPC Contract Price for such Cost (and if relevant Supplier's proposal for any adjustment in the Supply Contact Price under the Supply Contract) as a result; (3) any additional time that would be involved or any time saving and Contractor's proposal for any adjustment to the Scheduled Take Over Date as a result; 54
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(4) Contractor's proposal for any consequential adjustment to the programme, construction method statement and the Milestone Payment Schedule; and (5) advice as to the effect of the Owner's Change on the ability of Contractor to perform its obligations under this EPC Contract; (6) advice as to the effect of the Owner's Change on the Supply Contract and/or the Equipment; (ii) Contractor and Owner shall then take reasonable steps to reach agreement on the Owner's Change. Upon agreement being reached Owner may then issue an instruction to Contractor to implement the Owner's Change. Any such agreement shall be conditional upon Owner being able to reach an agreement with the Supplier for any related change under the Supply Agreement and upon terms acceptable to Owner (acting reasonably); (iii) no agreement between Owner and Contractor as to the terms upon which an Owner's Change may be implemented shall have any contractual or other legal effect unless it is in writing and a written instruction to implement the Owner's Change has been issued pursuant to this clause; (iv) any such written agreement shall be binding upon Contractor and Owner according to its terms and Contractor will have no further or other entitlement under this EPC Contract in respect of such Owner's Change; (v) if the parties fail to reach agreement within 7 days Owner may either: (1) instruct Contractor under paragraph (a) to implement the Owner's Change in which case the parties shall resolve any 55
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Dispute regarding the extension of time, compensation or other issues regarding such Change in accordance with ARTICLE 16 (Dispute Resolution); or (2) choose not to proceed with the Owner's Change, in which event Contractor shall have no claim of any kind whatsoever arising out of or in connection with the request for the proposal. If Owner elects to not proceed with the Owner's Change, Owner reserves the right, subject to the terms of this EPC Contract, to proceed with the work behind the proposed Change directly or through a third party. 8.5 ADJUSTMENTS Should any Owner's Change or the occurrence of an event described in SUBSECTION 5.1.1 (other than where the occurrence of such event is due to an event of Force Majeure and Owner elects to address such failure pursuant to the terms of ARTICLE 22 (Force Majeure)) cause a material increase or decrease in the Cost of or time required for Contractor's performance of this EPC Contract or otherwise affect any provision of this EPC Contract, then after Contractor has given to Owner the required information under SECTION 8.4 of the likely effect of the Change and corresponding proposed adjustments, and Owner elects to continue with the proposed Change then the Scheduled Take Over Date and other dates in this EPC Contract shall be adjusted as provided in ARTICLE 5 (Extension of Time) and an adjustment that is reasonable in the circumstances will be made to the EPC Contract Price for the Costs of such Change plus a ten percent allowance thereon for overhead and profit (with regard to SUBSECTION 5.1.1 events, Contractor's rights under this SECTION 8.5 with regard to recovery of Costs shall be subject to the conditions set forth in SUBSECTION 5.1.1(I), (III), (IV) and (V) which provisions shall be read as if references to "delay" refer to "Costs"), and to performance warranties (where performance of the Works is attested and subject to SECTION 8.7 (Effect of Changes on Warranties and Safety) and any other provision of this EPC Contract which is thereby affected. Any increase in the EPC Contract Price due to such Change 56
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shall be payable subject to a progress payment schedule to be submitted by Contractor as part of the proposed written Change order. Any Dispute relating to any such Change shall be determined in terms of ARTICLE 16 (Dispute Resolution), but Contractor shall continue to implement any Owner's Change notwithstanding the Dispute. 8.6 CONTRACTOR CHANGES 8.6.1 Notwithstanding the foregoing, or anything expressed or implied in this EPC Contract, if Contractor requests a Change so as to make the Binary Plant meet the Performance Guarantees, or to otherwise comply with its obligations under this EPC Contract and such request does not involve any other cause or event that would otherwise entitle Contractor to such Change under this EPC Contract, such Change shall be at Contractor's own cost and expense and shall be subject to the consent of the Owner's Representative (which consent shall not be unreasonably withheld). If the Owner's Representative withholds its consent to such Change, and Contractor remains of the view that it is necessary for the completion of the Work in accordance with this EPC Contract, then the matter shall be referred for resolution under ARTICLE 16 (Dispute Resolution). Provided always in no event shall Owner be obliged to accept a Contractor's Change that Owner considers to be detrimental to Owner's overall interests in relation to the Plant. 8.6.2 The requirements of SECTION 8.4(B) shall apply to every request made by Contractor for a Change under this SECTION 8.6, and the provisions of SECTION 8.4(B) shall be read as if references to "Owner's Change" are to "Contractor's Change" and SECTION 8.4(B)(V) shall be read so that if the parties fail to reach agreement within 7 days the Dispute shall be determined in terms of ARTICLE 16 (Dispute Resolution). 8.7 EFFECT OF CHANGES ON WARRANTIES AND SAFETY 8.7.1 If Contractor reasonably believes that a proposed Owner's Change will result in Contractor not being able to comply with any express or implied warranty of the Works, Contractor shall serve Owner notice within fourteen (14) days of the receipt of such proposal of its belief and the believed effect together with such supporting technical data and other information as is reasonably required to confirm to Owner (acting reasonably) the predicted effect of the proposed change in the Works. If the parties are 57
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unable to agree upon the Owner's Change and its predictive effect and Owner wishes to proceed with the Owner's Change then the matter shall be referred for immediate resolution by a suitably qualified expert either agreed by the parties or appointed by the President or nominee of the Institute of Professional Engineers of New Zealand within 7 days of being requested to do so under this EPC Contract. The expert shall be required to make the determination within 7 days of appointment. If Owner insists, despite the expert determination to require the execution of such proposal in circumstances where the expert determines the change will result in Contractor not being able to comply with any express or implied warranty of the Works, Contractor shall comply with Owner's requirement to execute the proposal, but Contractor shall not be responsible for the resulting non compliance with affected warranties or performance guarantees, but only to the extent related to or derived from Owner's proposal. 8.7.2 If a proposed Owner's Change will cause or result in an unlawful activity or may negatively affect safety of the Binary Plant or persons in its vicinity, Contractor shall serve Owner notice within fourteen (14) days of such proposal of its belief and the believed effect, and Contractor shall not be required by Owner to unlawfully execute such proposal. 8.8 OTHER PROVISIONS UNAFFECTED Except to the extent a Change specifically amends one or more provisions hereof, all provisions hereof shall apply to all Changes, and no Change shall be implied as a result of any other Change. ARTICLE 9 - ACCESS AND REVIEW BY OWNER 9.1 RESPONSIBILITY FOR DESIGN Contractor shall be responsible for the development of all technical data, design and other documentation required for the performance of the Works (including the verification of the design specification of the Equipment) and its suitability or otherwise to achieve Contractor's obligations in SECTION 3.1 (General Responsibilities), particularly relating to fitness for purpose as described in SECTION 3.1(D). 58
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9.2 INSPECTION OF WORK (a) In addition to inspection and testing required elsewhere under this EPC Contract (including those noted in section 1.7 of SCHEDULE A (Owner's Technical Requirements)), Owner shall have the right at all reasonable times to inspect and test, on the Site, any item of equipment, material, engineering, service or workmanship to be provided as part of the Works and to inspect and test any such major items that are being specially fabricated for Contractor in New Zealand. Alternatively, Owner shall have the right to require Contractor to demonstrate to Owner, by testing or otherwise, that any such work complies with this EPC Contract or the Supply Contract as the case may be. Contractor shall, at the request of Owner, arrange for any such inspection, testing or demonstration at the relevant location. Owner shall coordinate such requested inspections and tests with Contractor to avoid unnecessary duplication of inspections and testing and interference with the performance of the Works. Where any such matter inspected, tested or the subject of a demonstration under this clause: (i) does not conform with this EPC Contract or the Supply Contract, Contractor shall be responsible for all costs in respect of such inspection, testing or demonstration and the Contractor shall not be relieved of its obligations to carry out the Works in accordance with the requirements of this EPC Contract; (ii) conforms with this EPC Contract or the Supply Contract, such inspection, testing or demonstration shall be treated as an Owner's Change pursuant to ARTICLE 8 (Changes). (b) Contractor shall be responsible for all costs in respect of any inspection, testing or demonstration required by any authority, other statutory or regulatory body or other authorised third party in relation to the Works and/or the Site. (c) Contractor shall give notice to Owner whenever any work is ready for inspection or testing and before it is materially covered up, put out of sight, or packaged for storage or transport. If Contractor fails to give notice then notwithstanding 59
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SECTION 9.2(A) (Inspection of Work) Contractor shall, if and when required by Owner, uncover the work and thereafter reinstate and make good, all at Contractor's cost. 9.3 ACCESS TO THE SITE Owner shall have the right to access the Site at all times, shall have the right, at Owner's expense, to be present during all on-site and off-site test procedures and shall have the right to receive, upon request, a single hard copy and electronic copy of inspection and test procedures, quality control reports, and test reports and data. Contractor shall notify Owner at least ten (10) days prior to the testing of major equipment items and systems at the Site. While at the Site, Owner and its representatives shall comply with all of Contractor's safety rules and other job site rules and regulations. 9.4 DESIGN AND OTHER INFORMATION REVIEW 9.4.1 Contractor shall submit to Owner for review 4 hard copies or 1 electronic copy of the documents listed in Exhibit A01 of SCHEDULE A (Owner's Technical Requirements) and any other information reasonably requested by the Owner's Representative for the purposes of enabling commissioning and Take Over of the Permanent Works. 9.4.2 Contractor shall submit to Owner's Representative one (4) hard or one (1) electronic copy of the Design and Other Information in sufficient time to enable Owner's Representative to review such Design and Other Information in accordance with this SECTION 9.4. In the event that a re-submission of Design and Other Information is required as provided in this SECTION 9.4, such re-submission shall be made as soon as reasonably practicable after Contractor's receipt of the relevant statement of objections. 9.4.3 Following receipt of a submission of Design and Other Information in accordance with SUBSECTION 9.4.2, the Owner's Representative shall within ten (10) days from receipt return to the Contractor either: (a) a notice stating that he/she has no objections to the Design and Other Information as submitted (for the purposes of this ARTICLE 9, a "notice of no objection"); or 60
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(b) a statement of objections which shall identify with due particularity the aspects of the Design and Other Information which do not materially comply with the provisions of this EPC Contract and/or accord in any material respect with any Design and Other Information previously submitted by Contractor. If the Owner's Representative fails to respond within the ten (10) day period, then he/she will be deemed to have issued a notice of no objection. 9.4.4 If the Owner's Representative returns any Design and Other Information under SUBSECTION 9.4.3(A) or is deemed to have issued a notice of no objection under SUBSECTION 9.4.3, Contractor may, subject to SUBSECTION 9.4.5, proceed with the Works in accordance with this EPC Contract. 9.4.5 If the Owner's Representative considers that revisions to a submission of Design and Other Information are appropriate, but that such revisions are of minor design significance, the Owner's Representative may issue a notice of no objection subject to an appended schedule of comments identifying the relevant revisions. Subject to the restrictions set forth in SUBSECTION 9.4.6, Contractor shall cause such Design and Other Information to be revised in accordance with such comments, but shall not be obliged to re-submit such Design and Other Information solely on account of such revisions. 9.4.6 If the Owner's Representative returns any statement under SUBSECTION 9.4.3(B), Contractor shall cause the Design and Other Information to be revised so as to take account of the properly stated objections and as soon as reasonably practicable shall re-submit such Design and Other Information to Owner's Representative, provided, however, that Contractor shall not be required to make any modifications or changes which are not in accordance with this EPC Contract. 9.4.7 Submission of a document under SUBSECTION 9.4.1, and the issue of notice of objection or the issue of a notice of no objection by Owner: (a) does not in any way place responsibility for the document or the matters to which the document relates upon Owner or restrict any 61
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remedy Owner would have otherwise have had with respect to the relevant Works, or any other related submission of a document by Contractor; and (b) shall not relieve Contractor from any of its obligations under this EPC Contract or any liability arising from the document. In particular, without limitation, Owner shall not be obliged to review a document submitted under SUBSECTION 9.4.1 and a notice of objection does not imply that Owner has undertaken such a review. 9.4.8 Neither a proper objection raised under SUBSECTION 9.4.3(B) nor a comment made under SUBSECTION 9.4.5 shall constitute a Change. 9.4.9 Except in the case of an Owner's Change or agreed Contractor's Change, approved Design and Other Information shall not be departed from. 9.4.10 Owner and/or Owner's Representative shall have the right to inspect all of the Design and Other Information at Contractor's premises, for any part of the Works, includes as contemplated in section 1.5.1 of SCHEDULE A (Owner's Technical Requirements). Owner shall coordinate such requested inspections with Contractor to avoid unnecessary duplication of inspections and interference with the performance of the Works. 9.5 DRAWINGS NOT TO BE PROVIDED Notwithstanding any other provisions of this EPC Contract, Contractor shall not be required to provide shop drawings nor any of Contractor's or Supplier's confidential manufacturing drawings, designs or know-how nor the confidential details of manufacturing practices, processes or operations. 9.6 USE OF DRAWINGS Documents, drawings and information supplied by Contractor may be used by Owner, its representatives, assignees and transferees, only for the purposes of completing, operating, maintaining, adjusting and repairing the Binary Plant. No license is granted to 62
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copy or use documents, drawings or information so supplied in order to make or have made spare parts. Documents, drawings or information so supplied by Contractor shall be subject to the confidentiality clause contained herein in ARTICLE 23 (Confidentiality) and shall not be used, copied or communicated by Owner to a third party otherwise than as strictly necessary and permitted under this EPC Contract. ARTICLE 10 - TESTING 10.1 TEST PROCEDURES Once Contractor has achieved commissioning of the Plant as provided in SECTION 7.1 (Commissioning), Contractor shall conduct the Performance Tests described in SCHEDULE D (Performance Tests) hereto as described therein, and test results shall be adjusted in accordance with the Correction Curves as applied in accordance with SCHEDULE D (Performance Tests). Contractor shall provide everything necessary to conduct the Performance Tests apart from the obligations of Owner under this EPC Contract (e.g., supplying the Geothermal Fluid). 10.2 NOTICE OF TESTING Contractor shall give Owner's Representative at least three (3) days' notice prior to the date(s) on which Contractor will be ready to perform the initial Performance Tests under SCHEDULE D (Performance Tests); provided that for any repeated test the notice period shall be at least twenty-four (24) hours before the time established by Contractor for such test. Owner's Representative shall be entitled to have, at its own cost, a suitably qualified independent party present during all such tests. If Owner's Representative and/or such independent party fails to attend at the time and place appointed for the tests, Contractor shall be entitled to proceed with the tests in the Owner's Representative's and/or such party's absence. The tests shall then be deemed to have been made in the presence of the Owner's Representative and such party and the results of the tests shall except for manifest error be accepted as accurate. Reporting the results of the tests shall be in accordance with the requirements of SCHEDULE D (Performance Tests). 63
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If any aspect of the Works fails to pass any test, the Owner's Representative may require such test to be repeated on the same terms and conditions and such testing shall be executed by Contractor. 10.3 CONDUCT AND REPETITION OF TESTS Contractor may at any time prior to Take Over repeat at its cost, one or more times, any of the tests described in SCHEDULE D (Performance Tests) where Contractor, in its sole discretion, believes that the results of the prior tests are unsatisfactory. Further, Contractor may undertake remedial actions at its cost in connection with such repeated tests, provided that such remedial action does not depart from previously approved Design and Other Information without the Owner's Representative's prior consent, which shall not be unreasonably withheld and the response shall be given promptly but not later than forty-eight (48) hours after Contractor's request. 10.4 POST PERFORMANCE TESTS ALTERATIONS (a) If Contractor alters the setting, configuration or the like of the Binary Plant during or after the successful completion of a Performance Test in a manner that would materially affect the integrity of such Performance Test, save where such alteration is part of the normal operating practice of the Binary Plant or is approved/waived by Owner in its reasonable discretion, then the results of such affected successful Performance Test shall, at the option of Owner, be invalidated. (b) Contractor shall notify Owner of any defects in the Binary Plant discovered during the conduct of any Performance Test. 10.5 FAILURE TO PASS THE PERFORMANCE TESTS (a) If: (i) the Corrected Net Power Output in respect of the final Performance Test for net power output set forth in section 1.5.9 of SCHEDULE D (Performance Tests) is less than 90% of the Guaranteed Net Power Output; or 64
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(ii) the Corrected Pressure Drop in respect of the final Performance Test for pressure drop set forth in SCHEDULE D (Performance Tests) is greater than the 2.7 barg; or (iii) the Binary Plant fails to pass the Reliability Run (following any rescheduled run/s of the Reliability Run permitted by SCHEDULE D (Performance Tests) or this EPC Contract), Owner shall be entitled to: (1) order Contractor to carry out corrective work and a repetition of the relevant Performance Test(s); (2) reject the Binary Plant, in which event Owner shall, without prejudice to any other rights or remedies under this EPC Contract or otherwise have the same remedies as are provided in SECTION 21.1 (Termination for Cause), SUBSECTION 21.1.3 (Consequences of Termination), and SUBSECTION 21.1.4 (Payment After Termination); or (3) accept the Binary Plant at the reduced performance level, subject to reduction of the EPC Contract Price in terms of paragraph (b) below. (b) In the event Owner accepts the Binary Plant in terms of SECTION 10.5(A)(3) then the EPC Contract Price shall be reduced by the amount appropriate to cover the reduced value of the Binary Plant to Owner (and SECTION 8.3 (Request) shall not apply) having regard to: (i) an acceptable return to Owner on the revised EPC Contract Price, having regard to the electricity that can be generated from the Binary Plant and the cost of its operation; and (ii) any other matter which would be reasonably relevant to Owner's consideration of the price it would be prepared to pay for the 65
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Binary Plant given its performance, economic life and its whole of life cost, provided always that if Owner accepts the Binary Plant in terms of SECTION 10.5(A)(3) without having agreed upon a revised EPC Contract Price with Contractor, the EPC Contract Price shall be determined in accordance with ARTICLE 16 (Dispute Resolution). Upon the determination of the reduction in the EPC Contract Price in accordance with ARTICLE 16 (Dispute Resolution), Owner shall be entitled to a further opportunity to exercise either of the options in SECTION 10.5(A)(1) or 10.5(A)(2) and not take over the Binary Plant for the reduced price so determined. (c) In the event Owner has already paid Contractor more than the reduced EPC Contract Price, Owner may recover the amount of the overpayment as a debt due from Contractor. The acceptance of the Binary Plant by Owner, and the reduction of the EPC Contract Price shall not otherwise relieve Contractor of its obligations under this EPC Contract, save in relation to those consequences which necessarily arise as a result of the failure which gave rise to the reduction in the EPC Contract Price; provided, however, that if Owner receives any amount from Supplier for a similar claim under the Supply Contract, the liability of Contractor under this clause shall be reduced accordingly . (d) If the final applicable Performance Tests (which to avoid doubt must be carried out prior to the Reliability Run that is the basis for Take Over) establish that: (i) the Corrected Net Power Output is less than 100% (but not less than 90%) of the Guaranteed Net Power Output; or (ii) the Corrected Pressure Drop is more than the Guaranteed Pressure Drop (but not more than the 2.7 barg), Contractor shall pay liquidated damages in accordance with SECTION 12.2 (Liquidated Damages for Performance Deficiency). 66
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ARTICLE 11 - WARRANTIES 11.1 GENERAL WARRANTY Contractor warrants that: (a) the Works and the Equipment shall conform in all material respects to Laws, Owner's Consents, and the other applicable descriptions, specifications and criteria set forth in this EPC Contract and the Supply Contract; (b) the Works shall be performed in a workmanlike and skilful manner; (c) the Works and the Equipment shall be of good quality and will, on Take Over, be free from defects in workmanship, material, design and title and, as specified in SECTION 3.1(D) (General Responsibilities), fit for the purposes for which the Works are intended, each in accordance with this EPC Contract. (d) All materials and other items when incorporated in the Works and the Equipment shall be new and of a suitable grade of its respective kind for its intended use; (e) it is a corporation duly organised, validly existing and in good standing under the laws of its home country, and has full power to engage in the business it presently conducts and contemplates conducting, and is and will be duly licensed or qualified and in good standing under the laws of each jurisdiction in which it transacts business; (f) there are no actions, suits, proceedings or investigations pending or, to Contractor's knowledge, threatened against it, which individually or in the aggregate could result in any materially adverse effect on 67
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Contractor or in any impairment of its ability to perform its obligations under this EPC Contract; (g) it has no knowledge of any violation or default with respect to any order, writ, injunction or any decree of any court or any governmental department commission, board, agency or instrumentality which may result in any such materially adverse effect or such impairment; (h) it owns or has the right to use all Intellectual Property Rights necessary to perform this EPC Contract and to carry on its business as presently conducted and presently planned to be conducted without conflict with the rights of others; (i) it has knowledge of all of the legal requirements, business practices and other matters specific to New Zealand that must be followed or complied with in performing this EPC Contract and this EPC Contract will be performed in conformity with such requirements and practices. (j) it will employ, or contract with, suitably expert and experienced employees and Subcontractors to strictly discharge Contractor's obligations under this EPC Contract; (k) it has audited the Owner's Technical Requirements and any design provided by Owner and is unaware of any inaccuracy or defect in the same that should have been apparent to a qualified and competent contractor experienced in work of similar nature and scope as the Works; (l) it has exercised and will continue to exercise in the design of the Works all the skill and care to be expected of a professionally qualified and competent designer experienced in work of similar nature and scope as the Works; 68
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(m) it understands the Owner's Technical Requirements and the Works will, when completed, comply in all respects with the Owner's Technical Requirements; (n) the Binary Plant has been or will be designed and constructed using proven up-to-date good practice and to standards appropriate to the development which are consistent with the Owner's Technical Requirements and with the intended use of the Binary Plant; (o) no goods or materials generally known to be deleterious or otherwise not in accordance with good engineering practice have been or will be specified or selected by Contractor or any one acting on its behalf and no goods or materials which, after their specification or selection by or on behalf of Contractor but before being incorporated into the Binary Plant, become generally known to be deleterious or otherwise not in accordance with good engineering practice, will be incorporated into the Works; and (p) the design of the Permanent Works has taken or will take full account of the effects of the intended construction methods, Temporary Works and Contractor's Equipment. 11.2 DEFECTS CORRECTION WARRANTY PERIOD 11.2.1 DURATION The warranties set forth in SECTION 11.1 (General Warranty) shall inure for the benefit of Owner and its successors and assigns and, except as expressly provided below in this SECTION 11.2, the warranties set forth in SECTION 11.1 (other than the warranties set forth in SECTION 11.1(D)-(I) and (K) and (N) which are made and in effect as of the Commencement Date) shall be in effect from Take Over for the duration of: (a) twenty four (24) months; and 69
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(b) thirty six (36) months for any defect in the Binary Plant of the kind described in SECTION 11.1 (General Warranty) that was caused by the gross misconduct of Contractor and which would not have been disclosed by a reasonable examination prior to the expiry of the above described applicable warranty period (for purposes of this paragraph, "gross misconduct" does not comprise each and every lack of care or skill but means an act or omission on the part of Contractor which implies either a failure to pay due regard to the serious consequences which a conscientious and responsible contractor would normally foresee as likely to ensue or a willful disregard of any consequences of such act or omission); the time periods specified in paragraphs (a) and (b) being the Defects Correction Period. The Defects Correction Period set forth in paragraph (a) above with respect to any item of the Works that is repaired, replaced, modified, or otherwise altered after Take Over by Contractor shall extend for a period of twenty four (24) months from the date of completion of such alteration, provided, however, that in no case shall the warranty extended hereunder exceed the maximum period of thirty-six (36) months from Take Over. 11.2.2 PUNCHLIST AND DEFECTS In order that the Permanent Works, including the Binary Plant, and the documents to be provided by Contractor under this EPC Contract are in the condition required by this EPC Contract by the expiry date of the Defects Correction Period Contractor shall, as soon as practicable after the issue of the Take Over Certificate and at its own risk and cost: (a) complete all items on the Punchlist and any other Works that is outstanding at Take Over; and (b) execute all work required to remedy defects or damage or other non-conformance in the Permanent Works, provided that where such defect, damage or non-conformance arises as a result of a 70
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failure by Owner to comply with the operation and maintenance manuals issued by Contractor under this EPC Contract, in which event Owner shall reimburse Contractor the Cost of such work plus a ten percent allowance for overhead and profit. 11.2.3 DEFECTS WARRANTY (a) If within the Defects Correction Period a defect in the Works occurs and Owner notifies Contractor of the defect, Contractor will promptly reperform, repair or replace, as Contractor (acting reasonably) determines is appropriate under the circumstances, the portion of the Works that has been determined to be defective. This warranty will not cover repairs or alterations (not being normal maintenance work required to be carried out by Owner under the operating and/or maintenance manuals provided by Contractor under this EPC Contract) made by Owner or a third party without Contractor's written consent. Owner shall cooperate to provide reasonable access thereto and working and workshop spaces in order to enable the Contractor to perform the repair. Further, if special rigging, cranes or heavy equipment or any labour required in connection with operating such equipment is available at the Site and necessary for the performance of such repairs, Owner shall provide Contractor with access to such equipment and labour and Contractor shall pay reasonable compensation therefor. (b) The warranties in this EPC Contract do not extend or apply to damage, deterioration or failure resulting after Take Over from: (i) normal wear and tear but excluding any wear and tear attributable to a defect in the Works; (ii) abnormal environment over and above that which would ordinarily be expected for the site in which the Binary Plant is operated; (iii) failure of Owner to store, operate and maintain the Works in accordance with the Design Range or the operation and maintenance manuals furnished by Contractor in accordance 71
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with SCHEDULE A (Owner's Technical Requirements) including, but not limited to, the fuel, lube oil and water specifications; or (iv) an event of Force Majeure. 11.2.4 FAILURE TO REMEDY DEFECTS (a) If Contractor fails to remedy any defect and directly resulting damage as soon as reasonably practicable, Owner may give written notice to Contractor requiring Contractor to remedy the defect or damage within a specified reasonable time. (b) If Contractor fails to remedy the defect and directly resulting damage by this notified date, the failure shall constitute a fundamental breach of Contractor's obligations under this EPC Contract and Owner may: (i) carry out the work itself or by others and the Contractor shall pay to the Owner the costs reasonably incurred by the Owner in remedying the defect or damage, or (ii) if the defect and directly resulting damage deprives the Owner of substantially the whole benefit of the Works or any major part of the Works, exercise the Owner's rights under ARTICLE 21 (Termination). (c) In connection with the warranty provisions set forth in this ARTICLE 11 (Warranties), the parties shall comply with the provisions of SCHEDULE F (Warranty Procedures). 11.2.5 REMOVAL OF DEFECTIVE WORK If the defect or damage cannot be remedied expeditiously on the Site and Owner gives consent, Contractor may remove from the Site for the purposes of repair such items of the Works as are defective or damaged. As a condition of such consent Owner may require Contractor to provide a performance bond or other appropriate security. 72
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11.2.6 FURTHER TESTS As part of the work of remedying of any defect or damage after Take Over, Owner (acting reasonably) may require Contractor to test the replaced component or, where reasonably appropriate, related system or subsystem to substantiate that such defect or damage has been properly remedied. The requirement shall be made by notice within 28 days after the defect or damage is remedied. The parties shall use reasonable endeavours to agree upon the nature and extent of the testing reasonably required in the circumstances and in the event that they are unable to agree either party may request the nature and extent of the testing reasonably required in the circumstances be fixed by an expert appointed by the President or nominee of the Institute of Professional Engineers New Zealand and the determination of that expert shall be final and binding upon the parties The agreed or expert determined repeat tests shall be carried out in accordance with the terms applicable to the previous tests at the risk and cost of Contractor with due allowance for degradation as is appropriate. For the avoidance of doubt ARTICLE 12 (Liquidated Damages) shall not apply. 11.2.7 FINAL ACCEPTANCE CERTIFICATE (a) Owner shall issue the Final Acceptance Certificate within 10 days after the end of the Defects Correction Period (not taking into account the period specified in SUBSECTION 11.2.1(B) but including any extension of the period specified in SUBSECTION 11.2.1(A) as provided in SUBSECTION 11.2.1), or within 10 days of Contractor completing all items on the Punchlist, remedying any defects or damage and otherwise completing all of the Works required by this EPC Contract, whichever is the later. (b) On the issuance of the Final Acceptance Certificate Owner shall release the replacement performance bond provided under SECTION 7.4 (Replacement Performance Bond) and the parent company guaranty provided under SECTION 13.1(D) (Security Provided by Contractor). Further, upon the end of the twenty-four month period after Take Over, the replacement performance bond shall be reduced to the amount mutually agreed upon by the parties that reasonably reflects the value of the Works that 73
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were replaced or corrected by Contractor during the Defects Correction Period prior to such date. If the parties are unable to agree upon such values, then the parties shall promptly refer the matter for determination under the Disputes resolution procedure set forth in ARTICLE 16 (Dispute Resolution). 11.2.8 REMEDIES The guarantees and warranties provided in this EPC Contract are exclusive and are given and accepted in lieu of: (a) any and all other warranties and/or guarantees, statutory, or implied (including, without limitation, the implied warranties of merchantability and fitness for a particular purpose, and all warranties arising from course of dealing or usage of trade); (b) any warranties or conditions implied by the Sale of Goods Act 1908 relating to quality and suitability. The remedies of Owner for any breach of guarantees and warranties shall be limited to those permitted in this EPC Contract, to the exclusion of any and all other remedies. No agreement varying or extending the foregoing guarantees, warranties, remedies or limitations will be binding upon Contractor unless in writing and signed by a duly authorized representative of Contractor. 11.2.9 CLEARANCE OF SITE Within two weeks of receiving the Final Acceptance Certificate, Contractor shall have removed any remaining Contractor's Equipment, surplus material, wreckage, rubbish and Temporary Works from the Site. 11.3 DISCLAIMER AND RELEASE 11.3.1 EXCEPT FOR GROSS NEGLIGENCE OR FRAUD ON THE PART OF CONTRACTOR: 74
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(A) THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF CONTRACTOR, (B) AND RIGHTS AND REMEDIES OF OWNER, SET FORTH OR PERMITTED IN THIS EPC CONTRACT WITH RESPECT TO ANY NON-CONFORMANCE OR DEFECT IN ANY WORKS OR EQUIPMENT ARE EXCLUSIVE. 11.3.2 OWNER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER WARRANTIES, OBLIGATIONS, AND LIABILITIES ON THE PART OF CONTRACTOR, TOGETHER WITH ALL OTHER RIGHTS, AND REMEDIES OF OWNER AGAINST CONTRACTOR, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, INCLUDING BUT NOT LIMITED TO ANY: (A) WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE; (B) WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE; (C) OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR NOT ARISING FROM THE NEGLIGENCE OF CONTRACTOR, ACTUAL, PASSIVE OR IMPUTED; (D) OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE TO ANY PRODUCT OR PART OF THE WORKS; (E) LIABILITY OF OWNER TO ANY THIRD PARTY; AND (F) INCIDENTAL OR CONSEQUENTIAL DAMAGES. 11.3.3 CONTRACTOR'S WARRANTY UNDER THIS EPC CONTRACT DOES NOT APPLY TO ANY NON-CONFORMANCE OR DEFECT IN ANY PRODUCT, EQUIPMENT OR PART OF THE PLANT, TO THE EXTENT SUCH 75
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NON-CONFORMANCE OR DEFECT HAS BEEN DIRECTLY OR INDIRECTLY CAUSED BY ANY OTHER NEGLIGENT ACT OR OMISSION OF OWNER. ARTICLE 12 - REMEDIES 12.1 LIQUIDATED DAMAGES FOR DELAY IN TAKE OVER 12.1.1 After the Scheduled Take Over Date, Contractor shall pay to Owner as liquidated damages, and not as a penalty, for each day or part of a day which shall elapse between the Scheduled Take Over Date and the date of the Take Over a sum equal to NZ$18,000 (plus GST if any) per day; provided, however, that if Take Over does not occur by the Scheduled Take Over Date, but nevertheless the Binary Plant is generating electricity, then the liquidated damages payable by Contractor under this SUBSECTION 12.1.1 shall be reduced (but not to less than zero) by the amount of the net revenue (including payments under any hedge agreement, to the extent such hedge agreement is applicable to the Binary Plant) received by Owner until the date Take Over occurs. 12.1.2 Owner may, without prejudice to any other method of recovery, deduct the amount of such liquidated damages from any monies due, or to become due, to Contractor under this EPC Contract. The payment or deduction of such damages shall not relieve Contractor from its obligation to complete the Works, or from any other of its duties, obligations or responsibilities under this EPC Contract. 12.1.3 If at any time after the Scheduled Take Over Date, Contractor is delayed in carrying out the Works as a result of any event identified in SUBSECTION 5.1.1 (Extension of Time) which would have entitled Contractor to an extension of time had it occurred prior to the Scheduled Take Over Date, Contractor's obligation to pay liquidated damages under SUBSECTION 12.1.1 shall be suspended for such period as represents the extension of time to which Contractor would have been entitled had SUBSECTION 5.1.1 (Extension of Time) applied. 76
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12.2 LIQUIDATED DAMAGES FOR PERFORMANCE DEFICIENCY If: (a) the Corrected Net Power Output in respect of the Net Power Output Performance Test described in SCHEDULE D (Performance Tests) upon which Take Over is based is less than 100% (but not less than 90%) of the Guaranteed Net Power Output then Contractor shall pay Owner liquidated damages of NZ$4,575 (plus GST if any) per kilowatt for each kilowatt that the Corrected Net Power Output is below 100% of the Guaranteed Net Power Output; and (b) the Corrected Pressure Drop in respect of the Pressure Drop Performance Tests described in SCHEDULE D (Performance Tests) upon which Take Over is based is more than the Guaranteed Pressure Drop (but not more than the 2.7 barg), then Contractor shall pay Owner liquidated damages of NZ$145,200 (plus GST if any) for each 0.1 barg that the Corrected Pressure Drop exceeds the Guaranteed Pressure Drop. 12.3 MAXIMUM LIQUIDATED DAMAGES In no event shall the aggregate amount of liquidated damages payable by Contractor pursuant to SECTION 12.1 (Liquidated Damages for Delay in Take Over) and SECTION 12.2 (Liquidated Damages for Performance Deficiency) exceed twenty-five percent of the sum of the EPC Contract Price and the Supply Contract Price (as that term is defined in the Supply Contract) provided however that if Owner shall receive any liquidated damages from Supplier under the Supply Contract, the aggregate amount of liquidated damages payable by Contractor as specified above shall be reduced accordingly. 12.4 EVENT CHARGES If at any time before Take Over, Owner incurs an instantaneous reserve event charge (or like charge) under its Grid operator services arrangement with Transpower (or equivalent arrangement from time to time) due to any act or omission of Contractor or defect in the Works or the Equipment, Contractor shall pay liquidated damages calculated in accordance with the calculation for such instantaneous reserve event charge (net of any 77
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rebates) in Transpower's posted terms for Grid operator services (or equivalent document) from time to time. 12.5 PAYMENT Owner shall be entitled to demand payment of any liquidated damages which accrue under this ARTICLE 12 (Remedies) at any time after they have accrued. Contractor shall pay the amount so demanded (plus GST if any) within 21 days after receipt of such notice. 12.6 GENUINE ESTIMATE Contractor acknowledges that the liquidated damages under this ARTICLE 12 reflect genuine estimates of the losses Owner is likely to suffer in the event of a default by Contractor of a type referred to in this ARTICLE 12. 12.7 EXCLUSIVE REMEDY (a) Subject to paragraph (b) and to Owner's right to reject under SECTION 10.5 (Failure to Pass the Performance Tests) and to recover losses during retesting under SECTION 12.8 (Make Right Obligation] (i) liquidated damages net of any net generation revenue received from Owner under Section 12.1 (Liquidated Damages for Delay in Take Over) shall be the only damages payable by Contractor for failing to achieve Take Over in terms of SECTION 7.2 (Take Over) by the Scheduled Take Over Date, but shall not otherwise limit the Owner's rights and remedies under this EPC Contract for claims other than for delays, and (ii) liquidated damages under SECTION 12.2 (Liquidated Damages for Performance Deficiency) shall be Owner's sole and exclusive remedy for failure by Contractor to achieve the Guaranteed Net Power Output and the Guaranteed Pressure Drop or other Binary Plant output or operating performance. 78
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(b) In the event the EPC Contract is terminated by Owner pursuant to ARTICLE 21 (Termination), liquidated damages shall apply up to the date of such termination and general damages shall apply from the date of such termination. 12.8 MAKE RIGHT OBLIGATION Notwithstanding that Contractor may have paid liquidated damages for the performance deficiency pursuant to SECTION 12.2 (Liquidated Damages for Performance Deficiency): (a) Contractor may carry out such remedial Work and repeat the Net Power Output and/or Pressure Drop Performance Test, in accordance with ARTICLE 10 (Testing), within 120 days following Take Over; (b) if the results of the last such repeated Performance Test show that such performance deficiency has been reduced or rectified or that the liquidated damages payable thereon have been reduced, Owner shall refund ninety percent of the difference between the amount of liquidated damages previously paid by Contractor for such performance deficiency and the amount of liquidated damages, if any, payable by Contractor under SECTION 12.2 (Liquidated Damages for Performance Deficiency) based upon the results of such last repeated Performance Test; and (c) All such remedial Work and repeat tests shall be coordinated with Owner and conducted by Contractor in such a way and at such times as to minimize so far as reasonably possible interference or disruption to the normal operation of the Binary Plant. To the extent that such remedial work requires power generation from the Binary Plant to be reduced to effect the remedial work, Contractor shall reimburse Owner for this lost generation on a pro rata basis of NZ$18,000 per day /14.38 MW (plus GST if any) for each MW lost. 12.9 GENERAL LIMITATION OF LIABILITY (a) Without prejudice to the Contractor's liquidated damages obligations in this Contract or its obligations in SECTION 12.9(C), Contractor shall in no event be liable to Owner, by way of indemnity or by reason of any breach of this EPC 79
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Contract or in tort, including negligence and strict liability, or otherwise, for loss of profit or revenues or similar, claims of the Owner's customers or other damages or losses not being direct damages for losses. (b) The total liability of Contractor to Owner on all claims of any kind (other than under SECTION 17.3) shall in no case exceed the aggregate of the EPC Contract Price and the Supply Contract Price (as that term is defined in the Supply Contract) provided however that if Owner shall receive any amount from Supplier directly for any claims under the Supply Contract, the maximum liability of Contractor shall be reduced accordingly. (c) Nothing in this SECTION 12.9 shall limit the liability of Contractor for general damages in any case of fraud or gross misconduct. ARTICLE 13 - SECURITIES 13.1 SECURITY PROVIDED ON BEHALF OF CONTRACTOR (a) Contractor's obligations under this EPC Contract shall as an essential term of this EPC Contract be secured by a performance bond in the form of a standby letter of credit provided or confirmed by a reputable investment grade surety company or financial institution as assessed by Moody's Investors Service from time to time (reasonably acceptable in all respects to Owner) substantially in the form attached hereto as SCHEDULE H-1 (any material changes in such form shall be subject to the approval of Owner (acting reasonably)) in the maximum amount equal to ten percent of the New Zealand dollar portion of the EPC Contract Price (initially, Seven Hundred Fifty-Two Thousand Two Hundred Forty-Five New Zealand Dollars (NZ$752,245)) (the "NZ$ Denominated L/C). The NZ$ Denominated L/C shall be provided prior to receipt of the first NZ$ payment under the Milestone Payment Schedule, shall become effective upon Contractor's receipt of the first NZ$ payment under the Milestone Payment Schedule and shall be increased from time to time by the New Zealand dollar amounts received by Contractor from Owner under the Milestone Payment Schedule up to the foregoing maximum amount. 80
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(b) Contractor's obligations under this EPC Contract and Supplier's obligations to deliver Equipment under the Supply Contract shall as an essential term of this EPC Contract be secured by a performance bond in the form of a standby letter of credit provided or confirmed by a reputable investment grade surety company or financial institution as assessed by Moody's Investors Services from time to time (reasonably acceptable in all respects to Owner) substantially in the form attached hereto as SCHEDULE H-2 (the "US$ Denominated L/C") (any material changes in such form shall be subject to the approval of Owner (acting reasonably)) . The US$ Denominated L/C shall be provided prior to receipt of the first US$ payment under either the Milestone Payment Schedule of this EPC Contract or the Supply Contract, shall become effective upon the earlier of Contractor's receipt of the first US$ payment under this EPC Contract or Supplier's receipt of the first payment under the Milestone Payment Schedule of the Supply Contract and shall be increased from time to time by (i) the United States dollar amounts received by Contractor from Owner under this EPC Contract up to a maximum of Eighty-Three Thousand United States Dollars (US$83,000) plus (ii) the amounts received by Supplier from Owner under the Supply Contract Milestone Payment Schedule for payment Milestones nos. 1-18. The US$ Denominated L/C shall be reduced from time to time upon Supplier's delivery to the Site of Equipment or parts thereof under the Supply Contract as evidenced by a delivery acknowledgment document (either a packing slip or other delivery document from the carrier delivering such item to the Site) that is countersigned by Owner's Representative or his designee (or if such individual fails to countersign within 24 hours of Contractor's request, countersigned by SGS New Zealand Limited or such other independent third party mutually agreed upon by Owner and Supplier, with Contractor paying the expenses of such third party) after such third party's confirmation of delivery by the applicable Supply Contract Milestone Payment Schedule amounts for such delivered items; provided, however, that the US$ Denominated L/C shall not be reduced below the sum equal to ten percent of the sum of the U.S. Dollar portion of the EPC Contract Price and the Supply Contract Price (initially, One Million Seven Hundred Twenty-Nine Thousand Four Hundred Ninety United States Dollars (US$1,729,490)). Contractor shall provide contemporaneous written notice to Owner of each request that Contractor submits to the financial institution issuing the US$ Denominated L/C for a reduction in the amount of the same as provided above. 81
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(c) Both the NZ$ Denominated L/C and the US$ Denominated L/C shall remain valid until the earlier of (i) issue of the Take Over Certificate or (ii) the termination of this EPC Contract; provided, however, that if at such termination Owner has a Dispute with Contractor that is in the process of being resolved in accordance with ARTICLE 16 (Dispute Resolution), then the release of the NZ$ Denominated L/C and the US$ Denominated L/C shall be subject to Contractor posting a replacement bond, letter of credit or other security acceptable to Owner (acting reasonably) in an amount mutually agreed upon by the parties that reasonably reflects the value of claim(s) of Owner that are the subject of such Dispute. If the parties are unable to agree upon such amount, then the parties shall promptly refer the matter for determination under the Disputes resolution procedure set forth in ARTICLE 16 (Dispute Resolution) with such replacement security being released upon resolution or satisfaction of such Dispute. If the NZ$ Denominated L/C or the US$ Denominated L/C by its terms will expire before the issue of the Take Over Certificate, then Contractor shall provide to Owner evidence of the renewal or replacement of said performance bond at least ten (10) business days before such expiration date. (d) Contractor shall as an essential term of this EPC Contract, procure that ORMAT Industries Ltd. shall provide a parent company guaranty in the form in SCHEDULE G (ORMAT Industries Ltd. Guaranty) hereto upon execution of this EPC Contract, to guarantee Contractor's obligations to perform hereunder. 13.2 EPC CONTRACT AND SUPPLY CONTRACT The Supply Contract shall be collateral to this EPC Contract to the intent that: (a) any default by Supplier under the Supply Contract shall be a default by Contractor under this EPC Contract and the Owner may exercise its rights on such default in respect of either or both of the Supply Contract and this EPC Contract as Owner (acting reasonably) deems appropriate, (b) any default by Owner under the Supply Contract shall be a default by Owner under this EPC Contract and on such default Contractor may exercise its rights under this EPC Contract, as Contractor (acting reasonably) deems appropriate; 82
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(c) any termination of the Supply Contract, whether for cause, convenience, extended suspension or force majeure, shall unless otherwise agreed upon by the parties be a similar termination of this EPC Contract; and (d) Contractor shall cooperate and coordinate with Supplier so that pursuant to the terms of this EPC Contract and the Supply Contract Owner is provided at Take Over 14.38 MW (net, at Guarantee Conditions) binary plant capable to operate safely and lawfully on the Site using Owner-supplied Geothermal Fluid meeting the Design Range and capable of dispatching electricity to the Grid interface with the Wairakei Station all in accordance with the requirements set out in SCHEDULE A (Owner's Technical Requirements). ARTICLE 14 - CARE OF THE WORK; TITLE 14.1 RISK OF LOSS Contractor shall bear the risk of physical loss or destruction of or damage to the Equipment from the point in time such items are delivered FOB (Incoterms 2000) until Take Over Certificate is issued. Contractor shall bear the risk of physical loss or destruction of or damage to the Works (excluding Equipment) and shall retain care of the Works until the issue of the Take Over Certificate. 14.2 CONTRACTOR'S CARE OF THE BINARY PLANT (a) Contractor shall take full responsibility for the care of the Binary Plant until the Take Over Certificate is issued when, subject to paragraph (b), responsibility for the care of the Binary Plant shall pass to Owner. (b) Notwithstanding that responsibility may have passed to Owner under paragraph (a), Contractor shall remain responsible for the repair of any aspect of the Binary Plant which is defective or outstanding on the date stated in the Take Over Certificate, until this defective or outstanding work has been completed in accordance with this EPC Contract. 83
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(c) If any loss or damage happens to the Binary Plant prior to the issue of the Take Over Certificate, or if loss or damage happens to any aspect of the Binary Plant for which Contractor remains responsible for the repair of under paragraph (b), Contractor shall rectify the loss or damage at Contractor's risk and cost, so that the Binary Plant is provided to Owner in accordance with this EPC Contract. (d) Contractor shall be liable for any loss or damage to the Works caused by any act or omission of Contractor after the Take Over Certificate has been issued until the later of Final Acceptance or the completion of Contractor's performance of Works at the Site, except to the extent that the same was caused by Owner. Contractor shall also be liable for any loss or damage to the Works which occurs after the Take Over Certificate has been issued and which arose from a previous event for which Contractor was liable, except to the extent that such loss or damage was caused by Owner. 14.3 DELIVERY Contractor shall be responsible to assure safe delivery of all materials, equipment, tools, supplies and other items to the Site related to the Works including all of the Equipment. 14.4 TITLE Contractor warrants that it has good title to the Works and shall procure that title to the Works shall pass to Owner free of all liens, claims, charges, security interests (including security interests under the Personal Property Securities Act 1999) and encumbrances upon the earlier of delivery to the Site or payment to Contractor or Supplier as the case may be under this EPC Contract or the Supply Contract for the applicable Works or Equipment. 14.5 TITLE TO ELECTRICITY Owner has title to and is entitled to the commercial benefit of all electricity produced from the Binary Plant, including electricity produced during commissioning and testing. 84
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ARTICLE 15 - INSURANCE 15.1 CONTRACTOR PROVIDED INSURANCE Contractor shall provide the following insurance no later than the times specified in SECTION 6.4(B) (Preconditions to Milestone payments) with the indicated limits, with its insurance carriers, naming Owner as an additional insured and shall maintain such insurance in full force and effect until Take Over. In the event this insurance or any portion of it becomes commercially unavailable on commercially reasonable rates and terms Owner and Contractor shall cooperate in their efforts to obtain such replacement insurance as may be available and this EPC Contract shall be modified accordingly: (a) Comprehensive General Liability - with combined single limits of NZ$10,000,000 per occurrence and in the aggregate; (b) Equipment and Contractor's plant, goods and materials loss in transit to the Site, including ocean marine shipment (replacement value); (c) New Zealand Statutory Liability Insurance - NZ$1,000,000, and (d) Contract Works Insurance for the full value of the Works including earthquake. Cover for earthquake, fire, collapse, flood and any other catastrophic perils shall be in such sub-limits that are commercially available at reasonable rates in the commercial insurance market. 15.2 POLICIES All policies of insurance maintained pursuant to this ARTICLE 15 shall: (a) require forty-five (45) days' prior notice to the additional insured parties of cancellation, non-renewal or material change in coverage; (b) provide that such insurance is primary without right of contribution from any other insurance which might otherwise be available to the insured party; 85
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(c) provide that, in the event of any loss payment under a policy, the insurer shall waive any rights of subrogation against the insured party and shall waive any setoff or counterclaim or any other deduction whether by attachment or otherwise; and (d) include a cross-liability endorsement providing that inasmuch as the policies are written to cover more than one insured, all terms and conditions, insuring agreements and endorsements, with the exception of limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. 15.3 EVIDENCE OF INSURANCE Upon request by Owner, Contractor shall furnish Owner with the policy wording and a Certificate of Insurance, issued by the Insurer, as evidence that Contractor provided insurance is being maintained.. ARTICLE 16 - DISPUTE RESOLUTION 16.1 RESOLUTION BY PARTIES Owner and Contractor desire that this EPC Contract operate between them fairly and reasonably. If during the term of this EPC Contract, a Dispute arises between Owner and Contractor, or one party perceives the other as acting unfairly or unreasonably, or a question of interpretation arises hereunder, then either party identifying the Dispute shall serve notice on the other (a "Notice of Dispute") stating the nature of the Dispute, together with brief particulars of the facts and circumstances relied on by the party serving the Notice of Dispute and the Owner's Representative and Contractor's Representative shall then promptly confer and exert their best efforts in good faith to reach a reasonable and equitable resolution of the Dispute. If the Owner's Representative and the Contractor's Representative are unable to resolve the Dispute (whether because of a disagreement between them or because they did not communicate or respond) within five (5) business days after the Notice of Dispute, the matter shall be referred after notice by either party to the other within two (2) business days of the lapse of the aforementioned five (5) business days to the parties' responsible corporate officers for resolution. Neither party shall seek resolution by arbitration of any Dispute arising in connection with this EPC Contract until at least ten (10) business days after the above-referenced referral to the 86
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parties' responsible corporate officers, who shall be identified by each party from time to time, to provide them an opportunity during such period to resolve the Dispute. 16.2 RESOLUTION BY ARBITRATION If the Dispute is not resolved within the above described period for resolution by the responsible corporate officers, then at the request of either party Owner and Contractor shall enter into binding arbitration as set forth herein. Notice of the demand for arbitration shall be delivered to the other party and the Dispute shall be referred to three arbitrators, one each appointed the parties and the third appointed by the parties' appointees by agreement between the parties' appointees or if they are not able to agree within ten (10) business days of service of notice referring the dispute to arbitration, then by the President of the New Zealand District Law Society on request of either party. The parties shall proceed with the arbitration expeditiously and shall conclude all proceedings there under in order that a decision may be rendered within forty (40) days from service of the demand for arbitration. Each party shall bear its own expenses in connection with any arbitration, including but not limited to counsel fees, and all joint expenses shall be apportioned in the award of the arbitrators. Any arbitration shall be conducted in Wellington, New Zealand in accordance with the provisions of the Arbitration Act 1996 (as amended or substituted from time to time). 16.3 URGENT RELIEF Nothing in this ARTICLE 16 shall preclude either party from bringing court proceedings seeking urgent interlocutory relief. 16.4 CONDITIONS PRECEDENT Each step in the Dispute resolution process in this ARTICLE 16 shall be a condition precedent to proceeding to the next step. In particular, a party may not commence arbitration in respect of a Dispute unless that Dispute has first been negotiated, mediated 87
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and discussed by the parties' responsible corporate officer in accordance with SECTION 16.1 (Resolution by Parties). The parties may, however, agree otherwise in relation to any particular Dispute. 16.5 CONTINUED PERFORMANCE The parties shall continue to perform their obligations under this EPC Contract pending the final settlement or determination of any dispute. ARTICLE 17 - INDEMNIFICATION 17.1 CONTRACTOR'S INDEMNITY Contractor shall defend, indemnify and hold harmless Owner and its directors, officers, agents, employees, shareholders and affiliates from any and all third party claims, suits, actions and proceedings and all costs, expenses and other liabilities (including reasonable attorney fees) related thereto arising out of any actual or alleged injury or death of persons or damage to property arising out of (i) the negligence, willful misconduct or default of Contractor, its Subcontractors or their employees (except only to the extent that the same have been caused by the negligence or default of Owner or its employees) or (ii) the violation of any Law, Consents or Standards by Contractor, its Subcontractors or their employees. 17.2 OWNER'S INDEMNITY Owner shall defend, indemnify and hold harmless Contractor and its Subcontractors and their respective joint venture partners, directors, officers, agents, employees, shareholders and affiliates from any and all third party claims, suits, actions and proceedings and all costs, expenses and other liabilities (including reasonable attorney fees) related thereto arising out of (i) any actual or alleged injury or death of persons or damage to property arising out of the negligence, willful misconduct or default of Owner (except only to the extent that the same have been caused by the negligence or default of Contractor, its Subcontractors or their employees); (ii) the violation of any Law, Consents or Standards by Owner or its employees; or (iii) the use of the Site or the use or disposal of the Geothermal Fluid as contemplated in this EPC Contract (except only to the extent 88
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that the same has been caused by the failure of Contractor, its Subcontractors or their employees to comply with the applicable Consents with regard to such disposal). 17.3 PATENT INDEMNITY Contractor shall indemnify Owner from and against all third party claims and proceedings for or on account of infringement of any Intellectual Property Rights in respect of the Works and from and against all claims, demands, proceedings, damages, costs, charges and expenses whatsoever in respect of or in relating to such rights, except for any use of the Works other than for the original purpose for which it is intended or any infringement which is due to the use of the Works in association or combination with any other plant or item not supplied by Contractor or Supplier. 17.4 NOTICE AND SETTLEMENT OF CLAIMS 17.4.1 A party seeking the benefit of an indemnity shall give the other party prompt notice of any claim giving rise to the indemnity. The indemnifying party may at its own cost conduct negotiations for the settlement of such claim and any litigation that may arise there from. The party claiming the benefit of the indemnity shall not make any admission (other than appropriate admissions in strict liability actions) which might be prejudicial to the indemnifying party unless the indemnifying party fails to take over the conduct of the negotiations or litigation within a reasonable time after having been so requested. The party claiming the benefit of the indemnity shall have the right to have its own counsel, at its expense, participate in the defense and negotiation of the claim or action. 17.4.2 The party claiming the benefit of the indemnity shall, at the request of the indemnifying party, provide reasonable assistance for the purpose of contesting any such claim or action, and shall be paid all reasonable costs incurred in doing so. 89
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ARTICLE 18 - ASSIGNMENT 18.1 ASSIGNMENT BY OWNER (a) Owner may assign any or all of Owners rights, obligations or interests under this EPC Contract. Owner will nevertheless be responsible to discharge Owner's obligations under this EPC Contract in the event that the assignee fails to do so. (b) Where default of the Supply Contract has occurred or a remedy or obligation been triggered so as to entitle Owner to claim under the Supply Contract, and Contractor has at Owner's request remedied the default or provided the remedies or performed the obligation in question under this EPC Contract such that further remedies or performance of such obligation under the Supply Contract would comprise an unreasonable duplication, Owner unconditionally and irrevocably assign all of its rights and obligations to the additional Supply Contract obligation or remedies in relation to the claim in question to Contractor. Owner further agrees that all its rights and obligations with respect therewith shall inure to the benefit of Contractor as if Contractor were a party to the Supply Contract, and that this assignment shall inure to the benefit of and shall be binding upon the parties' respective successors and assigns. 18.2 NO ASSIGNMENT BY CONTRACTOR (a) Contractor may assign all of its right, title and interest in and to or arising out of or in connection with this EPC Contract as security for the benefit of its lender(s) or to a related company (as defined in clause (b) below) for which ORMAT Industries Ltd. is the ultimate parent provided that such related company signs a document assuming and agreeing to perform all of Contractor's obligations under this EPC Contract. No such assignment shall relieve Contractor of any obligation hereunder. (b) Contractor shall not assign any of Contractor's rights, interests or obligations under this EPC Contract. For the purposes of this SECTION 18.2, assignment shall include the transfer of shares in any related company (within the meaning of section 2(3) of the Companies Act 1993) of the Contractor that directly or indirectly results in a change of control of the Contractor such that ORMAT Industries Ltd. is no longer its ultimate parent. 90
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18.3 SUCCESSION This EPC Contract shall inure to the benefit of and be binding upon the successor and permitted assigns (as provided for by SECTION 18.1 (Assignment by Owner) or SECTION 18.2 (Assignment by Contractor)) of the parties hereto. Owner shall cause any assignees or transferees of its interest or any portion thereof in this EPC Contract or in the Works, including any lien holder or party holding a security interest with respect thereto, to be bound by the releases and limitations of liability set forth herein. ARTICLE 19 - SUBCONTRACTORS 19.1 SUBCONTRACTS Contractor may enter into subcontracts for the performance of parts of the Work and shall be solely responsible for the management and satisfactory performance of all its Subcontractors in their performance of the Work. Contractor shall not subcontract any major components of Work (other than for the purchase of proprietary goods and materials or for the provision of labour on a piecework basis) except to Subcontractors appearing on the Approved Major Subcontractors List (as described below). Contractor shall be responsible for the acts, defaults and neglects of any Subcontractor, its agents or employees in their performance of the Work as if they were the acts, defaults or neglects of Contractor, its agents or employees. The issuance of any subcontract shall not relieve Contractor of any of its obligations under this EPC Contract. 19.2 SUBCONTRACTING (a) Contractor shall provide all such information (other than price and other proprietary information) relating to its Subcontractors as Owner may reasonably require. (b) No subcontract or purchase order shall bind or purport to bind Owner. 19.3 CONTRACTOR'S RESPONSIBILITY Contractor shall be responsible for performance by all Subcontractors under their respective subcontracts and for the acts or defaults of its Subcontractors and its 91
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Subcontractors' personnel, agents and employees, and any other entity employed by any of them in connection with the Works, as if they were the acts or defaults of Contractor. 19.4 APPROVED MAJOR SUBCONTRACTOR LIST The Approved Major Subcontractors List in SCHEDULE B (Contractor's Technical Proposal) is preliminary, and may be amended in the following manner. In the case the need arises to add a Subcontractor to the Approved Major Subcontractors List, in Contractor's opinion, Contractor shall propose such addition to Owner's Representative in writing identifying the type of Work that could be subcontracted to such Subcontractor and details of the Subcontractor, including relevant experience. Within ten (10) days after receipt of Contractor's proposal, Owner's Representative shall have the right to advise Contractor of any such potential Subcontractors to which it reasonably objects, together with the reasons for objection and may propose additional Subcontractors based on his or her experience concerning such potential Subcontractor. Contractor shall not add any potential Subcontractor to the list to which Owner's Representative so reasonably objects and shall give due consideration to adding to the list any Subcontractors proposed by the Owner's Representative. If Owner's Representative fails to respond within such ten (10) day period, Contractor shall have the right to add said potential Subcontractor to the list. 19.5 SUBCONTRACT TERMS (a) Contractor shall cause each subcontract entered into by Contractor with a value of NZ$500,000 or more to contain terms that entitle Contractor to disclose the subcontract (excluding price and other proprietary information) to Owner, that acknowledge that the subcontract works are being carried out by the Subcontractor for the benefit of Owner in terms of the Contracts (Privity) Act 1982 and to agree that upon termination of this EPC Contract for due to Contractor's default: (i) Owner may upon the default of Contractor and termination of this EPC Contract pursuant to SECTION 21.1.2 (Termination for Cause) take an assignment or novation of the benefit of the subcontract (together with a term that the Subcontractor acknowledges that it by signing the subcontract it has agreed to such novation); and 92
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(ii) upon assignment or novation under paragraph (i): (1) Owner shall not become responsible for any outstanding obligations or liabilities of Contractor to the Subcontractor under the subcontract relating to the period prior to the such assignment or novation, including payments due to the Subcontractor for work carried out; and (2) Owner will be responsible to pay the Subcontractor only for all action taken by the Subcontractor at the written instruction of Owner at the prices in the subcontract. (b) Contractor acknowledges that: (i) it will, if requested by Owner, disclose the existence of any subcontract with a value of NZ$500,000 to Owner; (ii) it consents to an assignment or novation to Owner under SECTION 19.5(A)(I); (iii) upon such assignment or novation Owner may exercise all of the rights of Contractor under or in relation to the subcontract as if it were Contractor; (iv) upon such assignment or novation Contractor shall not be relieved of, and subject to the agreement of such Subcontractor, Owner shall not become liable for, the obligations or liabilities of Contractor relating to the period prior to such assignment or novation. If Subcontractor's agreement as referred to in this SECTION 19.5(B)(IV) is not forthcoming, Contractor agrees and acknowledges that it shall promptly reimburse Owner for any amounts Owner is required to pay to Subcontractor for any obligations or liabilities of Contractor relating to the period prior to such assignment or novation. 93
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19.6 PAYMENT OF SUBCONTRACTORS (a) Contractor shall pay all sums due to Subcontractors by the due date for payment and nothing in this EPC Contract shall require Contractor to pay any sums to a Subcontractor that are being disputed in good faith by Contractor in accordance with applicable Law. (b) Contractor shall, at its option, either provide confirmation from Subcontractors that such Subcontractors have been paid or other reasonable evidence of payment of Subcontractors if requested by Owner. 19.7 ASSIGNMENT OF SUBCONTRACTOR WARRANTIES Upon Final Acceptance, Contractor shall assign to Owner all warranties or guarantees which Contractor has received from Subcontractors in respect of the Works. 19.8 COMPLIANCE WITH CONSTRUCTION CONTRACTS ACT 2002 (CCA) (a) Contractor shall ensure that compliance with the requirements of CCA are not breached but if any notice of suspension of any part of the Works is received by Contractor from any Subcontractor Contractor shall immediately notify the Owner's Representative including the amount that Contractor allegedly owes to any Subcontractor who exercises any lawful right to suspend work in accordance with section 72 of the CCA (the subcontractor's debt). (b) Owner shall be entitled but not obliged to pay the subcontractor debt when due directly to the Subcontractor in order to avert any lawful suspension of work by that Subcontractor under the CCA. If payments are made by Owner direct to any Subcontractor under this clause such payment shall be deemed to be in satisfaction of the Owner's obligation to pay Contractor such amounts due under this EPC Contract. The value of payments made direct to any Subcontractor under this clause shall be deducted from future progress payments made to Contractor. 94
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(c) Contractor shall indemnify Owner against any cost, losses, liabilities or damages suffered by Owner which may arise out of or in consequence of any lawful suspension of all or any part of the Works by any Subcontractor under the CCA. ARTICLE 19A - PERSONNEL 19A.1 CONTRACTOR'S RESPONSIBILITY Contractor shall be responsible for the acts and defaults of its employees and agents as if they were the acts or defaults of Contractor. 19A.2 CONTRACTOR'S REPRESENTATIVE (a) Contractor shall designate a Contractor's Representative who shall act as a single point of contact with Owner in all matters (including administration of the Supply Agreement) on behalf of Contractor. The Contractor's Representative shall be available or be represented on the Site during business hours after the commencement of the Works at the Site, and on call after hours, to receive all instructions from Owner and shall be authorised by Contractor to act on its behalf in relation to all matters arising under this EPC Contract. Owner shall not be obliged to issue instructions to any other person. (b) Contractor shall not remove the Contractor's Representative without first consulting with Owner about such removal unless such persons (or any replacements as aforesaid) become incapacitated or no longer in the employment of Contractor. Contractor shall give the Owner notice forthwith on becoming aware of any such event. (c) Any replacement Contractor's Representative shall have appropriate qualifications, experience and expertise and shall be subject to Owner's approval (which shall not be unreasonably withheld). 19A.3 REMOVAL OF PERSONNEL (a) Owner shall be entitled, after consultation with Contractor, to require the removal from the carrying out of the Works of any person employed by Contractor or any Subcontractor whose performance or conduct, in the reasonable opinion of Owner, is unsatisfactory. 95
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(b) In the event that any personnel is removed under SECTION 19A.3(A), Contractor shall at no cost to Owner replace such person with a person with appropriate qualifications, experience and expertise. 19A.4 LABOUR ISSUES Contractor shall immediately notify Owner of any and all events and circumstances giving rise to claims, disputes, grievances, bans, disruptions, work stoppages and other labour issues which affect or have the potential to affect Contractor's workforce, the workforce of any Subcontractor, or the workforce of any other contractors, or which constitutes a project wide concern. ARTICLE 20 - SUSPENSION 20.1 RIGHT OF OWNER TO SUSPEND THE WORKS Owner's Representative may suspend performance of the Works by Contractor hereunder, in whole or in part, by written notice of such suspension to Contractor. If Owner elects to suspend Supplier's performance of the Supply Contract, Owner shall notify Contractor and, unless Contractor otherwise agrees, Owner shall be deemed to suspend performance of the Works by Contractor hereunder. During such suspension, Contractor shall protect, store and secure the Works or such part of the Works, including any affected Equipment, against any deterioration, loss or damage. Upon receipt of permission, instruction or notice to resume the Works in accordance with this EPC Contract, the parties shall jointly examine the Equipment and the Works affected by the suspension and determine an orderly, reasonable and safe plan for implementing such suspension. Such suspension shall continue for the period specified in the suspension notice. 20.2 CONSEQUENCES OF SUSPENSION (a) If Contractor suffers delay as a result of complying with Owner's instructions under SECTION 20.1 (Right of Owner to Suspend Work), Contractor shall be entitled, subject to ARTICLE 5 (Extension of Time), to an extension of time for any such delay. 96
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(b) If as a result of complying with Owner's instructions under SECTION 20.1 (Right of Owner to Suspend the Works) Contractor incurs or will incur Cost: (i) in protecting, storing and securing the Works, or any part of the Works, against any deterioration, loss or damage; (ii) for personnel, Subcontractors or rented Contractor's Equipment, the payments of which, with Owner's prior written agreement, is continued during the suspension period; and/or (iii) for demobilisation and re-mobilisation, Contractor shall be entitled to payment of such Cost plus an allowance of ten percent thereon for overhead and profit. (c) Contractor shall not be entitled to an extension of time, payment of any costs (including Cost) or an adjustment of the EPC Contract Price for making good the consequences of Contractor's faulty design, workmanship or materials, or of Contractor's failure to protect, store or secure in accordance with SECTION 19.1 (Right of Owner to Suspend the Works). 20.3 EXTENDED SUSPENSION In the event suspensions by Owner exceed one hundred and twenty (120) days in the aggregate and provided that such suspensions do not arise as a result of default on the part of Contractor under this EPC Contract or on the part of Supplier under the Supply Contract or an event of Force Majeure (in which case SECTION 22.5 (Extended Force Majeure) shall apply), then Contractor may give notice to the Owner's Representative requesting permission to proceed within twenty-eight (28) days. If permission is not granted within that time, Contractor may by giving notice to Owner and treat the suspension as an Owner's Change omitting the affected part of the Works. The provisions of SECTION 8.3 (Requests) relating to reduction of the EPC Contract Price shall not apply to the suspension. If the suspension affects the whole of the Works, Contractor may terminate its obligations under this EPC Contract by so notifying Owner in writing 97
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and Contractor shall be entitled to be paid as provided in SUBSECTION 21.1.5 (Termination for convenience) or, if applicable, SECTION 22.5 (Extended Force Majeure). 20.4 RIGHT OF CONTRACTOR TO SUSPEND Contractor may suspend performance of the Work hereunder, in whole or in part, upon 10 days' prior written notice of such suspension where Owner has not paid by the due date any amount invoiced by Contractor unless Owner places any unpaid or disputed amount in an interest bearing escrow account for the benefit of and immediate payment to the party in whose favour the Dispute is ultimately resolved. Any interest carried on any monies held in escrow shall be paid to the party in whose favour the Dispute is resolved. Such suspension shall continue until the money is put into escrow. ARTICLE 21 - TERMINATION 21.1 TERMINATION BY OWNER 21.1.1 NOTICE TO CORRECT Within 10 days from the issue of a notice of any breach of this EPC Contract from the Owner's Representative, Contractor shall either remedy such breach or provide to Owner a plan acceptable to Owner (acting reasonably) for the remedy of the breach complained of. Such plan shall address both the actions that Contractor is proposing to undertake and the timeframe for such actions, which timeframe shall be that period reasonably necessary and practicable for remedying such breach. Contractor must promptly and diligently commence and continue to effect the remediation measures specified in the agreed upon plan in accordance with the timeframe or particular programme agreed. To avoid doubt, Owner shall be under no obligation under this SUBSECTION 21.1.1 to agree to an extension of the Scheduled Take Over Date. 21.1.2 TERMINATION FOR CAUSE Owner shall be entitled to terminate this EPC Contract immediately by notice to Contractor, if the Supply Contract is terminated other than as a result of default by Owner, or if Contractor: 98
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(a) fails, within the 10 day period specified in SUBSECTION 21.1.1, to either (i) remedy the breach or (ii) provide the plan for remediation that is acceptable to Owner (acting reasonably) as required under SUBSECTION 21.1.1; (b) fails to diligently commence and continue to effect the cure of a breach of this EPC Contract in accordance with the agreed upon plan of remediation as described in SUBSECTION 21.1.1 or Owner does not accept the remediation plan provided by Contractor pursuant to SUBSECTION 21.1.1 and in each case does not rectify such failure within 2 days of receipt of notice of such failure from Owner; or (c) becomes bankrupt or insolvent, goes into liquidation, has a receivership or administration order made against it, compounds with its creditors, or carries on business under a receiver, trustee or manager for the benefit of its creditors, or if any act is done or event occurs which under any Law has a similar effect to any of these acts or events. Each of (a) to (c) of this SUBSECTION 21.1.2 is a "Default". The Owner's election to terminate this EPC Contract under this SUBSECTION 21.1.2 shall not prejudice any other rights or remedies of the Owner, under this EPC Contract or otherwise. 21.1.3 CONSEQUENCES OF TERMINATION Upon termination under SECTION 21.1.2 (Termination for cause): (a) Contractor shall immediately comply with any instructions included in the notice of termination for the protection of life or property or for the safety of the Plant; (b) Contractor shall then leave the Site and: 99
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(i) deliver to Owner all Contractor's Equipment then at the Site (only if Owner elects to complete the Binary Plant as provided in clause (c) below, Equipment (including Equipment off site) and Temporary Works; (ii) deliver to Owner all documents (in whatever state of completion) and information created by or on behalf of Contractor that Contractor would have been required to submit or provide to Owner under this EPC Contract but for the termination and for avoidance of doubt excluding all documents which Contractor was not otherwise obligated to provide under this EPC Contract; and (iii) comply with any instructions included in the notice of termination for the novation of any subcontract with any Subcontractor; (c) Owner may (but shall not be obliged to) complete the Binary Plant and/or arrange for any other entities to do so. Owner and these entities may use for this purpose any Contractor's Equipment, Plant, Temporary Works, documents and information made by or on behalf of Contractor; and (d) on completion of the Binary Plant Owner shall give notice that the Contractor's Equipment and Temporary Works will be released to Contractor at or near the Site. Contractor shall promptly arrange their removal, at the risk and cost of Contractor. 21.1.4 PAYMENT AFTER TERMINATION After termination under SECTION 21.1.2 (Termination for cause): (a) Owner may withhold any further payments to Contractor until any costs of design, execution, completion of the Works and remedying of any defects, losses and general damages arising from 100
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Contractor's breach (including for delay in completion), and all other costs incurred by Owner, have been established; and (b) Owner shall be entitled to recover from Contractor Owner's costs and general damages arising from Contractor's breach (including for delay in completion and costs of completing the Works (subject to the limitations of this EPC Contract). 21.1.5 TERMINATION FOR CONVENIENCE (a) In addition to Owner's rights to terminate under SUBSECTION 21.1.2 (Termination for cause), Owner shall be entitled to terminate this EPC Contract at any time, by giving notice of such termination to Contractor. The termination shall take effect on the date on which Contractor receives notice. (b) Upon termination under SUBSECTION 21.1.5(A): (i) the provisions of SUBSECTION 21.1.3(A) TO (D) (Consequences of termination) shall apply except that Contractor shall be entitled to remove the Contractor's Equipment upon leaving the Site; (ii) the parties shall co-operate to achieve an equitable wash-up of debits and credits between them in relation to this EPC Contract and Contractor shall be entitled to payment of the following: (1) such proportion of the EPC Contract Price that is equivalent to the proportion of the Works completed in accordance with this EPC Contract by Contractor (including on account of Milestones achieved by reference to the Milestone Payment Schedule or if equitable in the circumstances a fair and just pro rata payment on account of Milestones partly achieved), 101
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less any amounts previously paid to Contractor for such work, any liquidated damages due under ARTICLE 12 (Remedies) and any other undisputed amount then due to Owner from Contractor in connection with any breaches of this EPC Contract by Contractor; (2) actual cancellation charges due to Subcontractors as a result of the termination; (3) reasonable costs incurred by Contractor for its own efforts to implement termination and demobilisation (subject to Contractor using reasonable endeavours to minimise such costs), and (4) a cancellation fee calculated in accordance with SCHEDULE I, but shall not be entitled to payment for any other consequential costs of any kind or to payment on account of its overhead or anticipated profit in respect of the unfinished work. (c) Prior to exercising the right of termination under SUBSECTION 21.1.5(a), Owner shall be entitled to require Contractor to advise of the Subcontractor cancellation charges Contractor would incur in the event of such termination. Contractor shall use its Best Endeavors to provide such information within 7 days or as soon thereafter as reasonably practicable. Provided Owner exercises the right of cancellation within 14 days after receipt of such information, the amount due under SUBSECTION 21.1.5(b)(ii)(2) shall not exceed the figure advised by Contractor under this SUBSECTION 21.1.5(c). 102
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(d) Owner's election to terminate this EPC Contract under SUBSECTION 21.1.5(A) shall not prejudice any other rights of Owner or Contractor under this EPC Contract or otherwise. 21.2 TERMINATION BY CONTRACTOR In addition to its other rights and remedies under law or otherwise, Contractor shall be entitled to terminate this EPC Contract on 5 days notice only if one of the following defaults occur and continue for 30 days (20 days in the event of payment default) following a notice by Contractor to cure such default or (except in the case of a default in any payment obligation) if cure cannot be effected within such period, without promptly commencing and diligently pursuing a cure thereof: (a) Contractor does not receive a payment when such payment was due (except for any amount disputed in good faith by Owner); (b) an extended suspension affects the whole of the Works as described in SECTION 20.3 (Extended suspension); (c) Owner becomes bankrupt or insolvent, goes into liquidation, has a receivership or administration order made against it, compounds with its creditors, or carries on business under a receiver, trustee or manager for the benefit of its creditors, or if any act is done or event occurs which under any Law has a similar effect to any of these acts or events. Each of (a) to (c) of this SUBSECTION 21.2 is a "Default". Contractor's election to terminate this EPC Contract under this SUBSECTION 21.2 shall not prejudice any other rights or remedies of the Contractor, under this EPC Contract or otherwise. 21.3 PAYMENT ON TERMINATION After termination under SECTION 21.2 (Termination by Contractor) Contractor's remedy shall be an entitlement to payment in accordance with SECTION 21.1.5 103
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(Termination for convenience) and to termination, without draw, of the performance bonds and parent company guaranty furnished by Contractor under this EPC Contract. ARTICLE 22 - FORCE MAJEURE 22.1 FORCE MAJEURE (a) Force Majeure as used in this EPC Contract shall be an exceptional event or circumstance which is beyond the control of Owner, Contractor or Supplier, such party could not reasonably have provided against before entering into this EPC Contract or the Supply Contract as appropriate, and which having arisen, either Owner or Contractor (for purposes of this SECTION 22.1, the "affected party") could not reasonably have avoided or overcome and which materially affects the affected party's performance of its obligations under this EPC Contract, and shall include, but not be limited to, the following events: war, declared or not, or hostilities, or belligerence, blockade, revolution, insurrection, riot, expropriation, requisition, confiscation, or nationalization, export or import restrictions by any authorities, closing of harbours, docks, canals, or other assistances to or adjuncts of the shipping or navigation of or within any place, rationing or allocation, whether imposed by law, decree or regulation by, or by compliance of industry at the insistence of any governmental authority, or fire, unusual flood, earthquake, hydrothermal eruption, volcanic eruption, storm, lightning, tidal wave, perils of the sea, accidents of navigation or breakdown or injury of vessels, accidents to harbours, docks, canals or other assistance to or adjuncts of the shipping or navigation, epidemic, quarantine, strikes or combination of workmen, lockouts or other labour disturbances (except for strike or other labour disturbances by Contractor's employees), or governmental acts and decrees that in fact delay the Work or increase the cost of the Works but excluding failures of plant and equipment, non-availability of labour, goods, materials, equipment or other resources, strikes or other employee disputes, adverse weather not identified above, or lack of financial resources. 104
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(b) To the extent that the affected party is prevented from or delayed in complying with any of its obligations under this EPC Contract by reason of an event of Force Majeure, such obligation shall be suspended for the duration of the impact of such event upon the affected party. The burden of proving the Force Majeure event shall be on the party claiming Force Majeure. (c) Non-performance of a Subcontractor is a Force Majeure event, provided the Subcontractor's non-performance is due to an exceptional event or circumstance in terms of paragraph (a) and the Subcontractor uses its best endeavours to continue to perform its obligations under the subcontract, to minimise any delay, to correct or cure the circumstances preventing performance and otherwise to remedy its inability to perform. 22.2 NOTICE If either party's ability to perform its obligations under this EPC Contract is or is likely to be affected by Force Majeure, such party shall promptly give notice to the other party stating the nature of the circumstances or anticipated circumstances, their effect or anticipated effect upon the performance of such party's obligations, the anticipated duration of the circumstances and any action being taken to avoid or minimise the effect of the circumstances. 22.3 CONTINUED PERFORMANCE The suspension or delay of performance due to Force Majeure shall be of no greater scope and no longer duration than is required. The excused party shall use its Best Endeavours to continue to perform its obligations under this EPC Contract, to minimise any delay, to correct or cure the circumstance preventing performance and otherwise to remedy its inability to perform. 22.4 ACCRUED OBLIGATIONS No obligations of either party which arose before the occurrence of Force Majeure shall be excused as a result of such occurrence. 105
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22.5 EXTENDED FORCE MAJEURE If circumstances of Force Majeure have occurred and shall continue for a period of 180 days then, notwithstanding that Contractor may by reason thereof have been granted an extension of time for completion of the Work, either party shall be entitled to serve upon the other party 28 days written notice to terminate this EPC Contract. If at the expiry of the period of 28 days the Force Majeure event shall still continue then this EPC Contract shall terminate and Contractor shall be entitled to the payments contained in SUBSECTION 21.1.5 except for the cancellation fee. ARTICLE 23 - CONFIDENTIALITY The contents of this EPC Contract and the Supply Contract and any other information that is in or comes into the possession of either party ("the Transferee"), its employees, Subcontractors or other third parties for which it is responsible relating to the other party is disclosed in confidence and the Transferee shall restrict its use of such information solely to uses: (a) required for the purpose of giving effect to performance of this EPC Contract; (b) required for the purpose of giving effect to or the conditions of any Consent; (c) required by law or any stock exchange listing rules (provided that prior to disclosure the Transferee must advise the other party and must only disclose such information as the Transferee's legal advisors reasonably believe is necessary to disclose by law); or (d) in relation to information that is in the public domain (other than as a result of a breach of this ARTICLE 23). Contractor and Owner shall treat all such information as private and confidential and neither of them shall transfer, copy, list or disclose the same or any particulars thereof without the previous written consent of the other, provided that nothing in this Article 106
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shall prevent the publication or disclosure of any such information that has come within the public domain otherwise than by breach of this Article. ARTICLE 24 - NOTICES All notices and other communications required or permitted by this EPC Contract shall be in writing and shall become effective (a) if by hand delivery, upon receipt thereof, (b) if by official government mail, three (3) days after deposit in the mail, postage prepaid, certified or registered mail, return receipt requested or (c) if by next day delivery service, upon such delivery, at the addresses set forth below or at such other addresses as the party receiving notice shall subsequently designate by written notice to the other party. Notwithstanding the foregoing, the parties may communicate via email at such email addresses designated by each party in the manner provided above with regard to communications other than notices of breach, default, termination or other similar material matters. Without obviating the obligation to timely provide such notice to both Owner or Contractor addressees set forth below, a notice or communication to Owner or Contractor hereunder shall become effective upon the first date of delivery to or receipt of such notice by either Owner or Contractor addressee set forth below. If to Owner: Contact Energy Limited PO Box 10742 Wellington, New Zealand Attention: Tom Zink with a copy to: : Contact Energy Limited PO Box 2001 Taupo, New Zealand Attention: Wayne Christie 107
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If to Contractor: ORMAT Pacific Inc. New Zealand Branch P. O. Box 1717 Taupo New Zealand with a copy of notices of breach or termination to: Robert E. Giles Perkins Coie LLP 1201 Third Avenue 48th Floor Seattle, WA 98101-3099 ARTICLE 25 - MISCELLANEOUS 25.1 APPLICABLE LAW Throughout the course of performance of this EPC Contract, the parties shall comply with all applicable Laws relating to this EPC Contract and its performance. This EPC Contract shall be interpreted under and governed by the laws of New Zealand. 25.2 SEVERABILITY In the event that any of the provisions or portions, or applications thereof, of this EPC Contract are held to be unenforceable or invalid by any court of competent jurisdiction, Owner and Contractor shall negotiate an equitable adjustment in the provisions of this EPC Contract with a view toward effecting the purpose of this EPC Contract, and the validity and enforceability of the remaining provisions or portions, or applications thereof, shall not be affected thereby. 25.3 AMENDMENTS AND WAIVERS This EPC Contract may not be changed or amended orally, and no waiver hereunder may be oral, but any change or amendment hereto or any waiver hereunder must be in writing and signed by the party or parties against whom such change, amendment, or waiver is sought to be enforced. 108
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25.4 COUNTERPARTS This EPC Contract may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 25.5 ENTIRE CONTRACT This EPC Contract constitutes the entire agreement between the parties hereto relating to the subject matter hereof, and supersedes any previous agreements or understandings between the parties. 25.6 EFFECT OF WAIVERS Either party's waiver of any breach or failure to enforce any of the terms, covenants, conditions or other provisions of this EPC Contract at any time shall not in any way affect, limit, modify or waive that party's right thereafter to enforce or compel strict compliance with every term, covenant, condition or other provision hereof, any course of dealing or custom of the trade notwithstanding. The waiver by Supplier or Owner of any breach or failure to enforce any of the terms, covenants, conditions or other provisions of the Supply Contract at any time shall not in any way affect, limit, modify or waive Owner's or Contractor's right thereafter to enforce or compel strict compliance with every term, covenant, condition or other provision of this EPC Contract, any course of dealing or custom of the trade notwithstanding. 25.7 REPRESENTATIONS By their execution hereof, the parties warrant that they are authorized to enter into this EPC Contract, that it does not conflict with any agreement, lease, instrument or other obligation to which either is a party or by which either is bound, and that it represents their valid and binding obligation, enforceable in accordance with its terms. 25.8 HEADINGS The headings contained herein are not part of this Contract and are included solely for the convenience of the parties. 109
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25.9 PUBLICITY Without limiting ARTICLE 23 (Confidentiality), Contractor shall not release public or media statements or publish material related to this EPC Contract, the Works or Owner's business activities or interests without Owner's approval, which approval will not be unreasonably withheld or delayed. Owner shall as and when it considers it appropriate to do so give consideration to acknowledging the role of Contractor as the contractor of the Binary Plant and the use of the ORMAT equipment in the Binary Plant in the press releases and other publications issued by Owner about the Binary Plant. 25.10 COUNTERPARTS; TRANSMITTED COPIES This EPC Contract may be executed in any number of counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument. To expedite the process of entering into this EPC Contract, the parties acknowledge that Transmitted Copies of this EPC Contract will be equivalent to original documents until such time (if any) as original documents are completely executed and delivered. "TRANSMITTED COPIES" mean copies that are reproduced or transmitted via facsimile or another process of complete and accurate reproduction and transmission. 25.11 FURTHER ASSURANCES Owner and Contractor will use reasonable endeavours to implement the provisions of this EPC Contract, and for such purpose each, at the request and expense of the other, will, without further consideration, promptly execute and deliver or cause to be executed and delivered to the other such, consents, documents or other instruments in addition to those required by this EPC Contract as the other may reasonably require to implement any provision of this EPC Contract. [The rest of this page is intentionally left blank. The next page is the signature page.] 110
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IN WITNESS WHEREOF, the parties have caused this EPC Contract to be executed as of the date first above written. Contractor: ORMAT Pacific Inc., New Zealand branch By: /s/ Connie Stechman ----------------------------------------- Name: Connie Stechman --------------------------------------- Title: Assistant Secretary -------------------------------------- Owner: Contact Energy Limited By: /s/ Stephen P. Barrett ----------------------------------------- Name: Stephen P. Barrett --------------------------------------- Title: Managing Director and Chief Executive -------------------------------------- 111
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Page i EPC Contract - Wairakei -------------------------------------------------------------------------------- SCHEDULE A OWNER'S TECHNICAL REQUIREMENTS EPC Schedule A (A-i) 09 October 2003
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Page ii EPC Contract - Wairakei -------------------------------------------------------------------------------- CONTENTS 1. GENERAL...............................................................................................1 1.1 PROJECT DESCRIPTION AND SITE CONDITIONS 1 1.1.1 Definitions 1 1.1.2 General 1 1.1.3 Site Location 1 1.1.4 Meteorology 1 1.1.5 Geotechnical 2 1.1.6 Electrical 2 1.2 SUMMARY OF WORK 3 1.2.1 Scope of Work 3 1.2.2 Work Not Included 7 1.2.3 Terminal Points and Interfaces 8 1.3 PERFORMANCE AND OPERATING REQUIREMENTS 8 1.3.1 Design Range 8 1.3.2 Process Outputs 9 1.3.3 Plant Operation 11 1.3.4 Guarantee Conditions 12 1.4 CORROSION 12 1.4.1 General 12 1.4.2 Corrosion Protection 12 1.5 DRAWINGS AND DATA 13 1.5.1 Drawings and Data to be Provided 13 1.5.2 Revision of Contractor's Drawings at Site 14 1.5.3 As-Built Drawings 14 1.5.4 Contract Drawings 14 1.5.5 Erection Drawings 14 1.5.6 Owner's Drawings 14 1.6 CODES AND STANDARDS 14 1.6.1 General 14 1.6.2 Referenced Codes and Standards 14 1.6.3 Referenced Legislation and Regulations 15 1.6.4 Mechanical Plant 15 1.6.5 Owner's Standards and Instructions 15 1.7 INSPECTION AND TESTING 16 1.7.1 General Requirements 16 1.7.2 Inspection and Testing During Manufacture 17 1.7.3 Functional Tests in Manufacturer's Works 17 1.7.4 Erection Testing 17 1.8 PLANT IDENTIFICATION 17 1.8.1 General 17 1.8.2 Nameplates and Labels 17 1.9 MANUALS 18 1.9.1 General 18 EPC Schedule A (A-ii) 09 October 2003
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Page iii EPC Contract - Wairakei -------------------------------------------------------------------------------- 1.10 SPARE PARTS, TOOLS, TEST EQUIPMENT AND CONSUMABLES 18 1.10.1 Spare Parts and Consumables 18 1.10.2 Tools and Test Equipment 18 1.11 PACKAGING AND STORAGE 18 1.12 TRAINING 19 1.13 STATUTORY REGULATIONS AND APPROVALS FOR PRESSURE EQUIPMENT 19 1.14 MARCO CRITERIA 20 1.14.1 Maintainability 21 1.14.2 Availability/Reliability 22 1.14.3 Constructability 22 1.14.4 Operability 23 2. MECHANICAL PLANT.....................................................................................24 2.1 GENERAL 24 2.2 PLANT ARRANGEMENT 24 2.3 DESIGN AND OPERATING CONDITIONS 24 2.4 TURBINE 24 2.4.1 General 24 2.4.2 Governor and Control System 25 2.4.3 Lube Oil Systems 25 2.5 PUMPS 25 2.6 HEAT EXCHANGERS - GEOTHERMAL FLUID/WORKING FLUID (VAPORISORS AND PRE-HEATERS) 25 2.6.1 General 25 2.6.2 Basic Design 26 2.7 CONDENSER 26 2.7.1 General 26 2.7.2 Basic Design 26 2.8 PIPING 26 2.8.1 General 27 2.8.2 Basic Design 27 2.8.3 Fittings 27 2.8.4 Thermal Insulation 27 2.8.5 Pipe Specifications 28 2.8.6 Valves and Accessories 28 2.9 WORKING FLUID STORAGE AND HANDLING 29 2.9.1 General 29 2.9.2 Basic Design 29 2.10 LUBRICATION 30 3. GEOTHERMAL FLUID SYSTEM..............................................................................31 EPC Schedule A (A-iii) 09 October 2003
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Page iv EPC Contract - Wairakei -------------------------------------------------------------------------------- 3.1 GENERAL 31 3.2 GEOTHERMAL FLUID SYSTEM OPERATION 31 3.2.1 System Pressurisation 31 3.2.2 Geothermal Fluid Discharge to the Wairakei Stream 31 3.2.3 Geothermal Fluid Supply to the Prawn Farm 32 3.2.4 Binary Plant Bypass 32 3.2.5 Pressure/Vacuum Surges 32 3.3 SYSTEM DESIGN REQUIREMENTS 33 3.4 FLOW MEASUREMENT 33 4. GENERATOR............................................................................................34 4.1 GENERAL 34 4.2 SCOPE OF SUPPLY 34 4.3 DESIGN CHARACTERISTICS 34 4.3.1 Design Parameters 34 4.3.2 Insulation and Temperature Rise 34 4.3.3 Abnormal Operating Conditions 34 4.4 GENERATOR COOLING 35 4.5 GENERATOR STATOR 35 4.5.1 General 35 4.5.2 Terminals 35 4.5.3 Anti-Condensation Heaters 35 4.5.4 Temperature Indication 35 4.6 GENERATOR ROTOR 36 4.6.1 Bearings 36 4.7 EXCITATION SYSTEM 36 4.7.1 Scope 36 4.7.2 General Requirements 36 4.7.3 Excitation Power 36 4.7.4 Main Exciter and Rotating Rectifier 36 4.7.5 General Control System Requirements 36 4.7.6 Voltage Regulation 36 4.8 GENERATOR CT, VT AND SURGE PROTECTION 37 4.9 GENERATOR NEUTRAL EARTHING TRANSFORMER 37 4.10 CONTROL SYSTEM INTERFACING 37 5. TRANSFORMERS.........................................................................................38 5.1 GENERAL 38 5.2 SERVICE 38 EPC Schedule A (A-iv) 09 October 2003
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Page v EPC Contract - Wairakei -------------------------------------------------------------------------------- 5.3 GENERATOR TRANSFORMER AND LOCAL SERVICES TRANSFORMER 39 5.3.1 General 39 5.3.2 Voltage Response and Control 39 5.3.3 Painting 39 5.3.4 Transformer Testing 40 5.3.5 Earthquake Withstand 40 5.4 HV SURGE ARRESTORS 40 5.5 EARTHING TRANSFORMER (IF REQUIRED) 40 6. SWITCHGEAR...........................................................................................41 6.1 GENERAL 41 6.2 SCOPE OF WORK 41 6.3 SERVICE 41 6.4 GENERAL DESIGN REQUIREMENTS 41 6.4.1 Switchboard Busbars 41 6.4.2 Switchboard Circuit Breakers 41 6.4.3 Switchboard Auxiliary Switches 42 6.4.4 Switchboard Circuit Breaker Isolation 42 6.4.5 Instrument Transformers 42 6.4.6 Anti-Condensation Heaters 42 6.4.7 Starters and Contactors 42 6.5 11 kV SWITCHBOARD 43 6.5.1 Switchboard 43 6.5.2 Busbars 43 6.5.3 Safety Shutter Devices 43 6.5.4 Circuit Breakers 43 6.5.5 Earthing 43 6.5.6 Cabling Compartment 43 6.5.7 Power Monitoring Unit 44 6.6 11kV LOCAL SUPPLY 44 6.7 415 V SWITCHGEAR 44 6.7.1 Switchboards 44 6.7.2 Circuit Breakers 44 6.7.3 Switched Fuses 44 6.7.4 Contactor Isolation / No Fuse Circuit Breakers 44 6.7.5 Cable Compartments 44 6.7.6 Local Indication 44 6.7.7 Spare Capacity 44 6.8 220kV OUTDOOR CIRCUIT BREAKERS 45 6.9 220kV DISCONNECTOR 45 7. DC SYSTEM AND UPS....................................................................................46 7.1 SCOPE OF WORK 46 EPC Schedule A (A-v) 09 October 2003
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Page vi EPC Contract - Wairakei -------------------------------------------------------------------------------- 7.2 UNINTERRUPTIBLE POWER SUPPLY 46 7.3 24V POWER SUPPLIES 46 7.4 125V POWER SUPPLIES 46 7.5 BATTERIES 47 7.6 BATTERY CHARGER 47 7.7 125 V DC SWITCHBOARD 47 8. CABLING, EARTHING, and MOTORS........................................................................48 8.1 GENERAL 48 8.1.1 Particulars of Low Voltage System 48 8.1.2 Power Supplies 48 8.1.3 Environmental Considerations 48 8.1.4 Electrical Equipment In Hazardous Areas 49 8.1.5 Locks 50 8.1.6 Anti-Condensation Heaters 50 8.1.7 Miniature Circuit Breakers 50 8.1.8 Indicating Lamps 50 8.1.9 Control Switches, Push Buttons 50 8.1.10 Cubicles 50 8.1.11 Small Wiring 51 8.1.12 Radio Interference 51 8.1.13 Cabling Design Information 51 8.2 POWER CABLES 52 8.2.1 Applications and Rating 52 8.2.2 11 kV Power Cables 52 8.2.3 415 Volt Power Cables 52 8.3 CONTROL CABLES 52 8.4 CABLE INSTALLATION 52 8.4.1 General 52 8.5 CABLE TERMINATION 53 8.5.1 General 53 8.6 EARTHING 53 8.6.1 General 53 8.6.2 Cable Ladder Earthing 54 8.6.3 Equipment Earthing 54 8.6.4 Earthing of Reinforcing Steel 54 8.7 LIGHTNING PROTECTION SYSTEM 54 8.8 ELECTRIC MOTORS 55 8.9 VARIABLE SPEED DRIVES 55 9. CONTROL AND INSTRUMENTATION..........................................................................56 EPC Schedule A (A-vi) 09 October 2003
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Page vii EPC Contract - Wairakei -------------------------------------------------------------------------------- 9.1 GENERAL 56 9.2 CONTROL SYSTEM 56 9.2.1 Existing Arrangement 56 9.2.2 Control System Architecture 56 9.2.3 GGC Integration 57 9.2.4 Control Programming 57 9.2.5 Engineering Software 57 9.2.6 Licenses 57 9.2.7 Upgrades 57 9.2.8 Post Take Over Modification 57 9.2.9 NICC SCADA 58 9.2.10 Power Supply 58 9.2.11 Password Protection 58 9.2.12 Alarms 58 9.2.13 Reports 58 9.3 INSTRUMENTATION 59 9.3.1 General 59 9.4 SYSTEM OPERATION 59 9.4.1 Operating Philosophy 59 9.4.2 Synchronising Arrangements 59 9.4.3 Trips 59 10. PROTECTION AND REVENUE METERING...................................................................60 10.1 SCOPE 60 ---- ----- 10.2 TECHNICAL REQUIREMENTS FOR RELAYS AND ANCILLARY EQUIPMENT 60 10.2.1 General 60 10.2.2 Protective Relaying 61 10.2.3 Circuit Breaker Fail Protection 61 10.2.4 Trip Circuit Supervision 61 10.2.5 Undervoltage Protection 61 10.2.6 Generator Protection System 62 10.2.7 Generator Transformer Protection System 62 10.2.8 Auxiliary Transformer Protection System 62 10.2.9 Main protection systems on both sides of the grid interface at 220 kV 63 10.2.10 Protection of Medium Voltage Cable Lines 63 10.3 SPECIAL OPERATIONAL REQUIREMENTS 63 10.4 PROTECTION FUNCTIONAL REQUIREMENTS TO MEET OPERATIONAL REQUIREMENTS 63 10.5 REVENUE METERING AND ANCILLARY EQUIPMENT 64 10.5.1 CTs and VTs 64 10.5.2 Metering 64 11. CIVIL AND STRUCTURAL WORKS........................................................................65 11.1 GENERAL CRITERIA 65 11.2 FACILITIES 65 11.2.1 Site Access 65 EPC Schedule A (A-vii) 09 October 2003
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Page viii EPC Contract - Wairakei -------------------------------------------------------------------------------- 11.2.2 Access Roads 65 11.2.3 Pipe Route 66 11.2.4 Pipe Bridge 66 11.2.5 Local Control Building 66 11.2.6 Equipment Plinths 67 11.2.7 Energy Dissipation System 67 11.2.8 Bunding of Working Fluid Storage 67 11.2.9 Underground Services 67 11.2.10 Platforms and Walkways 67 11.2.11 Cable Ducts 67 11.2.12 Site Reinstatement 68 11.2.13 Security Fence and Security System 68 11.3 DESIGN LOADS 68 11.3.1 Dead, Live and Wind Loads 68 11.3.2 Plant Support Structures 69 11.3.3 Geotechnical Data 69 11.3.4 Foundation Design 69 11.4 SEISMIC DESIGN - GENERAL 69 11.4.1 Statutory Requirements 69 11.4.2 NZS 4203 Loadings Code Provisions 69 11.4.3 Material Standards 70 11.4.4 Foundations 70 11.5 SPECIFIC DESIGN AND CONSTRUCTION 70 11.5.1 Site Clearance 70 11.5.2 Site Filling 71 11.5.3 Drainage 71 11.5.4 Contaminated Water Handling 71 11.5.5 Concrete 72 11.5.6 Concrete Masonry 72 11.5.7 Structural Steel 72 11.5.8 Timber 72 11.5.9 Building Details 72 12. SERVICES..........................................................................................73 12.1 COMPRESSED AIR 73 12.1.1 General 73 12.1.2 General Design 73 12.2 FIRE PROTECTION 74 12.2.1 General 74 12.2.2 Scope of Work 74 12.2.3 Design Parameter 75 12.2.4 Regulations and Standards 75 12.2.5 Fire Main 75 12.2.6 Working Fluid Storage Spray System 75 12.2.7 Fire Alarm Panel 76 12.2.8 First Aid Fire Applications 76 12.2.9 Acceptance Tests 77 12.3 POTABLE WATER SUPPLY 77 12.4 CONTROL ROOM AND AIR CONDITIONING 77 EPC Schedule A (A-viii) 09 October 2003
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Page ix EPC Contract - Wairakei -------------------------------------------------------------------------------- 12.4.1 Scope of Work 77 12.4.2 Design Parameters 77 12.4.3 Regulations and Standards 78 12.4.4 Description of Service 78 12.4.5 Building Producer Statement 78 12.5 STATION SERVICES - ELECTRICAL 78 12.5.1 Scope of Work 78 12.5.2 Lighting 79 12.5.3 Socket Outlets 79 12.5.4 Phase Balancing 79 12.6 PHONES 80 12.7 ALARM SIRENS 81 12.7.1 Operational Alarm Sounders 81 12.7.2 Evacuation Alarm 81 EPC Schedule A (A-ix) 09 October 2003
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Page 1 EPC Contract - Wairakei -------------------------------------------------------------------------------- 1. GENERAL 1.1 PROJECT DESCRIPTION AND SITE CONDITIONS 1.1.1 Definitions Definitions and terms used within these Owner's Technical Requirements are the same as those in the Terms and Conditions. Wherever these Owner's Technical Requirements refer to the Contractor performing or providing services, equipment or Works, the Contractor will either perform or provide such services, equipment or Works or procure the same from the Supplier under the Supply Contract with the Contractor being responsible (as provided in the Terms and Conditions of the EPC Contract) for ensuring that Owner receives all services, equipment and Works to which it is entitled under the EPC Contract and the Supply Contract. Where Ormat drawings in Schedule J are referenced within these Owner's Technical Requirements the drawings shall be read as being indicative of the general scope agreed between the parties. The drawings are subject to changes (not being "Changes" for the purposes of the EPC Contract) resulting from the detailed design process, this design process being a component of the scope of work. Where there is a conflict between the Owner's Technical Requirements and any drawing in Schedule J, the Owner's Technical Requirements shall apply. 1.1.2 General The Owner owns and operates the 165 MW Wairakei Station including the associated steam field. The Owner also operates its 55 MW Poihipi and 104 MW Ohaaki geothermal power plants remotely from Wairakei Station. Wairakei Station, including the steamfield environs, covers an area of approximately 15 square kilometres. The generating plant is located adjacent to the Waikato River, while the steamfield lies within a range of approximately 1.2km to 5km to the north-west. Geothermal fluid is separated into steam and water at nine Flash Plants located in the steamfield. Steam is conveyed to the power station at several pressures via a series of pipelines. Separated water is collected from three flash plants and conveyed to reinjection wells in a single pipeline called the "Reinjection Pipeline". The separated water from unconnected Flash Plants enters an open drainage network that eventually discharges to the Wairakei Stream which itself discharges to the Waikato River. Some of the separated water within the open drainage network is diverted into the Te Kiriohinekai stream adjacent to which a cultural tourism company ("NETCOR") operates. NETCOR uses some separated water from the Reinjection Pipeline for creation of silica terraces. A prawn farm adjacent to Wairakei Station also uses some separated water for heating. The Owner has identified the potential to increase the efficiency of Wairakei Station. Currently, approx. 1800 tonnes per hour of separated geothermal fluid at 127(degree)C is collected. Connection of further Flash Plants by the Owner will increase this to approximately 3000 tonnes per hour. The project covered by this contract will convert thermal energy in this geothermal fluid to electricity using a binary cycle. The geothermal fluid discharged from the Binary Plant will either pass to the adjacent prawn farm, be reinjected into the steamfield, or be discharged to the adjacent stream. 1.1.3 Site Location The Binary Plant project is located at Wairakei Station, approximately 10 km North of Taupo along State Highway 1 & 5 in the central North Island of New Zealand, at an elevation of approximately 360 metres above sea level. The nearest domestic airports are located at Taupo and Rotorua. 1.1.4 Meteorology EPC Schedule A (A-1) 09 October 2003
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Page 2 EPC Contract - Wairakei -------------------------------------------------------------------------------- a) Dry Bulb Temperature. The Binary Plant shall be designed to operate at ambient dry bulb temperatures in the range of -5(degree)C to 35(degree)C. The annual average temperature is 11(degree)C. For the purposes of plant sizing the ambient design temperature is 25(degree)C. b) Humidity and Wet Bulb Temperatures. The normal range of outdoor, open atmosphere relative humidity above grass is 30 - 100%. The full range of humidity can be expected in any month of the year. c) Rainfall. Rainfall on the Site is fairly evenly distributed throughout the year and there are no distinctive dry and rainy seasons. Average annual rainfall is 816 mm. d) Winds. Prevailing winds are from the westerly quarter, with an average annual speed of approximately 2.1 m/s. Calm periods are recorded on average for 50% of the time. Further information is provided in "Wind Summaries Relevant to the Wairakei Power Station", G.W. Fisher, N.W.A., 23/11/94 - Appendix '6'. The highest wind velocity to be used for design purposes is found in New Zealand Standard NZS 4203. e) Atmospheric Geothermal emissions result in corrosive conditions in and around Wairakei Station. Corrosion Further information on the environment and its effects on equipment is included in Section 1.4. f) Airborne Gases Average Levels Gaseous (ppm) Contaminants Hydrogen sulphide (H2S) 5.0 Sulphur dioxide (SO2) 2.0 g) Airborne Less than 200 micrograms/m3 concentration of Particulates 'Atmospheric Dust' as defined by ASHRAE. 1.1.5 Geotechnical Two sites have consents for construction of the Binary Plant. These are referred to as "Site 3" and "Site 4", and are depicted in Site Drawing WRK 0262 (Exhibit A3). Site 4 has been chosen by the Contractor, and agreed to by the Owner having due regard to the practical size of the sites, minimising total project cost and to mitigation of adverse environmental effects. "Geotechnical Investigations", Worley Consultants Ltd July 1995 (Exhibit B8) is based on a plant layout at Site 4 with equipment weights considered to be a "worst case". Site 4 is an alluvial terrace, previously levelled for the original Wairakei Station construction village. The site has experienced subsequent construction activities, however, the extent of these is unknown. Plant settlement is expected to be the key geotechnical design parameter. Some topography information for Site 4 and for an area potentially suitable for a geothermal pipeline crossing over the stream is provided in Exhibits A4 and A5. Information depicted in those exhibits is for information only. The Contractor shall undertake its own survey for the purposes of the works. 1.1.6 Electrical EPC Schedule A (A-2) 09 October 2003
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Page 3 EPC Contract - Wairakei -------------------------------------------------------------------------------- The Binary Plant will interface with the Transpower system at the Transpower 220 kV Switchyard at Wairakei and shall comply with the technical requirements and commissioning processes as set out in the following documents: o Transpower: Common Quality Obligations, April 2003 (Exhibit D1) o Transpower Standard: TP.OG 41.04, Issue 3 January 2001: Commissioning/decommissioning equipment on the power system (Exhibit D4) o Transpower Standard: TP.PS 03.01, Issue 1 October 2000: Disconnector and Earth Switches Purchase Specification (Exhibit D10) o Transpower Standard: TP.PS 22.01, Issue 2 November 2001: Outdoor Current Transformer Purchase Specification (Exhibit D11) o Transpower Standard: TP.PS 13.01, Issue 1 August 2000: Outdoor Circuit Breaker Purchase Specification (Exhibit D6) o Transpower Connect and Dispatch Guide, Version 1 May 2003. (Exhibit D12) The Government released a Policy Statement in December 2000 that directed a new governance structure for New Zealand's electricity market with the establishment of a single Electricity Governance Board (EGB). The EGB established in March 2003 a new set of rules in the form of a Rulebook (Exhibit D3), governing wholesale, retail, security, transmission and distribution companies through the Electricity Governance Establishment Project (EGEP). It is envisaged that Part C of the Rulebook will become operational in early 2004. The Contractor shall take into account the technical requirements set out in the Rulebook, by providing equipment that will meet the requirements of both the Common Quality Obligations and the new Rulebook. The characteristics of the existing 220 kV system are as follows: Highest system voltage 245 kV Lightning impulse level 950 kV Power frequency impulse level 395 kV Design Fault Level 31.5 kA for 3 seconds 1.2 SUMMARY OF WORK 1.2.1 Scope of Work The Works to be provided under this Contract shall include but not necessarily be limited to the following items: a) Mechanical Works Item Description 1. A binary cycle power plant, supplied as two identical units, designed to maximise conversion of geothermal energy subject to downstream temperature and pressure constraints, as described in Section 2. 2. Working fluid unloading, storage, and transfer facilities. 3. Geothermal Fluid piping for the Binary Plant including supply and return, dump control station, bypass control station, pipe support structures (including foundations), thermal insulation, isolating valves and accessories. EPC Schedule A (A-3) 09 October 2003
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Page 4 EPC Contract - Wairakei -------------------------------------------------------------------------------- 4. Mechanical services including: o Compressed air o Fire protection and detection o HVAC o Potable water 5. Special tools and appliances needed for maintenance, major overhaul and recommissioning including disassembly and reassembly, of the equipment supplied. b) Electrical Works The Owner's existing electrical system, to which the binary plant is to be connected is shown in Exhibit A8, Drawing Xhn1262 Rev ZG. The proposed indicative electrical system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 0.002.95.689.0-Revision 2, General One Line Diagram in Schedule J, Item Description 1. Generators and auxiliaries including excitation system, cooling system, and lubricating oil system. 2. Step-up Generator Transformer and local service transformers. 3. Switchgear including 220kV circuit breaker, 220kV disconnector, 220kV current transformers, 11 kV Generator Switchboard, 400 V switchboard, motor control centres. 4. 230 V AC Uninterruptible Power Supply, 24 V DC power supplies, 110 V Battery and associated DC distribution system. 5. HV, LV and control cabling and connections. Complete earthing and lightning protection system. 6. Complete earthing and lightning protection system including 220kV surge arrestors. 7. Power cables and overhead connections to connect the Binary Plant generators with the Transpower 220 kV grid, via a new 11/220 kV generator transformer located at the T2 position in the switchyard. 8. Revenue Metering, plant Protection and Grid connection Protection systems. c) Control and Instrumentation Works Item Description 1. Emergency stop buttons hardwired to PLC, to be prominently located at each turbine-generator set and local emergency stop button for each pump. 2. Panel-mounted equipment. 3 Interfacing panels and cubicles. 4. Control System hardware (PLCs) and Software, program source codes and logic diagrams. 5 Plant Instrumentation. EPC Schedule A (A-4) 09 October 2003
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Page 5 EPC Contract - Wairakei -------------------------------------------------------------------------------- 6. Programming of Binary Plant control system. 7. Provide support to programme the Owner's existing iFix HMI system and support to commission the plant from the GGC. 8. Connection of signals to the Regional Control Centre North (RCN) SCADA system. 9. Connection to existing site security system. 10 Connection to existing fire detection and alarm system. 11. Connection to existing telephone system. 12. Connection to existing LAN. 13. Provision and connection of UHF/VHF radio base set. 14 All control cabling, conduiting and fixings. d) Civil and Structural Works Item Description 1. Preliminary and general works, including installation of construction power supply. 2. Site preparation including stripping, grading, compacting and levelling, and establishment of facilities on Site. 3. Temporary and permanent road access, drainage, fencing and gates and security system (as required) for use during the construction period and subsequent maintenance and operation. 4. Geotechnical design. 5. Surveying and setting out. 6. General excavation and back filling. 7. Drainage and underground services. 8. Foundation works, including embedded parts and grouting, piping supports and road and stream crossings. 9. Structural works for pipe and equipment supports (as required). 10. All platforms, ladders, handrails, chequer plating, and grating necessary for safety and access to the equipment supplied for routine inspections, operations, and major maintenance. Permanent platforms will be provided for valves that are located at high elevation and need frequent adjustment by operators during regular plant operation. This includes the isolation valves at the Geothermal Fluid connection to the Reinjection Main. 11. A monorail suitable for, but excluding, a 2-ton hoist required above each of the turbine-generator sets for the maintenance and replacement of heavy components. 12. A weather shelter over each of the turbine-generator sets. For the purposes of clarification a roof without walls is intended EPC Schedule A (A-5) 09 October 2003
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Page 6 EPC Contract - Wairakei -------------------------------------------------------------------------------- 13. Reinstatement works. e) Studies All engineering studies, calculations and analysis required to ensure good system design and full compliance with the Owner's Technical Requirements, for the purposes of satisfying information requests by the Owner and provision of submissions to other parties (e.g. Territorial Authorities) shall be included in the Works. Mechanical and Process 1. All documentation required to meet statutory requirements for the pressure vessels, turbines, and piping systems. 2. All information and documentation required to satisfy the Owner's Consents, including but not limited to the assessment of noise levels and abatement measures required for all items of Plant. 3. Pipe stress analysis including existing piping where affected by the Works. 4. Geothermal Fluid system pressure drop calculations under steady state conditions and pressure surge and vacuum analysis under conditions of unit and station trips and delayed opening of bypass valves to remain within downstream temperature and rate of change limitations. 5. Fire system pressure drop and flow calculations Electrical 1. Sizing calculations for all items of Plant. 2. Earthing system studies. 3. Fault level studies and calculations. 4. Assessment, calculations, verification dossier, and certificates to meet the statutory requirements of AS/NZS 3000. This shall include tables and drawings for the area classification according to NZS 6101. 5. Before commissioning any equipment to be connected to the grid, planning studies in relation to the equipment must be undertaken by the system operator (Transpower). As such the Contractor shall provide all information expressly required by Transpower under the connection rules and any other reasonable information it requires to assess compliance with performance obligations and technical codes, including modelling data for planning studies. As a minimum modelling data shall meet the requirements of IEEE standards and IEEE Task Force Reports on power system modelling, current at the time of the planning studies. Civil and Structural 1. Geotechnical and soils investigation for Site 4 (as applicable). 2. Concrete mixture analysis. 3. Drainage design including oil interception. 4. Foundation design and analysis. EPC Schedule A (A-6) 09 October 2003
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Page 7 EPC Contract - Wairakei -------------------------------------------------------------------------------- 5. Structural and seismic design and analysis. 6. Requirements for bunding for containment of hazardous materials. 7. Clean-up and disposal of any hazardous material contamination that is introduced to the site by the Contractor. f) Balance of Works Item Description 1. Operation and maintenance training for Owner's personnel. 2. Manufacturing and works inspections and testing. 3. Supply of all consumables and spares required for erection, commissioning and testing including initial operational charges of binary working fluid, lubricating oils and greases, fuses, indicating lamps, filters etc. 4. Plant inspections and tests including Performance Tests prior to taking over. 5. Preparation of operating and maintenance manuals for all systems and equipment. 6. Reports, documents and as-built drawings on completion of the Permanent Works for records purposes etc. 7. Updating of Owner's drawings/documents where the Works requires modifications or revisions. 8. Cable termination schedules, piping schedules etc 9. Submissions to the Owner for approval of the Contractor's Commissioning and Performance Testing Plan. 10. Obtaining required Consents other than the Owner's Consents. 11. Provision of all technical data and assistance necessary for the Owner to obtain any further permits or consents required by it under the Resource Management Act in order to construct and operate the Binary Plant. 12. All special tools required for operation, maintenance or repair. 13. Supply of spare parts for routine and scheduled maintenance when ordered by the Owner. 1.2.2 Work Not Included The following items of work are excluded from the contract scope: a. Provision of operators to operate the Binary Plant during commissioning and Performance Tests. b. Obtaining any permits or consents required under the New Zealand Hazardous Substances and New Organisms Act 1996 (HSNO). c. Submission of documentation required by Owner's Consents. d. Payment of development levies to Taupo District Council when applying for building consent. EPC Schedule A (A-7) 09 October 2003
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Page 8 EPC Contract - Wairakei -------------------------------------------------------------------------------- e. Modification of Prawn Farm heat exchangers and control system. f. Connection of Flash Plants to the Reinjection System. g. Removal of existing hazardous materials discovered during the execution of the works, where those hazardous materials have not been introduced by the Contractor. h. Upgrade of existing fire water pumps i. Provide and perform the OEC HMI integration to the existing iFix HMI. 1.2.3 Terminal Points and Interfaces All interfacing, connection and termination works required to integrate the Binary Plant with Wairakei Station, except that specifically excluded in the Contract, shall be the responsibility of the Contractor. The Contractor shall liaise with the Owner to co-ordinate all termination and interfacing work and the completion of any tie-in or termination work which may only be carried out during a shut-down or isolation of services. Terminal Points at which interface and connection work is required of the Contractor under this Contract are described in Exhibit A2, and approximate locations identified on drawing WRK 0262 in Exhibit A3. The proposed indicative HMI interface system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No.0.002.95.413.0 Rev P2, Control and Communication Architecture in Schedule J and Exhibit E7 The Contractor shall allow sufficient time for all negotiations with Transpower to resolve interface points for the grid connection, including telemetry, protection and metering. 1.3 Performance and Operating Requirements 1.3.1 Design Range a) The design ranges for the plant and conditions for the conducting of the tests, the Geothermal Fluid Specifications and the ambient temperature must be within the Design Conditions as defined below. All conditions shall be measured at the measuring points specified in clause 1.5.5 of Schedule D to the EPC Contract. -------------------------------------------------------------------------------- Geothermal Fluid Specifications and Design Point Design Range Ambient Temperature for Brine OEC -------------------------------------------------------------------------------- i Ambient temperature 11(Degree)C -5 - 40 (Degree)C ii Brine flow 2,800 T/Hr 25 - 114.3% iii Brine temperature (after 127(Degree)C 120 -135 (Degree)C separator) iv Geothermal Fluid operating 4.4 Barg 4.3 - 7.0 Barg pressure range at fluid supply terminal point (Barg) v Brine Return Temperature 87 +/- 2 (Degree)C 85 - 135 (Degree)C -------------------------------------------------------------------------------- EPC Schedule A (A-8) 09 October 2003
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Page 9 EPC Contract - Wairakei -------------------------------------------------------------------------------- iv Indicative chemical analysis (may vary depending on steamfield performance and configuration.) ----------------------------------------------------------------- GEOTHERMAL FLUID CONCENTRATION (mg/l) ----------------------------------------------------------------- MINIMUM TYPICAL MAXIMUM ----------------------------------------------------------------- Li 8 10 11 ----------------------------------------------------------------- Na 860 1000 1100 ----------------------------------------------------------------- K 85 150 160 ----------------------------------------------------------------- Ca 25 25 30 ----------------------------------------------------------------- Mg (less than)0.1 (less than)0.1 (less than)0.1 ----------------------------------------------------------------- Rb 1.1 2 2 ----------------------------------------------------------------- Cl 1500 2000 2200 ----------------------------------------------------------------- SO4 40 35 60 ----------------------------------------------------------------- Total HCO3 (less than)5 (less than)5 (less than)5 ----------------------------------------------------------------- Total Sulphide 0.1 (less than)1 5 ----------------------------------------------------------------- B 21 25 25 ----------------------------------------------------------------- SIO2 250 550 550 ----------------------------------------------------------------- ----------------------------------------------------------------- pH 8.3 8.7 8.9 ----------------------------------------------------------------- Fluid flow may vary and be interrupted from time to time due to steamfield operation and maintenance activities and the Binary Plant shall therefore have a turn down capability across the full range of flow. Further information on the Geothermal Fluid system and flows is provided in section 3.0. 1.3.2 Process Outputs a) Electricity The Binary Plant shall supply electricity to the grid at a nominal 220,000 volts, 50 Hz. b) Geothermal Fluid The control system shall maximise electricity generation for all flow conditions of Geothermal Fluid. The design temperature of the Geothermal Fluid at the discharge terminal point shall be 87(degree)C +/- 2(degree)C and with a minimum brine return temperature of 85(degree)C. The Geothermal Fluid can be discharged at 4 locations depending on Binary Plant operating status: o Existing reinjection header, with a capacity of up to 3000 tonnes/hr o Existing prawn farm supply, of up to 1000 tonnes/hr. Intermittent flow is possible. o Emergency overflow to the Wairakei Stream, being the balance of the Geothermal Fluid flow up to a maximum permitted flow of 3,000 tonnes/hr. o Existing spilling systems at 60 series wells and Flash Plants. c) Environmental Impact The Owner's Resource Consents are attached as Exhibit B1. In addition to these, the Owner has been granted outline plan approval by the Taupo District Council (TDC). (Copy of TDC letter is included in Exhibit B1) The outline plan approval requires that the Binary Plant be constructed generally in accordance with the Assessment of Environmental Effects (AEE) prepared by the Owner in gaining its Consents. (See Exhibit B2, and associated documents contained in Exhibits B3, B4, B5.) The Contractor's construction activities, as well as the operation of the Binary Plant, shall satisfy all requirements of all of the Owner's Consents. EPC Schedule A (A-9) 09 October 2003
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Page 10 EPC Contract - Wairakei -------------------------------------------------------------------------------- i) Noise A detailed report covering the predicted sound levels from the Binary Plant and recommendations for mitigation measures, "Report on Impact of Sound from Proposed Binary Plant Machines Operating at Either of the Two Proposed Sites at ECNZ Geothermal Wairakei" A.D. Paterson, January 1996 is attached as Exhibit B5. New Zealand Standards NZS 6801:1991 "Measurement of Sound" and NZS 6802:1991 "Assessment of Environmental Sound" shall be used for the measurement and assessment of noise levels during normal operation. Noise limits and the measurement and assessment of noise during construction shall be to NZS 6803P:1984 "The Measurement and Assessment of Noise from Construction, Maintenance and Demolition Work". Sound levels shall not exceed 45 dBA L95 at any point on the Owner's boundary nor shall the total sound emission level exceed 115 dB A-weighted re 10-12 Watts, under normal operating conditions. The Transpower Wairakei Switchyard Boundary shall not be considered for the purposes of this clause. The Owner's boundary is indicatively shown on drawing titled "Wairakei Core DPS Plan" in Exhibit A12 and drawing WPS 572 in Exhibit A13. During start-up, shut-down or under fault conditions, the plant may emit high sound levels. These intermittent sound levels shall not exceed 75 dBA Lmax at either the prawn farm entrance gate or the Owner's administration offices. Each plant item shall not emit a sound pressure level in excess of 85 dBA at 1 m from its surface. The generators (but not the turbines) may emit a sound pressure level no greater than 90dBA so are exempted from this requirement. This shall not affect compliance of the noise limits specified at the Owner's boundary. Under normal operating conditions the sound level inside the Owner's administration offices shall not exceed 55 dBAL95, with the windows open. The Contractor shall note the requirement to assess noise levels and mitigation measures in section 1.2.1(e) of these Technical Requirements. ii) Effluent Interception and Bunding All sources of oil contamination of rain water run off and chemical contamination of soil and water shall be bunded and water discharged from such bunds to an oil/water separator system, in accordance with Owner's Consents. Chemical cleaning of silica deposits from equipment is foreseen. For in situ cleaning, all required connections and facilities for the safe and convenient handling of the chemicals shall be provided by the Contractor. For the purposes of clarification, it is assumed that portable skid-mounted cleaning equipment having it's own self-contained spill-containment facility will be employed. iii) Binary Working Fluid Leakage Rates The Contractor shall design, manufacture and test all equipment that contains binary working fluid to achieve as close to zero leakage as is practical. The operating and maintenance procedures shall also reflect the need to minimise leakage to the atmosphere. Under no circumstances shall the total annual leakage exceed 7 1/2 per cent of the full plant charge (including maximum storage), or the maximum allowable quantity permitted by the Owner's Consents, whichever is the lesser. EPC Schedule A (A-10) 09 October 2003
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Page 11 EPC Contract - Wairakei -------------------------------------------------------------------------------- iv) Discharge to Wairakei Stream Both the storm water and Geothermal Fluid discharges into the Wairakei stream shall be designed so as to minimise bank erosion and to allow stream access for removal of silica deposits. v) East Taupo Arterial Impact The Taupo District Council has formally designated a corridor for the proposed East Taupo Arterial (ETA). The proposed road crosses the Owner's facilities adjacent to the Binary Plant sites but is not expected to be built prior to take over of the Binary Plant. The designation includes a condition No 59 requiring the designation be reduced in width so that it will not cover Site 3. A further condition No 55 requires the Designating Authority to consent to additional geothermal pipelines crossing the road designation subject to approval of the exact location, design and construction methods by the Designating Authority. This is expected to apply to the Geothermal Fluid inflow and return pipelines between the Terminal Points on the reinjection line and the boundary of Site 3. The siting of pipes/works on the designated area of the ETA will have adverse cost implications for the Owner as the pipes/works will need to be bridged or placed in a culvert when the proposed road is finally built. It is anticipated that the Designating Authority will make it a condition of any consent that the Owner agree to meet the costs of any such bridge or culvert. The Owner may manage or mitigate that cost risk by electing to require the Contractor to relocate pipe connections and valves outside of the ETA alignment and to require the proposed new Geothermal Fluid pipes that must cross the ETA alignment to be placed along side existing geothermal pipes. The Owner has an obligation to liaise with Taupo Distrct Council on any matter that may affect the ETA. The Contractor shall therefore provide the Owner with all design details necessary in a timely manner for the Owner to fulfil this obligation. This includes providing the Owner at the time of Tender with a provisional layout envisaged for the Geothermal Fluid pipelines that will cross the road designation in order to facilitate the approval identified above. Refer to Exhibit B9 which contains relevant extracts from the designation decision that affect the Owner's Wairakei facilities. (Whole document is available on request.) 1.3.3 Plant Operation a) Time Between Planned Shut Downs The Binary Plant shall be designed for maximum continuous base load operation without requiring a planned major shutdown for maintenance or inspection of a frequency of less than once per every four years, except where otherwise required by statutory rules. It is acknowledged that the plant is designed for six monthly and annual minor shutdowns of less than one day each for planned routine maintenance purposes. b) Operating Philosophy (Fail Safe) The Binary Plant shall be remotely monitored with control from the GGC. The GGC control centre is permanently manned 24 hours per day by one generation controller with an appropriate plant qualification. The Binary Plant shall have Fail Safe features that maintain a range of essential services to safeguard personal safety and asset integrity following operation of a Fail Safe feature. (refer Fail Safe Functional Statement - Wairakei Power Station - Exhibit C19 and WRK Fail Safe Management - Exhibit C20). EPC Schedule A (A-11) 09 October 2003
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Page 12 EPC Contract - Wairakei -------------------------------------------------------------------------------- The Fail Safe philosophy of the Binary Plant, including alarm philosophy, shall be consistent with that of the Wairakei Station, In the event of a Fail Safe feature operating, the plant shall require manual intervention to restore the plant to normal operation. If the communications link between the Binary Plant and the GGC is lost then the plant shall remain in a steady state operational condition until either: i The communications link is restored; or ii Manual operation directed by the GGC Controller occurs; or iii An unsafe plant condition arises in which case the plant will fail safe. c) Design Life The Permanent Works shall have a minimum design life of 25 years. d) Availability and Performance The Contractor shall provide Performance Guarantees for f the Binary Plant as defined in the Terms and Conditions, its net electrical output, return temperature and pressure drop in Geothermal Fluid across the Binary Plant. The guarantees will be defined at Guarantee Conditions and the Contractor shall be liable for liquidated damages if it fails to meet its guarantees as specified in the Terms and Conditions of the Contract. 1.3.4 Guarantee Conditions The conditions under which the Contractor guarantees that the Binary Plant will meet its Performance Guarantees are known as the Guarantee Conditions and are as follow: i. Geothermal Fluid flow 2,800 tph ii. Geothermal Fluid supply temperature 127(degree)C iii. Geothermal Fluid supply pressure 4.4 barg iv. Ambient temperature 11(degree)C v. Maximum Geothermal Fluid Pressure Drop 2.2 Barg vi. Brine Return Temperature 87(Degree)C 1.4 CORROSION 1.4.1 General Wairakei Station and surrounding areas are subject to hydrogen sulphide (H2S) gas pollution. H2S is heavier than air and collects in depressions and poorly ventilated spaces. H2S is highly corrosive to graphite, silver, copper and its alloys, and to a lesser extent, mild steel. 1.4.2 Corrosion Protection All materials shall be selected by the Contractor in the full knowledge of these conditions and the Owner's Technical Requirements, including design life and plant reliability and performance. All equipment shall be designed for outdoor installation except that which is to be located in the Local Control Room, GCC or air compressor buildings. Corrosion protection systems shall be suitable for "long term" classification (between 10 and 15 years to first maintenance). EPC Schedule A (A-12) 09 October 2003
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Page 13 EPC Contract - Wairakei -------------------------------------------------------------------------------- The Contractor shall use corrosion resistant materials, or isolate the materials and equipment from the contaminant, or both. Protective metallic coatings may be used to lessen the effects of H2S corrosion however cadmium plating and unprotected copper shall not be used. Wherever possible the Contractor shall locate electronic equipment in an H2S filtered environment. Exterior equipment surfaces and structural steelwork shall be protected with Ormat standard paint systems as listed below and appended to these Owner's Technical Requirements. a) Ormat Technical Specification 24.3.4.25 for Galvanising. Exhibit E1. b) Ormat Technical Specification 24.3.7.080 for Painting System for Uninsulated Piping and Equipment Operating at Temperatures Lower Than 120(degree)C. Exhibit E2. d) Ormat Technical Specification 24.3.4.081 for Painting System for Insulated Heat Exchanger Piping and Equipment. Exhibit E3 e) Ormat Technical Specification 24.3.4.082 for Organic Turbine Painting System. Exhibit E4. d) Ormat Technical Specification 24.3.4.086 for Heat Resistant Painting System for Non Insulated Pipework. Exhibit E5. e) Ormat Technical Specification 24.3.7.095 for Powder Coating Painting System Over Galvanised Steel. Exhibit E6. f) Ormat Technical Specifications for touching up the protective coating systems at site shall be provided to the Owner by the Contractor during the detailed design stage. The condenser plenum shall be galvanised and powder coated per Ormat Technical Specification 24.3.7.095. 1.5 DRAWINGS AND DATA 1.5.1 Drawings and Data to be Provided a) General The Contractor shall prepare and provide to the Owner for review all drawings, schedules, calculations, documents, data and information as required by the Terms and Conditions and these Owner's Technical Requirements. The submittals shall be sufficiently comprehensive to demonstrate that all parts and procedures used in performing the Works comply with the Contract and to provide a detailed and comprehensive record of all aspects of the Works. Except where modified by the Terms and Conditions, the Owner's Technical Requirements, or the Contractor Submittal requirements and schedule in Exhibit A1, drawings shall also be prepared in accordance with the Owner's standard CSI 10_07_1000 titled "Contract Drawings Documentation" included in Exhibit C16. The Owner shall have the right to require the Contractor to submit such additional information as may reasonably be required. All drawings and documents prepared by the Contractor or its Subcontractors for this Contract shall be in the English language. Drawings and documents to be provided shall include all information necessary for the Owner to safely operate and maintain the Binary Plant. The Contractor shall not be expected to provide to the Owner, copies of detailed manufacturing drawings that are considered to contain trade secrets or otherwise be commercially sensitive in nature. Notwithstanding this, the Contractor shall use best endeavours to co-operate favourably with any request to make such drawings or information available to the Owner or third party inspectors for the purposes of inspection. EPC Schedule A (A-13) 09 October 2003
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Page 14 EPC Contract - Wairakei -------------------------------------------------------------------------------- Electrical schematic and wiring diagrams shall be arranged such that terminal blocks and terminal information are clearly shown and indicate incoming and outgoing cables and the location of the remote end of such cables. Circuit diagrams of all electrical equipment including printed circuit boards provided shall be sufficiently for fault finding. b) Drawings and Data to be Submitted Refer Exhibit A1 for Contractor Submittal requirements and schedule. 1.5.2 Revision of Contractor's Drawings at Site During the erection and commissioning period the Contractor may find it may be necessary to make revisions to already approved construction drawings. In such case the Contractor shall provide to the Owner without delay two marked up prints detailing the intended revision. Formal revisions of these drawings shall then be made and issued to the Owner within a reasonable timeframe. 1.5.3 As-Built Drawings Following the installation of the equipment, the Contractor shall revise its drawings to show the "as-built" status and send to the Owner for approval. 1.5.4 Contract Drawings After approval of the "as-built" drawings the Contractor shall submit (as a single submission to the Owner), for final record purposes, sets of all approved drawings. These shall be provided in editable electronic format. 1.5.5 Erection Drawings It is the Contractor's responsibility to ensure that field erection personnel have in their possession the latest available erection drawings of the type and quantity needed to perform the Works. 1.5.6 Owner's Drawings The Contractor shall up date all existing Owner's drawings where these are affected by or interface to the Works. 1.6 CODES AND STANDARDS 1.6.1 General The codes, standards and specifications referenced herein shall include addenda, amendments and errata and shall govern in all cases where references thereto are made. In case of conflict between these codes (or standards or specifications) and the requirements specified in the Contract, the latter shall govern to the extent of such difference. The code, standard or specification applied in each case shall be the latest revision adopted and published at June 23, 2003. Any conflict between standards shall be referred to the Owner who will determine which standard shall govern. Deviations to the referenced standards or substitution by an equivalent one shall be subject to the Owner's approval. 1.6.2 Referenced Codes and Standards The full name of the codes and standards reference in this document are: EPC Schedule A (A-14) 09 October 2003
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Page 15 EPC Contract - Wairakei -------------------------------------------------------------------------------- AISI American Iron and Steel Institute ANSI American National Standards Institute, Inc. API American Petroleum Institute AS Australian Standard ASHRAE American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc. ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials BS British Standards IEC International Electrotechnical Commission IEEE Institute of Electrical and Electronics Engineers ISO International Organisation for Standardisation NZS New Zealand Standard NFPA National Fire Protection Association TP Transpower 1.6.3 Referenced Legislation and Regulations The Works shall comply with the requirements of all applicable New Zealand Acts, Regulations, bylaws including, but not limited to: o Health and Safety in Employment Act 1992 o Health and Safety in Employment (Pressure Equipment, Cranes and Passenger Ropeways) Regulations 1999 o Approved Code of Practice for Pressure Equipment (Excluding Boilers) o The Limitations of Harmonic Levels Notice 1981 o Radio Interference Notice 1988 o NZ Electrical Codes of Practice o The Electricity Regulations 1993 o Forest Produce Import & Export Regulations of New Zealand 1966/122 (Amendment No. 1 1967) o Hazardous Substances and New Organisms Act 1996 o Resource Management Act 1991 1.6.4 Mechanical Plant In addition to the requirements mentioned above, the following standards shall apply to the design, manufacture and testing of the mechanical plant: Turbine Ormat Standard Piping ASME B31.1 Heat Exchangers ASME Section VIII, Div 1 Feed Pump General purpose with double mechanical seal Pressure Vessels ASME Boiler and Pressure Vessel Code Section VIII Division 1 Lubrication & Shaft - Sealing Systems Ormat Standard 1.6.5 Owner's Standards and Instructions The following Owner standards and instructions are applicable and are included in the Exhibits or available on request. ------------------------------------------------------------------------------------------------ EXHIBIT TITLE SOURCE REF. NO. REFERENCE) ------------------------------------------------------------------------------------------------ Permit System Owner 05_01_1000 C1 ------------------------------------------------------------------------------------------------ Event Management Owner 07_01_1000 C2 ------------------------------------------------------------------------------------------------ EPC Schedule A (A-15) 09 October 2003
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Page 16 EPC Contract - Wairakei -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ EXHIBIT TITLE SOURCE REF. NO. REFERENCE) ------------------------------------------------------------------------------------------------ Security Owner 11_01_1000 C3 ------------------------------------------------------------------------------------------------ Geothermal Security Owner 11_01_2000_GEO C4 ------------------------------------------------------------------------------------------------ Emergency & Civil Defence Owner 12_02_1000 C5 ------------------------------------------------------------------------------------------------ GEO Emergency Preparedness and Civil Defence Owner 12_02_2000_GEO C6 ------------------------------------------------------------------------------------------------ GEO Plant Coding System Owner 03_03_3000_GEO C7 ------------------------------------------------------------------------------------------------ Storage, Handling & Supply Owner 09_03_1000 C8 ------------------------------------------------------------------------------------------------ Workplace Health & Safety Owner 12_03_1000 C9 ------------------------------------------------------------------------------------------------ GEO Confined Space/Gas Hazard Procedure Owner 12_03_2001_GEO C10 ------------------------------------------------------------------------------------------------ Hazardous Substances Owner 09_04_1000 C11 ------------------------------------------------------------------------------------------------ GEO Hazardous Substances Use Owner 09_04_3002_GEO C12 ------------------------------------------------------------------------------------------------ Environmental Management Owner 03_06_1000 C13 ------------------------------------------------------------------------------------------------ Geothermal Environmental Management Owner 03_06_2000_GEO C14 ------------------------------------------------------------------------------------------------ Pressure Equipment and Cranes Compliance Owner 03_07_1000 C15 ------------------------------------------------------------------------------------------------ Contract Drawings Documentation. Owner 10_07_1000 C16 ------------------------------------------------------------------------------------------------ Hazard Management Owner 03_08_1000 C17 ------------------------------------------------------------------------------------------------ Building Act Compliance Owner 03_12_1000 C18 ------------------------------------------------------------------------------------------------ Wairakei Fail Safe Functional Statement Owner 03_01_2002_GEO C19 ------------------------------------------------------------------------------------------------ WRK Fail Safe Management Owner 03_01_2001_GEO C20 ------------------------------------------------------------------------------------------------ Hot Work Management Owner 05_01_2000_GEO C21 ------------------------------------------------------------------------------------------------ Waikato Regional Council Earthworks and Tracking WRC none B7 Guidelines ------------------------------------------------------------------------------------------------ Selection of Surge Arrestors. Transpower TP.PP 07.01 D5 ------------------------------------------------------------------------------------------------ Purchase Specification for 220kV Outdoor Circuit Transpower TP.PS.13.01 D6 Breakers ------------------------------------------------------------------------------------------------ Commissioning/Decommissioning Equipment on the Transpower TP.OG 41.04 D4 Power System. ------------------------------------------------------------------------------------------------ Planning Guide for the Connection of Electricity Transpower TP.AG 48.02 D3 Generating Plant to the NZ National Grid ------------------------------------------------------------------------------------------------ Transpower Connection Policy Transpower None D2 ------------------------------------------------------------------------------------------------ The Works shall comply with the seismic requirements of Section 11.4 and 11.5. 1.7 INSPECTION AND TESTING 1.7.1 General Requirements The Permanent Works shall undergo inspection and testing during manufacture, erection and on completion for verification that the components satisfy all the requirements as specified and defined and documented. All Permanent Works inspection and testing shall be conducted in accordance with the applicable codes, standards and particular requirements noted in these Owner's Technical Requirements. EPC Schedule A (A-16) 09 October 2003
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Page 17 EPC Contract - Wairakei -------------------------------------------------------------------------------- The Contractor shall advise the Owner of factory test and shipment dates for all major overseas fabricated equipment, with sufficient prior notice for the Owner if it so chooses to arrange inspection by the Owner or the Owner's Representative. The Contractor shall ensure that its inspectors, both local and overseas, have the appropriate qualifications and are recognised by the relevant New Zealand authorities. 1.7.2 Inspection and Testing During Manufacture Materials, workmanship and performance of all Plant items to be provided under this Contract shall be inspected at the places of manufacture to verify compliance with the requirements of these Owner's Technical Requirements and to meet the Contractor's quality plan. Inspection shall be carried out by the Contractor's own inspectors and by the Owner or the Owner's Representative if the Owner so chooses. 1.7.3 Functional Tests in Manufacturer's Works In addition to the Contractor's quality control and production tests, works testing shall be carried out in accordance with the applicable codes, standards and particular requirements noted in these Owner's Technical Requirements. Works testing shall include electrical, mechanical and hydraulic tests to ensure that the equipment supplied satisfies these Owner's Technical Requirements. The electric motors used for driving equipment during a test shall, where possible, be the service motor for that item. In all cases, performance certificates for the motors used shall be available for examination by the Owner or the Owner's Representative and shall be included in the certification produced for the item tested. 1.7.4 Erection Testing Erection testing shall be as required by the applicable local codes, standards and legislative requirements and undertaken by the Contractor to ensure that the requirements noted in these Owner's Technical Requirements are fully satisfied. 1.8 PLANT IDENTIFICATION 1.8.1 General All items of the Permanent Works shall be assigned equipment numbers by the Owner. The Contractor shall prepare for the Owner a comprehensive Plant Identification Schedule in an electronic Microsoft Excel spreadsheet format showing the name of each item of plant and its respective arrangement drawing number, and any additional items necessary to fully identify the plant. The Plant Identification Schedule shall match in all respects the Owner's systems. The Owner shall assign a number to each item on the Plant Identification Schedule, and return the schedule to the Contractor. Equipment numbers shall be depicted on all diagrams and drawings etc. All control systems programmed by the Contractor shall use the equipment item number as the Software identification. 1.8.2 Nameplates and Labels EPC Schedule A (A-17) 09 October 2003
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Page 18 EPC Contract - Wairakei -------------------------------------------------------------------------------- The Contractor shall supply all labels, nameplates, instruction and warning plates necessary for the clear identification and safe operation of the Plant. 1.9 MANUALS 1.9.1 General The Contractor shall provide a set of well structured and comprehensive manuals in both hard and soft copy to fully describe all aspects of design, operation and maintenance of all Plant supplied under the Contract including tools and testing equipment. The structure, content and format of the documents shall be agreed with the Owner before the Contractor proceeds to assemble the draft manuals. Until the expiry of the Defects Correction Period, the Contractor shall be responsible for supplying or replacing information to keep the manuals complete, accurate and up to date. 1.10 SPARE PARTS, TOOLS, TEST EQUIPMENT AND CONSUMABLES 1.10.1 Spare Parts and Consumables The Contractor shall provide as part of this EPC Contract a sufficient quantity of consumable parts and materials such as gaskets, seals, lubricants, hand-hole covers, computer paper, recorder charts, ink, binary working fluid, chemicals etc., and Binary Plant spares for its use during erection, testing and commissioning. The Contractor shall also recommend to the Owner an inventory of spare parts and consumables for the Binary Plant to enable the Owner to carry out routine maintenance as recommended by the manufacturer. The Owner may order all or any number of the spare parts recommended to it by the Contractor at its own discretion. All spares supplied shall be strictly interchangeable with the parts which they are intended to replace and shall be tested and packed for long storage under the climatic and atmospheric conditions prevailing at Site. Any spare having a limited shelf life or requiring a special storage condition shall be separately identified. Each spare shall be clearly marked with the description, purpose and Plant Identification code. If the Contractor's practice is to assign its part numbers to parts purchased from other manufacturer's, a part number list shall be furnished which provides a cross-reference between the Contractor's Plant Identification code and the part of the original supplier. 1.10.2 Tools and Test Equipment Any special tools and test equipment required to adjust, dismantle, test, operate or maintain any equipment shall be provided by the Contractor. This includes Software for configuration, interrogation, or fault finding of programmable items. Ownership of, and responsibility for, these special tools and test equipment shall pass to the Owner on issue of the Take Over Certificate. 1.11 PACKAGING AND STORAGE The Contractor shall package all equipment and materials in such a manner to ensure protection against damage and deterioration during shipment, transportation and storage including that at Site. If damage or deterioration is found the Contractor shall take immediate action to notify the Owner and rectify it in accordance with the terms of the Contract. EPC Schedule A (A-18) 09 October 2003
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Page 19 EPC Contract - Wairakei -------------------------------------------------------------------------------- The Contractor shall provide for all storage and maintenance of the Plant prior to the issue of the Take Over Certificate. All storage shall be suitable for the Plant and equipment being stored in a geothermal H2S environment. The Contractor shall provide and maintain at its expense all necessary equipment for handling, inspection and safe-guarding of stored Plant and the Contractor's Equipment. 1.12 TRAINING The Contractor shall run formal operating, engineering and maintenance staff training courses as necessary and appropriate to ensure that the Owner's Personnel are properly and thoroughly trained and equipped to operate and maintain the Binary Plant to the standards required for the plant to remain safe, efficient and reliable throughout its design life. The training courses shall be site based and completed prior to the commencement of commissioning. The courses shall be followed by examinations designed by the Contractor to verify the competency of the staff. The plant will be operated and maintained only by staff who have demonstrated a sufficient level of competency. The Contractor shall be responsible for the preparation of all training documentation which shall include well organised training manuals for the trainees. The Contractor shall submit the training documentation to the Owner before commencement of training in accordance with the terms of the Contract. The Contractor shall be responsible for the provision of simulation equipment and visual aids as necessary and appropriate for the effective training of staff. The Owner shall provide a room and furniture for on-site training. Any costs for off-site training shall be the responsibility of the Contractor. As Owner's staff operate the existing Wairakei Station on a 24 hr basis, the Contractor shall structure the timing of the training sessions, and if necessary repeat the training sessions, to ensure operating and maintenance staff from all shifts are given the opportunity to participate. 1.13 STATUTORY REGULATIONS AND APPROVALS FOR PRESSURE EQUIPMENT Pressure piping and pressure vessels shall comply with all applicable requirements of New Zealand law. The requirements for design approval, operation and inspection of such equipment in New Zealand are set out in the Health and Safety in Employment (Pressure Equipment Cranes and Passenger Ropeways) Regulations 1999. The Contractor shall be responsible for establishing the applicable requirements under these regulations for the equipment supplied. Pressure Vessels are to be designed to the requirements of the pressure vessel code ASME, Section VIII, Division 1 and require ASME stamping if not manufactured in New Zealand. All pressure vessels shall be supplied with ASME nameplates and to include the Owner's equipment numbers. The design, verification and certification of pressure parts for operation in New Zealand is covered in the Approved Code of Practice for Pressure Equipment (Excluding Boilers) (See Exhibit D7 of these Technical Requirements). The Code of Practice covers the requirements of Quality Assurance, design, design verification, manufacture, inspection testing, commissioning and operation. The Contractor shall provide the Owner with documentation to demonstration compliance with the Code of Practice. The Equipment Hazard level is as defined by code AS4343 Pressure Equipment Hazard Levels. This means as far as the requirements for the design and inspection go is that depending on designers quality control EPC Schedule A (A-19) 09 October 2003
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Page 20 EPC Contract - Wairakei -------------------------------------------------------------------------------- system, design requires design verification in accordance with Appendix A of the Code of Practice for Pressure Equipment. If the Hazard level is B or higher then third party design verification is required regardless of whether the designers are ISO 9001 or not. SGS New Zealand Ltd, trading as SGS M&I, is currently the major New Zealand agency providing the necessary design verification and/or inspection services. However, it may be necessary to use an International Agency that must be recognised in New Zealand such as Lloyds to carry out design verification for major items of Plant in the country of manufacture. A list of acceptable inspection agencies can be found on the New Zealand website address http://www.osh.dol.govt.nz/touch/eng-safety/inspect.shtml. If the fabricators are ISO 9002 (or AS3902) certified (copy of certificate required) then no independent fabrication inspection body is required to be involved unless the equipment is rated Hazard A or if requirements of ASME VIII override this. The Owner can still apply hold points for inspection purposes if it deems necessary. If the fabricators are not ISO 9002 then third party inspection is required for Hazard level B & C. If independent fabrication verifying body is required the list of acceptable bodies can be found on the New Zealand website address http://www.osh.dol.govt.nz/touch/eng-safety/inspect.shtml These New Zealand OSH standards are also available on the Internet. It is expected that the vendors will download a copy. The vendors are expected to familiarise themselves with the documents and comply in all regards. The web address is http://www.osh.dol.govt.nz/touch/eng-safety/document.shtml and http://www.legislation.govt.nz/browse_vw.asp?content-set=pal_regs The vessels and pipework shall have documented design calculations, design verification, fabrication and inspection certificates according to the relevant design code as modified by the codes of practice above which must be provided to Owner as part of the requirements for taking over. Vessels and pipework shall have non destructive and hydro static testing completed to ASME code Section VIII, Division 1 and shall be performed prior to shipment. Whether or not the Owner exercises it rights to witness such testing, signed and fully verified test result paperwork is required. The Contractor shall be responsible for the following: a) Ascertaining the approval, inspection, documentation and design standard requirements of applicable in New Zealand. b) Obtaining the necessary design verification and certification from an approved agency that is recognised in New Zealand. c) Co-ordinating and arranging for the required statutory inspections and testing from an approved agency. d) Providing all the necessary documentation to meet the requirements of the applicable standards and regulations. The manufacture of any items requiring design verification shall not commence until the Contractor has received the necessary certification from the approving authority. The cost of all statutory approvals or services shall be included in the EPC Contract Price. 1.14 MARCO CRITERIA MARCO is an acronym representing the following concepts which shall be incorporated into the design of the equipment: EPC Schedule A (A-20) 09 October 2003
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Page 21 EPC Contract - Wairakei -------------------------------------------------------------------------------- Maintainability Availability Reliability Constructability Operability The plant design and construction requirements shall be optimized to ensure high MARCO. Redundancy shall be provided for at least the following equipment: o All critical interlock, trip and protection functions, especially those related to startup including: - Turbine over speed protection - Vaporiser high-pressure protection - Condenser high-pressure protection - Generator winding high temperature - Generator over voltage - Generator time over voltage - Air driven oil pump as backup for electricallly driven oil pump to bring the OEC to a safe stop. Ormat shall participate in value engineering studies during the process design phase, HAZOPS and design review meetings comprised of personnel from the Owner and Ormat. Ormat shall identify design features which have been included in the plant design to improve maintainability, availability, reliability, constructability, and operability. In addition, Ormat will be required to participate in evaluating plant equipment and systems versus reliability objectives over the life of the plant. The following additional MARCO requirements shall be applied to the equipment or plant provided by the Contractor. 1.14.1 Maintainability The primary maintainability objective shall be to minimise the complexity and time required for maintenance. The following general criteria shall be followed to achieve this objective: Plant equipment shall be of a low maintenance design and shall be easily maintainable. Plant equipment shall be designed to be maintained in place, if possible, with minimum disassembly of surrounding equipment and minimum usage of temporary scaffolding and handling equipment. All platforms, ladders, handrails, chequer plating, and grating necessary for safety and access to the equipment supplied for routine inspections, operations, and major maintenance. Permanent platforms will be provided for valves that are located at high elevation and need frequent adjustment by operators during regular plant operation. This includes the isolation valves at the Geothermal Fluid connection to the Reinjection Main. Equipment arrangements, pipe routings, and cable tray locations shall be designed for maximum equipment accessibility and to allow the following types of access: o Space shall be allowed to enable maintenance on a binary module without the need for those maintenance activities being undertaken within hazardous zones created by an adjacent module. o Space shall be provided to allow plant personnel easy access to all equipment which may require maintenance. o Space shall be provided to allow unobstructed access for maintenance tools and equipment required for maintenance on permanently installed equipment. o Space shall be provided to motor-operated equipment areas for work carts. EPC Schedule A (A-21) 09 October 2003
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Page 22 EPC Contract - Wairakei -------------------------------------------------------------------------------- o Ample space shall be provided to allow removal and laydown of any equipment that cannot be maintained in place or may require replacement. Lifting eyes shall be provided on equipment to facilitate installation and removal for maintenance. Techniques for minimizing corrosion of structures and equipment exposed to chemically or environmentally corrosive atmospheres shall be incorporated into the equipment design. Removable panels with lifting eyes on enclosures shall be provided where required. Special attention shall be given to providing appropriate enclosures, curbs, drip guards and collection systems for fugitive water, hose spray water, chemicals, and oils. Where feasible, similar equipment shall be provided by the same manufacturer to minimize spare parts inventories and also to minimize the number of different manufacturers' equipment that plant personnel must be capable of maintaining. Maintainability features shall be described in the Maintainability Features Description submitted for approval by the Owner during the design phase, which shall address, as a minimum, the following items: Details of features of the turbine generator units, heat exchangers and condensers, such as modular construction, that can reduce downtime and allow ease of maintenance, thus improving plant availability. The weight of individual major components, the lifting facilities required for removal, and whether the lifting facilities are permanently installed or if additional mobile lifting equipment is required. If mobile lifting equipment is required, the capacity and type of equipment required and the clearance around the equipment for unimpeded operation shall be stated. Details of the extent of dismantling of equipment required for equipment cleaning, maintenance and removal, and lay-down area requirements. The Contractor shall provide the times required to perform various maintenance operations both minor and major based on the installation design, by an experienced maintenance crew with the manufacturer's recommended number of tradesmen. The times shall be total elapsed time starting with a cold, fully assembled plant to the time the plant is fully reassembled and available for service. 1.14.2 Availability/Reliability The long-term aim is to achieve planned survey inspections frequencies of 6 years for turbine equipment and four years for heat exchangers with representative inspections occurring at 1 year, 2 years and 4 years. The design of equipment systems and selection of system components shall be based on the potential effect on equipment reliability and generation capability. Systems which can cause a unit outage if one of the system components fails shall be designed for high reliability and ease of maintainability. Reliability criteria which shall be applied to the design of the equipment systems and components are as follows: o The design of each system shall be based on proven design concepts which have been applied successfully in the power generation industry. o Purchased equipment shall be of a proven design. The equipment shall be of a design that has been in successful, reliable, continuous operation in the power generation industry for a minimum of 3 years, or specifically approved by the Owner. 1.14.3 Constructability EPC Schedule A (A-22) 09 October 2003
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Page 23 EPC Contract - Wairakei -------------------------------------------------------------------------------- The primary constructability objective is to minimize the complexity of construction to realize maximum schedule benefits. Equipment shall be factory assembled to the maximum extent possible, so as to minimize the field erection required. 1.14.4 Operability The primary operability objective is to design Binary Plant systems that are easy to operate and that require minimum operator surveillance. The plant controls design shall allow routine plant operations. The following general criteria shall be followed to achieve these objectives: o Equipment system design selections shall be based on minimizing the amount of operator attention. o Equipment capacity selections (i.e. one full capacity versus two half-capacity) shall include consideration of the operator attention required when operating over the entire load range. o Automatic operation of systems and processes from the GGC shall be provided. o Operator control interfaces shall incorporate human engineering factors, including visual observation. Operator control interfaces for multiple systems shall be coordinated to prevent operator confusion. o Process systems and equipment operation shall be adequately monitored to provide control room operators with all information required for efficient, safe, and easy operation of the plant. o Systems and equipment shall be located for easy operational access and logical operational sequences. o Special attention shall be given to adequate lighting, ventilation, and acoustic dampening of all operational spaces. Equipment and system components which may be operated locally shall be arranged with personnel access. Equipment, valves, dampers, instrument, and control devices shall be located to include, but not be limited to, the following considerations: o Valves. Valve operators shall be located and oriented for manual operation within the normal reach of operating personnel without the need for portable ladders or reaching devices. Permanent extension operators of a conventional design may be used. o Local Instrumentation. All local instrumentation indicating pressures, temperatures, levels, flows, etc., or indicating the position or status of equipment shall be readily visible to operating personnel without the use of temporary ladders or platforms. o Testing Devices. Testing devices shall be located in a position accessible to the operating or testing personnel and oriented where the equipment and instrumentation critical to its testing can be observed. o Visible Inspection and Tending. Portions of equipment requiring visual inspection, lubrication, and tending activities shall be safely accessible and adequately lighted to assure proper operation and servicing. EPC Schedule A (A-23) 09 October 2003
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Page 24 EPC Contract - Wairakei -------------------------------------------------------------------------------- 2. MECHANICAL PLANT 2.1 GENERAL The plant is required to convert thermal energy from the Geothermal Fluid to mechanical energy at the generator shafts. Selection of the working fluid and the use of preheaters or superheaters is subject of the Contractor's process optimisation. Working fluids are however required to comply with Owner's Consents. The plant may consist of a number of "standard", identical, units or one single unit. The scope of supply for each unit shall include but not be limited to: o Turbine(s) o Condenser o Feed Pump(s) o Heat Exchanger(s) o Lube and seal oil systems o Piping o Safety and control devices In addition to the identical Binary units the scope of supply shall include a central binary working fluid storage facility, with road tanker loading station and transfer capabilities. 2.2 PLANT ARRANGEMENT The plant shall be installed outdoors on Site 4. The Contractor shall optimise the layout with respect to the operation and maintenance requirements of its proposed equipment, the Owner's Consents, the efficient use of the space available and to minimise total cost. Geothermal Fluid supply and return pipes across the area of the proposed road designation should be aligned if possible with existing pipes to minimise the number of additional culverts for the proposed road. Separation distances for a Class 2d Liquefied Petroleum Gas shall be used for Iso pentane when a liquid and at a higher temperature than the atmospheric pressure boiling temperature. Areas outside the Binary Plant fence shall be considered a Public Place. The Hazardous Area Classification shall be determined in accordance with NZS 6101 and AS/NZS 2430.3 The proposed indicative layout is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing 7.011.00.409.0 Revision 0, General Arrangement Power Plant in Schedule J. The final layout shall be determined by the Contractor. 2.3 DESIGN AND OPERATING CONDITIONS Performance and operating requirements are noted in section 1.3 of these Owner's Technical Requirements. The plant should be capable of operating on station house load in islanded mode following 100% export load rejection until it can be reconnected to the grid. Seismic design - refer section 11.4 of these Owner's Technical Requirements. 2.4 TURBINE 2.4.1 General EPC Schedule A (A-24) 09 October 2003
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Page 25 EPC Contract - Wairakei -------------------------------------------------------------------------------- Ormat standard turbines are to be provided. The turbine units proposed are not a prototype. 2.4.2 Governor and Control System The turbine(s), generator and associated equipment shall be equipped with control features designed to go to the safe position on loss of power or compressed air, (i.e. "Fail Safe"). Routine control shall be from the GGC, however control shall also be possible from the Local Control Room. Each turbine shall be fitted with a vibration sensor. The emergency stop valves (ESVs) and Governor valves shall be separate items. There shall be two independent overspeed systems and a load limiter for protecting against an over-pressurised turbine inlet. Interlocks and disabling switches shall be supplied as necessary to by-pass or disable trips and alarms for the purpose of starting up the turbine-generator and for routine and statutory testing. The overspeed trip shall never be disabled. In general, interlocks shall be provided wherever incorrect operating sequences could result in damage or injury. 2.4.3 Lube Oil Systems The proposed indicative oil systems are shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawings in Schedule J as follows: o Ormat drawing No. 0.011.00.419.0-Revision P0, Seal Oil System. o Ormat drawing No. 0.011.00.418.0-Revision P0, Lubrication Oil System. The turbine-generator lube and seal oil systems shall be designed, manufactured and tested to current good industrial practices. Ormat standard oil system shall be provided. The oil reservoirs shall be equipped with heaters. Each oil system shall be equipped with a main oil pumping system and an independent emergency oil system designed to protect the machinery under fault conditions. 2.5 PUMPS Pumps shall be of general purpose type with double mechanical seals, (For motive fluid feed pumps only) designed, manufactured and tested to current industrial practices. No packed gland type seals shall be permitted. 2.6 HEAT EXCHANGERS - GEOTHERMAL FLUID/WORKING FLUID (VAPORISORS AND PRE-HEATERS) 2.6.1 General The heat exchangers shall be designed, manufactured and tested to current industrial practices. This Specification and the requirements given in ASME Section VIII Div 1, TEMA standards, class C shall be used to define the minimum requirements. In case of conflict between this Specification and the ASME/TEMA standards, the requirements of the Specification shall govern. Any deviation from this standard requires prior approval of the Owner. EPC Schedule A (A-25) 09 October 2003
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Page 26 EPC Contract - Wairakei -------------------------------------------------------------------------------- 2.6.2 Basic Design The selection of the heat exchanger design and materials shall give consideration to thermal and chemical performance (including the effects of scaling), pressure loss, corrosion, leak tightness, flow induced vibration and ease of maintenance. Only new materials shall be used. The heat exchangers shall be shell and tube type, with Geothermal Fluid in the tubes. A U-tube bundle will not be accepted. The internal diameters of the tubes shall be of sufficient size to allow easy mechanical cleaning including cleaning by high pressure water blasting. The precipitation of silica has been found to be dependent on the rate of temperature change. Therefore, the Geothermal Fluid transition time shall be minimised within the constraints of normal design practices. A Geothermal Fluid transition time (from 127(degree)C to exit at design flow) of more than 67 seconds shall only be permitted with prior approval of the Owner. NPS 3 (75mm) chemical cleaning connections are required on each heat exchanger to facilitate cleaning of heat exchangers individually. The heat exchangers should be accessible for chemical cleaning in situ. It is expected that a mixture of hydrochloric and hydrofluoric acids with inhibitors will be used. The material selection shall give consideration to the requirements for chemical cleaning. Tubes a wall thickness of 2.1mm shall be provided. The Contractor shall included an internal fouling allowance, based on up to 1 mm/ year scaling and annual chemical cleaning, in the design. 2.7 CONDENSER 2.7.1 General This specification and the requirements given in ASME/TEMA shall be used to define the minimum requirements. Any deviation from this standard requires prior approval of the Owner. 2.7.2 Basic Design The selection of the condensers design and materials shall give consideration to the Site conditions described elsewhere in this Specification, particularly; seismic activities, noise levels, corrosion (H2S), leak tightness and ease of maintenance. Fan motor mountings shall be of sufficient rigidity to facilitate easy adjustment and prevent misalignment of the fan drive mechanism. Fans, fan motors and the drive mechanism shall not be subjected to or affected by ingress of rainwater or contaminants. The following is required: o Noise data sheets are required. o Fan performance curves are required. o Welding procedures and qualifications are required. o All heat exchangers shall undergo a sensitive leak test as described in the Boiler & Pressure Vessel Code Section V, Article 10, or by another method demonstrated to have equal sensitivity. 2.8 PIPING EPC Schedule A (A-26) 09 October 2003
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Page 27 EPC Contract - Wairakei -------------------------------------------------------------------------------- 2.8.1 General The piping shall be designed, manufactured, installed and tested to ANSI/ASME 31.1, except as superseded by this section. Inlet and outlet valves adjacent to the working fluid feed pumps and the working fluid storage vessel that are in contact with the binary working fluid shall be fire proof (API 607) and shall meet the minimum requirements of the relevant API standard. 2.8.2 Basic Design All necessary precautionary considerations for the expected hazardous fluid(s) shall be included in the design. Factors to be considered include: o Leakage o Possibility to isolate various parts of the system in the event of a fire o Venting to a safe area o Access to valves and other equipment in the event of a fire o Minimal binary working fluid loss during maintenance. o Material selection o Containment of spillage o Cleaning and flushing A minimum corrosion allowance of 3 mm shall apply for all carbon steel piping unless otherwise specified. Piping systems shall be arranged, wherever possible, with a fall of 1 in 40 towards the mains where drainage points are positioned taking into account the effect of cold springing where necessary. Where this cannot be attained the fall shall be the maximum possible and in any event an adequate fall for drainage must be maintained under all conditions of service. Drainage falls shall preferably be in the direction of flow. Drain points, complete with isolating valve, shall be provided at the lowest positions on all piping systems to facilitate emptying. Such drain connections are to be piped to waste or to a suitable collection point. Air release connections complete with isolating valves shall be positioned at the highest points on all main lines to enable trapped air to be expelled. Such connections shall be piped to the nearest drain or collection system. Buried pipe is not permitted for flammable substances. All piping shall be routed to provide a neat layout having the shortest possible run and requiring the minimum number of fittings. Piping shall be arranged so that full access is provided for the maintenance of equipment, and that removal or replacement of equipment can be achieved with the minimum dismantling of piping. 2.8.3 Fittings Bends shall be generally of smooth construction. Lobster-back construction shall not be used. In any one system or pipe service all pipework and fittings are to be of the same material. 2.8.4 Thermal Insulation The Contractor shall supply and install all thermal insulation necessary for the thermal efficiency of the plant and safety of personnel and to meet the standards of good industrial practice. Thermal insulation shall be applied to all surfaces which will reach or exceed a temperature of 55oC (metallic) or 60oC (non metallic) under operating conditions. All insulation materials used shall be asbestos free. EPC Schedule A (A-27) 09 October 2003
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Page 28 EPC Contract - Wairakei -------------------------------------------------------------------------------- Insulation applied to pipework, machinery, equipment, and ducting shall be clad with aluminium which should be protected internally by a factory-applied coating and provide complete weatherproofing where appropriate. The insulation system shall be designed and installed so that distortion or damage to the cladding does not occur. e.g. where it may be stepped on by personnel. This may be achieved by incorporating stepping platforms, barriers or using a combination of calcium silicate and soft insulation material such as fibreglass. Provision shall be made to prevent electrolytic action between the cladding and dissimilar metals. Removable cladding should be used for valves, flanges and inspection access points requiring intermittent inspection and maintenance. Strengthening ribs shall be used on large surfaces and drain holes shall be drilled in bottom of each box at the lowest point. All insulation outside of buildings shall be clad using methods that ensure the insulation system to be completely weatherproof. The Contractor's insulation and cladding shall be designed and applied with proper allowance for expansion and contraction. 2.8.5 Pipe Specifications --------------------------------------------------------------------------------------------- DESCRIPTION SPECIFICATION MATERIAL --------------------------------------------------------------------------------------------- Pipe - Geothermal Fluid Seamless, SAW or ERW ASTM A106B or API 5L-B supply & return --------------------------------------------------------------------------------------------- Fittings (Butt weld) To ANSI B16.9. ASTM A234 WPB --------------------------------------------------------------------------------------------- Fittings (Socket weld) To ANSI B16.11 class 3000 ASTM A105 --------------------------------------------------------------------------------------------- Flanges(up to DN600) To ANSI B16.5 class 150 ASTM A105 or ASTM A216 WCB --------------------------------------------------------------------------------------------- Flanges(from DN600) To MSS-SP44 or API 605 ASTM A105 or ASTM A216 WCB --------------------------------------------------------------------------------------------- Studs (threaded rod) ANSI B18.2.1 ASTM A193 Gr.B7 Class 2 --------------------------------------------------------------------------------------------- Nuts ANSI B18.2.2 ASTM A194 Gr.2H --------------------------------------------------------------------------------------------- Gaskets To ANSI B16.21 Non asbestos 'Klingersill' C4400 or approved equal --------------------------------------------------------------------------------------------- Valves Materials- ASTM, or equivalent Pressure Temp. Rating-ANSI B16.34, or equivalent Leak Class-ANSI/FCI 70-2, or equivalent Dimensions-API 609, or equivalent Fire Safe Valves-API607, or equivalent --------------------------------------------------------------------------------------------- 2.8.6 Valves and Accessories All Geothermal Fluid valves shall be accessible from grade or platforms provided by the Contractor or otherwise made operable without the use of temporary ladders. Platforms shall be provided for the valves on the Geothermal Fluid system. EPC Schedule A (A-28) 09 October 2003
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Page 29 EPC Contract - Wairakei -------------------------------------------------------------------------------- Vents and drains shall be provided at all local high and low areas respectively. To purge the Geothermal Fluid pipelines of solid deposits, drop pots shall be provided at regular intervals, to be located at the low point before a riser. Each drop pot shall be equipped with a DN100 mm valve to discharge debris to a local drain or seepage pit. All valves of similar size, duty, type and material shall be directly interchangeable, and preferably of the same brand. All critical isolation valves and valves exceeding 20mmNB shall be able to be locked open or closed for maintenance work. o Manual valves shall be fitted with handles/handwheels that can be secured to both the open and closed position with a padlock o The open or closed position on pneumatic valves shall be secured by physical isolation of the supply air lines Valves on critical services including, but not limited to, lubricating oil pump isolators shall also be lockable in the normal operating position to prevent incorrect operation. All actuator electrical equipment shall be protected against dust and water to Class IP 55 as a minimum. 2.9 WORKING FLUID STORAGE AND HANDLING 2.9.1 General The working fluid storage tank(s) shall be designed, manufactured, installed and tested to ASME Boiler and Pressure Vessel Code Section VIII Div.1. Working fluid piping shall be designed and installed to ANSI B31.1. The indicative working fluid storage tank and piping system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 7.011.00.414.0-Revision 1, P&ID Motive Fluid System in Schedule J, 2.9.2 Basic Design o Standby Storage Sufficient storage capacity shall be provided to hold the charge of binary working fluid corresponding to the largest isolated equipment group. The Contractor shall establish the appropriate design requirements for the standby storage vessel(s). o Binary Working Fluid Top-up Storage Sufficient storage capacity shall be provided to supply the charge of binary working fluid corresponding to the largest isolated equipment group. The Contractor shall establish the design requirements for the top up storage vessel(s). o Handling The Contractor shall establish the design requirements for fluid transfer and handling in order to comply with conditions of the Owner's Consents and good operational and safety practice. A rigid piping system with fixed pump(s) and valves shall be provided to allow transfer of working fluid to and from the storage tank and the binary units. EPC Schedule A (A-29) 09 October 2003
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Page 30 EPC Contract - Wairakei -------------------------------------------------------------------------------- 2.10 LUBRICATION A schedule of the oils and other lubricants recommended for all components of the Permanent Works shall be provided to the Owner in the operating and maintenance manuals. The Owner's preference is to use fluids compatible with existing Wairakei Station wherever possible. EPC Schedule A (A-30) 09 October 2003
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Page 31 EPC Contract - Wairakei -------------------------------------------------------------------------------- 3. GEOTHERMAL FLUID SYSTEM 3.1 GENERAL The Geothermal Fluid piping shall be designed, manufactured, installed and tested to ASME 31.1. The Geothermal Fluid process flow scheme is shown on Meritec Drg 2512004 - 401 RevC - Process Flow Diagram - Brine (Geothermal Fluid). (Exhibit A6) The Geothermal Fluid process is also shown on Ormat drawings in Schedule J, in accordance with section 1.1.1 of these Owner's Technical Requirements as follows: o Ormat Drawing No. 7.011.00.410.0- Revision 1, Process Flow Diagram Geothermal Fluid. o Ormat Drawing No. 7.011.00.411.0- Revision 1, Main Control Diagram. o Ormat Drawing No. 7.011.00.412.0 Revision 1 , P&ID Brine OEC's Gathering System. 3.2 GEOTHERMAL FLUID SYSTEM OPERATION 3.2.1 System Pressurisation Geothermal Fluid is collected from various Flash Plants under pressure and flows to the reinjection wells assisted by gravity. The total available pressure and gravity head, between the lowest flash plant and the highest reinjection well, exceeds the reinjection pressure required at the well head by the reinjection wells. Thus the upper part of the fluid collection system operates partially flooded. At some position in the systems there is a liquid level, below which the pipeline is fully charged with fluid. In an uncontrolled system the position of the fluid level is determined by the height of the column of liquid necessary for the reinjection wells to receive the incoming flowrate, and to overcome fluid friction through the pipe system (including Binary Plant heat exchangers). In the event that the Geothermal Fluid level rises to an exceptionally high level, then it may be diverted to the spilling wells WK61 and WK62. Modification to the spilling well system is not part of this Contract. If the spilling well capacity is exceeded, then the fluid level will continue to rise until it is spilt directly to the Wairakei stream from the Flash Plants. The Binary Plant shall include a minimum 2m head allowance between terminal points for scaling and fouling. Normal system operating parameters for the Binary Plant are described in section 1.3. 3.2.2 Geothermal Fluid Discharge to the Wairakei Stream The Geothermal Fluid discharge to the Wairakei Stream is shown on the Brine Process Flow Diagram (Exhibit A6) The proposed indicative system for discharging Geothermal Fluid to the Wairakei Stream is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 7.011.00.413.0 Revision 0, P&ID Energy Dissipation System in Schedule J. Present reinjection well capacity is about 1,250 tph. Geothermal Fluid collection from the flash plants and flow through the Binary Plant will be up to 3,000 tph. 1,750 tph will therefore be discharged in the first instance to the Prawn Farm, with any surplus Geothermal Fluid being discharged to the Wairakei stream. The dump valves will be modulating under pressure control. In the longer term reinjection well capacity will be increased sufficiently to accept the full fluid flow. The dump valves will then normally be closed. EPC Schedule A (A-31) 09 October 2003
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Page 32 EPC Contract - Wairakei -------------------------------------------------------------------------------- Binary Plant generation will turn down to the extent that the reinjection system partially or fully shuts down and fluid difference is unable to be discharged to the stream. A complete pressure control system shall be provided to control the Geothermal Fluid level at the required position for maximum flow to the Binary Plant and reinjection flow up to 1,900 tph. Pressure control shall be stable and incorporate PID control. The discharge control station shall have multiple valves to give sufficient turn-down and ensure stable operation under all flow conditions. Selection of the valves shall take account of possible cavitation, sticking due to deposits, noise etc. With the Geothermal Fluid bypass station fully open Geothermal Fluid of 130(degree)C may be encountered. The discharge to the Wairakei Stream shall incorporate an energy dissipation tank designed to flash the Geothermal Fluid to atmosphere within the noise constraints laid down in these Owner's Technical Requirements and introduce the Geothermal Fluid to the stream without erosion of the bank or compromising the existing maintenance access requirements. 3.2.3 Geothermal Fluid Supply to the Prawn Farm When the Binary Plant is commissioned the Owner will supply Geothermal Fluid, at the Binary Plant discharge temperature, to the Prawn Farm. The necessary piping and heat exchangers are already in place. The quantity of Geothermal Fluid required varies seasonally and is expected to reach a maximum in winter at 1,000 tph. In summer the flow is is likely to be less than 333 tph. The Prawn Farm Geothermal Fluid flow is interruptible e.g. for heat exchanger cleaning. The Prawn Farm discharges used Geothermal Fluid to the Wairakei stream. Prawn Farm heating requirements will determine the amount of Geothermal Fluid discharged to the stream by the Binary Plant dump valves and pressure control system provided under this Contract. For example, if the Prawn Farm flow is 1,000 tph (e.g. in winter) then very little Geothermal Fluid (approx. 100 tph) will need to be discharged to the stream through the dump valves, while in summer or when the Prawn Farm ceases usage of geothermal water, up to 1,100 tph will need to be discharged. The pressure control system shall operate satisfactorily for these conditions of varying flow to the Prawn Farm. 3.2.4 Binary Plant Bypass The Binary Plant bypass system shall allow uninterrupted operation of the Geothermal Fluid collection system at full flow with disposal to reinjection, the Wairakei Stream discharge system and the Prawn Farm when Binary Plant Geothermal Fluid demand is reduced for any reason. The system controlling the bypass valves shall be stable and incorporate PID control. The bypass control station shall be designed to bypass the full 3,000 tph (at 130(degree)c) within the constraint of the maximum allowable pressure drop for when the Binary Plant is operating. The bypass station shall have multiple valves to give sufficient turn-down and ensure stable operation under all flow conditions. 3.2.5 Pressure/Vacuum Surges The rate of change of flow shall be limited so that pressure surges remain within the pipeline design pressure, and sub-atmospheric pressure with associated flashing (e.g. in the downstream reinjection pipework following a binary unit or station trip) does not occur. The maximum rate of change of Geothermal Fluid flow through each unit is to be limited so that excessive pressure or vacuum surges can not occur. EPC Schedule A (A-32) 09 October 2003
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Page 33 EPC Contract - Wairakei -------------------------------------------------------------------------------- 3.3 SYSTEM DESIGN REQUIREMENTS The Geothermal Fluid system should be designed for minimum cost, mindful of the general requirements set out in these Owner's Technical Requirements, including the performance and operating requirements described in section 1.3, and Geothermal Fluid system operation described above. The piping design shall consider the most severe conditions applicable, and particular attention shall be paid to the following: o Drain lines shall be generously sized to enable cold water to be displaced in a reasonable time on start up. DN100 or larger are recommended. o A thermal stress analysis of the complete piping system, including the effects on the existing reinjection system at the tee-in points shall be completed. o Stress concentration at pipe supports shall be avoided. o Dead legs shall be avoided. o All instrument impulse lines shall have a class 800 isolation valve at the tee to the Geothermal Fluid line and shall be insulated. The Contractor shall determine pipe routing, taking into account Owner's access requirements to existing facilities, and the proposed route of the East Taupo Arterial road. Pipelines crossing the road designation should follow existing pipeline routes where possible. Field crossings may be overhead or underground. Vertical expansion loops shall be kept to a minimum. Compensator bellows having convolutions shall not be used. Transient and abnormal Binary lant operating conditions (eg plant outages, trips etc) are expected to cause changes to temperature and flow conditions within the Geothermal Fluid System. The Contractor and the Owner shall co-operatively work together to design the most appropriate control philosophy for the brine system. The design shall also be subject to a design review process. Each party shall provide to the other at no cost, any necessary control signals, hardware and Software facilities required to enable appropriate monitoring, alarming, operation and control of affected systems including bypass, stream discharge, spilling well, flashplant, reinjection well, and Prawn Farm heat exchange systems. 3.4 FLOW MEASUREMENT Geothermal Fluid flow measurement is required for the Binary Plant (and each unit if more than one provided), and on the dump flow to the Wairakei stream. Currently, the total flow is not measured by a single meter. Instead it is calculated by using a number of flow meters at various points in the Geothermal Fluid System and assumptions made for volumes flowing through two take-off points. A meter measuring total flow will therefore be required to be installed by the Contractor for input into the Binary Plant control system. The bypass flow shall be calculated by subtraction of the binary unit flows from the total Geothermal Fluid flow. The bypass flow shall be shown on the control screens and totalised in the reports (for assessment of lost generation potential). The flow to the reinjection system shall be calculated by subtraction of the Prawn Farm flow and dump flow from the total Geothermal Fluid flow. The effects of scale forming within the Geothermal Fluid path shall be taken into account when selectiing flow measuring instruments. EPC Schedule A (A-33) 09 October 2003
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Page 34 EPC Contract - Wairakei -------------------------------------------------------------------------------- 4. GENERATOR 4.1 GENERAL Each generator shall be rated to absorb the normal maximum rated shaft power available from the turbine under all normal and abnormal (start up, shut down, trip) operating conditions. The generators shall meet the requirements of IEC publication 60034 unless otherwise specified herein. Generators shall be rated for continuous duty (Class S1 per IEC 34). Generators shall be capable of operating at rated load over the power factor range 0.80 lagging to 0.95 leading without loss of stability and control under all operating conditions defined in the Owner's Technical Requirements. 4.2 SCOPE OF SUPPLY The scope of supply for each generator, includes but is not limited to the following: i. Cooling and lubricating systems; ii. Excitation and control systems; iii. Main electrical output system including generator voltage and current transformers, surge protection and 11 kV cable to link the generator to the generator circuit breaker; iv. Earthing transformer; 4.3 DESIGN CHARACTERISTICS 4.3.1 Design Parameters The following parameters apply to the design of the generators. Rated Generating Voltage 11,000 V phase to phase. Rated Frequency 50 Hz Atmospheric Conditions refer section 1.1 of these Owner's Technical Requirements 4.3.2 Insulation and Temperature Rise The generator, excitation systems including their windings, terminals, phase and neutral leads and all connections shall be insulated with Class F insulating materials or better. Asbestos is prohibited. Particular attention should be given to the reliable long term operation of this plant in the specified corrosive environmental conditions. The temperatures and temperature rise under full rated loading conditions shall not exceed those specified for Class B in IEC 60034. 4.3.3 Abnormal Operating Conditions The turbo-generator shall be capable of withstanding the following abnormal operating conditions without harmful deformation of the windings or shafts, and without significantly reducing the fatigue life of the generator: EPC Schedule A (A-34) 09 October 2003
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Page 35 EPC Contract - Wairakei -------------------------------------------------------------------------------- i. A sudden short-circuit when at rated load and 105% voltage, maintained for three seconds at the terminals of the generator. ii. Faulty synchronisation to the extent that it may occur within the range normally recommended by the generator manufacturer, otherwise synchronisation protection methods may be relied upon. iii. High speed single and slow speed triple pole re-closing of the high voltage switchgear following system faults, with the generator connected to single or multiple outgoing circuits to the extent that it may occur within the range normally recommended by the equipment manufacturer. iv. Sub-synchronous resonance. v. Phase to earth fault at the terminals of the generator for the length of time required for the machine to come to rest. vi. Adverse atmospheric conditions including the presence of H2S. The use of materials, including jointing materials, such as silver and cadmium that are affected by H2S shall not be used. 4.4 GENERATOR COOLING The VPI treated generator shall use air as a cooling medium arranged as WPII open circuit. When selecting the cooling arrangement, consideration shall be given to the atmospheric conditions including H2S, particulate matter, and the hazardous area classification. 4.5 GENERATOR STATOR 4.5.1 General The generator shall be enclosed to class IP55 of IEC 34-5. The casing, including end shields, all joints and pipe connections shall be air tight under all normal operating conditions. The stator end winding covers shall be of an approved non-magnetic material. 4.5.2 Terminals Terminal bushings shall be provided to terminate both ends of each phase winding outside the stator casing. The phase ends shall be appropriately marked in the order of their phase sequence and brought out to the exterior with all necessary supports, bushings, seals, ducting, and screening. The joint faces at the end of each bushing, and at the connections to the stator winding, shall be either platinum or tinned copper. The joints between the bushings and the cables shall be bolted. Cables shall be sufficiently flexible to absorb vibration and shall be adequately supported. 4.5.3 Anti-Condensation Heaters Anti-condensation heaters shall be fitted near the end windings of the stator to prevent condensation in the casing whilst the generator is shut down. The heaters shall be low temperature or strip type, thermostatically controlled by stator mounted Resistance Temperature Devices (RTD's), to maintain the stator winding temperature above 20(degree)C. Controls shall be added to ensure that the heaters are disconnected when the generator is operating. 4.5.4 Temperature Indication Each stator shall be provided with appropriately designed winding temperature detectors of the resistance temperature type. EPC Schedule A (A-35) 09 October 2003
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Page 36 EPC Contract - Wairakei -------------------------------------------------------------------------------- 4.6 GENERATOR ROTOR 4.6.1 Bearings Bearing pedestals shall be insulated from earth to prevent circulating currents. 4.7 EXCITATION SYSTEM 4.7.1 Scope A well-proven, brushless excitation system designed to IEC 60034 is required. It shall include but shall not be limited to a main exciter, rotating rectifier, field control equipment, and digital automatic voltage regulators and a permanent magnet pilot exciter. 4.7.2 General Requirements The excitation system must comply with the requirements for resistance to H2S corrosion. All rotating components must be capable of operating continuously at rated speed and have the ability to withstand overspeeds of up to 120% of nominal. The excitation system shall not be damaged nor lose significant control on any specified generator fault condition or when any accidental out of phase synchronising or pole slipping occurs. With rated AC supply voltage and frequency the excitation system shall be capable of delivering continuously, within rated temperature rise, any value of field current from zero to 110% of the field current required by the generator at its maximum continuous capability and rated power. The exciter shall be entirely suitable for use in conjunction with the voltage control device being supplied by the Contractor. All static equipment shall be cooled by natural circulation. 4.7.3 Excitation Power The Contractor may offer their preferred excitation power system to provide a power supply to brushless exciter field control equipment. 4.7.4 Main Exciter and Rotating Rectifier The exciter shall be cooled using air as the primary coolant medium. The air path may be an integral part of the generator cooling system. Monitoring systems shall be provided to detect rotating rectifier bridge arm failure and excitation failure. 4.7.5 General Control System Requirements Auxiliary power supplies for the excitation control system shall be derived from the pilot exciter. 4.7.6 Voltage Regulation A continuously acting fast response digital automatic voltage regulator of proven design shall be supplied to control the output of the main excitation system including under/over excitation limiting. The AVR shall provide for safe shutdown in the event of failure of a major component. EPC Schedule A (A-36) 09 October 2003
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Page 37 EPC Contract - Wairakei -------------------------------------------------------------------------------- 4.8 GENERATOR CT, VT AND SURGE PROTECTION The generator protection CT's shall be located at the generator star point. AVR, metering, and 11kV protection CTs and VTs shall be located in the generator circuit breaker cubicle of the 11kV switchboard together with the generator surge protection equipment as described below. Current transformers and voltage transformers shall comply with IEC 60185 and IEC 60186 respectively. The generator current transformer secondaries shall be wired to a terminal box on the side of the main terminal enclosure, or some other convenient position close by. The terminal numbering within this box shall clearly indicate the phase relationship and polarity of the connections. VT circuits shall be protected by low voltage MCB's. Low voltage MCB's shall be clearly identified and easily accessible. The surge diverter assembly shall comply with IEC 60099 and IEC 60071 and shall be suitable for protection of the generator windings. Each surge diverter shall be fitted with a surge counter. The surge diverter and capacitors may be moved to the generator switchgear cubicle to comply with hazardous zoning requirements. 4.9 GENERATOR NEUTRAL EARTHING TRANSFORMER Each generator shall be provided with an earthing cubicle constructed of heavy gauge sheet steel suitable for floor mounting. The cubicle shall contain a single-phase earthing transformer with its primary connected between generator neutral and earth and its secondary shunted by a resistor. Means of isolation of the equipment from the neutral conductor shall be provided and a suitable cable sealing box shall be provided for termination of the neutral conductor. The design of the earthing transformer and matching resistor shall be based on the following parameters: i. Maximum earth fault current (transformer primary) at 100% voltage must not exceed 10 amps. ii. Rated primary voltage shall be chosen to ensure that even on generator over-voltage under field forcing, the transformer core will be working at relatively low flux densities to avoid any possibilities of ferro-resonance. The flux density may be 50% -60% of knee point flux density. iii. Minute kVA rating - rated primary voltage times maximum earth fault current under overvoltage conditions. The magnitude of the earth fault current shall be measured by a time delay voltage sensing relay shunted across the transformer secondary resistor as specified in Section 11. The neutral earthing equipment shall be suitable for a 5 minute duty cycle. 4.10 CONTROL SYSTEM INTERFACING The Contractor shall provide sufficient alarms, indications, protection flags etc to: i give the operators clear and comprehensive information on the conditional status of the generator, excitation systems, and all auxiliaries. ii ensure that the Binary Plant is Fail Safe and suitable for unattended operation. EPC Schedule A (A-37) 09 October 2003
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Page 38 EPC Contract - Wairakei -------------------------------------------------------------------------------- 5. TRANSFORMERS 5.1 GENERAL This section of the specification states the requirements for the design, manufacture, and testing of: i. The 220/11kV Generator Step-up Transformer ii. The 11/0.4kV Local Service Transformers iii. The 220kV surge arrestors The transformers shall have the following general characteristics: Type: Outdoor, oil-immersed, three phase, double wound type. Standard: The transformer shall conform to the requirements of IEC 60076 and be suitable for operation under IEC 60354. If there is a conflict between the Owner's Technical Requirements and the above-mentioned standards, the Owner's Technical Requirements shall prevail. Cooling: ONAN Rating: Transformers shall be sized in accordance with the relevant duty. The Generator Transformer rating shall allow at least 5% contingency on transmitted power over the range of ambient conditions noted in section 1.1. Local service transformers shall have at least 20% contingency rating. Duty: The transformer shall be suitable for continuous operation on the electrical systems and under the site conditions described in this specification. 5.2 SERVICE The Owner's existing electrical system, to which the binary plant is to be connected is shown in Exhibit A8, Drawing Xhn1262 Rev ZG. The indicative electrical system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 0.002.95.689.0-Revision 2, General One Line Diagram in Schedule J, The Generator Transformer and surge arresters will be located inside the Transpower switchyard at Bay 2. The Generator Transformer will be used to step up from a generator voltage of 11 kV between phases to a transmission voltage of 220 kV between phases. Individual Binary Plant generators are to be connected to a new 11 kV bus via circuit breakers. A further circuit breaker is to be installed between the 11 kV bus and the LV terminals of the Generator Transformer. The Generator Transformer will be connected in delta on the LV side and in star on the HV side. HV connections shall be by outdoor bushings to overhead lines. LV connections shall be by cable using an air-insulated cable box. The star point will be brought out of the tank through the neutral bushing and will be solidly earthed. The LV winding will be ineffectively earthed through an earthing transformer, if such a transformer is required. Normal power flow will be from the LV to HV terminals. However the transformer shall be capable of operating with a power flow from the HV to the LV terminals to supply the 400V auxiliary power requirements when the generators are out of service. EPC Schedule A (A-38) 09 October 2003
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Page 39 EPC Contract - Wairakei -------------------------------------------------------------------------------- A series of local service transformers, connected to the Binary Plant 11 kV bus via a fused disconnector, are to be used to supply power to the 415V auxiliaries for start up and running of the units under normal operating conditions. The transformers shall be designed to cope with worst case static and motor starting loads imposed upon them. During a contingency event, that results in the total loss of supply from the Binary Plant 11 kV bus, the Binary Plant auxiliaries shall be supplied from the 11kV Local Distribution Board via a break-before-make changeover arrangement. 5.3 GENERATOR TRANSFORMER AND LOCAL SERVICES TRANSFORMER 5.3.1 General The transformers provided shall comply with the requirements of the latest edition of IEC 60076. In addition the following characteristics apply: ------------------------------------------------------------------------------------------ PARAMETER GENERATOR TRANSFORMER LOCAL SERVICES TRANSFORMER(S) ------------------------------------------------------------------------------------------ Transformer Ratio 220 kV/11 kV 11/0.4 kV ------------------------------------------------------------------------------------------ Winding Configuration Ynd3 Dy3 ------------------------------------------------------------------------------------------ Highest System Voltage 245 kV 12 kV ------------------------------------------------------------------------------------------ Rated lightning impulse 950 kV, Um = 245 kV 75 kV, Um = 12 kV withstand voltage (peak) 75 kV, Um = 12 kV ------------------------------------------------------------------------------------------ Tappings Contractor to determine the +5% down to -5% in 2.5% steps appropriate range of Taps, see Section 5.3.2 ------------------------------------------------------------------------------------------ Earthing Solid Earthed, 220 kV Solid Earthed, 0.4 kV ------------------------------------------------------------------------------------------ The characteristics of the power systems internal to the generating plant will be determined by the Contractor in accordance with IEC standards. Where the external connections with the 220 kV and 11 kV systems is via cables the Contractor shall provide cable boxes for the termination of these cables to the high voltage windings of each transformer. The cable boxes shall be equipped with surge arresters connected to the cable terminations which shall selected in accordance with the appropriate parts of IEC 60099 and IEC 60071. Where external connections are overhead, outdoor surge arrestors shall be provided. 5.3.2 Voltage Response and Control The generator excitation system and voltage control system shall have a voltage set point that is adjustable over the voltage range required to meet the asset owner performance obligations set out in the Common Quality Obligations and Rulebook. It is preferable that the performance obligations with respect to voltage are met by the generator transformer being equipped with an appropriate range of taps together with an on-load tap changer. 5.3.3 Painting Materials used should be cleaned and prepared in accordance with good industrial practice. Transformer tanks and conservators shall be leak tested prior to painting. EPC Schedule A (A-39) 09 October 2003
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Page 40 EPC Contract - Wairakei -------------------------------------------------------------------------------- All internal surfaces subject to contact with oil shall be coated with an oil resistant paint. Radiators and heat exchangers shall be externally zinc hot sprayed and painted. Internally they shall be coated with oil resistant paint. The pad mounted auxiliary transformers enclosures will be constructed of stainless steel. 5.3.4 Transformer Testing The transformers shall be factory-tested in accordance with ANSI C57/IEC60076 including for both Routine and Type tests. If the transformers are identical to previously manufactured transformers and a Type Test Certificate from an internationally recognised testing authority is provided to show compliance then the Owner may at its sole discretion waive the Type Tests. 5.3.5 Earthquake Withstand The transformers will be installed in areas subject to earthquakes and they shall be designed to withstand, in working order, a severe earthquake. Refer Section 11.4 of these Owner's Technical Specification for seismic design requirements. 5.4 HV SURGE ARRESTORS HV surge arrestors shall be provided for the protection of electrical apparatus against lightning and excessive switching over-voltages. Surge arrestors shall comply with the requirements of IEC 6099 and shall be selected in accordance with the application recommendations in Transpower standard TP.PP 07.01. Each discharge counter shall be sealed in a weatherproof case to IP 55 classification of IEC 529 and shall have a counter that records every impulse that causes the surge arrestor to operate. 5.5 EARTHING TRANSFORMER (IF REQUIRED) The 11kV windings of the Generator transformer shall be earthed through a three phase, 11kV/230V oil-filled, 5 limb, distribution type power transformer with ONAN cooling, suitable for operation in an outdoor geothermal environment. The primary (HV) windings shall be connected in star with the neutral point solidly earthed. The secondary (LV) windings shall be connected in open delta. A loading resistor shall be connected across the open delta terminals. The voltage developed across the resistor shall be used to detect earth faults. The transformer shall comply with IEC 60076 and will not saturate at 1.3 times the system nominal voltage. Under pre-fault and balanced load conditions the transformers will be energised with reduced magnetising current only. The resistor shall be rated to withstand maximum projected fault current for 30 seconds. The resistance of the resistor shall not vary more than 30% from zero to full rated current over this period. Insulation level of the windings shall be 75kV. Testing shall be carried out in accordance with IEC 60076 and shall include the following special tests: i. Measurement of the zero sequence impedance with the resistor connected; ii. Precision measurement of the resistor resistance. EPC Schedule A (A-40) 09 October 2003
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Page 41 EPC Contract - Wairakei -------------------------------------------------------------------------------- 6. SWITCHGEAR 6.1 GENERAL This section of the specification covers the supply of Binary Plant 11kV and 415V switchgear. All switchgear must meet the hazardous area safety requirements as applicable and be immune to H2S corrosion. Switchgear must be reliable, easily maintained, and supported within New Zealand. 6.2 SCOPE OF WORK The scope of work covered by this section shall include but not be limited to the following: i. 11kV Binary Plant Switchboard ii. 415V Switchboard(s) iii. Motor control centre(s) iv. 220 kV Circuit Breaker 6.3 SERVICE The Owner's existing electrical system, to which the binary plant is to be connected is shown in Exhibit A8, Drawing Xhn1262 Rev ZG. The station electrical interconnections are described in the Terminal Point Connections Schedule (Exhibit A2). The proposed indicative electrical system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 0.002.95.689.0-Revision 2, General One Line Diagram in Schedule J, Under normal operation generated power will be transmitted via generator circuit breakers to the 11kV Binary Plant bus, and will be used for synchronising each generator. The connection from the 11 kV Binary Plant bus to the 220/11 kV Generator Transformer shall be made by cable via an 11 kV circuit breaker. Auxiliary power will be provided via 11kV/415V local service transformer(s) fed from the Binary Plant 11kV Bus. In the event that power is not available from the 11 kV Binary Plant Switchboard, an emergency 11kV power supply will be supplied from the 11 kV Local Distribution Board. The 415V switchboard is to provide all of the Binary Plant auxiliary power requirements, including small power and lighting, building services, motor starters, and battery chargers. Motor starters on the 415V switchboard will be made up of contactor units. Satellite outdoor Fin Fan Motor Control Centres are not acceptable. 6.4 GENERAL DESIGN REQUIREMENTS 6.4.1 Switchboard Busbars Busbars shall be of either aluminium conductor or tinned copper, rigidly supported and fully insulated throughout their lengths. The busbars shall be completely enclosed in an earthed metal chamber. No small wiring or other equipment shall be mounted in the busbar chamber. 6.4.2 Switchboard Circuit Breakers EPC Schedule A (A-41) 09 October 2003
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Page 42 EPC Contract - Wairakei -------------------------------------------------------------------------------- Circuit breakers of the same current rating shall be interchangeable. Closing mechanisms shall be of the trip free type with closing and tripping coils capable of satisfactory operation within the specified limits of auxiliary supply voltage. In the case of stored energy pattern mechanisms provision shall be made for electrical and manual release of the closing springs and a spring winding handle for emergency use shall be provided. 6.4.3 Switchboard Auxiliary Switches Auxiliary switches shall be rated in accordance with their duty. 6.4.4 Switchboard Circuit Breaker Isolation Circuit breakers, auxiliary switches and operating mechanisms shall be arranged to permit full accessibility for maintenance purposes and to isolate circuits. All interlock mechanisms shall be mechanical and when manually operated they shall be clearly labelled. Interlocks shall be provided to prevent the following operations : i. The circuit breaker being withdrawn from or inserted into the isolating contacts when it is closed. Attempted isolation shall not trip a closed circuit breaker. ii. The closing of the circuit breaker, unless correctly located in the service, earth or isolated positions. iii. The circuit breaker being closed in the service position without completing the auxiliary circuits between the fixed and moving portions. 6.4.5 Instrument Transformers Instrument transformers shall be housed or accommodated to suit their particular duties and shall be of sufficient output, metering or protective class, to cater for the connected burden. Class 'X' CTs shall be of the ring type, complying with BS 3938. All other CTs shall comply with IEC 60185. 6.4.6 Anti-Condensation Heaters Switchgear cubicles shall have a hygrostatically controlled heater unit fitted of adequate size to prevent condensation. 6.4.7 Starters and Contactors AC motor starters shall comply with IEC 60947. DC motor starters shall comply with IEC 60947. Contactors shall comply with IEC 60947 rated for uninterrupted duty making and breaking capacity category AC3. Motor starters shall include the following for each motor circuit : i. A main incoming supply switch isolator, fuse switch or moulded case circuit breaker. ii. Ammeter where specified. iii. Amber lamp to IEC 60947 to indicate "fault" condition and, where required, red and green lamps to indicate "closed" and "open" conditions respectively. EPC Schedule A (A-42) 09 October 2003
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Page 43 EPC Contract - Wairakei -------------------------------------------------------------------------------- iv. Clean auxiliary contacts as necessary for remote operation, indication, etc. v. Stop-start controls integrally mounted. vi. All internal wiring, terminal boards, fuses, locks, equipment for terminating cables etc. vii. Local Switchgear - Off - Remote selector switch integrally mounted. viii. Duty/standby selector switch integrally mounted as required. 6.5 11 kV SWITCHBOARD 6.5.1 Switchboard The switchboard shall be of the single busbar, floor mounted metal clad/enclosed, air tight, air insulated type with horizontal withdrawable SF6 or vacuum breakers or contactors as appropriate and operated by solenoid or motor charged spring means. The switchboard as a whole shall comply with IEC 60298 and shall be capable of sustaining without damage, the electrical and mechanical stresses produced by the maximum prospective fault conditions. The rated insulation level of the switchgear shall be 75 kV peak to earth and between phases and 85 kV peak across the isolating distance as defined in IEC 60694. 6.5.2 Busbars The three phase busbars shall be rated for a 1250A minimum continuous current. 6.5.3 Safety Shutter Devices A set of safety shutters shall be provided to cover each three phase group of stationary isolating contacts. Each set shall be capable of being individually operated and padlocked closed. The shutters shall open or close automatically by positive drive to provide an airtight seal. When padlocked the shutters shall prevent access to the stationary isolating contacts. 6.5.4 Circuit Breakers All circuit breakers shall be fully rated in accordance with IEC 60947. Circuit breakers shall have minimum breaking capacity 20 kA and minimum making capacity of 50 kA. 6.5.5 Earthing Approved means shall be provided for earthing incoming and out-going circuits and the busbars. Earthing devices shall be fully interlocked to prevent unsafe operation. 6.5.6 Cabling Compartment The control and instrumentation cabling terminations shall be arranged in such a manner that access can be obtained without permitting access to high voltage main connections. Adequate space shall be allowed for terminating multicore cables. EPC Schedule A (A-43) 09 October 2003
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Page 44 EPC Contract - Wairakei -------------------------------------------------------------------------------- 6.5.7 Power Monitoring Unit The incomer shall be fitted with a proprietary power monitoring unit capable of monitoring the voltage and current on each phase and neutral, kW, kVA, power factor, kWHr, and kVAHr. The power unit shall be capable of communicating measured values over a serial communication network to the Binary Plant control system. 6.6 11kV LOCAL SUPPLY The Contractor shall connect to the existing CB2 on the 11 kV Station Distribution Board to include for the Binary Plant 11 kV distribution network to supply the auxiliary loads, as indicated on drawing XHN1262 Rev ZG in Exhibit A8. Control for breaker CB2 presently exists in the A Station Control Room. The Owner will provide the necessary CB protection for CB2 on the 11 kV Station Distribution Board. 6.7 415 V SWITCHGEAR 6.7.1 Switchboards The 415V switchboards shall be of the multi-unit type comprising circuit breakers, isolating switches and motor starters. Fused switches may be offered as an alternative to MCCB's. The switchboard as a whole shall be capable of sustaining, without damage, the electrical and mechanical stresses imposed by fault conditions in accordance with IEC 60439. The switchboards, and the individual components thereof, shall be `type tested' by a recognised short circuit testing authority in accordance with the above rating and copies of test Certificates proving this rating shall be submitted to Owner. 6.7.2 Circuit Breakers Circuit breakers shall comply with IEC 60947. 6.7.3 Switched Fuses Each switchfuse unit shall comply with IEC 60129 and IEC 60269 and shall be a triple pole quick make break. 6.7.4 Contactor Isolation / No Fuse Circuit Breakers Each contactor cubicle shall incorporate and include an isolating device lockable in the isolated position from outside the cubicle. Under normal conditions it shall not be possible to open the cubicle door unless the isolator is open. 6.7.5 Cable Compartments Each motor starter, switchfuse or other distinct circuit shall form an individual compartment in which the main and control circuit cables are terminated. In the case of draw-out or other types of withdrawable units, terminations shall be on the fixed portion of the unit. 6.7.6 Local Indication Indicating lamps shall be provided to indicate the status of the bus, motor circuits and valve circuits. Circuits of more than 10 amps rating shall have ammeters fitted to one phase. 6.7.7 Spare Capacity EPC Schedule A (A-44) 09 October 2003
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Page 45 EPC Contract - Wairakei -------------------------------------------------------------------------------- A minimum of one fully equipped spare motor starter and power feeder cell of each type or 10% of the total of each type shall be provided, whichever is the larger. In addition, space shall be made available for extending the 415V Main Switchboard to feed future processes. The load capacity of the switchboard shall be over-rated by at least 30%. 6.8 220kV OUTDOOR CIRCUIT BREAKERS The 220kV outdoor circuit breakers shall comply with the requirements of Transpower Specification TP.PS 13.01, Issue 1 August 2000: Outdoor Circuit Breaker Purchase Specification (Exhibit D6) 6.9 220kV DISCONNECTOR The 220kV outdoor disconnector shall comply with the requirements of Transpower Standard: TP.PS 03.01, Issue 1 October 2000: Disconnector and Earth Switches Purchase Specification (Exhibit D10). EPC Schedule A (A-45) 09 October 2003
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Page 46 EPC Contract - Wairakei -------------------------------------------------------------------------------- 7. DC SYSTEM AND UPS 7.1 SCOPE OF WORK The DC emergency and Uninterruptible Power Supply systems shall include but not be limited to: (i) One 230V AC Uninterruptible power supply with static bypass; (ii) One 230 V AC UPS distribution switchboard with maintenance bypass facility; (iii) One 24V DC power supply; (iv) One 24V DC distribution switchboard (v) One 125 V DC power supply (vi) One 125 V DC distribution switchboard; (vii) All necessary sub-distribution boards and circuit protection; (viii) Mandatory spare parts and recommended spare parts when ordered by the Owner; (ix) Maintenence and test accessories. 7.2 UNINTERRUPTIBLE POWER SUPPLY The UPS shall be used to operate control system components including, PC's, and operator interfaces. The UPS shall have sufficient capacity, including 20% reserve capacity, to supply the control system and all other connected loads under worst case operating conditions, and for up to one hour without an AC power source, or to safety shut down the plant, whichever is the longer. An external manual bypass shall be provided to enable the UPS to be removed for repair. 7.3 24V POWER SUPPLIES Exposed 24V conductors and contacts shall only be used in an environment protected from H2S. The 24V power supply shall be rated, including 20% spare capacity, to service all connected loads under worst case operating conditions. 7.4 125V POWER SUPPLIES A separate 125V DC power supply shall be provided for control and indication functions and a separate 125 V DC power supply for DC motors and emergency supplies to auxiliary equipment that must remain operational to safely shut down the plant. The 125 V DC power supply used for control and indication functions shall have sufficient capacity to supply the normal DC load for 10 hours with the battery charger disconnected, or if applicable, to supply the power requirements for projected emergency duty periods plus normal DC load for 5 hours with the battery charger disconnected. The 125 V DC power supply used for emergency supplies shall shall have sufficient capacity, including 20% reserve capacity, to supply connected loads under worst case operating conditions, to safety shut down the plant. Battery and charger shall be sized in accordance with IEEE 60485. EPC Schedule A (A-46) 09 October 2003
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Page 47 EPC Contract - Wairakei -------------------------------------------------------------------------------- 7.5 BATTERIES All Batteries shall be of the VRLA type and shall be sized in accordance with IEEE 60485. 7.6 BATTERY CHARGER The Contractor shall supply a battery charger of the correct type for optimising the life of VRLA batteries in accordance with the battery manufacturer's recommendations. The charger shall also be suitable for maintaining a float charge in the battery and for supplying the DC loads together with additional capacity sufficient for recharging the battery at the end of a discharge period. The chargers shall be operated from the 415V 3 phase supply. The charger shall be capable of keeping the battery fully charged under worst case loading conditions. Each charger shall include appropriate instrumentation and indicating facilities to facilitate safe and reliable operation. 7.7 125 V DC SWITCHBOARD The 125 V DC switchboard shall be a multi-unit type comprising circuit breakers and motor starters as necessary. The switchboard as a whole shall comply with IEC 60439 and shall be capable of sustaining without damage the electrical and mechanical stresses imposed by fault conditions. The switchboard shall be equipped with one set of positive and negative main busbars. The busbars are to be of either aluminium or tinned copper conductor, rigidly supported and fully insulated throughout their lengths. The busbars are to be fully rated throughout. Circuit breakers are to comply with IEC 60947. All circuit breakers shall be identical in arrangement and those of the same current rating shall be interchangeable. All circuit breakers shall be two pole type. Closing mechanisms shall be of the trip free type with closing and tripping coils suitable for 125 V DC operation. Each battery circuit breaker shall have an overcurrent trip device of suitable rating to ensure satisfactory discrimination with the largest outgoing circuit breaker connected to the load busbar. DC motor starters shall comply with IEC 60947 and shall incorporate a multi-step starting resistance. Contactors shall comply with IEC 60947. The DC contactors and their associated apparatus shall be capable of normal operation with the supply voltage between -20% and +12%. The closing and tripping coils shall be wired in series with contactor auxiliary switches arranged so that the supply to these coils is automatically cut off on completion of a successful operation. Each motor starter unit shall have protective equipment of the thermal overcurrent type. Each motor starter, switchfuse or other district circuit shall form an individual compartment in which the main and control circuit cables are terminated. Access to these terminations shall be arranged so that it is independent of access to any other circuit compartment. EPC Schedule A (A-47) 09 October 2003
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Page 48 EPC Contract - Wairakei -------------------------------------------------------------------------------- 8. CABLING, EARTHING, and MOTORS 8.1 GENERAL Unarmoured cables shall be suitably protected against mechanical damage. Cable insulation shall be suitable for the maximum temperatures in the area of installation. High temperature cables shall comply with IEC 60245. Temperature classification of insulation shall be in accordance with IEC 85. 8.1.1 Particulars of Low Voltage System ================================================================ NO. PARTICULAR ================================================================ 1. Voltage 415/240 V ---------------------------------------------------------------- 2. System Frequency 50 Hz ---------------------------------------------------------------- 3. Phase Rotation (clockwise) RYB ---------------------------------------------------------------- 4. Nominal System Voltage 400/230 V ---------------------------------------------------------------- 5. Type of System Grounding MEN ---------------------------------------------------------------- 6. Power Frequency Short Duration Withstand 2,500 V ================================================================ 8.1.2 Power Supplies The equipment provided under this Contract shall not be susceptible to damage at voltages down to 80% and up to 125% of the nominal voltage for short periods of time except where otherwise specified. 8.1.3 Environmental Considerations H2S concentrations above 0.3 ppm are unacceptable for exposed copper conductors, and concentrations down to 0.1 ppm have adverse effect on silver-plated connectors and conductors. Consequently: i. Switchgear and electronic equipment (except where very exacting and Owner-approved alternative H2S protection measures have been taken), shall be located only within special rooms or enclosures supplied with air under positive pressure from which the H2S has been removed. Remote IO boxes that are installed in the field may be protected by an air purge arrangement, supplied from a H2S-free compressed air system. ii. No equipment including bus-bars, links, terminals, fittings, relays, contacts and the like, is to be made in whole or in part of silver, nickel-silver, copper, phospor-bronze, brass or other copper or silver alloy, unless hermetically sealed or otherwise suitably plated. iii. Mechanical properties of copper conductors shall comply with BS 4109 and they shall be tinned for their entire length in accordance with Section 14 of BS4109. iv. Wire insulation shall only be removed using thermal strippers. Although some equipment may be located in air-conditioned areas, it shall be suitable for operation for sustained periods without the benefit of the air-conditioning. Maximum design temperature shall be based on the maximum ambient temperature plus all temperature rises that can occur as a result of heat gains, flows and dissipations that may affect the installation area. EPC Schedule A (A-48) 09 October 2003
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Page 49 EPC Contract - Wairakei -------------------------------------------------------------------------------- IO control boxes installed outside of air conditioned spaces shall be fitted with constant purge systems supplied with air from the H2S-free compressed air system. Fasteners are not to be used where they provide a dissimilar metal to that already installed. For example brass fittings should not be used with mild steel. PVC saddles are not to be used outdoors (as they become brittle upon exposure to UV lighting). 8.1.4 Electrical Equipment In Hazardous Areas In addition to requirements for H2S corrosion protection, all electrical equipment located within the Hazardous Area shall comply with the requirements of the Electricity Regulations. Intrinsically safe equipment (Ex ia or Ex ib as appropriate) for Zone 0 and Zone 1 gas hazardous area shall be provided. For Zone 2 other applicable protection categories will be used, such as Ex. d, Ex m and Ex n. Or CSA Certified for use in Class 1 Division 2, and CE certified for use in Class 1 Zone 2, Group IIC. 8.1.4.1 General There is a legal requirement under the Heath and Safety In Employment Act 1992 (HSE) and the Electricity Act 1993 to ensure that an installation must be constructed and installed to take into account any special dangers that they create to persons and property. These acts are administered by independent and separate authorities and compliance is required to both Acts. Occupational Safety and Health Service (OSH) administers the HSE and the Ministry of Economic Development administers the Electricity Regulations. The management of hazardous areas must be formally documented and agreed using appropriately qualified people in consultation with those who will occupy the areas in normal daily operations. It is therefore a requirement for auditable documentation, showing that hazardous areas have been appropriately classified and the installation complies with the appropriate certification documents, AS/NZ Standards, and any other requirements specific to the plant, be prepared. To achieve this, a verification dossier shall be prepared and kept on the premises. This dossier shall contain the information as specified in the appropriate parts of AS 2381 series for the types of protection being used. 8.1.4.2 Scope It shall be the responsibility of the Contractor to ensure that the relevant information is produced and will generally include: o Hazardous area classification drawings and justifications o The protection techniques and Standards for all electrical fittings and appliances used in the hazardous area o Certification documents for all electrical fittings and appliances used in the hazardous area o Inspection, Testing and Maintenance procedures o Periodic re-inspection procedures o Repair and overhaul procedures o Re-classification and authorized modifications 8.1.4.3 Selection of Equipment Electrical equipment installed in explosive atmospheres shall comply with the requirements of the AS 2381 series. The main standard applying to hazardous area design is AS2381.1 which provides the general requirements to be considered in the selection and installation of electrical equipment for hazardous areas. 8.1.4.4 Installation and Testing Requirements The inspection, testing and certification of installations in hazardous areas shall be in accordance with the requirements of the AS 2381 series and shall be carried out only by experienced personnel whose training has included instruction on the various types of protection and installation practices, relevant rules and regulations and on the general principles of area classification. EPC Schedule A (A-49) 09 October 2003
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Page 50 EPC Contract - Wairakei -------------------------------------------------------------------------------- In no circumstances shall power be applied to the installation before all required tests have been completed. 8.1.5 Locks Locking facilities shall be provided on each item of high-voltage equipment as detailed below. Where a mechanism is to be locked in a specific position provision shall be made at that part of the mechanism where the operating power is applied and not to remote or ancillary linkages. The following locking facilities shall be provided: i. Circuit breaker mechanisms in open position and any associated manual operating device in the neutral position. ii. Disconnectors and earth switches in both open and closed positions. iii. Control position selector switches in all positions provided. iv. Marshalling, operating and terminal kiosks or cubicle access doors and panels. 8.1.6 Anti-Condensation Heaters Any major items of electrical equipment which are liable to suffer from internal condensation due to atmospheric or load variations shall be fitted with heating devices suitable for electrical operation at 230 V ac/120 V ac, 50 Hz, single phase of sufficient capacity to prevent condensation. The electrical apparatus so protected shall be designed so that the maximum permitted rise in temperature is not exceeded if the heaters are energised while the apparatus is in operation. The supply to each heater shall have a fuse and an enclosed switch. The switch shall be arranged to switch the phase conductor. Thermostats shall be fitted. 8.1.7 Miniature Circuit Breakers Facilities shall be provided for protection and isolation of circuits associated with protection, control and instrumentation systems. Miniature Circuit Breakers (MCB's) complying with IEC 60947 are preferred to fuses. 8.1.8 Indicating Lamps Indicating lamps should comply with IEC 60073. 8.1.9 Control Switches, Push Buttons Control switches for electrically operated circuit-breakers shall be designed to prevent accidental operation and interlocked to prevent two successive operations in the "close" direction (i.e. they must be turned to the trip position before initiating a closing operation). "Emergency Stop" push buttons shall be of the rotate to reset type. They shall be adequately protected against accidental operation. All control switches shall provide clear indication as to the direction of each operation. 8.1.10 Cubicles All cubicles shall be designed for ease of operation and maintenance. EPC Schedule A (A-50) 09 October 2003
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Page 51 EPC Contract - Wairakei -------------------------------------------------------------------------------- Outdoor cubicles shall be to IP55 classification in IEC 60529. 8.1.11 Small Wiring All panel wiring, secondary control wiring in circuit breakers, motor starters, control gear and other similar equipment shall be carried out in a neat and systematic manner with cables supported clear of the panels and other surfaces at all points to obtain free circulation of air. The wire used for panel wiring shall have aluminium or tinned copper conductors conforming to the requirements of IEC 60228. Wiring diagrams must indicate wire markings which shall comply with the requirements of IEC 60446. Adequate slack wire shall be provided to allow for one restripping and reconnection at the end of each wire. 8.1.12 Radio Interference All equipment supplied must comply with New Zealand Radio Interference Notice 1988. 8.1.13 Cabling Design Information The Contractor shall provide the Owner with cable schedules and termination schedules for all of the equipment installed. The schedules shall be provided both in hard and soft copy forms, the soft copy being compatible with Microsoft Excel and Access. Cable schedules will show for each cable: i. Cable identification number; ii. 'From/To' information, showing the location of the two cable ends in separate columns by cubicle designation or device description with, where applicable, the device number as shown on the circuit diagrams; iii. Details of cable (type, conductor size, number of cores, appropriate route length in metres). Termination schedules may be combined with equipment wiring tables and will show the following details for each item of equipment to which the Contract cabling is to be connected: i. The cubicle or equipment designation; ii. All terminal strips or terminals in their relative location; iii. A wire number (or blank space in the case of a spare terminal) against each terminal; iv. For each cable, the cable identification number and the destination of the cable; v. The wire number of each core in each cable. Termination schedules will make reference to the associated circuit diagram and wiring table drawing numbers. For proprietary equipment, in place of identification of circuit wires, cable cores and terminals by wire numbers, a standardised system of connection which enables installation, operation and maintenance and later modification by the Owner, may be employed. Such alternative systems may employ preformed cables with plug and socket connection. The Contractor shall provide cabling from all separately mounted individual electrical devices to centrally located electrical enclosures for marshalling. EPC Schedule A (A-51) 09 October 2003
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Page 52 EPC Contract - Wairakei -------------------------------------------------------------------------------- 8.2 POWER CABLES 8.2.1 Applications and Rating Cable Sizing All cables feeding loads other than instrument or lighting and receptacle loads shall be classified and applied as power cables and rated in accordance with IEC 60287. Fault Current Capability The short circuit rating of main cables shall be based on the expected fault level of the switchboards. Voltage Drop in Feeders The cable for both AC or DC circuits shall be sized to allow for a maximum of 15 percent (of nominal) voltage drop on motor starting or for 3 percent running drop whichever is greater. 8.2.2 11 kV Power Cables Single and three core 11 kV cables shall be manufactured in accordance with the IEC Publication 60502 and BS 5467 where applicable. Conductors comply with IEC 60228. 8.2.3 415 Volt Power Cables General Cables rated for 600/1000 V shall be used on the 415/240 V AC, 110 V AC or 110 V DC systems and shall utilize non-flame-propagating polyvinyl chloride (PVC) or cross linked polyethylene (XLPE) insulation in conjunction with a non flame propagating PVC sheath. 8.3 CONTROL CABLES Control Cables or Control Cabling shall mean any cables or cabling used for control or instrumentation purposes. Control Cables shall have tinned copper conductors with PVC insulation rated for 600 V and PVC overall jacket unless otherwise specified. The use of copper sheathed cables will not be permitted. 8.4 CABLE INSTALLATION 8.4.1 General A combination of buried cable routes, cable trenches, and cable ladder systems shall be provided in accordance with best trade practice to route the cabling, taking into account safety, cost, aesthetics, maintenance access to other equipment, and environmental considerations. In general cables run within the Binary Plant perimeter fence and cables run to the transformer area shall be run in concrete cable trenches or above-ground ladder systems. Cable run external to the boundaries shall be direct buried or on ladders attached to pipe supports. Where cables are run beneath roads or access EPC Schedule A (A-52) 09 October 2003
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Page 53 EPC Contract - Wairakei -------------------------------------------------------------------------------- ways, they shall be run within ducts suitably rated for the mechanical loads. Cables shall not be direct buried where the temperature of the ground may exceed 30(degree)C. 8.5 CABLE TERMINATION 8.5.1 General The termination of each end of each cable shall be fixed, finished and identified as appropriate in accordance with best trade practice and to the standard of modern power station practice. Wire numbers, as allocated on the overall circuit diagrams and equipment wiring and termination tables, shall be used on all cable terminations. 8.6 EARTHING 8.6.1 General The Contractor shall design and install an earthing system in accordance with IEEE standard 80 to achieve a low resistance earth path for fault currents and to ensure safe touch and step voltages for the entire site. The station earthing system to be provided under this contract shall comprise a main earthing busbar strategically routed through the Site so as to provide the lowest resistance path from the earthed equipment to ground. The system shall be interconnected to all electrical plant both inside and outside the Binary Plant, and to steam and water piping passing into and out of the area. It shall be solidly bonded to the existing Wairakei Station earthing system to avoid the need for electrical isolation measures. Earth conductor shall be run along the pipe routes between the Wairakei Station and the Binary Plant, and the pipes or pipe stands shall be connected to the earth conductors at regular intervals. The copper conductor shall be connected to the Wairakei Station earth grid and to the new earthing grid to be installed at the Binary Plant. The primary (below ground) earthing system shall comprise bare stranded, annealed, copper wires of sufficient cross section to withstand worst case fault currents for at least 1 second, exothermically welded in a grid pattern. To protect bare earth cable exposed to the atmosphere, a CRC Urethane Seal Coat (Code 2044) is to be applied to the cable once it has been laid in its final position. Connections between copper and aluminium and between aluminium surfaces shall utilise approved welded connections or bimetallic crimp lugs, sleeves, and washers. Connections shall be suitably protected against humidity and dampness and shall be located in positions where they can be readily inspected. The Contractor shall supply and install earth bond connections from the main earth grid to all non-current-carrying metalwork in this Contract, including, but not limited to, the following: o Generators, transformers and all ancillaries. o All switchgear, motor control centres, control boards, cubicles, metal conduit, cable trays, armoured cables, switch-boxes, marshalling cubicles, all motors and other frames. o All metal tanks, cladding, hand and guard rails, stairs, ladder, gratings and reinforcing steel connections brought out of concrete; o Structural Steel. o Fences and metal-work shown to be necessary as a result of the Contractors touch and step voltage calculations and to prevent or limit transferred potentials to safe levels. o All steam and water pipes. EPC Schedule A (A-53) 09 October 2003
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Page 54 EPC Contract - Wairakei -------------------------------------------------------------------------------- 8.6.2 Cable Ladder Earthing Cable ladders shall be bonded together to from a continuous electrical circuit and shall be provided with an electrical connection to the main station earthing busbar. 8.6.3 Equipment Earthing All electrical equipment shall be earthed. Busbars and grounding conductors shall be rated to carry current equal in magnitude and duration to that associated with the short circuit rating of the equipment. Motor frames shall be bonded to the main earth grid. All below ground connections shall be made using and exothermic welding process The Contractor shall ensure that all metal work encasing electrical items is bonded to earth. Separate earth conductors are to be run with the Building Service submain cables.These conductors are to be connected to the main earth bus bar at the switchboard end and to the earth bus bars of the respective sub-distribution switchboards or, in the case of welders, large motors, etc., directly to the framework of the item. All metal benches, sinks, taps, pipework and other metalwork, capable of being livened on failure of electrical insulation are to be effectively earthed to the main earthing system. Earthing connections to sinks, basins and the like are to be made directly onto the appliance and not the connection pipework. All connections to metal work are to be made as close to electrical apparatus enclosed or supported therein as possible. The earthing terminal on the frames of control cubicles and other such enclosures will be a M8 stud. The metal cases of all instruments, relays and the like mounted within such enclosures shall be connected to this earthing stud by conductors of not less than 6 sq mm. Earthing connections between this stud and the existing station earth grid shall be via an aluminium strap not less than 90 sq mm. 8.6.4 Earthing of Reinforcing Steel All reinforcing steel, concrete foundations, and piles shall wherever possible be used to form earthing electrodes for the earthing system. 8.7 LIGHTNING PROTECTION SYSTEM The Contractor shall provide lightning protection systems for all buildings, fin-fan units, and any other structures which could act as a path to ground for lightning. The lightning protection system shall be designed and installed in accordance with British Code of Practice BS6651 'The Protection of Structures against Lightning. The system shall include but not be limited to the following: o Air Terminations o Down Conductors and Fixings o Test Joints o Earth Electrodes independent of the station earthing grid EPC Schedule A (A-54) 09 October 2003
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Page 55 EPC Contract - Wairakei -------------------------------------------------------------------------------- 8.8 ELECTRIC MOTORS All motors shall be in accordance with IEC 60034 and IEC 60072 and, unless otherwise specified, shall be of the totally enclosed fan cooled type, suitable for continuous operation and direct on-line starting. All 3-phase motors are to be rated at 400VAC Motors to be located out of doors shall be entirely suitable for operation under the climatic and atmospheric conditions of the site. Motors shall be capable of operating continuously at rated output at any frequency between 48 and 51 cycles per second and at any voltage within 6% of the nominal value. Motors shall be designed to operate for a period of not less than 5 minutes at a voltage of 10% below the nominal value and at normal frequency without injurious overheating. The starting current at full voltage is not to exceed six times the rated full load current for all motors rated above 21 kW. The ends of motor windings shall be brought out to terminal boxes and the arrangement shall be such as to permit ease of changing over any two phase leads without disturbing the sealing compound when this is used at cable terminations. All terminal boxes shall be fitted with an approved sealing chamber, conduit entry or adaptor plate, as required, together with the necessary fittings to suit the type of cable specified. Terminals shall be of the stud type of adequate size for the particular duty, marked in accordance with an approved standard and enclosed in a weatherproof box. 8.9 VARIABLE SPEED DRIVES Variable speed drives (VSD) shall be designed to meet the CE Mark requirements of European Safety and EMC Directives. Motors selection for use with VSD's shall be take into account the de-rating required due to reduced efficiency of motor cooling fans when operated below rated speed. It shall be the responsibility of the Contractor to design and select equipment to ensure EDM (Electric Discharge Machining) does not occur. The Contractor shall, if required, supply and install filters on the input and output of the VSD's. The requirement for filtering will depend on the VSD, cable length, cable type and motor installation. The Contractor shall consult the VSD manufacturer to determine the requirement for additional filtering to reduce stress on motor coil insulation, capacitive leakage currents and high frequency emissions from the motor supply cable and high frequency losses and bearing currents in the motor. EPC Schedule A (A-55) 09 October 2003
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Page 56 EPC Contract - Wairakei -------------------------------------------------------------------------------- 9. CONTROL AND INSTRUMENTATION 9.1 GENERAL A control system is required to control the Binary Plant and all other associated equipment. The control system for the Binary Plant shall be integrated into the existing site control system. Refer to Exhibits A9, A10 & A11 for a schematic of Owner's existing control system. The system shall be designed to minimise operator involvement in the control and operation of the plant. Features of the system shall include automatic startup and shutdown of the plant together with fail safe operation during any faults within the plant. The control system shall control and monitor the following areas of plant: o Geothermal Fluid Piping System o Binary Units o Turbine o Turbine governors o Generator o Excitation System o Electrical Transformers o Electrical Switchgear o DC System and UPS o Electrical Protection and Metering System o Compressed Air System o Fire protection system o Local Control Room Air Conditioning System o Binary Working Fluid Storage and Transfer System. (Tank level and fire detection monitoring only) The extent to which the control system controls and monitors the Binary Plant and associated equipment is to provide a clear unambiguous understanding of its conditional status under all stages of operation, consistent with the primary operability objectives set out in Section 1.14.4 The Local Control Room shall be designed to facilitate construction, commissioning, and trouble shooting during operation. Normal remote plant operation will however take place from the existing GGC facilities. The Local Control Room need only have one operator station, a suitable desk, and an alarm/status printer. 9.2 CONTROL SYSTEM 9.2.1 Existing Arrangement The existing system consists of a redundant fibre network using ethernet TCP/IP. There are dual redundant iFIX database servers communicating via OPC data protocol. The GCC Operator Stations run Intellution iFIX HMI communicating as OPC Clients. 9.2.2 Control System Architecture The control system architecture shall include dedicated controllers to carry out the process control, and aman/machine operator station (HMI) to provide command and monitoring. The backbone of the Binary Plant control system shall include dual redundant TCP/IP ethernet, with OPC Data Access (3) Server compliant Software, capable of full integration with the existing control and/or control networks. This may be achieved through either a self-contained (redundant) database, or extension of the existing iFIX data servers. EPC Schedule A (A-56) 09 October 2003
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Page 57 EPC Contract - Wairakei -------------------------------------------------------------------------------- The system shall include full graphical representation, with an overview of the plant and detailed graphics of each equipment area. A minimum of one HMI shall be provided in the local control, and one common configuration / engineering station. 9.2.3 GGC Integration The Binary Plant shall normally be operated from the GGC. Additional alternative operator screens (PC's) are not acceptable in the GCC. The Owner will supply and configure all remote SCADA requirements on its existing system, including GGC HMI, historical recording and information delivery to other end users (not including Transpower SCADA). The Contractor shall provide access to its control system variables list, supporting functionality and provide sufficient information to allow the iFix HMI to have full functionality over the Binary Plant. Engineering assistance shall be provided as required by the Owner to interrogate the Contractor's variable list and control system. Ormat drawing number 0.002.95.413.0 Rev 2 (Exhibit E7) depicts the integration scheme. The Contractor shall provide physical fibre data link from binary to existing SCADA networks. 9.2.4 Control Programming Control strategies shall be described in functional descriptions. These functional descriptions (FD's) shall be developed to the IEC61131-3 standard using either statement or function block languages. The FD's shall be submitted to the Owner for information and comment during the development process (refer documentation submission schedule, Exhibit A1). An as-built set of FD's shall be included in the Operation and Maintenance Manuals. 9.2.5 Engineering Software Software shall be supplied for all devices that require interrogation or configuration. This shall include devices such as PLC's, PC's, VSD's, Smart Relays, Analysers, and Transmitters. The Software shall be supplied complete with manuals, cables, dongles, and other requirements such as passwords to enable the Owner to maintain and adjust the operation of the equipment. 9.2.6 Licenses All Proprietary Software shall be supplied with all necessary licenses for lifetime operation and maintenance of the system. All Application Software developed for the Binary Plant shall be supplied to, and become the property of, the Owner at taking over. 9.2.7 Upgrades The Contractor shall include provision for any version or service upgrades for all supplied Software for a minimum of one year following taking over. This provision shall include the supply and installation (manpower) of the Software in an operational plant. 9.2.8 Post Take Over Modification A procedure shall be provided to enable the Owner to carry out minor modifications to the control system during the Defects Correction Period. This procedure shall include provision for agreement and sign-off by the Contractor that the modification can be carried out without compromising any warrantees. EPC Schedule A (A-57) 09 October 2003
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Page 58 EPC Contract - Wairakei -------------------------------------------------------------------------------- 9.2.9 NICC SCADA The Binary Plant is to be connected to the Transpower electrical transmission and distribution system and as such information will be required to be passed to Transpower's North Island Control Centre (NICC) SCADA system. The Contractor shall provide optically isolated outputs suitable for connection to by others. The outputs shall include but not be limited to the following input and output signals: The Contractor shall provide the indications and measurements as set out in the Common Quality Obligations and Rulebook to the system operator (Transpower). The system operator may require the asset owner to provide additional information where, in the reasonable opinion of the system operator, such information is required for the system operator to plan to achieve, and achieve its principal performance objectives. 9.2.10 Power Supply All instruments, PLCs and PCs shall be supplied from secure power supplies. All instruments and PLC's may be supplied from the 24VDC system. PC's and screens may be supplied by an uninteruptable power supply (UPS). Plugs and sockets from this power supply system shall be suitably labelled as such so other devices are not connected to the UPS system. 9.2.11 Password Protection All PC's shall be fitted with password protection to restrict access by unauthorised users. File manager programs and other utility based programs shall be restricted from general use. 9.2.12 Alarms All alarms shall be displayed on an alarm summary page as part of the Binary Power Plant SCADA Software. The priority and status of the alarm condition shall be reflected in the physical appearance of the alarm on the screen. All alarms and control actions shall be recorded into the iFIX database for future retrieval when required. 9.2.13 Reports The control system shall be capable of automatically producing a number of reports including the following:. (a) Sequence of Events Log The Sequence of Events Log shall record all control actions and alarm conditions occurring within the Binary Plant. Events shall be recorded with sufficient resolution to facilitate easy trouble shooting. (b) Binary Plant Weekly Report A weekly report shall contain for each unit (where applicable) and the Binary Plant as a whole. 1. Hourly value and accumulated hour totals of electricity generated and auxiliary plant energy consumption, 2. Hourly values of Geothermal Fluid flow rate, inlet and outlet temperature, acid dosing and corrosion inhibitor dosing, bypass flow, dump flow and prawn farm flow 3. Operation data showing hours run and plant load factor. (c) Trip Log A Trip Log should be available in a form to provide data for useful analysis of trip events. (d) Statistics Log EPC Schedule A (A-58) 09 October 2003
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Page 59 EPC Contract - Wairakei -------------------------------------------------------------------------------- A log shall be available to record user defined values. (e) Plant Performance Report A Plant Performance Report should be available in a form to assist in maintenance planning of: 1. turbine 2. generator 3. condenser 4. preheater 5. vaporiser 9.3 INSTRUMENTATION 9.3.1 General Instruments shall be supplied sufficient for the safe and effective operation of the Binary Plant. This instrumentation shall include, but not be limited to: 1. Local indication of plant and process variables 2. Remote transmission of plant and process variables 3. Local and remote emergency stop push buttons 4. Remote control of the plant 9.4 SYSTEM OPERATION 9.4.1 Operating Philosophy Under normal operating conditions supervision and control of the plant will be from the existing operating screens and printers in the GGC. Both local and GGC operator control locations shall be provided with automatic shutdown facilities for individual, or all turbine - generator sets. Automatic startup facilities shall be provided and once running minimal operator involvement in the operation of the plant is expected. 9.4.2 Synchronising Arrangements The Contractor shall provideautomatic synchronising equipment for initiation of closing impulses to each individual 11 kV generator circuit breaker. A manual synchronisation system will be provided for the 11kv bus CBx. 9.4.3 Trips The plant shall automatically either shutdown or revert to a stabilised condition in the event of any fault developing. Hardwired emergency stop push buttons shall be provided at GCC and the Binary Plant control room for tripping of each individual unit or the whole binary cycle plant. EPC Schedule A (A-59) 09 October 2003
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Page 60 EPC Contract - Wairakei -------------------------------------------------------------------------------- 10. PROTECTION AND REVENUE METERING 10.1 SCOPE The scope of work includes: i. Supply of protection relays and ancillary equipment. ii. Supply of revenue metering and ancillary equipment. iii. Supply of standalone panels or use of switchgear panels in accordance with specified requirements. iv. Site installation and wiring into the standalone panels or switchgear panels. Panels may be pre-wired off-site, but relays/meters shall be installed on-site. v. Functional checking and testing of all protection and revenue metering circuits. vi. Protection relay and revenue metering acceptance testing and soak testing. vii. Provision of Circuit Breaker interlock circuitry. viii. Provision of control systems I/O for protection and revenue metering equipment. ix. Production of design reports including the Binary Plant earthing design, CT ratio and specification determination, VT specification determination, protection calculations and relay settings, and revenue metering configuration. Relay settings shall include revised settings for all existing protection overlapping the new protection. 10.2 TECHNICAL REQUIREMENTS FOR RELAYS AND ANCILLARY EQUIPMENT 10.2.1 General i. Protection of the 220 kV connection shall comply with Transpower's "Common Quality Obligations, published in April 2002, and the New Zealand Electricity Industry Rule Book ii. The numbers of relays and ancillary equipment shall be determined by the Contractor. iii. Protection devices shall be arranged to conform with current industry standards. iv. Protection devices in a group shall share a common fused DC supply, and output into a common trip relay utilising the same DC supply. v. The DC supplies shall conform to the specified requirements for the DC design. vi. Intertrip relays shall interface the protection trips between the Binary Plant and the Transpower 220kV switchyard. vii. Interfacing with local and remote circuits as appropriate, and in accordance with specified requirements shall be arranged for all controls, trips, alarms, protection, indication, instrumentation, metering, and interlocks. viii. The protection 11kV VTs shall have ratios 11/(sq. rt.)3kV / 110/(sq. rt.)3V, class 3P, and rated output VA sufficient for the connected burden. EPC Schedule A (A-60) 09 October 2003
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Page 61 EPC Contract - Wairakei -------------------------------------------------------------------------------- 10.2.2 Protective Relaying The protective relaying system shall be provided to protect all electrical systems and equipment supplied from them. The Contractor shall submit a complete short circuit and relay co-ordination study in conjunction with the detailed relay and control drawings and protective device settings for review by the Owner before implementation. The following general requirements apply to all protective relaying applications: o The protective relay system shall be designed to remove or alarm abnormal operating occurrences occurring on equipment designed for electrical power generation, voltage transformation, energy conversion, and transmission and distribution of electrical power. o The protection system shall provide discrimination with other protection systems. o To limit damage to faulted equipment. o Minimize possibility of fire or explosion. o Minimize hazard to personnel. o The protection equipment shall consist of proven, self-diagnosing, digital type relays with complementary functions and sufficient redundancy to ensure that faults are detected and cleared without disruption to unaffected supplies. The scheme shall incorporate overlapping zones of protection with principal plant items provided with back-up protection in addition to the primary protection. o Relays may be offered as individual or combination devices incorporating more than one function. Protection devices providing mutual backup shall be placed in different groups. o Relays shall have sufficient setting ranges to cater for all conceivable instrument transformer characteristics, discrimination requirements, and sensitivities to fault conditions. o Each relay shall be clearly labelled with relay type and descriptive function. Relays shall be installed and wired in switchgear in accordance with Applicable Codes and Standards and industry practice. o Relay and metering potential circuits shall be segregated and individually protected by fuses or MCCBs. o Primary and secondary trip circuits (DC) shall be segregated. Primary trip circuits, high priority trip circuits and relay power supply circuits shall be segregated. Circuit protection devices shall not be included in relay trip circuits. o Protective relays shall be equipped with high speed recording facilities for voltage and current. Fault information, disturbance and event records shall be available via simple system integration protocols to provide fast fault diagnosis via a PC or the DCS. 10.2.3 Circuit Breaker Fail Protection SF6 Circuit Breaker Fail Projection shall be provided to detect failure of a circuit breaker to interrupt the current that it is carrying and to backtrip all other circuit breakers connected to the same busbar. 10.2.4 Trip Circuit Supervision Trip circuit supervision shall be provided on all high voltage circuit breakers, medium voltage and 415V incoming circuit breakers. The trip circuits on high voltage and medium voltage circuit breakers shall be supervised with the circuit breaker open or closed 10.2.5 Undervoltage Protection Under-voltage protection shall be provided at all voltage levels for alarm and/or trip functions. The mains voltage shall be monitored to provide a trip signal to disconnect any device, and to initiate a controlled shut down if appropriate, under the following conditions: EPC Schedule A (A-61) 09 October 2003
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Page 62 EPC Contract - Wairakei -------------------------------------------------------------------------------- 1. If unexpected restarting after a stoppage due to a drop in voltage or the complete failure of supply may result in injury to persons or damage to property. 2. If there is a risk, that equipment can be damaged from excessive heating if operated at reduced voltage for prolonged periods. Each item of equipment that so needs to be protected against under voltage or momentary loss of supply shall be fitted with its own separate under-voltage protection. In all cases, an alarm signal shall also be given. The requirement to provide under voltage protection to disconnect any device does not apply to equipment used in case of an emergency, where tripping of the device may create additional hazards. In these cases, only an alarm signal shall be provided. 10.2.6 Generator Protection System The proposed indicative generator protection system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 0.002.95.690.0-Revision 1, Generator Protections in Schedule J, The relay protection shall be provided against the following faults and disruption of normal operation of the generator and on its terminals: o multiphase earth faults in the stator winding: (differential protection) o single phase faults in the stator winding o external short circuits o symmetric overloading of the stator winding o asymmetric overloading of the stator winding o voltage rise o generator reverse power o 100% stator earth fault protection o generator/turbine mechanical faults (eg bearing over temperature.) 10.2.7 Generator Transformer Protection System Transformers shall be provided with relay protection devices against the following types of faults and abnormal duty conditions: o multiphase faults in the windings and on their terminals. o single-phase earth faults in the winding and on terminals connected to the network with the solidly earthed neutral. o turn-to-turn faults in the winding. o currents in the windings due to external short circuits. o currents in the windings due to overload. o oil level drop. o single-phase earth faults in medium voltage networks. o gas protection for transformers rated at 1 MVA and greater o over temperature o Fault on the main transformer o Overfluxing protection of the generator transformer 10.2.8 Auxiliary Transformer Protection System The Auxiliary Transformer shall be equipped with protection devices mounted on the transformer structure. The protection signals such as oil temperature, oil level, oil pressure etc will be wired together to the PLC as an alarm signal. EPC Schedule A (A-62) 09 October 2003
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Page 63 EPC Contract - Wairakei -------------------------------------------------------------------------------- 10.2.9 Main protection systems on both sides of the grid interface at 220 kV The Generator Transformer and 11kV cable connection to the Binary Plant Switchboard shall be provided with two different main protections that have a similar probability of detection. Circuit breaker duplication is not required. A circuit-breaker failure protection system shall also be provided for the 220 kV circuit breaker. 10.2.10 Protection of Medium Voltage Cable Lines (other than the cable connection described above) Overcurrent and Earth Fault protection against overloading, short circuits and multiphase and single phase earth faults shall be provided for cable lines. 10.3 SPECIAL OPERATIONAL REQUIREMENTS The special features of system operation which impact on protection requirements are listed as follows: i. Each generator at the Binary Plant shall be synchronised at the 11kV generator bus. ii. The Binary Plant 11 kV distribution network will normally be supplied from the 11 kV Binary Plant generator bus. iii. During an emergency resulting in the loss of potential on the Binary Plant 11 kV generator bus an auto changeover arrangement shall transfer to the 11kV Local Distribution Board. iv. The two circuit breakers shall be interlocked to prevent any possibility that both can be closed at the same time. v. The auto changeover shall be break before make vi. The changeover period shall be sufficiently short to ensure all Binary Plant auxiliaries remain operational. 10.4 PROTECTION FUNCTIONAL REQUIREMENTS TO MEET OPERATIONAL REQUIREMENTS i. Generator tripping logic The tripping logic for electrical faults, mechanical faults, and emergency trips shall be configured into two separate groups, using separately fused DC supplies, CBs with two trip coils, each with trip circuit supervision, and two trip relays. ii. Relay locations The protection is physically grouped at a number of locations described as follows: i. Binary Plant. ii. Transpower 220kV Wairakei Switchyard. iv. Wairakei Power Station. v. 11kV Steamfield Distribution Board 6. EPC Schedule A (A-63) 09 October 2003
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Page 64 EPC Contract - Wairakei -------------------------------------------------------------------------------- 10.5 REVENUE METERING AND ANCILLARY EQUIPMENT 10.5.1 CTs and VTs The Contractor shall determine the CT ratios and their specifications based on the Binary Plant's capacity and unit sizing. The metering CTs shall be class 0.2, and have rated secondary currents of 1A. The metering 11kV VTs shall have ratios 11/(sq. rt.)3kV / 110/(sq. rt.)3V, class 0.2, and rated output VA sufficient for the connected burden. The VTs maybe dual rated for protection and metering. 10.5.2 Metering 10.5.2.1 General Revenue meters shall comply with the technical requirements of the Rule Book for metering installation Including a requirement for the installation to be formally certified by qualified Contractors. The revenue meters shall be located on the 11 kV side of the generator transformer. Provision shall be made for the connection of the revenue metering data logger to the existing Revenue Transfer PC. Statistical meters shall also be located on the 11 kV auxiliary supply to the Binary Plant 11 kV distribution network and at the terminals of each generator. 10.5.2.2 Technical Requirements of Revenue Meters Revenue meters shall satisfy the following minimum requirements: o IEC 687 standard. o Class 0.2. o 3 phase, 3 wire 110VAC voltage. 50Hz frequency. o Solid state type. o 4 quadrants (+/-kWh, +/-kVARh) measuring for the generator transformer revenue metering. o 2 quadrants (+/-kWh) measuring for the generator check metering. o RS232 communications. o NEMA 3 or equivalent enclosure; with panel flush mounting. o Features shall include: a) On line testing and calibration. b) Rolling demand measurement. c) Block interval demand calculation. d) Cumulative demand calculation. e) Demand peaks measurement. f) Non volatile memory for storage of data, firmware, and operating parameters. g) kWh and kVARh impulse outputs for SCADA purposes. h) Alarm outputs for meter fault and voltage signal failure. i) Transmission of Revenue metering data to a PC. EPC Schedule A (A-64) 09 October 2003
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Page 65 EPC Contract - Wairakei -------------------------------------------------------------------------------- 11. CIVIL AND STRUCTURAL WORKS 11.1 GENERAL CRITERIA The design of all civil and structural works shall comply with the requirements of the New Zealand Building Code (NZBC). Approved documents referenced in the New Zealand Building Code Handbook shall be adopted as the means of compliance with the New Zealand Building Code. Other standards that are applicable include: NZS 4203: 1992 General Structural Design and Design Loads for Buildings NZS 3101: 1995 Concrete Structures Standard NZS 3404: 1997 Steel Structures Standard NZS 3603: 1993 Timber Structures Standard NZS 4230: 1990 Design of Masonary Structures NZS 3604: 1999 Light Timber Frame Buildings NZS 3106: 1986 Concrete Structures for the Storage of Liquids NZS 4229: 1999 Concrete Masonry Buildings not Requiring Specific Engineering Design NZS 4210: 2001 Masonry Construction: Materials and Workmanship NZS 3109: 1997 Concrete Construction NZS 4219: 1983 Seismic Resistance of Engineering Systems in Buildings NZS 4671:2001 Steel Reinforcing Materials NZS 6703:1984 Code of Practice for Interior Lighting Design AS 1554 - All Parts Structural Steel Welding AS 1657:1992 Fixed Platforms, Walkways, Stairways and Ladders. Design, Construction and Installation TNZ Specification M/10 - Asphaltic Concrete 11.2 FACILITIES 11.2.1 Site Access Separate access shall be provided for Site 4 The Contractor shall determine and submit to the Owner details of a route proposed for heavy load transport if required and the extent of any modifications required to existing access arrangements. The Contractor is required to provide any roading works required for access of heavy loads to the Site. The access road to the east of the Site (adjacent to the administration building) and south of the Site (under the steam mains to the steam field) is a main access road and any closures shall be coordinated with the Owner and minimised as far as possible. 11.2.2 Access Roads Access roads shall be provided for vehicular access all plant and buildings. A clear width of 5.0 m and clear height of 4.0 m shall be provided at all points. The Binary Plant site shall have a perimeter access road around the perimeter fence for emergency vehicle access. Roads shall be constructed to TNZ Specification P/9 and be able to withstand a laden weight of up to 25 tonnes with an axle load of 8.2 tonnes and shall allow a 20 m turning radius. EPC Schedule A (A-65) 09 October 2003
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Page 66 EPC Contract - Wairakei -------------------------------------------------------------------------------- 11.2.3 Pipe Route Geothermal Fluid supply and return pipes across the area of the proposed road designation should be aligned if possible with existing pipes to minimise the number of additional culverts for the proposed road. All pipe routes must either pass under access roads, or pass over access roads. Allow a 5.0 m wide by 4.0 m high clearance, and a 20 m turning circle where the pipe route passes over a road. Culvert structures supporting access roads shall be designed to resist HN-HO-72 loading regime specified in Transit New Zealand "Bridge Manual". 11.2.4 Pipe Bridge The pipe bridge across the Wairakei Stream and steam lines (only required for a Binary Plant installed on Site 4) shall meet the following criteria: i) Provide 5.0 m wide by 4.0 m high clearance, and a 20 m turning circle to existing access roads, including the existing unpaved vehicular tracks in use by Owner for removal of silica from the stream and pigging of silica from the culverts. ii) Provide sufficient clearance to steam pipelines to enable future maintenance. iii) Have foundations situated to avoid surcharging existing structures. The Contractor should note the buried control cable alongside the steamline and the overhead 11 kV cable in this vicinity. The Contractor shall also note the possibility of soil contaminated with traces of asbestos insulation in the vicinity of the steam mains as described in section 11.5.1 of these Owner's Technical Requirements. 11.2.5 Local Control Building The Local Control Building shall be sized to accommodate the supplied electrical switchgear, control equipment, marshalling cabinets, operator desk with PC and local alarm/status printer and to facilitate ergonomic operation and convenient maintenance access. Separation distances required by the Hazardous Substances and New Organisms Act 1996 shall be taken into account when locating the building. Building layout shall be determined by operational requirements. Interior noise levels shall not exceed 55 dBA. The operator desk shall be located in a separate room from the switchgear and air compressor plant, and shall be provided with direct egress from the building. Air compressor plant shall be housed in an annex to the building or other separate enclosure, with separate access to the equipment. The building shall meet the requirements of NZ Building Code, particularly with regard to clause B2 'Durability'. Interior linings shall be resilient, suitable for the environment and be installed with a low maintenance finish. Natural light shall be used in preference to artificial light. However, artificial light where required shall be designed and provided in accordance with NZS 6703: 1984. No toilet or kitchen facilities are required. EPC Schedule A (A-66) 09 October 2003
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Page 67 EPC Contract - Wairakei -------------------------------------------------------------------------------- 11.2.6 Equipment Plinths Equipment for mounting or externally on ground surfaces shall be installed on concrete pads to be constructed with the finished level up to 75 mm above floor or ground to cater for variations. Where excessive slope exists in ground services, the ground shall be benched approximately level before installation of foundations. Pads shall allow a maximum clear opening for the entry of cables. Surface mounting lightweight equipment can be fixed in position by approved masonry anchors of adequate strength and corrosion protection. 11.2.7 Energy Dissipation System The normal operating temperature of the Geothermal Fluid entering the energy dissipation system will be 87(degree)C, but may rise as high as 130(degree)C in abnormal conditions and during commissioning. The corrosion protection system of the steel shall be able to resist the expected high temperatures. Due to the nature of Geothermal Fluid, regular cleaning down of silica build-up will be necessary. The design shall be such that this work is easily facilitated. 11.2.8 Bunding of Working Fluid Storage All storage facilities containing working fluids that are in liquid form at ambient temperature and atmospheric pressure must be bunded as described in Section 11.5.4. 11.2.9 Underground Services Underground services are known to exist within Site 4. Plans show general domestic drainage with no detail. Other services, including cables may exist. If any are encountered, they should be treated as live and the Owner asked for direction. The Contractor shall locate underground services and foundations before work is started. Any information provided by the Owner regarding the location of these services and foundations is given from available records but with no guarantee of accuracy as regards alignment or depth; furthermore no guarantee is given or implied that the information provided covers all existing services and foundations. Relocation of stormwater, sewer, domestic water and fire protection services may be required to accommodate the new plant. These services shall be re-routed as required around foundations. The Contractor shall remove completely any existing drains no longer required, disconnect them from the system at the junction with the live drain and seal the live drain. 11.2.10 Platforms and Walkways All fixed platforms including roof areas, walkways, stairways and ladders shall be designed to comply with the requirements of NZBC Approved Document D1 and AS 1657 : 1992. 11.2.11 Cable Ducts Cable ducts where required, shall be constructed in reinforced concrete with adequate space to install and maintain housed cables. All ducts shall be properly drained. Provision for additional future cable installation shall be allowed by installing PVC or reinforced concrete pipe ducts having a draw string under roads and other features for cable routes where it can be reasonably expected that a route may be used for modifications. EPC Schedule A (A-67) 09 October 2003
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Page 68 EPC Contract - Wairakei -------------------------------------------------------------------------------- Provision shall be made to support and restrain cables. 11.2.12 Site Reinstatement The general area within the Binary Plant perimeter fence that is not otherwise required to be bunded for chemical or oil spill containment shall be reinstated with screened metal surfacing. Other areas shall be paved or have topsoil spread and grass established. Areas external to the perimeter fence used by the Contractor, e.g. for equipment laydown, car parking, and construction offices, shall have all construction debris removed, shall be graded to smooth contours, and shall have grass established. The Contractor is not required to undertake gardening or screen planting work. Tall vegetation (trees and scrub) shall be cleared to a radius of 30 m from any plant containing flammable working fluid. The Contractor shall remove from the Owner's facility, and dispose of, all surplus soil, cleared vegetation, and construction debris. 11.2.13 Security Fence and Security System The entire perimeter of the Site shall be enclosed by an appropriately designed security fence at least 2.2m in height and built according to best trade practice to a strength and security suitable for the facility protected. The fence shall enclose all Hazardous Areas. Note that a temporary fence is also required during construction to isolate the working area from the rest of the Owner's facility. Personnel access gates shall be provided at no less than three locations around the perimeter fence, each fitted with automatic entry control using Cardax card swipes and "breakglass" emergency opening. The Cardax system shall be connected to and fully integrated with the Wairakei Station Cardax system and shall automatically release in the event of a fire alarm in the Binary Plant area. One vehicle access gate shall also be automated. Other vehicle access gates may be manually operated and locked. The Contractor shall submit details of the permanent security fence design to the Owner for approval prior to construction. 11.3 DESIGN LOADS 11.3.1 Dead, Live and Wind Loads All civil and structural works shall be designed to safely resist the specified loads (except seismic loads) in NZS 4203: 1992. Seismic loads shall be derived from Section 11.4 and 11.5 below. Gravity loads shall include the weight of equipment of a permanent or semi-permanent nature, and the contents of pipes, tanks, bins, hoppers etc. Live load shall comply with NZS 4203: 1992, or if not clearly stated, rationally deduced from the provisions of the code. Wind loads shall be derived from NZS 4203: 1992. Basic non-directional wind speed may be taken as 46 m/s. EPC Schedule A (A-68) 09 October 2003
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Page 69 EPC Contract - Wairakei -------------------------------------------------------------------------------- Design for snow and ice loads is not required. For the purposes of NZS 4203: 1992 all structures are a Category I building. 11.3.2 Plant Support Structures Support structures shall be designed to resist vertical and horizontal loads. The strength and stiffness of the support shall be compatible with the supported plant or pipework, its flexibility and degree of restraint, under all design conditions. Relative deformations due to thermal, seismic and other lateral load conditions shall be accommodated without over-stressing the support or associated plant. 11.3.3 Geotechnical Data Geotechnical investigations undertaken to date are described in the Geotechnical Investigation Report (Revision 1) in ExhibitB8. This data is provided in good faith but note that the report contains limitations. The Contractor shall undertake additional investigations as required to adequate establish soil design parameters necessary to complete all foundation designs. 11.3.4 Foundation Design The foundation system selected shall be adequate to support imposed loads without excessive differential settlement or imposing undue stress within the support plant. Due consideration shall be given to the foundation conditions when planning the plant layout. Foundation design shall be consistent with good engineering practice in geothermal areas. All foundation designs shall ensure that any adjacent live services are either outside the zone of influence of the foundations or it shall be demonstrated that there will be no detrimental effect on the service. Where piled foundations are adopted to support plant over fill material, the system shall be designed to accommodate any consequences of future settlement of the fill material. Appropriate flexibility shall be provided in services and pipework which traverses the interface between rigidly founded structures and surrounding fill that may be susceptible to settlement. 11.4 SEISMIC DESIGN - GENERAL 11.4.1 Statutory Requirements The seismic design of all plant and structures must comply with the requirements of the New Zealand Building Code. As a Verification Method to the Building Code, all seismic design shall meet the requirements of the NZS 4203: 1992 "General Structural Design and Design Loadings for Buildings" and related New Zealand material standards. 11.4.2 NZS 4203 Loadings Code Provisions This standard shall be a minimum requirement for the seismic design of all facilities for this project. The following shall apply when interpreting the provisions of NZS 4203: 1992. a) Structures which exhibit significant ductility shall not be designed for a structure ductility factor greater than 3, unless it can be shown that a larger ductility factor will not impair the Plant's ability to operate during the restoration period following a major earthquake. EPC Schedule A (A-69) 09 October 2003
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Page 70 EPC Contract - Wairakei -------------------------------------------------------------------------------- b) All items which are mounted on structures above ground shall be designed to resist forces derived from the total response of the item (i.e. ground motion added to the structural motion relative to the ground), as required by NZS 4203, Clause 4.12.1.3. c) The facility shall be considered a power generation facility with a design life of 25 years and designed as Category 1 structures. d) Plant shall be designed, constructed and installed to remain elastic during and after the design earthquake. Where practical, a ductile collapse mechanism shall be provided for all equipment for seismic events greater than the design earthquake, unless safety factors on all plant parts are greater than 1.5 e) No failure of any part of the Plant that could cause a Binary Plant malfunction shall occur as a result of the Design Earthquake. Such failures would include; oil or gas leakages from bushings, failure of internal components, failure of tripping relays, misalignment of disconnectors, broken compressed air piping or similar failures in ancillary plant. 11.4.3 Material Standards NZS 4203 has been written in limit state format, and in conjunction with New Zealand material standards which are also written in limit state format. The seismic design of components and systems shall comply with these material standards. For materials not covered by these standards and for which the relevant material standards have not been drafted in limit state format, the Contractor shall adopt a rational design approach to the assessment of component strength and system performance, to achieve the intent of the loadings code NZS 4203. 11.4.4 Foundations Foundations shall in general be designed to remain elastic wherever practicable under seismic loading. High voltage electrical equipment foundations shall be designed to resist loading resulting from the elastic response of the supported equipment. 11.5 SPECIFIC DESIGN AND CONSTRUCTION 11.5.1 Site Clearance Site 4 has been previously used as a construction workers housing estate. It is probable that significant debris and disused underground services will be present at both sites. These will need to be removed and the ground made good, as required. The Contractor shall also note that the steam pipelines along the steam mains corridor were once insulated with asbestos materials. Although the asbestos insulation has been replaced with non-asbestos materials, the soil in the immediate vicinity of the steam line mains may be contaminated with traces of asbestos. If excavation is required within 2m of the steam pipeline mains, the soil must be tested for the presence of asbestos before excavation takes place. To the extent that asbestos is found and it is deemed to be a health hazard, the affected layer shall be removed and disposed of in accordance with OSH guidelines at the Owner's cost. The Contractor shall obtain Owner's approval prior to the removal of any established plantings. EPC Schedule A (A-70) 09 October 2003
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Page 71 EPC Contract - Wairakei -------------------------------------------------------------------------------- 11.5.2 Site Filling Both sites are likely to require significant earthworks to achieve a suitably shaped building platform. Site layout design should be such that cut and filling are balanced as much as possible. Preference will be given to designs that provide minimum interference with the existing site features. Low points to the finished site contours shall be adequately drained into either the Wairakei Stream, or a suitably designed field catchpit connected to the stormwater system. Site contours must be designed to allow secondary overland flow to discharge into the Wairakei Stream without entering buildings, or affecting plant operations. Discharge of overland flow across the site boundaries will not be permitted. 11.5.3 Drainage The Contractor is responsible for the design and construction of stormwater drainage to the full extent of the Binary Plant Site within the perimeter fence and any drainage which occurs into this area. Stormwater pipe systems shall be designed to cater for a design storm having a 10% probability of occurring annually, combined with any operational flows from the plant. Secondary flow paths are to be provided to enable flows in excess of the design storm to be discharged into the Wairakei Stream without entering buildings, or affecting plant operation. Discharge of overland flow across the site boundaries will not be permitted. Stormwater design shall be in compliance with Verification Method E1/VM1 in New Zealand Building Code Handbook. For the purposes of this clause, the rainfall intensity of a storm with a 10% probability of occurring annually, and of a 10 minute duration, may be taken as 85 mm/hr. Other durations may be rationally deduced from the criteria in E1/VM1. Pipe class shall be determined from NZS/AS 3725 - "Loads on Buried Concrete Pipes", subject to the modifications in B1/VM1 of the New Zealand Building Code Handbook. Outfall structures must make provision for energy dissipation to ensure non-scouring velocities at the point of discharge. 11.5.4 Contaminated Water Handling All potential sources of contaminated rain water run off shall be bunded and effluent discharged from such bunds to an oil water separator system, in strict accordance with Owner's Consents. All bunds shall be designed to hold the capacities specified in the consents. The bunds shall not be capable of being emptied by gravity. Outlets from the bunds shall have a flow restriction to prevent inundation of the downstream oil interceptor in the event of high flows. Protection from blockage of outlet from the bund by debris shall be provided. The floor surface of all bunded areas shall have a slope and a small recess in the floor to accommodate a pump so that when the containment area is emptied, water is completely A single oil interceptor facility to treat all oily water flows is to be provided. Treated water from the oil interceptor shall be discharged into the Wairakei Stream. The separated oil/water mixture shall be run into a slops tank with provision for manual pump out. The tank shall be sealed from surrounding soil, and will have protection from rainwater and surface run-off. An Oil Interceptor Level switch to indicate interceptor full shall be provided and a digital input shall be connected to the control room SCADA system. The surfaces of the bund areas containing chemicals shall be impervious. EPC Schedule A (A-71) 09 October 2003
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Page 72 EPC Contract - Wairakei -------------------------------------------------------------------------------- 11.5.5 Concrete All concrete design shall be in strict accordance with NZS 3101: 1995 - "Concrete Structures Standard". The Contractor should particularly note the Durability requirements of this code. 11.5.6 Concrete Masonry All masonry design shall be in accordance with NZS 4230: Part 1 1990 - "Code of Practice for the Design of Masonry Structures". Clay masonry units are not to be used for structural purposes in this contract. Concrete blocks used for exterior walls of buildings must be adequately sealed to prevent moisture ingress. 11.5.7 Structural Steel All structural steel design shall comply with NZS 3404: 1997 - "Steel Structures Standard". All cold formed steel design shall comply with AS/NZS 4600: 1998 - "Cold-Formed Steel Structures". The corrosion protection requirements of clause 1.4.2 must be met. Hot dip galvanising shall be adopted wherever practical instead of painting. Alternatively, the Contractor may specify other systems that meet, or better, the requirements of clause 1.4.2. 11.5.8 Timber All timber design shall comply with NZS 3603: 1993 - "Timber Structures Standard". Where applicable NZS 3604: 1999 - "Timber Framed Buildings", may be used. Timber construction shall be in accordance with best trade practice and the New Zealand Building Code. 11.5.9 Building Details These are generally covered in the New Zealand Building Code, which forms part of this specification. Note that NZS 3604 : 1990 - "Code of Practice for Light Timber Frame Buildings not Requiring Specific Design" is a suitable Verification Method to the Building Code. EPC Schedule A (A-72) 09 October 2003
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Page 73 EPC Contract - Wairakei -------------------------------------------------------------------------------- 12. SERVICES 12.1 COMPRESSED AIR 12.1.1 General The proposed indicative system for the compressed air system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawings in Schedule J as follows: o Ormat Drawing No. 7.011.00.415.0 Revision 0, P&ID Air Compressor System. o Ormat Drawing No. 7.011.00.416.0 Revision 0, P&ID Compressed Air Distribution System. Compressed air for the plant shall be supplied by two compressed air trains each sized for the total plant requirements (duty and stand-by). Each train shall comprise of an inlet filter, oil injected screw compressor with integrated oil and after coolers, prefilter, refrigerant or desiccant drier, and air receiver. The compressors shall be cooled by air. No cooling water is available. The compressors shall not be affected by higher than ambient air temperatures. The piping and controls shall enable interconnection of the standby equipment of each train to maximise redundancy. A minimum of two receivers shall supply, via a common header, a control air circuit and a service air network. The service air network shall include a priority valve, operating on loss of pressure, and isolating the service air system from the control air system. Compressed air system equipment, parts, and components supplied shall be items that are normally made or available within New Zealand and have well established vendor servicing facilities in New Zealand. 12.1.2 General Design a) Pressure Requirements All components of the compressed air system shall be designed for a maximum working pressure of 7.6 bar gauge. All pressure vessels, including air receivers, shall be designed and constructed in accordance with the requirements of the Health and Safety in Employment (Pressure Equipment Cranes and Passenger Ropeways) Regulations 1999. b) Compressor Requirements Each compressor shall be a screw type, capable of delivering the Binary Plant compressed air requirements for normal operation, start-up, shut-down and all other services. This shall be done without unloading/loading more than six times per hour. Each compressor shall have a duty cycle not exceeding 33%. The compressors shall be of the load/unload type where the motors run continuously. Compressors which require a motor shutdown during periods of zero or light load will not be accepted. c) Air Receivers Receivers shall be designed to have a storage capacity sufficient to: i. Provide a degree of regulation of air supply pressure that is acceptable for the correct function of all pneumatic instruments and controls. EPC Schedule A (A-73) 09 October 2003
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Page 74 EPC Contract - Wairakei -------------------------------------------------------------------------------- ii. Provide for the peak air demands during a start-up or shut-down of the Binary Plant without the supplied air pressure dropping below 5.0 bar gauge. iii. When the compressors are not functioning, provide for a shut-down of the receiver's associated air controlled equipment, without the supplied air pressure falling to 5.0 bar gauge. iv. Provide sufficient capacity to permit the compressor to have no more than 6 starts per hour, 33% duty cycle. d) Materials Special precautions shall be taken throughout the compressed air system due to the presence of hydrogen sulphide (H2S) gas in the atmosphere. e) Inlet Filters The inlet air filters shall remove H2S to below 0.1 PPM and particulate matter such that no damage can be incurred by the equipment. The filter shall operate at least 6 months between changes. 12.2 FIRE PROTECTION 12.2.1 General The proposed indicative fire water reticulation system is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 7.011.00.417.0 Revision 0 , P&ID Fire Fighting Loop in Schedule J, The contractor shall design, supply, install, test and commission the Fire Protection systems required for the Binary Plant. Where practical buildings and modules should be constructed with non-combustible materials. 12.2.2 Scope of Work A site fire hydrant system complete with fire pumps already exists at the Owner's Wairakei Station. The system shall be extended and upgraded if necessary under this Contract to provide protection to the Binary Plant. The existing fire water system is shown schematically in Meritec drawing No. 2512004 - 415 titled "Schematics for Potable and Fire Water System" (Exhibit A7). The work shall include but not be limited to the following: a) Extension of fire main from the common pump discharge line to the Binary Plant. b) Installation of a diesel fire booster pump if required. c) Provision of all fire hydrants and isolating sluice valves. d) Working fluid storage tanks water spray systems. e) Fire extinguishers. f) Smoke, thermal, gas, flame and other detection. g) Fire alarms and fire alarm panel. h) Equipment water spray systems, including for turbines, pumps and, if appropriate, the Local Control Room EPC Schedule A (A-74) 09 October 2003
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Page 75 EPC Contract - Wairakei -------------------------------------------------------------------------------- 12.2.3 Design Parameter The fire main shall be installed in accordance with the New Zealand Fire Service Code of Practice for Fire Fighting Water Supplies. Both existing fire pumps have the same duty, one pump being 100% standby. One pump is driven by a diesel engine, the other an electric motor. The pump specified duty is 82 l/s at a duty head of 74 meters. Contractor shall verify that the existing fire pumps are adequate to serve the Permanent Works being installed under this contract. Fire pumps shall be upgraded if necessary. 12.2.4 Regulations and Standards In addition to the NZFS Code of Practice for fire fighting water supplies and all mandatory standards, all plant and equipment supplied in this Contract shall comply with the following standards: a) The requirements of the New Zealand Building Code. b) The requirements of the Hazardous Substances and New organisms Act 1996, Dangerous Goods Act and the requirements of the local Dangerous Goods Inspector. c) The requirements of NZS 4219:1983 for a Class III building located in seismic Zone A. e) Appropriate NFPA codes and standards including o NZS 4541 for sprinklers, water spray systems and associated water supplies. o NZS 4503 for first aid fire fighting equipment (fire extinguishers and hose reels) o NZS 4512 for automatic fire detection and alarm systems f) IEEE Guide for Substation Fire Protection. 12.2.5 Fire Main a) Pipework The contractor shall provide all pipework and fittings. All pipework and fittings shall be ductile iron cement lined pressure pipe or polyethylene pipe underground and screwed galvanised pipe above ground. b) Isolating and Fire Hydrant Valves Isolation valves shall be provided at the tie in points to the existing fire system. Hydrant and valve box covers shall comply with BS 750. Hydrants shall be marked in accordance with NZS 4501:1972 Code of Practice for the Location and Marking of Fire Hydrants. 12.2.6 Working Fluid Storage Spray System The Contractor shall provide all of the pipework, valves, detectors, nozzles and projectors necessary to ensure efficient fire protection and water cooling of the working fluid storage tanks. Due consideration shall be given to the selection of the deluge valves in order to avoid hydraulic shock when deluge valves are actuated. The detection system shall be fail-safe. EPC Schedule A (A-75) 09 October 2003
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Page 76 EPC Contract - Wairakei -------------------------------------------------------------------------------- 12.2.7 Fire Alarm Panel a) General The Contractor shall supply and install a fire alarm system complete with smoke detectors, manual call points, hydraulic heat detectors and alerting devices. The operation of any detector or manual call point throughout the Binary Plant shall cause all sirens to sound, and the muting switch shall cause all sirens to cease while visual annunciation remains energised. A failure of supply, a cable break, or earth fault in the installation shall cause fault annunciation to energise. The circuits shall be provided as necessary. The detector modules used to determine if a fire sensor has operated or a fault has occurred on the detector circuits, shall be installed on the fire alarm panel, as an externally visible display. The fire alarm panel shall be located in the Binary Plant Local Control Room. All alarms, normal and fault indication shall be connected to the existing Geothermal Control Centre (GGC) system, through the Binary Plant control and monitoring system. Contractor shall undertake all work necessary to make this connection including programming. The GGC is staffed on a 24 hour basis. The Fire Service is called by the operator upon a fire alarm. Provide clean alarm contacts for security system and HVAC connections. The site "Sector Indicator Panel" at the main entrance to Wairakei A Station shall be modified to include the Binary Plant. The mimic panel shall be modified or replaced to include the Binary Plant, and a repeater fire alarm panel for the Binary Plant showing all zone alarms in similar format to the existing repeater panel provided. Manual Call Points Manual call points shall be provided in the local control room, at each egress point through the security fence, and at the working fluid storage tanks. Call points shall be break-glass type provided in accordance with the requirements of NZS4512. b) Smoke and Heat Detectors Smoke detectors shall be installed in the control room, with heat detectors installed as necessary above false ceilings. Standard heat detectors shall be provided in the compressor room. Each detector shall have its terminals, circuit number and zone number permanently marked. This marking shall be visible when in position. c) Alerting Devices Alerting devices shall be of the electronic siren type and shall produce a distinctive sound which is easily identifiable from other alarm devices used in the power station. Siren sound volume shall be suitable for the locations in which they are to be installed and shall be clearly audible above the ambient sound level. 12.2.8 First Aid Fire Applications First aid fire fighting equipment shall comply with NZS 4503. Provide in the control room, complete with identification signs, one wall mount 9 kg carbon dioxide fire extinguisher. EPC Schedule A (A-76) 09 October 2003
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Page 77 EPC Contract - Wairakei -------------------------------------------------------------------------------- 12.2.9 Acceptance Tests The Contractor shall carry out Acceptance Tests as set out in Part 5 of NZS 4512 : 1994, and in accordance with NZFS COP for fire mains and NFPA standards for water spray systems in the presence of an approved Independent Qualified Person (IQP). When these tests are satisfactorily completed, a Certificate of Compliance shall be provided by the IQP, once they are satisfied that the system complies in all respects with the appropriate standards. These tests shall be complete before working fluid is brought on site. 12.3 POTABLE WATER SUPPLY A potable water supply to the Binary Plant is to be provided and reticulated as required. The connection point location for the potable water supply is described in Exhibit A2. The existing potable water system is shown schematically in Meritec drawing No. 2512004 - 415 titled "Schematics for Potable and Fire Water System" (Exhibit A7) All buried potable water pipework and fittings shall be high density polyethylene. All pipework shall be installed in accordance with the supplier's recommendations. The Contractor shall be responsible for all trenching, backfilling, roading and the civil work for reinforced concrete anchor blocks and valve chambers associated with the supply. Provide valve chambers (tobby boxes) with shut off valves as required. The water supply from the shut off valves to fixtures will be connected under this contract. Provide isolation valves at each fixture to allow for future maintenance work. Contractor shall provide potable water hose stations with 30m of hose each. These shall be distributed throughout the Site such that no item of equipment requiring water for routine or periodic maintenance or cleaning is further than 30 away from a hose station. 12.4 CONTROL ROOM AND AIR CONDITIONING 12.4.1 Scope of Work The proposed indicative layout of the control and electrical room is shown in accordance with section 1.1.1 of these Owner's Technical Requirements on Ormat drawing No. 0.002.95.691.0 Revision 0, Electrical Room Layout in Schedule J, The local control room shall be air-conditioned to meet all human comfort and electronic and control equipment requirements. The fresh air supply shall be filtered through H2S removal filters. A rate of corrosion monitor shall be provided in the control room. 12.4.2 Design Parameters The air conditioning equipment shall be capable of maintaining the following internal conditions with the specified external ambient conditions. EPC Schedule A (A-77) 09 October 2003
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Page 78 EPC Contract - Wairakei -------------------------------------------------------------------------------- ZONE DRY BULB TEMPERATURE RELATIVE HUMIDITY Local Control Room 22oC +/- 1oC 50%+/- 5 System Noise Level: NC 35 with Binary Plant off, i.e. generating no noise. 12.4.3 Regulations and Standards HVAC services shall comply at no extra cost with: a. The requirements of the New Zealand Building Code. b. The requirements of the Hazardous Substances and new Organisms Act 1996, Dangerous Goods Act and the requirements of the local Dangerous Goods Inspector. c. The requirements of NZS 4219:1983 for a Class lll building located in seismic zone A. d. The requirements of the latest SMACNA low velocity duct manufacturing standard. 12.4.4 Description of Service Air conditioning shall recirculate room air through filters to remove dust and H2S. Air for ventilation and room pressurisation shall be introduced through a wall louvre directly into this unit. Approximately 80% of the volume of supply air shall be recirculated. At least an equivalent of 2 air changes per hour of outdoor air shall be required for ventilation and room pressurisation. A fresh air dust filter to European standard EU3 shall be provided and a EU4 dust filter provided after the H2S filter media. Inclined manometers are required across all filters with the clean and dirty resistances clearly identified. Two banks of filters with sufficient H2S filtering media to last for six months based on an average concentration of H2S in the outside air as listed above. The air conditioning and H2S removal system will operate continuously. An adjustable set point room temperature sensor shall be provided. Room humidity will not be controlled other than by natural dehumidification occurring during operation of the cooling coil in the air conditioning unit. Upon a fire alarm all HVAC plant shall stop. 12.4.5 Building Producer Statement Provide a contractors producer statement at the completion of the work to confirm that the systems have been installed in accordance with the contract documents. 12.5 STATION SERVICES - ELECTRICAL 12.5.1 Scope of Work The scope of work for electrical station services shall include: (a) Power distribution systems. (b) Lighting systems complete with all luminaries, switchboards, cabling and controls. (c) Power outlets. EPC Schedule A (A-78) 09 October 2003
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Page 79 EPC Contract - Wairakei -------------------------------------------------------------------------------- (d) Power supplies for air conditioning plant. The Contractor shall provide all miscellaneous equipment such as cable supports, conduit, ducting, clips, bolts, screws, points, terminals, lugs, labels, fixings and cable ties necessary to provide safe, fully operational, reliable systems. 12.5.2 Lighting Lighting source types and minimum illumination level for various areas shall be as indicated in the following table. Design illumination levels shall follow recognised international standards for the type and function of the rooms or areas being lit : Area Source Intensity Type (lux) Local Control Room Fluorescent 500 Roads/paths LPS 10 Plant areas LPS 50 Ancillary Buildings Fluorescent 300 All lighting fittings shall comply with I.E.C. standard No. 598 on luminaries or as otherwise required by NZECP 24. All fittings shall be entirely suitable for satisfactory operation in their installed locations, and shall be supported in conformity with best trade practice. Fittings installed in Gas Hazard zones shall comply with the requirements of NZECP 24. Fittings for outdoor location shall be watertight, corrosion resistant, and comprise aluminium, stainless steel, or lightweight ultraviolet (uv) light stabilised reinforced polyester materials. The position of light fittings shall be confirmed with the Owner before finalising cabling. 12.5.3 Socket Outlets The Contractor shall install indoor and outdoor three phase and single phase sockets in positions appropriate to anticipated use. There shall be a minimum of 15 single phase, and 10 32A three phase, socket outlets in the main plant area. There shall be at least 1 single phase, and 1 32A three phase socket outlet in the transformer area. Socket outlets shall be distributed such that no item of equipment within the Binary Plant perimeter fence is further than 20 m away from a single and three phase outlet unless hazardous zoning requirements dictate otherwise. Socket outlets shall be compatible with existing sockets used in Wairakei Station. 12.5.4 Phase Balancing The Contractor shall carefully adjust all electrical circuits so that equal electrical loading is obtained for each phase. EPC Schedule A (A-79) 09 October 2003
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Page 80 EPC Contract - Wairakei -------------------------------------------------------------------------------- 12.6 PHONES The Contractor shall provide a telephone in the Local Control Room. The telephone is to be connected to the Owner's existing PABX system. The available connection point to the Owner's system is given in the Terminal Point Schedule in Exhibit A2. EPC Schedule A (A-80) 09 October 2003
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Page 81 EPC Contract - Wairakei -------------------------------------------------------------------------------- 12.7 ALARM SIRENS 12.7.1 Operational Alarm Sounders Outdoor sounders and visual indication (eg a flashing light) shall be provided in appropriate locations around the Binary Plant complex to alert operating personnel of high priority alarm conditions. Locations of the alarm indicators shall be chosen to ensure that the alarm can be heard and seen from all areas of the Binary Plant complex. 12.7.2 Evacuation Alarm The Contractor shall install evacuation alarm sirens in locations where the Owner's existing siren is unable to be clearly heard when the Binary Plant is operating. (Eg Local Control Room, Adjacent to noisy equipment such as turbines.) The evacuation sirens shall be connected to the Owner's existing evacuation alarm system. Activation of the alarm from the Local Control Room is not required. EPC Schedule A (A-81) 09 October 2003
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Wairakei EPC -------------------------------------------------------------------------------- SCHEDULE B CONTRACTORS TECHNICAL PROPOSAL - INDEX Outline Technical Proposal o General Description o Outline Plans and Specification for Work Owners MARCO Requirements Interface arrangements during Construction Commissioning and Testing List of Subcontractors Document Submittal Qualification Quality Assurance Plan Outline Health and Safety Plan Outline Recommended Spare Parts Recommended Assembly Tools Unit Rates for Site Works and Variations Guarantees OUTLINE TECHNICAL PROPOSAL EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 1. ORMAT ENERGY CONVERTER(R) (OEC) - GENERAL DESCRIPTION The OEC Proposed for the Wairakei power plant is an Integrated Two Level Units (ITLU) modular power plant comprised of all the equipment and controls required to convert the hot geothermal brine into useful electric power. The major components of the ITLU consist of preheaters, vaporizers, turbines, generator, lubrication and sealing systems, air-cooled condenser, and motive fluid cycle pumps. The module also includes automatic and manual control valves, instrumentation (gauges, switches and transmitters), internal piping, and power and control boards. Operation process of the ITLU is based on the Rankine cycle, in which an organic fluid absorbs heat from a heat source, causing the motive fluid to vaporize; it then expands in the turbine, producing rotational shaft power by transforming kinetic energy gained by the vapor's expansion process. The geothermal brine flows through the level I vaporizer tubes and then enters the tube section of the level II vaporizer. After the exit from the vaporizers it flows in parallel to the level 1 and level 2 tube side of the preheaters, while organic fluid flows through the shell side. The organic motive fluid thermal cycle is a closed loop cycle. The motive fluid cycles of the two levels are totally independent. The ITLU enables to extract the heat from the geothermal fluid in a simple and high efficient way without the complication of using mixtures of working fluids or operating in super critical cycles. A feed pump pumps the organic fluid from the condenser into the preheater tube section. The fluid is heated in the preheater to a temperature close to the boiling temperature and in the vaporizer the organic fluid reaches the boiling point and vaporizes. The organic vapor passes through the vapor inlet assembly, then enters the organic turbine and expands, thus dropping in pressure and temperature and producing rotational shaft power. The low-pressure vapor flows to an air-cooled condenser, condenses and then is pumped back into the preheater. The attached process flow diagram shows the thermodynamic parameters of the process. The organic motive fluid used in the thermal cycle is Iso-Pentane, selected for optimal utilization of available heat source. The OEC is comprised of the following components, as described below 1.1 VAPORIZER The vaporizer is a horizontal, shell and tube heat exchanger, manufactured of carbon steel with a tube bundle, sheet metal shell and fixed tube sheets. Heating fluid flows through the tube side and motive fluid through the shell side. A bellow type expansion joint is provided to compensate for any differential thermal expansion of the tubes and shell. EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- Separator is installed on the top of the vaporizer. The separator is designed to retain the droplets of liquid carried over the vapor, thus preventing impinging of droplets on turbine blades. 1.2 PREHEATER The preheater is a horizontal, shell and tube heat exchanger manufactured from carbon steel with a tube bundle, metal shell and fixed tube sheets. Heating fluid flows through the tube side and motive fluid through the shell side. A bellow type expansion joint is provided to compensate for any differential thermal expansion of the tubes and shell. 1.3 POWER SKID Each of the two OEC power skids consists of a dual shaft extension generator, two turbines and associated oil system. (A) SYNCHRONOUS GENERATOR The generator is a synchronous type, air-cooled, three phase machine, brushless and weather protected. It is built to NEMA wp type II enclosure specifications and rated at 9,500 kW, 0.8 PF, 11 kV and 50 Hz. The generator and the two turbines are directly coupled. (B) TURBINE Each of the two OEC turbines consist of a single casing, multi-stage axial unit. The turbine is directly coupled to the end of the generator shaft. No speed-reducing gearbox is required because the properties of the organic fluids produce favorable aerodynamic matching at relatively low blade and rotational speeds. A double, mechanical shaft seal is used to prevent leakage of the working fluid into the atmosphere or lube oil. (C) TURBINE AND GENERATOR OIL SYSTEM. The oil system has two functions: o To supply oil to each turbine bearing for lubrication, sealing and cooling, and, o To supply oil to the generator bearings for lubrication. The oil system is designed to supply each oil consumer with the proper pressure and flow, and the proper type of oil. Each system is equipped with an oil pump as well as oil filters, oil coolers (forced air-cooled type), solenoid operated control valves and relief valves. The system is equipped with air operated emergency pumps and air accumulator to supply the lube oil in the event of an electric power failure. 1.4 AIR-COOLED CONDENSER The condenser is an induced draft, air-cooled heat exchanger. The tubes are arranged in a one-pass configuration where motive fluid vapor is fed from the inlet EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- box to the tubes. The motive fluid is cooled and condensed, inside the tubes, by forced air flowing outside of the finned tubes in a cross-flow pattern. The condensed motive fluid accumulates in the hot well collector from where it flows by gravity to the motive fluid filters and pumps. The condenser tubes are made of carbon steel tubes with aluminum fins. 1.5 FEED PUMPS The feed pumps pump the condensed motive fluid from the condenser hot well collector to the preheaters in each level 1.6 ORGANIC MOTIVE FLUID PIPING SYSTEM The organic motive fluid piping system consists of piping assemblies, in which the condensed motive fluid flow from the feed pumps through the preheater to the vaporizer, vapor motive fluid flow from the vaporizer to the turbine and from the turbine to the air cooled condenser and in which the condensed motive fluid return from the condenser hot well to the feed pumps. A motive fluid strainer is installed between the hot well collector and the pump inlet. An expansion joints are installed in the turbine inlet and outlet pipe assemblies to reduce the force and moments on the turbine nozzles. Automatic and manual control valves supplied as part of the piping system. 1.7 PURGE SYSTEM The purge system is installed on the upper side of the condenser outlet boxes. The system is designed to continuously purge the OEC condenser of non-condensable gases, predominantly air, that enter the OEC, mostly during start-up and when the unit is not operating, and to recover the working fluid. 1.8 GEOTHERMAL PIPING SYSTEM The brine piping system allows brine to flow from level I vaporizer through level II vaporizer to the preheaters. 1.9 OEC POWER SYSTEM The OEC power system contains of: (i) the generator high voltage breaker, PTs and CTs; (ii) 400 Volt auxiliaries supply board (MCC) 1.10 OEC CONTROL AND PROTECTION SYSTEM The control system is based on A-B SLC-500 or alike programmable logic controller (PLC) The OEC control incorporates a turbine control backup (TCBU), which disconnects the OEC from the bus and shut it down safely in event of a PLC malfunction. The PLC and I/O units with its accessories, is housed in a control board and fields junction boxes. The OEC control and protection system contains the following items: EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- (a) PLC: central processing unit with analog and digital input and output modules, and communication control units. (b) PROTECTION RELAYS to provide generator protection against under/over voltage, reverse power, loss of excitation, generator differential, phase over current, ground fault, phase balance, over speed, etc. (c) SYNCHRONIZER, check synchronizer, voltage and VAR controller. (d) OPERATION MODE SELECTOR switch and reset push buttons for local operation. Same switch and push buttons are duplicated by soft switch at the local HMI computer screen. The control system automatically accelerates the generator to synchronous speed and then synchronizes the generator to the bus. After being linked with the bus, the control system monitors and controls the operation of the OEC. Pressures, temperatures, voltages, speed, kilowatts, kilovars, currents, etc., are checked and monitored and compared with preset values in memory, to detect warning or failure conditions. In the event of a failure within the system, the unit is disconnected from the bus and shut down in a pre-programmed sequence. After a failure condition is rectified, the generating unit can be automatically started after a manual reset signal. 1.11 ELECTRO-PNEUMATIC CONTROL SYSTEM The electro-pneumatic control system operates the control valve actuators and provides air pressure to pneumatic components, either directly or through solenoid-operated valves installed on the pneumatic control panel. The pneumatic control panel is supplied by air at a nominal pressure of 90 psi, the pressure required to operate the pneumatic equipment. Pressure regulation and filtration is also provided Electronic control signals for the system are provided from the central unit control in the form of digital (ON, OFF) or analog (4 to 20 mA). The analog signals are converted by current to pressure (I/P) transducers to a proportional pneumatic output signal. 1.12 HUMAN-MACHINE INTERFACE (HMI) The system includes a personal computer with dedicated software to enable the operator to operate the power plant and monitor its functions. Citec operator station or alike is supplied. The HMI is located in the local control room. 1.13 INTERFACE WITH LOCAL / REMOTE STATION CONTROLS The control system provides access to all the analog and digital signals connected to the PLC through a communication link. Using the communication link, the customer can monitor parameters inside the PLC, send the OEC Stop Command from another PC with the proper software. The data inside the PLC is organized in blocks of accessible registers. Detailed requirements for the data transfer of EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- information are determined during detailed design. This includes both communication and hard-wired interface data. 1.14 INSTRUMENTATION All parameters that are measured to insure proper control and operation of the OEC, such as pressure, temperature, voltage, current, flow rate, power, etc., are measured by the appropriate instruments. 2. DESIGN CONDITIONS AND PERFORMANCE SPECIFICATIONS A. SITE CONDITIONS -------------------------------------------------------------------------------------------------------- Design max. temperature for electrical equipment in control 40(degree)C shelter -------------------------------------------------------------------------------------------------------- Altitude 360 m asl -------------------------------------------------------------------------------------------------------- Wind Per NZS 4203 -------------------------------------------------------------------------------------------------------- Seismic zone UBC Zone 4 (assumed) -------------------------------------------------------------------------------------------------------- B. PERFORMANCE SPECIFICATION AT DESIGN CONDITIONS: --------------------------------------------------------------- ---------------------------------------- PARAMETER VALUE --------------------------------------------------------------- ---------------------------------------- Generator rated power (each of 2) 9,500 kW --------------------------------------------------------------- ---------------------------------------- Generator Rating (each of 2) 11,875 kVA at power factor 0.8 --------------------------------------------------------------- ---------------------------------------- 11(degree)C Design ambient temperature --------------------------------------------------------------- ---------------------------------------- Net system output at design conditions, 14,380 kW (After deducting for plant internal use, but before well field pump use.) Excluded from ORMAT's scope. --------------------------------------------------------------- ---------------------------------------- Voltage 11 kV --------------------------------------------------------------- ---------------------------------------- Frequency 50 Hz --------------------------------------------------------------- ---------------------------------------- Geothermal Fluid Inlet Temperature. 127(degree) C --------------------------------------------------------------- ---------------------------------------- Geothermal fluid flow 2,800 t/h --------------------------------------------------------------- ---------------------------------------- C. EQUIPMENT SUPPLY EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 1. INTRODUCTION The design and equipment configuration, described herein, are preliminary and by definition not final. The details of the OEC system, including flow diagrams, drawings, specifications, data sheets and other technical documentation, and any other parameters relating to the guaranteed performance of the system, are subject to revision during the development of the detailed engineering. 2. EQUIPMENT SUPPLY ORMAT will supply all the equipment required to construct a completely integrated and operational power plant as defined in the Tender documents and in this Tender submittal documents. D. CONSTRUCTION The Engineering, Procurement and Construction activities shall be conducted in accordance with an EPC agreement substantially in the form and exceptions as attached to this proposal, and summarized below: 1. GENERAL DESCRIPTION ORMAT will perform all of the earthwork and civil, electrical and mechanical work required in the construction of the System as defined by the detailed engineering drawings and specifications. 2. CIVIL (a) Survey and stake out from the monuments provided by Customer. (b) Excavation for concrete foundations, supports, slabs, and underground piping, electrical conduits, and electrical cables. (c) Final grading and graveling of the site surface as required completing the existing site grading and drainage, and underground sleeves for pipe road crossings (for drainage purposes), as required. (d) Concrete work including foundations and slabs, and installation of embedded plates, pipe supports, conduits and anchor bolts for all the mechanical, electrical and other equipment. (e) Supply and install all sleeves, anchor bolts and embedded plates in concrete foundations, and perform grouting work. 3. STRUCTURAL STEEL (a) Install structural steel, pipe supports and secondary steel for pipe/ductwork (b) Prime and finish paint of steel or galvanize including touch-up paint EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 4. MECHANICAL WORK Perform all the mechanical work related to the OEC, other equipment installation, motive fluid and compressed air piping, and miscellaneous items, as follows: 5. OEC Erect, install, assemble, commission and test the OEC, and install, connect, finish, paint and test interconnecting pipes 6. MOTIVE FLUID, COMPRESSED AIR AND OTHER REMAINING MECHANICAL WORKS Supply and install, motive fluid storage tank, motive fluid pump and piping, compressed air 7. ELECTRICAL WORK Perform all electrical work including high and low voltage power distribution system, direct current ("DC") and instrumentation system, auxiliaries' step-down transformer, etc. 8. POWER AND CONTROL (a) Install, wire, tag and terminate all motor control centers and other electrical equipment and junction boxes located at equipment and control cabinets. (b) Install and terminate all internal control, measurement and protection devices and instrumentation including turbine generator protections, heat exchangers, and wiring and termination of control board. (c) Supply, install, wire and terminate control cables between controls, instrumentation and the control junction boxes. 9. CONSTRUCTION AND SUPPORT ACTIVITIES (a) Construction services including all required labor, equipment, materials and consumables necessary for construction activities as well as complete field technical construction administration and coordination. (b) Provide site management team to be responsible for field construction supervision, field engineering, field inspection, local procurement, planning and scheduling, cost control, safety and field administration. (c) Provide all direct labor, supplementary labor, journeymen, foremen, supervisory, and local management personnel to carry out the Work. Provide work force adequate to properly supervise and perform the Work. (d) Establish field inspection facilities. EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- (e) Perform system start-up and acceptance tests. (f) Install, and test miscellaneous sub-systems including lighting system, emergency lighting system, and grounding system. (g) Remove all construction debris from the Work Site and dispose of the same in an appropriate manner. E. OWNER FURNISHED ITEMS 1. Permitting. 2. Power and utilities for Construction and Start-up. 3. Interconnection facility for connection of OEC Generator to the Grid. 4. Provide access to site. F. TECHNICAL ASSISTANCE SERVICES 1. OPERATION AND MAINTENANCE PERSONNEL TRAINING ORMAT will conduct an operation and maintenance training course for Client's personnel. The course shall train the operators in normal operation of the equipment, normal operation of the sub-systems and operation as an integral system, during, stop/start and emergency situations. The course shall also include instruction on the scheduled maintenance of the equipment and the sub-systems. 2. O&M MANUALS ORMAT will provide three (3) copies of the O&M manuals, which shall describe the operation of the system and the individual plant components. A scheduled maintenance program (description and frequency), troubleshooting and recommended spare parts list will also be provided. 3. JOB BOOKS ORMAT will provide three (3) copies of Job Books, which include the manuals and technical descriptions. 4. AS BUILT CONSTRUCTION DRAWINGS Supply three (3) reproducible sets of "as built" construction drawings. 5. TESTS ORMAT shall be responsible for the preparation of the protocols for tests for final acceptance and for calculating and interpreting the test results. EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- ORMAT shall supply any special testing instrumentation, if required, in addition to instrumentation, which is required for normal operation. Customer shall provide and install the instrumentation for measuring the heat source flow rate and temperature. G. SPARE PARTS A kit of commissioning spares will be provided as part of the Scope of Supply. In addition a recommended spares list will be provided as part of the final documentation. During the warranty period spares drawn from the Client's stock to correct warranty repairs will be replaced at no charge to the Client. BINARY MECHANICAL PLANT 2.1 GENERAL No. of Units 2 Output at 11(degree)C (gross) 8,450 (for each Unit) 2.2 TURBINES No. of Turbines per ORC Unit 2 Manufacturer Ormat Model No's 1,500 General Arrangement Drawing No. 0.002.91.905.0 Sectional Drawing No. 0.002.91.904.0 Standards and Codes Applicable ORMAT Standard Component Materials ASTM (see list Below) Governor manufacturer and type Fisher - E disc* Vanessa - Triple off set * Manufacturer's data sheets See appendix A * Stop valve manufacturer, size and type Fisher - E disc* Vanessa - Triple off set * Manufacturer's data sheets See appendix A * Gear Box Manufacturer (if applicable) Not Applicable type Not Applicable general arrangement drawing Not Applicable sectional drawing Not Applicable manufacturers data sheets Not Applicable EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- Bill of Materials (Turbine) ---------------------------------------------------------------------- No. Component description Component material ---------------------------------------------------------------------- 1 Turbine shaft E4340 (Chrome - nickel) ---------------------------------------------------------------------- 2 Turbine housing SA - 516 Grade 70 ---------------------------------------------------------------------- 3 Turbine outlet assembly SA - 516 Grade 70 ---------------------------------------------------------------------- 4 Nozzles' rings SA - 266 Class 2 ---------------------------------------------------------------------- 5 Turbine wheels SA - 266 Class 2 ---------------------------------------------------------------------- *Or equivalent / similar 2.3 LUBRICATING, SEAL, AND HYDRAULIC OIL SYSTEMS OIL SYSTEM SKID The oil system consists of two subsystems: o Generator and Turbine Bearing Oil System o Turbine Seal Oil System GENERATOR AND TURBINE BEARING OIL SYSTEMS An electrical, motor-driven, positive displacement oil pump draws oil from the bearing oil tank through a suction strainer. The oil flows from the pump discharge port line filter and an air/oil cooler. Leaving the cooler, oil disperses to the two turbine bearings and to the generator bearings. Oil to the turbine bearings is supplied via a check valve to a central hydraulic block located on each turbine housing and supplies pressure to turbine bearings, which are regulated by pressure relief valve at the hydraulic block, while the pressure supplied to generator bearings is controlled by two orifices located at the bearing inlet port. Oil from the turbine and generator bearings returns directly to the oil tank. The oil pump is protected against excessive pressure by a built-in adjustable relief valve installed at the pump outlet. A pressure switch unit, located in the hydraulic block of each turbine, protects against low-pressure level. The system is equipped with a pneumatically operated pump as back up for the electrically driven pump. In the event that oil pressure in the supply lines is lower than normal, the emergency pump supplies oil for the system through a check valve. The pressure switch located near the electrically driven pump will send a warning signal to the operator. A system failure occurs when the pressure is low at one of the turbine inlets. EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- A warning indication will appear when one of the following lubrication system malfunctions occur: o The oil temperature at one of the turbine outlets is high. o There is no "On" indication from the lub. oil pump. o The pressure is low at the lub. oil pump outlet. Oil level, oil temperature and oil pressure can be read on locally mounted indicators. SYSTEM TECHNICAL DATA Oil tank capacity : 32 gallon (120 liters) Oil pump type : 1. Gear pump, driven by electrical motor 400v 50 Hz. : 2. Compressed air-powered diaphragm pump. Oil cooler type : Air radiator (induced draft) Filter Size Suction line : 140 Micron Discharge line : 25 Micron (installed in-line) Hydraulic block : 40 Micron TURBINE SEAL OIL SYSTEM An electric motor-driven positive-displacement oil pump draws oil from the seal oil tank through a suction strainer. The oil flows from the pump discharge through an oil cooler, a check valve and two filters to the mechanical seal chamber inside the turbine. The system is protected against excessive pressure by a built-in adjustable relief valve installed at the pump outlet. Another pressure relief valve, adjusted to open at a preset pressure, is connected in front of the check valve. The return line from the turbine seal routes the oil through a normally closed solenoid-operated shut-off valve to the seal oil tank. Under failure condition the shut-off valve is closed and the accumulator, which is connected to the seal return line, maintains seal pressure. The system automatically shuts down when one of the following lubrication system failures occur: o Low seal oil pressure o High seal oil pressure EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- A warning indication will appear when one of the following seal oil system malfunctions occur: o High oil temperature at turbine exit. o There is no "On" indication from the seal oil pump. o Pressure is low at the seal oil pump outlet. Seal oil level and oil pressure can be read on locally mounted indicators. To avoid oil pressure drop following OEC shutdown, the oil pump operates intermittently while the shut-off valve is closed. The system is equipped with pneumatically operated pump as back-up for the electrically driven pump. In the event that oil pressure in the supply lines is lower than normal, the emergency pump supplies oil for the system through a check valve. SYSTEM TECHNICAL DATA: Oil tank capacity : 32 gallon (120 liters) Oil pump type : 1. Gear pump, driven by electrical motor 400V 50Hz : 2. Compressed air powered diaphragm pump. Oil cooler type : Air radiator (induced draft) Filters One suction strainer : 140 micron Discharge line : 25 micron Hydraulic filter : 40 micron Oil Accumulator Type : Diaphragm Nitrogen precharging pressure : 38 psi (2.6 bar) P & ID drawing No. 0.011.00.418.0 and 0.011.00.419.0 General arrangement drawing No. 0.002.91.906 EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 2.4 FEED PUMP No. of Working Fluid Feed Pumps per Unit 2 Manufacturer Goulds, Flowserve, Floway * Model No. Vertical turbine pump General Arrangement Drawing No. See drawing of typical Feed Pump Sectional Drawing No. See drawing of typical Feed Pump Applicable Standards and Codes General purpose with double mechanical seal *Or equivalent / similar 2.5 HEAT EXCHANGERS - GEOTHERMAL FLUID / WORKING FLUID 1. VAPORIZER Manufacturer Ormat Model BKM General Arrangement Drawing No. 0.002.55.706.0 and 0.002.55.707.0 Component Materials List of Component Materials appears in drawings Applicable Standards and Codes ASME sec VIII Div. I including U stamping Internal Tube Diameter 21.2 mm 2. PREHEATER Manufacturer Ormat Model BFM General Arrangement Drawing No. 0.002.57.704.0 Component Materials List of Component Materials appears in drawings Applicable Standards and Codes ASME sec VIII Div. I including U stamping Internal Tube Diameter 21.2 mm EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 3. RECUPERATOR Manufacturer Ormat Model Not Applicable General Arrangement Drawing No. 0.002.59.701.0 Component Materials List of Component Materials appears in drawings Applicable Standards and Codes ASME sec VIII Div. I including U stamping Internal Tube Diameter 18 mm 2.6 CONDENSERS No. of Condensers per unit Subject to detailed design Manufacturer Ormat Model Made specially by Ormat. No model No applied General Arrangement Drawing No. 0.002.60.520.0 Applicable Standards and Codes ASME sec VIII Div. I including U stamp Fan Motor Description including 3 Pole vertical face mounted motor Usphiz, GE, US Motors, Brooks, Siemens, Baldor, Loher, ABB, WEG Manufacturer * Description of Drive Mechanism Belt type speed reducer Internal Tube Diameter 21.5 mm *Or equivalent / similar 2.7 PIPING Design PRESSURE (BAR G) TEMPERATURE ((DEGREE)C) H.P To be defined (T.B.D) To be defined (T.B.D) L.P. (IF APPLICABLE) To be defined (T.B.D) To be defined (T.B.D) EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- Materials: Piping A 106 Gr.B / API5LB / A312 Gr TP 316L Flanges A 105 / A182 Gr F 316L Corrosion allowance: 3 mm Applicable Standards and Codes ASME B 31.1 Manufacturers data sheets See appendix A *. *Or equivalent / similar 2.8 WORKING FLUID STORAGE AND HANDLING Storage tank total volume 25 m(3) Capacity of empty storage Approximately 12.5 m(3) Capacity of "Top up" Approximately 12.5 m(3) Design Pressure Max. 10 barg. Min.- 0.35 bara. Design Temp. Max. 140 (degree)C Min. 1 (degree)C Corrosion Allowance 3 mm Working Fluid Charge Total Approximately 25 m(3) per close Pentane loop (every OEC is 2 close loops) Section*, between maintenance From Turbine inlet to Condenser outlet approximately 10 m(3) isolation valves. From Condenser outlet to Turbine inlet approximately 15 m(3) (including: Preheater, Vaporizer and Recuperator) Working Fluid Density 620 kg / m(3) (25 (degree)C) Manufacturers details of See Appendix A the working fluid transfer system (pump/compressor etc). A Material Safety Data Sheet See Appendix A (MSDS) EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 2.9 GEOTHERMAL FLUID PIPING Preliminary Piping Layout No. 0.011.00.408.0 Preliminary P & ID - Brine OEC's Gathering System No. 7.011.00.412.0 Preliminary P & ID - Energy Dissipation System No. 7.011.00.413.0 For Typical Manufacturers data sheets for each type of valve See appendix A. 3. N/A 4. GENERATOR 4.1 GENERAL The Generator Capability and Exciter Performance Statement details (Transpower Spreadsheet) & Curves (on A4 size drawings) showing effects of excitation system control - To be define (T.B.D) with detailed design. Manufacturer As per Vendor list* Country of Manufacture USA* Standards & Codes IEC 60034 Temperature Rise: 80 C 4.2 STATOR Insulation Class F Jointing methods & materials TBD 4.3 ROTOR Space required for removal 3300mm Jointing methods & materials TBD 4.4 TEMPERATURE SENSORS Air Circuit Core Slots Number ________-- 12 Type -_____________-- RTD Position -__________________- In Stator Winding *Or equivalent / similar EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 4.5 EXCITATION SYSTEM Description Brush-less Exciter rated capacity (kW) 25 Exciter speed (rpm) 1500 4.6 SURGE DIVERTERS Manufacturer Not applicable for the Generator. Equipment to be installed in the 11kV Switchgear. Type Rated voltage Maximum working voltage Arrestor Classification Rated discharge capacity 5. TRANSFORMERS 5.1 VOLTAGE TRANSFORMERS ----------------------------------------------------------------------------------------------------- ITEM 11KV SWITCHGEAR VT 11KV GENERATOR NGT 220KV SWITCHYARD VT ----------------------------------------------------------------------------------------------------- Function Control and Protection Neutral Grounding Metering and Protection ----------------------------------------------------------------------------------------------------- Manufacturer As per vendors list * ITI * As per vendor list * ----------------------------------------------------------------------------------------------------- Type Phase to Phase CPT5 Capacitive, with 2 secondary windings ----------------------------------------------------------------------------------------------------- Rated Voltage (kV) 15kV 15kV 245kV ----------------------------------------------------------------------------------------------------- Ratio 1:100 1:55 1:2000 ----------------------------------------------------------------------------------------------------- Output rating (VA) 500 5000 750 ----------------------------------------------------------------------------------------------------- Accuracy (%) 0.3 0.3 0.2 metering and 3P for protections. ----------------------------------------------------------------------------------------------------- Primary Knee-point (%) TBD TBD TBD ----------------------------------------------------------------------------------------------------- *Or equivalent / similar EPC SHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- 5.2 CURRENT TRANSFORMERS ----------------------------------------------------------------------------------------------------------- ITEM 11 KV 11 KV 11 KV 220 KV SWITCHGEAR SWITCHYARD GENERATOR SWITCHYARD CT CT CT CT ----------------------------------------------------------------------------------------------------------- Core TBD TBD Iron TBD ----------------------------------------------------------------------------------------------------------- Ratio 600/5, 800/5, 1500/1 800/5 100/1 1500/5 ----------------------------------------------------------------------------------------------------------- Function Control and Protection Metering and Protection Protection ----------------------------------------------------------------------------------------------------------- Manufacturer As per vendors As per vendor list As per vendor list * list * * ----------------------------------------------------------------------------------------------------------- Type Window Bushing mounted in Primary Wound Bushing mounted transformer either in transformer or in the dead tank type circuit breaker ----------------------------------------------------------------------------------------------------------- Rated Voltage (kV) 600V, 10kV BIL 600V, 10kV BIL 15kV 600V, 10kV BIL ----------------------------------------------------------------------------------------------------------- Burden capability (VA) 15VA 15VA Differential 15VA ----------------------------------------------------------------------------------------------------------- Short Time Current TBD TBD Relay T200, 1.5 TBD (As) @ 30 C ----------------------------------------------------------------------------------------------------------- Accuracy and 5P10, 5P20 5P20 87,000 0.2, 5P20 over-current factor (%) ----------------------------------------------------------------------------------------------------------- *Or equivalent / similar 5.3 STEP UP AND AUXILIARY TRANSFORMERS ----------------------------------- ------------------------- ----------------------- ----------------------- ITEM STEP-UP TRANSFORMER AUXILIARY TRANSFORMER AUXILIARY TRANSFORMER ----------------------------------- ------------------------- ----------------------- ----------------------- Manufacturer As per vendors list * As per vendor list * As per vendor list * ----------------------------------- ------------------------- ----------------------- ----------------------- Country of manufacture TBD TBD TBD ----------------------------------- ------------------------- ----------------------- ----------------------- Standards & Codes IEC or ANSI IEC or ANSI IEC or ANSI ----------------------------------- ------------------------- ----------------------- ----------------------- Cooling Type ONAN ONAN ONAN ----------------------------------- ------------------------- ----------------------- ----------------------- Rated power (MVA) 19 1.6 0.4 ----------------------------------- ------------------------- ----------------------- ----------------------- Nominal ratio of transformation 220/11 11/0.4 11/0.4 (kV/kV) ----------------------------------- ------------------------- ----------------------- ----------------------- EPC SCHEDULE B September 23 2003
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Wairakei EPC -------------------------------------------------------------------------------- ----------------------------------- ------------------------- ----------------------- ----------------------- ITEM STEP-UP TRANSFORMER AUXILIARY TRANSFORMER AUXILIARY TRANSFORMER ----------------------------------- ------------------------- ----------------------- ----------------------- Tapping range on HV +/-10% +/-5% +/-5% ----------------------------------- ------------------------- ----------------------- ----------------------- Tapping steps 1.25% 2.5% 2.5% ----------------------------------- ------------------------- ----------------------- ----------------------- No load loss at rated voltage (kW) 18 1.5 0.5 ----------------------------------- ------------------------- ----------------------- ----------------------- Load loss at nominal ratio at 57 13.5 3.5 rated power (kW) ----------------------------------- ------------------------- ----------------------- ----------------------- Maximum loss at rated power (kW) 75 15 4 ----------------------------------- ------------------------- ----------------------- ----------------------- Maximum sound power (dBA) TBD TBD TBD ----------------------------------- ------------------------- ----------------------- ----------------------- Impedance voltage at rated power 0.1 0.0575 0.0575 at nominal ratio (pu) ----------------------------------- ------------------------- ----------------------- ----------------------- Impedance voltage at rated power 0.11 at +10% 0.06 at +5% 0.06 at +5% at highest ratio (pu) ----------------------------------- ------------------------- ----------------------- ----------------------- Impedance voltage at rated power 0.09 at -10% 0.05 at -5% 0.05 at -5% at lowest ratio (pu) ----------------------------------- ------------------------- ----------------------- ----------------------- Zero phase sequence impedance of TBD TBD TBD HV with LV short circuited at nominal tap (Ohm) ----------------------------------- ------------------------- ----------------------- ----------------------- Regulation at rated power at 0.75 1 1 unity power factor (%) ----------------------------------- ------------------------- ----------------------- ----------------------- Regulation at rated power at 0.90 4.5 4.2 4 power factor lagging (%) ----------------------------------- ------------------------- ----------------------- ----------------------- *Or equivalent / similar EPC SCHEDULE B September 23 2003
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----------------------------------- ------------------------- ----------------------- ----------------------- ITEM STEP-UP TRANSFORMER AUXILIARY TRANSFORMER AUXILIARY TRANSFORMER ----------------------------------- ------------------------- ----------------------- ----------------------- 3 second short circuit fault TBD TBD TBD level on HV winding including any tapping winding (MVA) ----------------------------------- ------------------------- ----------------------- ----------------------- 3 second short circuit fault TBD TBD TBD level on LV winding including any tapping winding (MVA) ----------------------------------- ------------------------- ----------------------- ----------------------- Off-Load Tap-changer N/A Since OLTC is TBD TBD supplied ----------------------------------- ------------------------- ----------------------- ----------------------- Dimensions Masses, Volumes TBD TBD TBD ----------------------------------- ------------------------- ----------------------- ----------------------- 6. SWITCHBOARDS 6.1 11 KV SWITCHBOARD ----------------------------------------------------- --------------------------------------------------- Switchboard Name 11kV Switchgear U1A ----------------------------------------------------- --------------------------------------------------- Manufacturer of Switchboard As per vendors list * ----------------------------------------------------- --------------------------------------------------- Manufacturer's Type Reference Metal Clad/enclosed ----------------------------------------------------- --------------------------------------------------- Length of time design has been in commercial More than 3 years operation ----------------------------------------------------- --------------------------------------------------- Details of Type Test (Certificate No. Date of Type tests available as per standard as per Tests, Name and location of Testing Authority) vendor. ----------------------------------------------------- --------------------------------------------------- Circuit Breakers and CB Panels Withdrawable ----------------------------------------------------- --------------------------------------------------- Circuit Breaker Duty Stored energy type ----------------------------------------------------- --------------------------------------------------- Application (connected plant) Synchronizing type ----------------------------------------------------- --------------------------------------------------- Manufacturer TBD ----------------------------------------------------- --------------------------------------------------- Current Rating (A) 2000, 1200 ----------------------------------------------------- --------------------------------------------------- Manufacturer's Type Ref TBD ----------------------------------------------------- --------------------------------------------------- CB breaking medium (Vacuum / SF6) Vacuum ----------------------------------------------------- --------------------------------------------------- 6.2 400 V SWITCHBOARDS --------------------------------- ----------------------- ----------------------- ----------------------- Switchboard Name U3A U3B U3C --------------------------------- ----------------------- ----------------------- ----------------------- Manufacturer of Switchboard As per vendors list As per vendors list As per vendors list * * * --------------------------------- ----------------------- ----------------------- ----------------------- Manufacturer's Type Reference MCC MCC MCC --------------------------------- ----------------------- ----------------------- -----------------------
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--------------------------------- ----------------------- ----------------------- ----------------------- Switchboard Name U3A U3B U3C --------------------------------- ----------------------- ----------------------- ----------------------- Length of time design has been More than 3 years More than 3 years More than 3 years in commercial operation --------------------------------- ----------------------- ----------------------- ----------------------- Details of Type Test Type tests available Type tests available Type tests available (Certificate No. Date of Tests, as per standard as as per standard as as per standard as Name and location of Testing per vendor. per vendor. per vendor. Authority) --------------------------------- ----------------------- ----------------------- ----------------------- *Or equivalent / similar 7. BATTERY, CHARGERS AND SWITCHBOARDS ------------------------------------------ ------------------------------------ ----------------------------- BATTERIES ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer Sonnenschein or GNB Sonnenschein or GNB ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer's Ref. No. TBD TBD ------------------------------------------ ------------------------------------ ----------------------------- Voltage (V) 125 24 ------------------------------------------ ------------------------------------ ----------------------------- Number of Cells 60 12 ------------------------------------------ ------------------------------------ ----------------------------- Nominal Voltage per Cell 2.25 2.25 ------------------------------------------ ------------------------------------ ----------------------------- Capacity (Amp/hr) TBD TBD ------------------------------------------ ------------------------------------ ----------------------------- BATTERY CHARGERS ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer TBD TBD ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer's Ref. No. TBD TBD ------------------------------------------ ------------------------------------ ----------------------------- Rating (kVA) TBD TBD ------------------------------------------ ------------------------------------ ----------------------------- Input voltage range (VAC to VAC) 230+/- 10% 230+/- 10% ------------------------------------------ ------------------------------------ ----------------------------- Output voltage range for Normal charge 20-30 100-140 (VDC to VDC) ------------------------------------------ ------------------------------------ ----------------------------- Output voltage range for Boost charge TBD TBD (VAC to VAC) ------------------------------------------ ------------------------------------ ----------------------------- State Yes/No do chargers comply with YES YES Earthquake Requirements ------------------------------------------ ------------------------------------ ----------------------------- Instruments included 2 Led indicators for voltage 2 Led indicators for voltage and current control, DC and current control, DC ammeter and DC voltmeter, AC ammeter and DC voltmeter, AC and DC circuit breakers, and DC circuit breakers, Fault signals. Fault signals. ------------------------------------------ ------------------------------------ ----------------------------- AC CIRCUIT BREAKERS ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer As per vendor list * As per vendor list * ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer's Ref. No. TBD TBD ------------------------------------------ ------------------------------------ -----------------------------
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------------------------------------------ ------------------------------------ ----------------------------- Type Mini-breakers Mini-breakers ------------------------------------------ ------------------------------------ ----------------------------- Breaking medium AIR AIR ------------------------------------------ ------------------------------------ ----------------------------- DC CIRCUIT BREAKERS ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer As per vendor list * As per vendor list * ------------------------------------------ ------------------------------------ ----------------------------- Manufacturer's Ref. No. TBD TBD ------------------------------------------ ------------------------------------ ----------------------------- Type Mini-breakers Mini-breakers ------------------------------------------ ------------------------------------ ----------------------------- Breaking medium AIR AIR ------------------------------------------ ------------------------------------ ----------------------------- *Or equivalent / similar ------------------------------------------ ---------------------------------------------------------------- UPS ------------------------------------------ ---------------------------------------------------------------- Manufacturer As per vendor list * ------------------------------------------ ---------------------------------------------------------------- Manufacturer's Ref. No. TBD ------------------------------------------ ---------------------------------------------------------------- Rated output (continuous) (kVA) 0.85 ------------------------------------------ ---------------------------------------------------------------- Rated voltage (V) 230 ------------------------------------------ ---------------------------------------------------------------- 230VAC UPS SWITCHBOARD ------------------------------------------ ---------------------------------------------------------------- Manufacturer As per vendor list * ------------------------------------------ ---------------------------------------------------------------- Manufacturer's Ref. No. TBD ------------------------------------------ ---------------------------------------------------------------- *Or equivalent / similar 8. MOTORS ----------------------------------- ----------------- ---------------- ----------------- ---------------- Service Air Condenser Feed Pump Oil Pump Oil System Fan Cooling Fan ----------------------------------- ----------------- ---------------- ----------------- ---------------- ----------------------------------- ----------------- ---------------- ----------------- ---------------- Location designation Air Cooled Motive Fluid Lubrication and Lubrication condensers sealing systems and sealing systems ----------------------------------- ----------------- ---------------- ----------------- ---------------- Number 84 4 4 4 ----------------------------------- ----------------- ---------------- ----------------- ---------------- Manufacturer As per vendors As per vendors As per vendors As per vendors list * list * list * list * ----------------------------------- ----------------- ---------------- ----------------- ---------------- Type of Motor Vertical, Vertical Horizontal Horizontal C-face type P-base, High Thrust type ----------------------------------- ----------------- ---------------- ----------------- ---------------- Type of enclosure TEFC without arcing device suite for Zone 2, T3 ----------------------------------- --------------------------------------------------------------------- Output (HP) 20 300, 200 5 0.5 ----------------------------------- ----------------- ---------------- ----------------- ---------------- Design ambient temperature (C) 40 ----------------------------------- --------------------------------------------------------------------- *Or equivalent / similar
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9. METERING AND PROTECTION A. METERING SYSTEM The main Revenue metering system (Plant Net) shall be connected on the 220 kV Switchyard fed from new 220 kV VT and bushing CT's located either at the dead tank type circuit breaker or at the HV Step-up transformer bushings. The accuracy of each item and the accuracy of the revenue meter shall comply with the requirements of the BID, Transpower and MARIA. This point of measuring is designated as MTR1 on the main one line diagram drawing. Each generator has its own gross power metering by means of the generator management relay. The auxiliary loads are measured on the 11 kV Switchgear at two points. One point is designated as MTR2 on the said drawings and is relevant when auxiliaries are connected to the generators main bus. The second point is designated as MTR3 and is relevant in case when auxiliaries are connected to the line coming from Station "A". The said MTR2 and MTR3 are comprised of Multimeter SATEC make, type 130E or equivalent B. PROTECTION SYSTEM The protection system shall comprised of the following system: 1. 11 kV Bus Ground Fault Protection 2. Generator protection 3. Step-up transformer 4. Auxiliary transformer 5. 220 kV Switchyard Hereinafter a brief description of the said systems. GROUND FAULT PROTECTION The proposed 11 kV system is High Resistance Grounding and treated as floating one. A set of voltage transformers is wired with a grounded Wye primary and a broken delta secondary. A 59N relay is connected across the broken delta. The grounded Wye/broken delta acts as zero sequence filters by summing the 3 phase voltages. Under normal conditions this sum is zero. When a ground fault occurs the 59N ground fault over-voltage relay detects the presence of a secondary zero sequence voltage 3V0. The generators are star connected and the neutral point is grounded via a Neutral Grounding Transformer, which its secondary terminals are connected to a grounding resistor, connected to an adequate relay. The impedance reflected to the HV side of the NGT is high enough to eliminate the ground fault current to 1A.
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This design allows us to keep on working with full safety also in case of ground fault signal until the operator shall decide to shut down the plant and look for the source of the fault. GENERATOR PROTECTION Each generator has its own CPB (Control and Protection Board) in which all the control and protection devices are located. The main protection relay is GMR (Generator Management Relay). All the protections required by the BID are covered by this relay (Multilin SR489 or equivalent). The main protection is a differential current protection based on current transformers located at the stator neutral generator box from one side and on current transformers located at the 11 kV switchgear synchronizing breaker compartments. In addition a backup relay, fed from separate set of current transformers, is installed for some of the main protections usually installed for this size of generator. A principal diagram of the said protections is shown on drawing No. 0.002.690.0. Other protections such as windings temperature RTDs, Bearing temperature RTD's etc. are connected either to the GMR or directly to the PLC located at the CPB. STEP-UP TRANSFORMER The step-up transformer T1A (T2 in Transpower drawings) has its own TPP (Transformer Protection Panel) in which all the control and protection devices are located. The main protection relay is TMR (Transformer Management Relay). All the protections required by the BID are covered by this relay (Multilin SR745 or equivalent). As per the BID requirement, a backup relay shall be installed as well for the main protections. The main protection is a differential current protection based on current transformers located at the 220 kV circuit breaker bushings from one side and on current transformers located at the 11 kV switchgear main breaker CBX compartment. Other protections such as windings temperature, Oil temperature, Oil level, etc. are connected either to the TMR or directly to the PLC located at the CPB-CSC. The TRIPPING protection accessories mounted on the transformer are connected also directly to an 86T (Lockout relay) to ensure shut down even in case of faulty TMR. The step-up transformer is equipped with an OLTC (On Load Tap Changer) mounted on the 220 kV side to ensure always a stable 11 kV voltage on the main switchgear bus even in a case of fluctuations of the 220 kV Grid voltage system. The OLTC ensures the proper operation of the generators with full kW and kVAR capability also in case of instable Grid voltage.
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The OLTC ensure also that the low voltage 415VAC auxiliary loads shall be fed from a proper voltage derived from the stable 11kV system. AUXILIARY TRANSFORMERS The auxiliary transformers equipped with protection devices mounted on the transformer structure. The protections signals such as: Oil temperature, Oil level, Oil Pressure etc. are wired together to the PLC as an alarm signal. 220KV SWITCHYARD The transformer TPP has the differential protection and over-current on the 220 kV side. Coordination should be held with Transpower in order to verify the exact protections required to be connected and integrated with the protections that are in Transpower responsibility. Bushing CT's were allowed for connection to Transpower BDP (Bus Differential Protection) system. Lightning protection poles and surge arresters on transformer bushings were allowed in the switchyard. A grounding mesh as per IEE80 requirements will be supply to ensure safe step voltage in case of ground fault. 10. CONTROL & INSTRUMENTATION 10.1 CONTROL SYSTEM ARCHITECTURE (PRELIMINARY VERSION FOR PROPOSAL) A. GENERAL The Control System is composed of a Programmable Logic Controller (PLC), distributed IO system and HMI software. The PLC will be an Allen Bradley SLC-500 system or similar and the HMI will be Citect Scada or similar. B. PLC The PLC will be Allen Bradley series SLC-500 or similar. The controller shall provide: o Start-up and Shutdown sequencing; o Control of normal operation; o Emergency Shutdowns; o Faults and alarms processing; o Monitoring and Annunciating; o System diagnostics; PLC(s) with communication card for distributed I/O drops rack-mounted in the control and protections cabinet shall perform all the control tasks for the generating units (OEC) and the balance of plant
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(BOP.) Normally, the OEC'S and the BOP are controlled by separate PLC'S, giving the plant enhanced performance and flexibility. C. DISTRIBUTED I/O The distributed I/O system will be Allen Bradley series FlexIO or similar. Junction boxes with IO cards will be placed near different areas of the OEC and the BOP in order to minimize cable runs and simplify wiring and maintenance. D. HMI Operator workstation(s) based on Citect Scada software or similar will be supplied; the Server workstation(s) will be located at the binary plant control room and will perform all the HMI system tasks: communications with the PLC, data logging and storing, alarms generation, operator interface etc. Client workstation(s) may be located at GGC or, if not desired by the owner, only data links will be provided and the application will be integrated into the existing iFix system. The PC's configuration shall be of the latest proven technology. Today's technology used is Pentium IV 2.4 GHz with Windows XP Professional operating system. The HMI software shall provide: o Dynamic graphics; o Dynamic and historical trending; o Alarm management; o Operator control functions; o Historical data storage; o Report generation; o Multi-level password security; o OPC connectivity; o Web connectivity for long-distance remote monitoring and control; E. COMMUNICATIONS The communication link between the PLC and the local HMI workstation(s) at the OEC control room will be Ethernet. A dual redundant fiber optic link will be used to connect this Ethernet local area network to the HMI Client workstation(s) at GGC. F. REMOTE MONITORING A dial up modem will be supplied with to enable remote monitoring, nation and worldwide, from any PC. If the HMI supplied is Citect, the only requirement from the remote computer will be the installation of a small program, which is available for download from Citect web site and from the software installation disk. In case of other HMI, a suitable method will be available. The connection is secured by restricting users with both user name and password.
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G. POWER SUPPLY The PLC system is fed with 24VDC from a battery bank source. The HMI workstations and Ethernet network components are fed with AC supply from a UPS source (some Ethernet components may be supplied with 24VDC.) H. PRINTER A parallel / USB color ink jet printer will be supplied and connected to one of the HMI workstations. The printer will be available to every other computers connected to the binary plant LAN. I. SECURITY System access will be via a multi-level password security system. Each level may have multiple passwords assignable on an individual basis. The HMI stamps operator's commands with its username. Categorization of security levels shall be done during application development and commissioning.
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2 CONTROL SYSTEM CONFIGURATION [GRAPHIC OMITTED] ================================================================================ GGC Control Room The diagram is not accurate and is intended for illustration only. Specifically: Ethernet Switch OEC HMI o Only one PLC system is shown for clarity. CLIENT o Actual number of I/O drops and modules is Ethernet not yet determined. F/O o Media types (fiber / copper) may change converte ================================================================================ ================================================================================ Main PLC To serial communication DS Serial to IO Ethernet converte Ethernet Switch Control & Protections Motors Control Cabinet -------------------------------------------------------------------------------- OEC HMI SERVER Graphic Ethernet printer F/O Converter Telephone line Binary Plant Control Room ================================================================================ ================================================================================ Heat exchangers Turbo Generator ===== Distributed IO comm...cable ----- Copper Ethernet cable _____ FO cable xxxxx Other cable ~~~~ Line terminator resistor ================================================================================
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10.2 INSTRUMENTATION A. General All instruments at the OEC area are certified for Class I Zone 2 Group IIA T3, Or by FM or CSA Class I Div. 2 Group C & D. Field instrumentation: switches, Transmitters and valves are connected to the PLC I/O module located at the Junction Boxes in each area. There are no multi cables between the Junction Boxes and the main control board (CPB) but only the communication cable and some back up protections, which are hard-wired to the CPB. [GRAPHIC OMITTED] ================================================================================ OEC Instrumentation, Cables and Junction Boxes Connection Diagram OEC Electrical Room Generator Instrumentation Communication to HMI Left Turbine JB Field Instruments JB Control & Protection Right Turbine Board JB (CPB) Field Instruments JB Left Field Vaporizer Instruments JB Motors Control Centre (MCC) Right Vaporizer Field Instruments JB ================================================================================ ======== Instrumentation (Signal) Cable -------- Remote I/O Communication Cable ________ Ethernet Communication Cable
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B. Pressure Level and flow transmitters Electronic Pressure Level and flow transmitters are 4-20 mA output; 24 VDC supply and have the Hart communication protocol for easy checking and maintenance. Transmitters are using advance sensor technology and microprocessor-base electronics, which insure high accuracy performances of 0.1% or better, span accuracy. Transmitters are wired to the Junction Boxes. From the junction boxes the transmitter signal transfer to the OEC controller via the PLC CPU to I/O communication system. Transmitters engineering unit conversion is done at the PLC CPU. Normally all transmitters (Pressure, Level & Flow) are pressure or differential pressure transmitters and the flow or level is calculated at the PLC. C. Temperature. Temperature elements are installed inside the motive fluid pipes, the generator windings and bearings, and inside the turbine oil lines. Temperature elements are RTD PT-100 type with Alpha curve = 0.00385 as per DIN 43 760. The Transmitter installed inside the RTD head, converting the RTD readings into 4 to 20 mA with the appropriate range. D. Switches. The OEC contains Level and Pressure Switches. All switches located at the classified area, are certified for Class I Zone2 T3. All Pressure switches are field adjusted, and 2 Amp. Minimum rating. Level switches for the Motive fluid are Ultrasonic Level Switch with 3-wires connection and HI/LO selector switch. E. Control Valves The most important criteria for choosing a control valve at the OEC system is the pressure drop across the valves. In order to minimize the valve pressure drop most valves are High Performance butterfly valves with double or triple Eccentric construction. On/Off valves equipped with piston actuator, 24 VDC solenoid valve and some with quick exhaust device for fast action in emergency for close or open.
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Modulating control valves equipped with diaphragm or piston actuator and Electro Pneumatic positioner. All Positioner have 90(degree) opening with input signal. Of 4-20 mA and are classified for Class I Zone 2 Group IIA. 11. CIVIL AND STRUCTURAL 1. GENERAL LAYOUT (a) Two site options have been examined. Site 3 was the first choice, however, this site is too small to handle the Ormat binary units, whether they will be arranged in one OEC string configuration on the longitudinal side or in double up configuration (Air Coolers located back to back in 2 rows). The size limitations are the ETA boundary in the east side, the Wairakei stream at the west side, and on the south side it clashes with the existing Contact injection pipeline. The presence of the steam vents A & B adjacent to the site finally concluded that Site 3 is the most un preferable site out of the two choices available. Site 4 is satisfactory in terms of the size of the plan. The equipment can be arranged in one string configuration, with relatively minimal earth works required. It is assumed that most of it will be cut and fill type of civil works rather then having large requirements for borrowed material. A general layout drawing of site 4 is attached; access road to the new plant site is shown as well as OEC equipment arrangement, control and machinery buildings, motive fluid storage tank, energy dissipation muffler, all to be surrounded by fence and gates. (b) The access road to the plant will remain the existing one with minor modifications to suit the new plant size. A loop road (graveled, not paved) around the plant will be constructed to allow access to all plant area and equipment. (c) For environmental purposes, there will be bounded area for the OEC oil skid and the motive fluid storage tank. In addition the entire power plant will be bounded around to contain motive fluid spillage (50 mm in height that will b installed above the soil surface, however will be covered by the site top gravel finish which is to be approximately 150 mm.). (d) A construction lay-down area is shown on the east side of the plant to handle most of the construction requirements during the construction phase. Site Arrangement drawing is presented in drawing 7.011.00.409.0.
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2. SITE-WORKS (a) We have examined the information provided in the tender documents and concluded that there is no need for cut/borrow material for earthworks. The plant area at site 4 is mostly flattened and most of the earthworks are cut and fill type of work. (b) There are no requirements for access roads upgrading. There is an allowance to build new road around the site connected to the existing road. The existing internal road inside the plant will be demolished. Source material for roads and metal surface will be hauled from sites at the vicinity of the Plant Site. 3. PIPELINE Two pipe lines, brine supply and brine return will run east in parallel from connection points (01, 02) on either side of the Otupu re-injection line branch. There will be a crossing under the steam-field access road for both lines. The lines then head north and cross over the steam mains. On the north side of the steam mains the lines turns east and run parallel to the steam mains for approximately 100m before turning north and crossing the Wairakei Stream into the binary station site. There would be manual gate valves or high performance butterfly valves with electric actuators at the re-injection main connections points. By-pass and other control valves will be located at the power plant. Access platforms will be provided where required. Brine discharge silencer will be located adjacent to plant fence at the east side. Brine will be dumped into the Wairakei stream using concrete culvert. 4. STEAM LINES AND STREAM CROSSING The brine supply and return will cross over the steam mains on a structural support elevated approximately 2 meters above ground. The Wairakei stream crossing will be an over hanged structure carrying the brine supply and return pipes, the crossing will be elevated to allow access to the streambed. 5. CONTROL BUILDING The control building (see attached drawing) contains power, control and commutation boards, MCC boards, operator console and battery room. Overall size of the building will be approximately 180 square meters. In addition a smaller utility building (either separate or combine together with the control building) will be constructed mainly for the air compressors
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Pressurized air system, provided with active carbon filter system will be provided to maintain the control building and its equipment under positive pressure to avoid H2S entrainment into the building 6. GEOTHERMAL FLUID DISCHARGE TO WAIRAKEI STREAM AND ENERGY DISSIPATION SYSTEM At present when the re-injection well capacity is limited the brine collection from the binary plant will be directed into the injection well header, to the Prawn Farm and any surplus brine will be discharged to the Wairakei stream through energy dissipation system. In the longer term, when re-injection capacity will increase the energy dissipation system will then be closed. The geothermal fluid discharge system consists of 36" pipe with flow, pressure and temperature measurements of the brine discharged from the plant. An isolation (on-off) manual valve with electric actuator is provided to stop the brine flow from the power plant into the main injection line. An energy dissipation system consists of brine muffler and control valves to control the brine flow through the muffler is provided, the system is located at the power plant east corner (see plant layout). The muffler is connected downstream the OEC units to dump the brine into the Wairakei stream using dump valve with modulating controls. The modulating control system controls the brine flow rate to the stream and it varies seasonally from no flow condition at summer up to the maximum flow of 1000tph at winter. 7. STORM-WATER The power plant site will be graded and sloped to collect all storm water and direct it into the Wairakei stream. In order to avoid contamination of spilled oil or pentane, collecting devices were allowed under the turbine oil skids and under the motive fluid storage tank. Each of them will be equipped with water/oil separator to separate the oil/ pentane from the storm water. The storm water will be dumped into the Wairakei stream while the spillage fluid will have to be removed out and dumped by the operators into designated hazardous material area. 12. SERVICES A. HVAC Air conditioning and H2S filtering devise will be employed at the control building as further described in paragraph. 11.5 above. B. Fire Protection Type of Buried Pipe Proposed: Pipes: PVC Blue brute pressure pipes AWWA C900 or equivalent.
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Pipe Accessories: PVC, Ductile Iron or equivalent. C. Fire Alarms (i) Make of Fire Alarm Panel Tyco - Grinnell / Wormald * (ii) Type of Fire Alarm Panel Simplex Grinnell / Wormald * *Or equivalent / similar 13. ENVIRONMENTAL A. Noise Sound Power emissions 1m from source of: Turbine Generator 90 dBA Condenser Fans 80 dBA Working Fluid Bypass Valve 85 dBA Working Fluid Feed Pump 85 dBA Lubrication Pumps 85 dBA Geothermal Fluid energy dissipation system T.B.D B. Discharges to Air Working Fluid loss per annum 7,000 kg per year (Total for the Plant) Working Fluid loss during construction and 500 kg commissioning Identify any other discharges to air: Not Applicable C. Other Discharges During construction: 1. Some exhaust gases from portable diesel engines (welders, diesel generators etc.). 2. Replaced soil (if any) will be hauled to an approved dump pit. 3. Construction debris will be hauled to an approved dump Commissioning and normal operation:
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1. Some geothermal waters will be disposed to the Wairakei stream as described in the process flow diagrams and approved by the consents. 2. Spills of oil or motive fluid, if occur will be treated or removed as requested by the consent's conditions. 14. CONSTRUCTION SERVICES Contractor will ask the Owner to supply electricity and water during the construction period. Electricity will be required for lighting, office equipment operation, heating and mainly for construction equipment like welders, compressors drills etc. The estimated power required will be up to 50 kW. Water will be required mainly for civil works such as watering and cooling concrete, wetting ground while earthwork activities etc. The estimated water flow rate required is up to 30 cum/hr. Other construction services like lifting equipment, tracking, cleaning, security etc. will be handled through local sub contractors and suppliers. 15. MAINTENANCE The following tables are part of ORMAT's standard operation and maintenance manual and can be used to evaluate the manpower, maintenance schedule, tools and materials requirements for the Wairakei binary project. Some of the figures may be modify as a result of Wairakei specific conditions and per the operator decision. Maintenance Manpower NOTE: This schedule is recommended based on experience gained in other project. As conditions of this project may vary from others, some of the estimated maintenance times may vary from the above indications.
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------------------------------------------ ------------------- ------------------- ------------------- CATEGORY FREQUENCY PER YEAR LABOR HOURS PER LABOR HOURS PER EVENT YEAR ------------------------------------------ ------------------- ------------------- ------------------- Visual & Audio Inspection 52 0.5 26 ------------------------------------------ ------------------- ------------------- ------------------- Vibration Analysis 12 2 24 ------------------------------------------ ------------------- ------------------- ------------------- Air filters - Water draining 52 0.25 13 ------------------------------------------ ------------------- ------------------- ------------------- Rupture disk serviceability inspection 52 0.25 13 ------------------------------------------ ------------------- ------------------- ------------------- Oil pressures & levels check 52 0.25 13 ------------------------------------------ ------------------- ------------------- ------------------- Repair leaks and general external cleaning 12 12 24 ------------------------------------------ ------------------- ------------------- ------------------- Instruments - Calibration 1 16 16 ------------------------------------------ ------------------- ------------------- ------------------- Generator - Exciter inspection 1 2 2 ------------------------------------------ ------------------- ------------------- ------------------- Con. Fan system - lubrication & bolts 2 8 16 tightening ------------------------------------------ ------------------- ------------------- ------------------- General rust and painting repairs 1 16 16 ------------------------------------------ ------------------- ------------------- ------------------- Generator- Air filter cleaning connection box cleaning, electrical 2 8 16 connection tightening and integrity checks ------------------------------------------ ------------------- ------------------- ------------------- Feed pump strainer cleaning 2 2 4 ------------------------------------------ ------------------- ------------------- ------------------- Electrical boards General maintenance 1 16 16 ------------------------------------------ ------------------- ------------------- ------------------- Coupling lubrication 1 1 1 ------------------------------------------ ------------------- ------------------- ------------------- Generator insulation test 1 8 8 ------------------------------------------ ------------------- ------------------- ------------------- Motors insulation test 1 16 16 ------------------------------------------ ------------------- ------------------- ------------------- Turbines & Generator - lub. oil replacement 1 3 3 ------------------------------------------ ------------------- ------------------- ------------------- Seal oil replacement 1 3 3 ------------------------------------------ ------------------- ------------------- ------------------- Oil systems: Filter replacement 1 1 1 ------------------------------------------ ------------------- ------------------- ------------------- Two Turbines - Meach. Seals & Bearings 0.25 replacement 240 60 ------------------------------------------ ------------------- ------------------- ------------------- TOTAL LABOR HOURS PER YEAR 291 HOURS ---------------------------------------------------------------------------------- Tools and Test Equipment The tools and test equipment listed in table 1 should be used for performing maintenance procedures presented in this section. The materials required for the various maintenance procedures are listed in table 2.
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Table 1 - Tools and Equipment =================================================== ================================================ TOOLS/EQUIP. DESCRIPTION USAGE --------------------------------------------------- ------------------------------------------------ Gas monitor Pentane leak detection --------------------------------------------------- ------------------------------------------------ Crane Lifting of turbine, generator and heat exchanger "heads" --------------------------------------------------- ------------------------------------------------ Filler gauge Turbine-generator alignment and pick-up adjustment --------------------------------------------------- ------------------------------------------------ Alignment test kit Turbine-generator alignment --------------------------------------------------- ------------------------------------------------ Spirit level Turbine-generator alignment --------------------------------------------------- ------------------------------------------------ Strap wrench Turbine-generator shaft rotation --------------------------------------------------- ------------------------------------------------ Air operated positive displacement pump Motive fluid draining --------------------------------------------------- ------------------------------------------------ Nitrogen supply kit System purging, seal test --------------------------------------------------- ------------------------------------------------ Vacuum pump System vacuum --------------------------------------------------- ------------------------------------------------ Vacuum cleaner Power and control cabinet internal cleaning --------------------------------------------------- ------------------------------------------------ Multimeter, hand-held fluke Cabinet circuit check --------------------------------------------------- ------------------------------------------------ Low pressure air source kit Power and control cabinet internal cleaning --------------------------------------------------- ------------------------------------------------ Megger, 1000 VDC Insulation resistance testing --------------------------------------------------- ------------------------------------------------ Heat exchanger cleaning kit Heat exchanger cleaning --------------------------------------------------- ------------------------------------------------ RTD systems simulator 100 Ohm Temperature transducer calibration --------------------------------------------------- ------------------------------------------------ Hand-held field calibration 4-20 mA Temperature and pressure transducer calibration --------------------------------------------------- ------------------------------------------------ Vibration analyser Turbine and generator vibration test --------------------------------------------------- ------------------------------------------------ Oil pressure calibration kit Oil pump relief valve pressure calibration --------------------------------------------------- ------------------------------------------------ Grease gun Bearing greasing --------------------------------------------------- ------------------------------------------------ Safety tags Circuit breaker safety --------------------------------------------------- ------------------------------------------------ Penknife Packing seal replacement =================================================== ================================================
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Table 2 - Materials =============================================== ============================== ================================== MATERIAL DESCRIPTION USAGE QTY ----------------------------------------------- ------------------------------ ---------------------------------- Chevron turbine oil GST 68 Turbine & generator bearing - 120 liters; lubrication ----------------------------------------------- ------------------------------ ---------------------------------- Chevron turbine oil GST 32 Turbine mechanical seal Seal oil tank - 120 liters lubrication ----------------------------------------------- ------------------------------ ---------------------------------- Grease, EP-1 Falk LTG Turbine-generator coupling 1 kg lubrication ----------------------------------------------- ------------------------------ ---------------------------------- Grease, EP-2Chevron Polyurea EP Feed pump motor bearing 90g. /motor lubrication, other motors =============================================== ============================== ================================== Table 3 - Periodic Preventive Maintenance Schedule ====================================== ================================================================ ================= Assembly Maintenance Intervals Remarks ---------------------------------------------------------------- Daily Weeky Monthly Semi-annual Annual -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- General OEC system and piping X X X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Turbine X X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Generator X X X X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Feed pumps X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Control valves X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Feed pump drivers X X X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Feed pump strainers X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Oil systems X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Rupture disc & relief valves X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Purge systems X X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Instruments: Pressure transmitters, X switches and gauges; level, and temp. vibration & speed transmitters -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Electric AL cabinets X -------------------------------------- ----------- ------------ ------------ ------------ ------------- ----------------- Condenser fans X ====================================== =========== ============ ============ ============ ============= =================
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Table 4 - Periodic Preventive Maintenance and Checkout Procedures ============================================ ========================================================= ================= Assembly Inspection, Maintenance & Checkout Reference ============================================ ========================================================= ================= DAILY INSPECTION (VISUAL) -------------------------------------------- --------------------------------------------------------- ----------------- OEC general system and piping 1. Mechanical damage or deformity 2. Oil and motive fluid leaks 3. Vaporizer motive fluid level 4. Condenser pressure 5. Warning indications -------------------------------------------- --------------------------------------------------------- ----------------- Turbine, generator, feed pump & condensate Excessive noise/vibrations, leaks pump (where applicable) -------------------------------------------- --------------------------------------------------------- ----------------- Oil systems Pressure level and temperature -------------------------------------------- --------------------------------------------------------- ----------------- WEEKLY INSPECTION -------------------------------------------- --------------------------------------------------------- ----------------- Air system Air filter water draining -------------------------------------------- --------------------------------------------------------- ----------------- Generator 1. External cleaning and air filter 2. Vibration analysis -------------------------------------------- --------------------------------------------------------- ----------------- Control valves Leak check -------------------------------------------- --------------------------------------------------------- ----------------- Purge system Leak Check -------------------------------------------- --------------------------------------------------------- ----------------- MONTHLY MAINTENANCE & CHECKOUT -------------------------------------------- --------------------------------------------------------- ----------------- OEC general system Rupture disk serviceability inspection -------------------------------------------- --------------------------------------------------------- ----------------- Feed Pump motor Bearing lubrication check -------------------------------------------- --------------------------------------------------------- ----------------- Turbine, generator, feed pump Vibration monitoring -------------------------------------------- --------------------------------------------------------- ----------------- SEMIANNUAL MAINTENANCE & CHECKOUT -------------------------------------------- --------------------------------------------------------- ----------------- Generator Air filter and connection box cleaning, check electrical connection for tightens or damage -------------------------------------------- --------------------------------------------------------- ----------------- Feed pumps strainer Strainer cleaning -------------------------------------------- --------------------------------------------------------- ----------------- Electrical boards General maintenance -------------------------------------------- --------------------------------------------------------- ----------------- Control valves Valve calibration -------------------------------------------- --------------------------------------------------------- ----------------- Condenser fans Driving system ============================================ ========================================================= ================= Assembly Inspection, Maintenance & Checkout ============================================ ========================================================= ================= ANNUAL MAINTENANCE & CHECKOUT Turbine & generator 1. Coupling lubrication 2. Alignment procedure
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-------------------------------------------- --------------------------------------------------------- ----------------- Assembly Inspection, Maintenance & Checkout Reference -------------------------------------------- --------------------------------------------------------- ----------------- Generator Insulation test -------------------------------------------- --------------------------------------------------------- ----------------- All motors Insulation test -------------------------------------------- --------------------------------------------------------- ----------------- Oil systems Oil and filter replacements Tube and shell heat exchanger Cleaning, integrity inspection Electrical boards General maintenance Instrumentation Calibration Control valves Calibration ============================================ ========================================================= ================= =================================================== ==================================================================== Assembly Inspection, Maintenance & Checkout =================================================== ==================================================================== 4 YEARS MAINTENANCE AND CHECKOUT --------------------------------------------------- -------------------------------------------------------------------- Turbine Replace mechanical seal and bearing Generator (40.000 hr) Complete disassembly, stator and rotor solvent cleaning, inspect and replace if needed bearings, liners and oil retainers =================================================== ==================================================================== 1. DESIGN AND MATERIAL SELECTION METHODOLOGY EMPLOYED Materials selection is based upon: o Design inputs o Durability and availability considerations o Cost optimization o Critical Components special consideration o Field operation and maintenance constraints o Safety and environmental concerns Geothermal power production involves a unique energy source which is the geothermal fluid (in our case the separated brine) getting into close encounter with various metallic (and to much less extent, non metallic) surfaces on its way through the gathering and heat recovery systems (between production and disposal). This hot brine ("geofluid"), depending on its chemistry (and temperature), might become corrosive or scale depositing (or both). In the "binary" technology system (proposed in our case) the heat recovery unit is a typical critical component where material selection must consider both geofluid (further referred as "hot brine") and working fluid characteristics. The core of this unit are the heat transfer tubes, here corrosion might lead to an undesirable mixing of the two fluids. However, the working fluid, when not contaminated with water ingress, has no corrosive or scaling effect. Thus the hot brine characteristics dictate the material selection. In our case, the main problem seems to be the silica scaling and the yearly mixed acid cleaning. The hot brine being pressurized and at pH above 8 (with relatively low salinity), its mild corrosivity is not considered an issue, while
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the chemical cleaning acids are commonly inhibited against ferrous materials corrosion. The materials selection (and wall thickness) in this case is aiming to obtain maximum durability and availability at a reasonable material cost but also at an acceptable field maintenance rate (especially for prevention of idle time corrosion). The design input specifies the physical and chemical conditions of the geofluid going into the plant (mostly issued by the field operator or from other sources of information). It also provides the optimal heat and mass balances. Based upon the previous experience and/or R&D, the heat recovery surfaces and auxiliary components (in contact with the geofluid) materials are selected. In our case C. Steel would be that material (which in addition presents an easier disposal after lifetime). 2. CODES AND STANDARDS The design of the Project will be in accordance with the following list of standards: ---------------------------------------------- ------------------------------------------------------------ Pipe-work ANSI B 31.1 & 3; AWWA; MSS ---------------------------------------------- ------------------------------------------------------------ Pressure vessels & heat exchangers ASME, TEMA R & C ---------------------------------------------- ------------------------------------------------------------ Design loads for buildings NZS 4203 ---------------------------------------------- ------------------------------------------------------------ Steel structures NZS 3404 ---------------------------------------------- ------------------------------------------------------------ Valves API; ANSI; MSS ---------------------------------------------- ------------------------------------------------------------ Motive Fluid Pumps API 610 ---------------------------------------------- ------------------------------------------------------------ Concrete construction NZS 3109 ---------------------------------------------- ------------------------------------------------------------ Fire protection NZ Code ---------------------------------------------- ------------------------------------------------------------ Electrical NZ. Electricity Regulation IEEE. NEMA, IEC ---------------------------------------------- ------------------------------------------------------------ Control and instrumentation NZECP 24 in Hazardous classified areas; IEC or other standard as used and accepted in similar classified areas in projects under NZ law ---------------------------------------------- ------------------------------------------------------------ Transpower requirements TP.CC 8.0 Issue 1, May 1995, TP.AG 48.02 Issue 1 Draft 1, July 1997, GOSP, June 1997 ---------------------------------------------- ------------------------------------------------------------ 3. USE AND REINSTATEMENT OF THE SITE (PROPOSAL) The overall area within the Binary Plant perimeter shall be reinstated with screened metal surfacing. The overall plant size is approximately 15,000 square meters. The internal road area has basically the same completion as the entire Plant, but marked as designated road, in order to avoid (if possible), or at least to minimize any underground installations at that specific area. Areas external to the perimeter fence will be used by the Contractor as temporary area (lay-down, car parking and construction offices). This
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temporary areas will located at the East and North parts of the Plant boundaries. The estimated size of it will be up to approximately 10,000 Square Meters, however it will be developed in stages as per the site construction requirements. Contractor shall have all construction debris removed to a properly designated area. There will be no gardening or screen planting work, but in the temporary area. (As long as it will not be closer then the 30' fire limitation). Tall vegetation (trees and scrub) shall be cleared to a radius of 30 m from any plant containing flammable working fluid. It is assumed that there will be a balance of cut and fill, therefore a minimal of surplus soil, which will probably be either removed to a designated area or be spread in the Plant vicinity. In case of the later, then a native grass will be planted at that area. 4. SITE ARRANGEMENT DRAWING (DRAFT) Site Arrangement drawing and site location are presented in drawings 7.011.00.409.0 and 7.011.00.408.0 OWNER'S MARCO REQUIREMENTS Ormat plant design and construction provides high level of Maintainability, reliability and ease of operation. ORMAT plants achieve availability rates of more than 95% and are operated by small operating team and in some cases are unattendant. Ormat together with some major equipment suppliers will carry value engineering studies during the process design phase, HAZOPS and design review meetings. The following are MARCO requirements and the ways ORMAT complies to it. MAINTAINABILITY Plant equipment will be of a low maintenance design and easily maintainable. Most of the OEC sub systems equipments are design to be maintained in place, with minimum disassembly of surrounding equipment and minimum usage of temporary scaffolding and handling equipment. Permanent maintenance platforms are provided where required to assure safety and efficiency Equipment arrangements, pipe routings, and cable tray locations will be designed for maximum equipment accessibility All structures will be painted per ORMAT standards for geothermal power plants for minimizing corrosion of equipment exposed to chemically or environmentally corrosive atmospheres.
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Special attention will be given to providing appropriate enclosures, curbs, drip guards and collection systems for fugitive water, hose spray water, chemicals, and oils. Similar equipment will be provided by the same manufacturer to minimize spare parts inventories AVAILABILITY/RELIABILITY The design of equipment systems and selection of system components is based on the long field experience of operating the same type of plants all over the world. The purchased equipment has been filtered during the years to select the optimum piece of equipment for the application. The design of each system is based on proven design concepts which have been applied successfully in the power generation industry. CONSTRUCTABILITY The primary constructability objective is to minimize the complexity of construction to realize maximum schedule benefits. Equipment is factory assembled to the maximum extent possible, so as to minimize the field erection required. OPERABILITY The Ormat Energy Converter(R) (OEC) is easy to operate and requires minimum operator surveillance. The plant controls design allows routine plant operations. Equipment system design selections are based on minimizing the amount of operator attention. Automatic monitoring of systems and operation some of the processes from the GGC is being provided. Operator control interfaces incorporates human engineering factors, including visual observation. Process systems and equipment operation is adequately monitored to provide control room operators with all information required for efficient, safe, and easy operation of the plant. Systems and equipment are located for easy operational access and logical operational sequences. Special attention will be given to adequate lighting, ventilation, and acoustic dampening of all operational spaces. Equipment and system components, which may be operated locally, will be arranged with personnel access. Equipment, valves, dampers, instrument, and control devices will be located to include, the following considerations:
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VALVES. Valve operators, that requires frequent checks and adjustments, will be located and oriented to the extent possible for manual operation within the normal reach of operating personnel without the need for portable ladders or reaching devices. Permanent extension operators of a conventional design may be used. LOCAL INSTRUMENTATION. All local instrumentation indicating pressures, temperatures, levels, flows, etc., or indicating the position or status of equipment will be readily visible to operating personnel without the use of temporary ladders or platforms. VISIBLE INSPECTION AND TENDING. Portions of equipment requiring frequent visual inspection, lubrication, and tending activities will be safely accessible and adequately lighted to assure proper operation and servicing. INTERFACE ARRANGEMENTS DURING CONSTRUCTION, COMMISSIONING AND TESTING CONSTRUCTION Ormat propose using site 4 and accessing this site during construction from point 26 as suggested in the tender documents. A temporary fence between site 4 and the Wairakei station will be erected during construction. Access for construction of the pipelines and electrical connections would via Contact's usual entry procedures. Temporary connections of electricity and water will be used for the construction period, which will be replaced later by the permanent connection of the binary plant as proposed. A short shut down of the main injection line will be required for the constructing the tee's and the block valve on the line which will be coordinated with the Owner. With the branch valves in place the reinjection main can be returned to service. Connection of the high voltage electrical lines will be done in coordination with the Owner and Transpower. COMMISSIONING AND TESTING During commissioning the manual by-pass valve could remain open. Flow for plant commissioning could be taken from the reinjection line used and then dumped to the Wairakei stream. During this time the reinjection wells may have some flow fluctuations but not temperature fluctuations. By commission the binary plant one unit at time the amount of water discharged would be limited. Export and import of electricity between the binary plant and the grid during commissioning will be coordinated with the Owner and with Transpower. The loading and interconnection plans will be submitted in advance.
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LIST OF SUBCONTRACTORS The Tenderer proposes to use the following subcontractors: -------------------------------------------------------- ------------------------------------------------------ SUBCONTRACTOR SCOPE OF WORK -------------------------------------------------------- ------------------------------------------------------ DESIGN: -------------------------------------------------------- ------------------------------------------------------ Babbage Consultants Civil and Structural -------------------------------------------------------- ------------------------------------------------------ Cheal Consultants Civil and Structural -------------------------------------------------------- ------------------------------------------------------ Connell Wagner Civil and Structural -------------------------------------------------------- ------------------------------------------------------ Meritec Ltd Civil and Structural -------------------------------------------------------- ------------------------------------------------------ Opus International Civil and Structural -------------------------------------------------------- ------------------------------------------------------ Peters & Cheung Civil and Structural -------------------------------------------------------- ------------------------------------------------------ Plant and Platform Consultants Ltd Civil, Mechanical and Piping -------------------------------------------------------- ------------------------------------------------------ Tonkin & Taylor Civil, Mechanical and Piping -------------------------------------------------------- ------------------------------------------------------ Beca Civil, Mechanical, Piping and Electrical -------------------------------------------------------- ------------------------------------------------------ P.B. Power Civil, Mechanical, Piping and Electrical -------------------------------------------------------- ------------------------------------------------------ Sinclair Knight Merz Civil, Mechanical, Piping and Electrical -------------------------------------------------------- ------------------------------------------------------ URS Civil, Mechanical, Piping and Electrical -------------------------------------------------------- ------------------------------------------------------ Worley Civil, Mechanical, Piping and Electrical -------------------------------------------------------- ------------------------------------------------------ Andrew & Andrew Electrical Ltd. Electrical -------------------------------------------------------- ------------------------------------------------------ Tesla Consultants Electrical and Transmission -------------------------------------------------------- ------------------------------------------------------ United Network Ltd Electrical and Transmission -------------------------------------------------------- ------------------------------------------------------ Wormald Fire protection -------------------------------------------------------- ------------------------------------------------------ Century Drilling Mechanical and Piping -------------------------------------------------------- ------------------------------------------------------ Line Link Transmission Lines -------------------------------------------------------- ------------------------------------------------------ CONSTRUCTION: -------------------------------------------------------- ------------------------------------------------------ Benchmark Building Supplies Ltd Buildings -------------------------------------------------------- ------------------------------------------------------ Holman Construction Civil and Buildings -------------------------------------------------------- ------------------------------------------------------ Doug Hood Ltd Earth Works -------------------------------------------------------- ------------------------------------------------------ Brain Perry Ltd Earth Works and Civil -------------------------------------------------------- ------------------------------------------------------ Fulton Hosan Earth Works and Civil -------------------------------------------------------- ------------------------------------------------------ Works Infrastructure Earth Works and Civil -------------------------------------------------------- ------------------------------------------------------ United Network Electrical and Transmission -------------------------------------------------------- ------------------------------------------------------ Electrix Electrical, Control and instrumentation -------------------------------------------------------- ------------------------------------------------------ Wormald Fire protection -------------------------------------------------------- ------------------------------------------------------ Chubb Fire protection & Security -------------------------------------------------------- ------------------------------------------------------ Absolute Air HVAC -------------------------------------------------------- ------------------------------------------------------ Dankin HVAC -------------------------------------------------------- ------------------------------------------------------ Improvair HVAC -------------------------------------------------------- ------------------------------------------------------ SUBCONTRACTOR SCOPE OF WORK -------------------------------------------------------- ------------------------------------------------------ Best Insulation Ltd. Insulation -------------------------------------------------------- ------------------------------------------------------ Forman Insulation Ltd. Insulation -------------------------------------------------------- ------------------------------------------------------ Century Drilling Mechanical and Piping -------------------------------------------------------- ------------------------------------------------------ Fitzroy Engineering Ltd Mechanical and Piping -------------------------------------------------------- ------------------------------------------------------ Robert Stone Mechanical and Piping -------------------------------------------------------- ------------------------------------------------------ Steiner and Mosses Mechanical Installations -------------------------------------------------------- ------------------------------------------------------ -------------------------------------------------------- ------------------------------------------------------
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LIST OF ALL MAJOR PLANT ITEMS AND COUNTRY OF ORIGIN ------- --------------------------- --------------------------------------------------- ------------------------ EQUIPMENT ITEM NAME OF MANUFACTURER COUNTRY OF ORIGIN ------- --------------------------- --------------------------------------------------- ------------------------ 1 Turbine Ormat Industries Ltd. Israel ------- --------------------------- --------------------------------------------------- ------------------------ 2 Generator Ideal Electric Co., Kato Engineering, Hundai USA, Korea ------- --------------------------- --------------------------------------------------- ------------------------ 3 Feed Pump and Motors Goulds Pumps, Floway Pumps, FlowServe, Johnston USA Pump Company, Peerless Pump Company ------- --------------------------- --------------------------------------------------- ------------------------ 4 Air Coolers * Ormat Industries Ltd. Israel ------- --------------------------- --------------------------------------------------- ------------------------ 5 Vaporizer * and Heat Ormat Industries Ltd. Israel Exchangers T&S ------- --------------------------- --------------------------------------------------- ------------------------ 6 Auxiliary Transformers Haward, Virginia Transformer Corp., ABB, Cooper USA ------- --------------------------- --------------------------------------------------- ------------------------ 7 Air Compressors Atlas Copco, Cooper (Joy) Turbo Division, AC USA, United Kingdom Compressors, Quincy, Hamworthy Belliss & Morcom (UK), Italy (IT) (UK), Said Macchine Impianti (IT) ------- --------------------------- --------------------------------------------------- ------------------------ 8 Switchgear Powell, Powercon Corp., S&C Electric Canada Ltd, USA, Canada (CN), Babco Electric & Engineering Ltd (CN), Blenkhorn Israel (ISR) & Sawle (CN), Ardan (ISR), Schneider (ISR) ------- --------------------------- --------------------------------------------------- ------------------------ 9 Central StationControl Ormat Industries Ltd. Israel ------- --------------------------- --------------------------------------------------- ------------------------ 10 Motor Control Center Alan Braddy, GE, Moller Electric Inc. (CN), ADEX USA, Canada (CN), (ISR), ILS (ISR), Schneider (FR) Israel (ISR), France (FR) ------- --------------------------- --------------------------------------------------- ------------------------ 11 Step-up Transformer Waukesha Electric System, Virginia Transformer USA, Israel (ISR), Corp., Elco (ISR), Fortune Electric Co. (TW), ABB Taiwan (TW), Turkey, India ------- --------------------------- --------------------------------------------------- ------------------------ 12 Pumps Goulds Pumps, Floway Pumps, FlowServe, Bungartz USA, Germany (GER) (GER) ------- --------------------------- --------------------------------------------------- ------------------------ 13 Valves Neles Control Group, Jamesbury Inc., Fisher USA, Israel (ISR), Controls Int'l LLC, De Zurick, Habonim Industrial Italy (IT) Valves LTD (ISR), Hamlet (ISR), Masoneilan, Vanessa Valve Corporation (IT), Tyco ------- --------------------------- --------------------------------------------------- ------------------------
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------- --------------------------- --------------------------------------------------- ------------------------ EQUIPMENT ITEM NAME OF MANUFACTURER COUNTRY OF ORIGIN ------- --------------------------- --------------------------------------------------- ------------------------ 14 H.V. Circuit Breaker Westinghouse, Cutler Hammer (CN), Powercon Corp., USA, Canada (CN), ABB (GER), Sace (IT), GE, Gec Alsthom (UK), Italy (IT), United Siemens (GER), Schneider (France) Kingdom (UK), France ------- --------------------------- --------------------------------------------------- ------------------------ 15 Electric Motors Usphiz (ISR), GE, US Motors, Brooks (UK), Siemens USA, Israel (ISR), (GER), Baldor (CN), Loher (GER), ABB (Finland), United Kingdom (UK), WEG (BR) Germany (GER), Canada (CN), Brazil (BR), Finland ------- --------------------------- --------------------------------------------------- ------------------------ o As being part of the OEC, which is a complete unit, Ormat may, at its discretion, assign the manufacturing of part or all of the OEC Heat Exchanger to outside manufacturer, with the adequate certifications as ORMAT has, under ORMAT design and supervision. DOCUMENT SUBMITTAL QUALIFICATION The following table is part of Exhibit A-1 to the tender documents and presents the document's submittal schedule requested by the Owner. ORMAT qualifications are at the right column. IN GENERAL ALL THE ITEMS THAT PRESENTED BY THE OWNER AS ... "DAYS (OR MONTHS) AFTER LETTER OF ACCEPTANCE" SHALL BE CHANGED TO "DAYS (OR MONTHS) FROM COMMENCEMENT DATE" ------------------------------------ ------------------------------------------- ----------------- --------------------- ITEM SUBMITTAL SCHEDULE PURPOSE ORMAT REVISED REQUIRED DATES ------------------------------------ ------------------------------------------- ----------------- --------------------- Method Statement No later than 10 days after Letter of For Approval 3 months after CD Acceptance ------------------------------------ ------------------------------------------- ----------------- --------------------- Commercial ------------------------------------ ------------------------------------------- ----------------- --------------------- Performance Bond and Parent No later than 10 days after Letter of For Contract 15 days after CD Company Guarantee Acceptance Compliance ------------------------------------ ------------------------------------------- ----------------- --------------------- Confirmation of Insurance No later than 10 days after Letter of For Approval 15 days after CD Arrangements Acceptance ------------------------------------ ------------------------------------------- ----------------- --------------------- Programmes and Schedules ------------------------------------ ------------------------------------------- ----------------- --------------------- Detailed Works Programme No later than 10 days after Letter of For Approval 30 days after CD Acceptance ------------------------------------ ------------------------------------------- ----------------- ---------------------
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------------------------------------ ------------------------------------------- ----------------- --------------------- ITEM SUBMITTAL SCHEDULE PURPOSE ORMAT REVISED REQUIRED DATES ------------------------------------ ------------------------------------------- ----------------- --------------------- Manufacturing, Construction, No later than 3 months after Letter of For Approval 3 months after CD and Performance Testing Plan Acceptance. ------------------------------------ ------------------------------------------- ----------------- --------------------- Project Design Manual No later than 4 weeks after Commencement 2 month after CD Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Project Quality Plan Outline plan with Tender, Detailed plan For Approval 30 days after CD no later than 10 days after Letter of Acceptance ------------------------------------ ------------------------------------------- ----------------- --------------------- Engineering Drawings and Lists ------------------------------------ ------------------------------------------- ----------------- --------------------- Site Arrangement Drawings Draft with Tender, Final no later than 8 For Approval 3 months after CD weeks after Commencement Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Plant Arrangement Drawings Draft with Tender, Final no later than 8 For Approval 3 months after CD weeks after Commencement Date ------------------------------------ ------------------------------------------- ----------------- --------------------- List of All Major Plant Draft with Tender, Final no later than 3 For Approval 6 months after CD Items Including Name of months after Commencement Date Manufacturer and Country of Origin ------------------------------------ ------------------------------------------- ----------------- --------------------- Building Arrangement Drawings No later than 8 weeks after Commencement For Approval 16 weeks after CD Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Reinstatement Plans Draft with Tender, Final no later than 8 For Approval 30 days prior to weeks after Commencement Date Site mobilization ------------------------------------ ------------------------------------------- ----------------- --------------------- Piping and Instrument Draft with Tender, Final no later than 8 For Approval 16 weeks after CD Diagrams weeks after Commencement Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Electrical One-Line Diagrams Draft with Tender, Final no later than 8 For Approval 16 weeks after CD weeks after Commencement Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Maintainability Features Draft with Tender, Final no later than 8 For Approval 12 weeks after CD Description (Ref 1.14.2 of weeks after Commencement Date Technical Requirements) ------------------------------------ ------------------------------------------- ----------------- --------------------- Equipment Colour Scheme No later than 8 weeks after Commencement For Approval 16 weeks after CD Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Protective Coating Schedule No later than 8 weeks after Commencement For Approval 16 weeks after CD Date ------------------------------------ ------------------------------------------- ----------------- ---------------------
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------------------------------------ ------------------------------------------- ----------------- --------------------- ITEM SUBMITTAL SCHEDULE PURPOSE ORMAT REVISED REQUIRED DATES ------------------------------------ ------------------------------------------- ----------------- --------------------- Electrical Schematic Diagrams No later than 6 months after Commencement For Approval 8 months after CD Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Control System Configuration No later than 6 months after Commencement For Information 8 months after CD Block Diagrams Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Logic Diagrams for Control, No later than 6 months after Commencement For Approval 8 months after CD Alarm and Sequence Interlock Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Piping Layout Drawings and No later than 6 months after Commencement For Approval 8 months after CD Support Details Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Fully Detailed List of All No later than 6 months after Commencement For Approval 8 months after CD Valves, with Control Valve Date Data Sheets per ISA form S.20.50 including valve action on loss of electrical or air supply ------------------------------------ ------------------------------------------- ----------------- --------------------- Fire Protections System No later than 6 months after Commencement For Approval 8 months after CD Drawings Date ------------------------------------ ------------------------------------------- ----------------- --------------------- Compressed Air, Potable No later than 6 months after Commencement For Approval 8 months after CD water, and Waste water Date Systems Drawings ------------------------------------ ------------------------------------------- ----------------- --------------------- Engineering Studies ------------------------------------ ------------------------------------------- ----------------- --------------------- Documentation Required for No later than 6 months after Commencement For Approval 30 days prior to Statutory Approval of Date equipment arrival Pressure Vessels and to NZ Pressure Piping ------------------------------------ ------------------------------------------- ----------------- --------------------- NOTE: CD - Commissioning Date
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QUALITY ASSURANCE PLAN OUTLINE
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-------------------------------------------------------------------------------- WAIRAKEI Revision: PO QA PROGRAM Date: June 10, 2003 Page 1 of 12 -------------------------------------------------------------------------------- O R M A T ON SITE QA PROGRAM OUTLINE
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-------------------------------------------------------------------------------- WAIRAKEI Revision: PO QA PROGRAM Date: June 10, 2003 Page 2 of 12 -------------------------------------------------------------------------------- TABLE OF CONTENTS ----------------- SECTION 0 - ORMAT'S QUALITY, ENVIRONMENTAL, HEALTH AND SAFETY POLICY.....................................3 SECTION 1 - INTRODUCTION.................................................................................4 SECTION 2 - PROCEDURE MODIFICATION......................................................................5 SECTION 3 - ORGANIZATION.................................................................................5 SECTION 4 - ENGINEERING DRAWING AND ENGINEERING DOCUMENT CONTROL.........................................5 SECTION 5 - DESIGN CONTROL...............................................................................5 SECTION 6 - INSPECTION AND TEST CONTROL..................................................................6 SECTION 7 - VENDOR APPROVAL..............................................................................6 SECTION 8 - NONCONFORMING ITEMS..........................................................................6 SECTION 9 - RECORDS......................................................................................6 SECTION 10 - PROCUREMENT.................................................................................7 SECTION 11 - VENDOR / SUBCONTRACTOR PROGRESS REPORT......................................................7 SECTION 12 - RECEIVING...................................................................................7 SECTION 13 - HANDLING, STORAGE AND WAREHOUSING...........................................................7 SECTION 14 - PROCEDURE- EQUIPMENT MAINTENANCE............................................................7 SECTION 15 - CONTROL OF SPECIAL PROCESSES................................................................8 SECTION 16 - WELDING PROCEDURE AND WELDERS PERFORMANCE QUALIFICATION FOR GAS TUNGSTEN ARC AND GAS METAL ARC WELDING OF ALUMINUM TUBULAR BUS.............................................................8 SECTION 17 - WELDING PROCEDURE AND WELDERS PERFORMANCE QUALIFICATIONS FOR GAS TUNGSTEN ARC OF STAINLESS STEEL ......................................................................................9 SECTION 18 - WELDING PROCEDURE AND WELDERS PERFORMANCE QUALFICATIONS FOR SHIELDED METAL ARC WELDING OF CARBON STEEL..........................................................................................9 SECTION 19 - LIQUID PENETRANT TEST.......................................................................9 SECTION 20 - VISUAL INSPECTION QUALIFICATION............................................................10 SECTION 21 - CIVIL / STRUCTURAL CONTROL.................................................................10 SECTION 22 - MECHANICAL CONTROL.........................................................................10 SECTION 23 - ELECTRICAL CONTROL.........................................................................10 SECTION 24 - CALIBRATION OF MEASUREMENT & TEST EQUIPMENT................................................11 SECTION 25 - RECORDS RETENTION..........................................................................11 SECTION 26 - SUBCONTRACTORS INSPECTOIN..................................................................11 SECTION 27 - AUTHORIZED INSPECTION AGENCY...............................................................12 SECTION 28 - AUDITS.....................................................................................12
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Wairakei EPC SECTION 0 - ORMAT'S QUALITY, ENVIRONMENTAL, HEALTH AND SAFETY POLICY ORMAT's core business is the design, manufacturing, supply, installation and operation of innovative power systems producing electricity from locally available heat sources such as geothermal energy, recovered heat, low grade fuels, biomass and solar energy. Such systems are environmentally benign and non-polluting. Ormat also designs and manufactures packaged power systems using conventional fuels for remote, maintenance-free applications such as SCADA and corrosion protection systems, to enhance the reliability and safe operation of pipelines and offshore platforms. Ormat's Quality, Environmental, Health and Safety (QEHS) Policy is an integral part of its corporate strategy and includes the following elements: o Active communication to ensure understanding of customer requirements and expectations along with customer feedback to provide effective product support. o Strict compliance with customer requirements, as well as with applicable environmental, health and safety laws and regulations, in all the countries and locales where Ormat manufactures, installs or operates its products. o Continuous efforts to achieve clear QEHS objectives to: (a) improve product performance and reliability; (b) reduce the cost and time-to-market of Ormat products; (c) prevent pollution; (d) minimize risks to personnel and the public, and (e) save energy and materials. o Development, acquisition, use and maintenance of advanced technologies, equipment and software, as well as appropriate, timely and effective training for personnel at all levels in all departments. o Implementation and continuous improvement of an integrated management system certified to and complying with ISO 9001 and ISO 14001 International Standards (at the manufacturing facility). o Management's oversight, and follow-up, on Ormat's QEHS performance and on the effectiveness and efficiency of the integrated management system. This Policy has been reviewed for continuing suitability, communicated and explained to all Ormat employees, and made available to the public. SECTION 1 - INTRODUCTION 1. This manual describes ORMAT's Quality Assurance Program used in its Geothermal power plant construction sites. The program covers quality assurance procedures in the areas of mechanical, civil and electrical construction work. EPC Schedule B Sept. 20.2003
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Wairakei EPC The manual is intended to be used as a general guideline for quality assurance of activities taking place during construction of ORMAT'S Geothermal Power Stations. Therefore, some procedures or forms may have to be modified according to specific job requirements, contractual requirements or Project Manager's decision. In the case of modification, the Section titled "Procedure Modification" will be followed. More specific design construction and quality control requirements are provided in the detailed construction specifications. Also, forms used and filled out by ORMAT's, Ormat and/or subcontractors may be used instead of forms outlined in this manual, depending on the Project Manager's decision. ORMAT reserves the right to modify any procedure outlined in this manual. 2. Updates and revisions to this plan shall be considered normal and proper as plan specifies and personnel are expected to change during construction. Revisions to this section shall be submitted and approved by the Project Manager, and will be in effect immediately upon his approval. HEALTH AND SAFETY MANAGEMENT PROGRAMME MANUAL OUTLINE ORMAT POLICY STATEMENT It is the policy of Ormat to conduct its activities in such a way that the health and safety of employees and the public are safeguarded and that proper protection is afforded to the environment and: o To promote safety consciousness in its employees and to render staff at all levels, responsible for preventing injury, loss or damage. o To make every reasonable effort to ensure that its operations and activities do not cause injury or harm to the health of employees and others. o To make every reasonable effort to protect the environment from the adverse effects which may arise from it operations and to minimize any nuisance which may arise from its operations. o Health and Safety in the workplace is acknowledged as a joint responsibility between employer and employee. EPC Schedule B Sept. 20.2003
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Wairakei EPC SECTION 1 - INTRODUCTION 1.1 GENERAL This manual provides a framework for the Health and Safety Manual Management System of Ormat at the new Wairakei Project. The manual will not directly cover all possible situations or circumstances that may be encountered, nor is it intended to restrict users to minimum standards. It will identify minimum acceptable Safety and Loss Control standards; however, specific loss control efforts are dependent on the activities being performed and it is the responsibility of those personnel engaged in that activity to apply prudent safety practices. 1.2 PURPOSE The Ormat Health and Safety Manual has been developed as a guideline for: a. The uniform implementation of Health and Safety Management within the company; a. The establishment of clear line of communication, authority, responsibility and accountability for the execution of the Health and Safety Management System at all location; b. The prevention or reduction of personal injury and i llness, property damage, production interruptions and other adverse incidents; c. The establishment of industry leading Health and Safety Control policies and procedures. 1.3 SCOPE The standards, procedures, duties and responsibilities outlined in this manual are in effect within Wairakei Project. Subcontractors are required to develop their own health and safety standards for the project, using the contents of this manual as guide to comply with the minimum standards identified. 1.4 ISSUE AND CONTROL Manuals are issued as "Controlled" documents. Controlled manual holders will be issued with approved changes. Only controlled manuals will be used with Ormat Wairakei Project. Control of the manual will be by an assigned number which is designated on the cover sheet. In addition the Health and Safety Manager will maintain records indicating the name of the manual holder, manual number and date issued. Revisions to the manual shall be by section and will be identifiable by the revision date. EPC Schedule B Sept. 20.2003
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Wairakei EPC A master list of all revisions will be maintained by the Health and Safety Manager. Users are responsible to maintain current revisions, remove and destroy obsolete/revised pages, and return the manual when recalled. 1.5 REVISION OF POLICIES AND PROCEDURES Policies and procedures contained in this manual are dynamic and will be reviewed objectively by users as a source of continuous improvement. Additional policies and procedures may be added from time to time and revisions made to existing ones. The Health and Safety Manager is responsible for the preparation, issuance and distribution of Health and Safety policies and procedures and revisions thereto that form part of this manual. Users who identify errors, omissions or improvements are required to notify the Health and Safety Manager so corrective measures can be taken. SECTION 2 - EMERGENCY PROCEDURES 2.1 PURPOSE To provide Ormat with procedures to deal with any emergency that may arise while employees and others are at work. To have an effective general emergency plan to cope with all types of known emergencies likely to occur at any part of our organization's operation, and to comply with legislative requirements. When confronted with an emergency, it is too late to decide who needs to do what, what assistance is available and what emergency responses are desirable. 2.2 PROCEDURE 2.3 EVALUATION 2.4 RESPONSIBILITIES 2.5 EVACUATION PROCEDURE (INSTRUCTIONS AND FORM) SECTION 3 - HAZARD IDENTIFICATION PROCEDURES 3.1 PURPOSE To provide a written record of a systematic and structured approach to: o Identification of occupational hazards. o The determination of significance of those hazards. o Gathering critical information on the nature of the hazards and the consequences which can arise from exposure to risks associated with those hazards. o Determine possible control options to eliminate, isolate or minimize such risk. EPC Schedule B Sept. 20.2003
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Wairakei EPC 3.2 DEFINITION 3.3 PROCEDURE 3.4 HAZARD IDENTIFICATION CHECK SHEET (LIST) 3.5 HAZARD IDENTIFICATION PROGRAMME (FORM) 3.6 HAZARD RISK CONTROL SHEET (FORM) 3.7 HAZARD CONTROL (CHART) 3.8 HAZARD PRIORITY RATING SHEET (FORM) SECTION 4 - SAFE WORK PRACTICES AND RULES 4.1 HEALTHY, SAFETY AND ENVIRONMENT GOALS 4.2 THE BASIC RULES 4.3 PROCEDURES AND WORK PRACTICE SECTION 5 - ACCIDENT PROCEDURES 5.1 PURPOSE To provide documentation on reporting, recording and investigation procedures for accidents and incidents, which occur during, work hours and thus achieving compliance with the current legislation. 5.2 RESPONSIBILITIES 5.3 INVESTIGATION 5.4 DEFINITION 5.5 CALCULATING FREQUENCY OR CLAIM RATES 5.6 INVESTIGATION REPORT (FORM) 5.7 NOTICE OF ACCIDENT / SERIOUS HARM (FORM) SECTION 6 - TRAINING PROCEDURES 6.1 PURPOSE To provide training procedures which complements the provision of information, instruction and training by ensuring that health and safety standards of Ormat is effectively implemented and developed. Training will help people to acquire the skills, knowledge and attitudes to make them competent in the health and safety aspects of their work, whatever their position is with Ormat. 6.2 SCOPE 6.3 PROCEDURE 6.4 CO-OPERATION EPC Schedule B Sept. 20.2003
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Wairakei EPC 6.5 COMMUNICATION 6.6 WRITTEN COMMUNICATION 6.7 SUPERVISION 6.8 WORKERS WITH SPECIAL NEEDS 6.9 TECHNICAL TRAINING ANALYSIS SHEET (FORM) 6.10 EMPLOYEE INDUCTION (FORM) 6.11 TRAINING REGISTER (FORM) 6.12 MEDICAL HISTORY (FORM) SECTION 7 - CONTRACTORS PROCEDURES 7.1 PURPOSE Contractors represent a high percentage of our work force. Selection becomes critical to Ormat performance and how we are perceived in the market place as a safety performer. To strengthen and upgrade Ormat performance the following will be considered: o Contractors with good standing safety records. o Contractors that submit with their tender documents a management plan for health and safety. 7.2 PROCEDURE 7.3 CONTRACT CONTENT (FORM) 7.4 CONTRACT POLICY 7.4.1 Health, Safety and Environment Goals 7.4.2 ORMAT Philosophy 7.4.3 Core Values to Achieve Mission 7.4.4 Construction Safety Management 7.4.5 Subcontractors Responsibilities 7.4.6 Minimum Subcontractor's Health, Safety and Environment Plan Requirements 7.4.7 Pre-project Review Meeting 7.4.8 Subcontractors Health, Safety and Environment Planning 7.4.9 Accident / Incident Reporting and Investigation 7.4.10 Shutting Down Unsafe Work 7.4.11 Storage Area 7.4.12 Site Health and Safety Inductions 7.4.13 Site Health and Safety Standards 7.4.14 Contractors Safety Pre-qualification Form (form) EPC Schedule B Sept. 20.2003
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Wairakei EPC SECTION 8 - MEETING PROCEDURES 8.1 PURPOSE To provide the opportunity for all participants to discuss the health and safety condition/s that exist within the place of work and to address any concerns that the group may have regarding health and safety, therefore, establishing an agreement to implement (if desired) corrective action or procedures. To provide a written record of the concerns raised and proposed programme to address those matters within the predetermined timeframe and to identify the person responsible. 8.2 PROCEDURE 8.3 SITE HEALTH AND SAFETY GROUP MEETING RECORD (FORM) 8.4 MONTHLY REPORT (FORM) SECTION 9 - INSPECTION PROCEDURES 9.1 PURPOSE Inspections are one of the best tools available to find, detect and correct problems and assess their risk before accidents and other losses occur. A well managed programme can greatly assist in eliminating problems and losses by: o Identifying potential problems. o Identifying equipment deficiencies. o Identifying improper employee actions. o Identifying poor housekeeping standards. 9.2 DEFINITION 9.3 RESPONSIBILITIES 9.4 HEALTH AND SAFETY INSPECTION PROGRAMME (FORM) SECTION 10 - ENVIRONMENTAL PROCEDURES 10.1 PURPOSE The current legislation vested in local authorities the responsibility for granting consents. The environmental effects on most operations are principally regulated in three main areas: land, air and water. The hazards and/or operation identified by Ormat, which may have any actual or potential effect/s on the environment can be controlled and managed to reduce and/or eliminate the hazard and/or operation. 10.2 DEFINITION EPC Schedule B Sept. 20.2003
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Wairakei EPC 10.3 RESPONSIBILITIES SECTION 11- SAFETY MANUAL FOR START-UP AND TESTING ACTIVITIES 11.1 PURPOSE The objective of this document is to define the safety measures, procedures and responsibilities during the period of the construction start-up, commissioning and testing between: Ormat, Wairakei Project and all other entities (painting, insulation contractors, etc) involved in construction, commissioning and operation activities on the Wairakei Project. This document is intended for the management and senior staff as well as the supervisors level of the above mentioned Entities. 11.2 ORGANIZATION 11.3 GENERAL SAFETY PRACTICE 11.4 GENERAL EMERGENCY PLANS 11.5 EMERGENCY RESPONSE PLAN 11.6 OPERATION INSIDE THE PLANT 11.7 OPERATION OUTSIDE THE PLANT, AFFECTING LOCKOUT IN THE FIELD 11.8 VEHICLES, RADIOS, CELL PHONES AND OTHER POSSIBLE IGNITION SOURCES 11.9 ATTACHMENTS EPC Schedule B Sept. 20.2003
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Wairakei EPC RECOMMENDED SPARE PARTS The following inventory of spares is recommended. ------------------------------------------------------------------------------------------------------------------- EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ ------------------------------------------------------------------------------------------------------------------- 1 220KV CIRCUIT BREAKER ------------------------------------------------------------------------------------------------------------------- 1.1 110VDC trip coil 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------- 1.2 110VDC Closing coil 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------- 1.3 Spring charging motor 1 2,000.00 2,000.00 3,427.00 ------------------------------------------------------------------------------------------------------------------- 1.4 Motor limit switch 1 500.00 500.00 856.75 ------------------------------------------------------------------------------------------------------------------- 1.5 Operation counter 1 400.00 400.00 685.40 ------------------------------------------------------------------------------------------------------------------- 1.6 SF6 Densimeter 1 2,400.00 2,400.00 4,112.41 ------------------------------------------------------------------------------------------------------------------- 2 220KV GANTRY ------------------------------------------------------------------------------------------------------------------- 2.1 220kV strain insulator 1 1,000.00 1,000.00 1,713.50 ------------------------------------------------------------------------------------------------------------------- 2.2 220kV post insulator 1 3,000.00 3,000.00 5,140.51 ------------------------------------------------------------------------------------------------------------------- 3 220/11KV STEP-UP TRANSFORMER ------------------------------------------------------------------------------------------------------------------- 3.1 245kV bushing insulator 1 24,000.00 24,000.00 41,124.06 ------------------------------------------------------------------------------------------------------------------- 3.2 11kV side insulator 1 3,000.00 3,000.00 5,140.51 ------------------------------------------------------------------------------------------------------------------- 3.3 Gasket set, including: for bushings, 1 2,000.00 2,000.00 3,427.00 manholes, valves and the one for the main cover of the tank ------------------------------------------------------------------------------------------------------------------- 3.4 Buchholz relay for expansion tank 1 1,500.00 1,500.00 2,570.25 ------------------------------------------------------------------------------------------------------------------- 3.5 Dial thermometer for measurement of the oil temperature 1 1,500.00 1,500.00 2,570.25 ------------------------------------------------------------------------------------------------------------------- 3.6 Oil level indicator in the expansion tank 1 1,500.00 1,500.00 2,570.25 ------------------------------------------------------------------------------------------------------------------- 3.7 Pressure relief valve 1 3,000.00 3,000.00 5,140.51 ------------------------------------------------------------------------------------------------------------------- 3.8 Winding temperature indicator 1 7,000.00 7,000.00 11,994.52 ------------------------------------------------------------------------------------------------------------------- 3.9 Lightning arrester for the 11 kV side 1 2,000.00 2,000.00 3,427.00 ------------------------------------------------------------------------------------------------------------------- 3.10 Lightning arrester for the 220 kV side 1 10,000.00 10,000.00 17,135.02 ------------------------------------------------------------------------------------------------------------------- 4 13.8KV SWITCHGEAR ------------------------------------------------------------------------------------------------------------------- 4.1 125 VDC trip coil for 11 kV circuit breaker 1 500.00 500.00 856.75 ------------------------------------------------------------------------------------------------------------------- 4.2 125VDC closing coil for 11 kV circuit breaker 1 500.00 500.00 856.75 ------------------------------------------------------------------------------------------------------------------- 4.3 Control selector switch 1 300.00 300.00 514.05 ------------------------------------------------------------------------------------------------------------------- 4.4 Signaling lamp for breaker status "On" (red) 1 80.00 80.00 137.08 ------------------------------------------------------------------------------------------------------------------- 4.5 Signaling lamp for breaker status "OFF" 1 80.00 80.00 137.08 (green) ------------------------------------------------------------------------------------------------------------------- 4.6 125 VDC complete control auxiliary relay 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------- EPC Schedule B Sept. 20.2003
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Wairakei EPC ------------------------------------------------------------------------------------------------------------------ EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ ------------------------------------------------------------------------------------------------------------------ 4.7 120 VAC complete control auxiliary relay 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 4.8 11 kV fuse for PT 1 1,000.00 1,000.00 1,713.50 ------------------------------------------------------------------------------------------------------------------ 4.9 125 VDC control fuse 6 50.00 300.00 514.05 ------------------------------------------------------------------------------------------------------------------ 4.10 120 VAC control fuse 6 50.00 300.00 514.05 ------------------------------------------------------------------------------------------------------------------ 4.11 120 VAC bulbs for signal lamps 10 20.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 5 400 VAC MCC ------------------------------------------------------------------------------------------------------------------ 5.1 400 V MCC contactor for motor up to 7.5HP 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 5.2 400 V MCC contactor for motor up to 20 HP 1 400.00 400.00 685.40 ------------------------------------------------------------------------------------------------------------------ 5.3 400 V MCC contactor for motor up to 40 HP 1 600.00 600.00 1028.10 ------------------------------------------------------------------------------------------------------------------ 5.4 400 V MCC contactor coil for motor up to 7.5 1 80.00 80.00 137.08 HP ------------------------------------------------------------------------------------------------------------------ 5.5 400V MCC contactor coil for motor up to 20 HP 1 100.00 100.00 171.35 ------------------------------------------------------------------------------------------------------------------ 5.6 400 V MCC contactor coil for motor up to 1 150.00 150.00 257.03 40 HP ------------------------------------------------------------------------------------------------------------------ 5.7 400V MCC contactor coil for motor up to 75 HP 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 5.8 400V MCC contactor coil for motor up to 1 700.00 700.00 1199.45 150 HP ------------------------------------------------------------------------------------------------------------------ 5.9 400 V MCC contactor coil for motor up to 300 1 1,000.00 1,000.00 1,713.50 HP ------------------------------------------------------------------------------------------------------------------ 5.10 3 AMP PRIMARY FUSE 10 10.00 100.00 171.35 ------------------------------------------------------------------------------------------------------------------ 5.11 6 AMP PRIMARY FUSE 5 10.00 50.00 85.68 ------------------------------------------------------------------------------------------------------------------ 5.12 CONTROL TRANSFORMER 480/120, 50 VA 2 100.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 5.13 CONTROL TRANSFORMER 480/120, 100 VA 1 200.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 5.14 CONTROL TRANSFORMER 480/120, 150 VA 1 300.00 300.00 514.05 ------------------------------------------------------------------------------------------------------------------ 5.15 Bulbs for Signaling lamps 20 10.00 200.00 342.70 ------------------------------------------------------------------------------------------------------------------ 5.16 RESET PUSHBUTTON 1 20.00 20.00 34.27 ------------------------------------------------------------------------------------------------------------------ 5.17 START PUSHBUTTON 1 40.00 40.00 68.54 ------------------------------------------------------------------------------------------------------------------ 5.18 STOP PUSHBUTTON 1 40.00 40.00 68.54 ------------------------------------------------------------------------------------------------------------------ 5.19 PRIMARY FUSE HOLDER 2 30.00 60.00 102.81 ------------------------------------------------------------------------------------------------------------------ 5.20 H-O-A SELRCTOR SWITCH 2 60.00 120.00 205.62 ------------------------------------------------------------------------------------------------------------------ 5.21 LED PILOT LIGHT ASSY. 2 60.00 120.00 205.62 ------------------------------------------------------------------------------------------------------------------ 5.22 400 VAC 3 phase Surge arrestor 1 800.00 800.00 1,370.80 ------------------------------------------------------------------------------------------------------------------ 6 CPB - CONTROL AND PROTECTION BOARD ------------------------------------------------------------------------------------------------------------------ 6.1 OVER SPEED RELAY MODOULE. 1 500.00 500.00 856.75 ------------------------------------------------------------------------------------------------------------------ EPC Schedule B Sept. 20.2003
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Wairakei EPC --------------------------------------------------------------------------------------------------------------- EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ --------------------------------------------------------------------------------------------------------------- 6.2 RTD INPUT MODULE 8 POINTS 1 1,200.00 1,200.00 2,056.20 ----------------------------------------------------------------------------------------------------------- 6.3 SLOT CHASSIS 1 240.00 240.00 411.24 ----------------------------------------------------------------------------------------------------------- 6.4 PLC + ETH. 1 3,600.00 3,600.00 6,168.61 ----------------------------------------------------------------------------------------------------------- 6.5 POWER SUPPLY 24 VDC 1 400.00 400.00 685.40 ----------------------------------------------------------------------------------------------------------- 6.6 REM. I/O SCANNER 1 1,100.00 1,100.00 1,884.85 ----------------------------------------------------------------------------------------------------------- 6.7 REM. I/O ADAPTER 1 600.00 600.00 1,028.10 ----------------------------------------------------------------------------------------------------------- 6.8 TERMINAL BASE 2 200.00 400.00 685.40 ----------------------------------------------------------------------------------------------------------- 6.9 ANALOG CARD 1 900.00 900.00 1,542.15 --------------------------------------------------------------------------------------------------------------- 6.10 DIGITAL CARD 1 300.00 300.00 514.05 --------------------------------------------------------------------------------------------------------------- 6.11 INPUT CARD 1 260.00 260.00 445.51 --------------------------------------------------------------------------------------------------------------- 6.12 RELAY CARD 1 300.00 300.00 514.05 --------------------------------------------------------------------------------------------------------------- 6.13 DIGITAL EXCIT. CONTROL SYS. 1 8,000.00 8,000.00 13,708.02 --------------------------------------------------------------------------------------------------------------- 6.14 WOODWARD CONTROLLER 1 4,000.00 4,000.00 6,854.01 --------------------------------------------------------------------------------------------------------------- 6.15 LOCKOUT RELAY 1 500.00 500.00 856.75 --------------------------------------------------------------------------------------------------------------- 6.16 PHASE BALANCE RELAY 1 400.00 400.00 685.4 --------------------------------------------------------------------------------------------------------------- 6.17 AUTO. SYNCHRONZER 1 2,000.00 2,000.00 3,427.00 --------------------------------------------------------------------------------------------------------------- 6.18 GEN. BACKUP PROTECTION RELAY - GPR 1 4,000.00 4,000.00 6,854.01 --------------------------------------------------------------------------------------------------------------- 6.19 CONTACT BLOCK N.C 2 10.00 20.00 34.27 --------------------------------------------------------------------------------------------------------------- 6.20 CONTACT BLOCK N.O 2 10.00 20.00 34.27 --------------------------------------------------------------------------------------------------------------- 6.21 SWITCH ILL PUSHBOTTON 1 10.00 10.00 17.14 --------------------------------------------------------------------------------------------------------------- 6.22 MINI CONTACTOR 24 VDC 2 50.00 100.00 171.35 --------------------------------------------------------------------------------------------------------------- 6.23 ILLUMINATED S.S. 2 POSITION 1 80.00 80.00 137.08 --------------------------------------------------------------------------------------------------------------- 6.24 VOLTAGE TRANSDUCER 150 VAC 1 300.00 300.00 514.05 --------------------------------------------------------------------------------------------------------------- 6.25 VOLTAGE TRASMITTER 30 VDC 1 300.00 300.00 514.05 --------------------------------------------------------------------------------------------------------------- 6.26 DUAL CUR. TO CUR. 4-20 MA 1 500.00 500.00 856.75 --------------------------------------------------------------------------------------------------------------- 6.27 BAYONET LAMP 10 2.00 20.00 34.27 --------------------------------------------------------------------------------------------------------------- 6.28 FUSE 2 AMP 250 VAC 20 1.00 20.00 34.27 --------------------------------------------------------------------------------------------------------------- 6.29 FUSE 20 AMP 10 2.00 20.00 34.27 --------------------------------------------------------------------------------------------------------------- 6.30 FUSE NORMAL BLO 10 AMP 20 1.00 20.00 34.27 --------------------------------------------------------------------------------------------------------------- 6.31 CERAMIC FUSE 1 AMP 250 V 10 1.00 10.00 17.14 --------------------------------------------------------------------------------------------------------------- 6.32 CERAMIC FUSE 6 AMP 250 V 5 2.00 10.00 17.14 --------------------------------------------------------------------------------------------------------------- 6.33 CIRCUIT BREAKER 25 AMP 1 30.00 30.00 51.41 --------------------------------------------------------------------------------------------------------------- 6.34 CIRCUIT BREAKER 16 AMP 1 30.00 30.00 51.41 --------------------------------------------------------------------------------------------------------------- 6.35 Serial to Ethernet Converter 1 1,000.00 1,000.00 1,713.50 --------------------------------------------------------------------------------------------------------------- 7 11KV GENERATOR --------------------------------------------------------------------------------------------------------------- 7.1 BEARING RTD 2 400.00 800.00 1,370.80 --------------------------------------------------------------------------------------------------------------- 7.2 ROTATING DIODES - FORWARD 3 400.00 1,200.00 2,056.20 --------------------------------------------------------------------------------------------------------------- 7.3 ROTATING DIODES - REVERSE 3 400.00 1,200.00 2,056.20 --------------------------------------------------------------------------------------------------------------- 7.4 ACTIVE SPEED PICK-UP 1 1,100.00 1,100.00 1,884.85 --------------------------------------------------------------------------------------------------------------- 7.5 DRIVE END BEARING LINER 1 11,000.00 11,000.00 18,848.53 --------------------------------------------------------------------------------------------------------------- 7.6 OPPOSITE DRIVE END BEARING LINER 1 11,000.00 11,000.00 18,848.53 --------------------------------------------------------------------------------------------------------------- EPC Schedule B Sept. 20.2003
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Wairakei EPC --------------------------------------------------------------------------------------------------------------- EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ --------------------------------------------------------------------------------------------------------------- 8 GEOTHERMAL FIELD SPARES --------------------------------------------------------------------------------------------------------------- 8.1 By Pass Control Valve Repair Kit 2 1,200 2,400 4,112.41 --------------------------------------------------------------------------------------------------------------- 8.2 Heat Source Control Valve Repair Kit 2 1,200 2,400 4,112.41 --------------------------------------------------------------------------------------------------------------- 8.3 Muffler Control Valve Repair Kit 1 800 800 1,370.80 --------------------------------------------------------------------------------------------------------------- 8.4 Valve Positioner 1 1,200 1,200 2,056.20 --------------------------------------------------------------------------------------------------------------- 8.5 Temp. Transmitter 1 320 320 548.32 --------------------------------------------------------------------------------------------------------------- 8.6 Pressure Transmitter 1 2,400 2,400 4,112.41 --------------------------------------------------------------------------------------------------------------- 8.7 Pressure Gage 2 160 320 548.32 --------------------------------------------------------------------------------------------------------------- 8.8 Temperature Gage 2 120 240 411.24 --------------------------------------------------------------------------------------------------------------- 9 TURBINES SPARE PARTS --------------------------------------------------------------------------------------------------------------- 9.1 RING 7mm (FOR TURBINE OUTLET POSITIONING) 10 4.36 43.60 74.71 --------------------------------------------------------------------------------------------------------------- 9.2 HEX. NUT 3/4"NF (FOR TURBINE OUTLET 25 1.08 27.00 46.26 POSITIONING) --------------------------------------------------------------------------------------------------------------- 9.3 INSERT 3/4" (FOR SHAFT ASSY. POSITIONING) 4 64.24 256.96 440.3 --------------------------------------------------------------------------------------------------------------- 9.4 BOLT 3/4"*5" (FOR SHAFT ASSY. POSITIONING) 4 58.04 232.16 397.81 --------------------------------------------------------------------------------------------------------------- 9.5 STUD 3/4"NF*268 mm (FOR TURBINE OUTLET 25 11.46 286.50 490.92 POSITIONING) --------------------------------------------------------------------------------------------------------------- 9.6 GASKET (TURBINE BODY TO OUTLET SEALANT) 4 357.00 1,428.00 2,446.88 --------------------------------------------------------------------------------------------------------------- 9.7 ANGULAR CONTACT BALL BEARING TIGHT RING 2 1,596.96 3,193.92 5,472.79 --------------------------------------------------------------------------------------------------------------- 9.8 OIL COLLECTING LABYRINTH FOR SHAFT ASSY 1 837.76 837.76 1,435.50 --------------------------------------------------------------------------------------------------------------- 9.9 STUD 3/4" UNF (FOR MECHASNICAL SEAL 4 102.62 410.48 703.36 POSITIONING) --------------------------------------------------------------------------------------------------------------- 9.10 DRILLED NUT 3/4" (FOR MECHASNICAL SEAL 4 30.24 120.96 207.27 POSITIONING) --------------------------------------------------------------------------------------------------------------- 9.11 SPACER RING (FOR ANGULAR CONTACT BALL 1 174.62 174.62 299.21 BEARING POSITIONING) --------------------------------------------------------------------------------------------------------------- 9.12 CYLINDRICAL ROLLER BEARING TIGHTENING RING 2 764.48 1,528.96 2,619.88 --------------------------------------------------------------------------------------------------------------- 9.13 SPACER RING SET FOR ANGULAR CONTACT BALL 1 2,760.36 2,760.36 4,729.88 BEARING POSITIONING --------------------------------------------------------------------------------------------------------------- 9.14 CORD VITON O-RING 3.53mm (MULTIPURPOSE 4.5 9.18 41.31 70.78 SEALANT) --------------------------------------------------------------------------------------------------------------- 9.15 MECHANICAL SEAL 1 15,223.04 15,223.04 26,084.72 --------------------------------------------------------------------------------------------------------------- 9.16 O-RINGI.D = 39.45 THK. 1.78 mm (LUB. & SEAL 4 2.54 10.16 17.41 HYDRAULIC BLOCK) --------------------------------------------------------------------------------------------------------------- EPC Schedule B Sept. 20.2003
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Wairakei EPC --------------------------------------------------------------------------------------------------------------- EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ --------------------------------------------------------------------------------------------------------------- 9.17 O-RING I.D. 20.5 mm THK. 2.62mm (MECH. SEAL 4 2.14 8.56 14.67 OIL PORTS&LUB&SEAL HYDR. BLOCK) --------------------------------------------------------------------------------------------------------------- 9.18 SHRINK DISC (FOR WHEEL ASSEMBLY) 3 660.78 1,982.34 3,396.74 --------------------------------------------------------------------------------------------------------------- 9.19 CYLINDRICAL ROLLER BEARING 2 362.68 725.36 1,242.91 --------------------------------------------------------------------------------------------------------------- 9.20 ANGULAR CONTACT BALL BEARING 4 583.94 2,335.76 4,002.33 --------------------------------------------------------------------------------------------------------------- 9.21 ANGULAR CONTACT BALL BEARING LOCKNUT 4 186.96 747.84 1,281.43 --------------------------------------------------------------------------------------------------------------- 9.22 O-RING I.D.349.5*3.53 (SEAL SUPPORT 2 30.36 60.72 104.04 HERMETIZER) --------------------------------------------------------------------------------------------------------------- 9.23 SHRINK DISC (FOR COUPLING ASSEMBLY) 1 786.28 786.28 1,347.29 --------------------------------------------------------------------------------------------------------------- 9.24 MECHANICAL SEAL - SET SCREW 16 7.00 112.00 191.91 --------------------------------------------------------------------------------------------------------------- 9.25 CYLINDRICAL PIN DIA.5*10 FOR SPACER RING SET 2 0.44 0.88 1.51 --------------------------------------------------------------------------------------------------------------- 10 CONSUMABLE ITEMS SPARES --------------------------------------------------------------------------------------------------------------- 10.1 VAPORIZER CHANNEL GASKET 4 319.02 1,276.08 2,186.57 --------------------------------------------------------------------------------------------------------------- 10.2 PREHEATER CHANNEL GASKET 4 82.70 330.80 566.83 --------------------------------------------------------------------------------------------------------------- 10.3 HYDRAULIC BLOCK FILTER CORE (FOR LUB. & SEAL 8 58.40 467.20 800.55 OIL SYSTEMS) --------------------------------------------------------------------------------------------------------------- 10.4 FILTER ELEMENT-25 micron (FOR LUB. & SEAL 5 13.06 65.30 111.89 OIL SYSTEMS) --------------------------------------------------------------------------------------------------------------- 10.5 LUB. / SEAL OIL PUMP.SUCTION STRAINER 140 4 62.80 251.20 430.43 micron --------------------------------------------------------------------------------------------------------------- 10.6 MOTIVE FLUID 7000 7500 2.40 18,000.00 30,843.04 --------------------------------------------------------------------------------------------------------------- 10.7 SEAL OIL 100 3.88 388.00 664.84 --------------------------------------------------------------------------------------------------------------- 10.8 LUB. OIL 100 4.14 414.00 709.39 --------------------------------------------------------------------------------------------------------------- 11 AIR COOLER SPARE PARTS --------------------------------------------------------------------------------------------------------------- 11.1 FAN DRIVING ASSEMBLY MOTOR 1 1,008.00 1,008.00 1,727.21 --------------------------------------------------------------------------------------------------------------- 11.2 FAN SHAFT 1 567.68 567.68 972.72 --------------------------------------------------------------------------------------------------------------- 11.3 FAN 1 1,397.22 1,397.22 2,394.14 --------------------------------------------------------------------------------------------------------------- 11.4 MOTOR PULLEY BUSHING 1 44.34 44.34 75.98 --------------------------------------------------------------------------------------------------------------- 11.5 FAN PULLEY BUSHING 1 16.72 16.72 28.65 --------------------------------------------------------------------------------------------------------------- 11.6 FAN SHAFT BEARING 2 146.00 292.00 500.34 --------------------------------------------------------------------------------------------------------------- 11.7 DRIVING ASSEMBLY CHAIN BELT 6 522.12 3,132.72 5,367.92 --------------------------------------------------------------------------------------------------------------- EPC Schedule B Sept. 20.2003
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Wairakei EPC --------------------------------------------------------------------------------------------------------------- EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ --------------------------------------------------------------------------------------------------------------- 11.8 FAN PULLEY 1 955.04 955.04 1,636.46 --------------------------------------------------------------------------------------------------------------- 11.9 MOTOR PULLEY 1 193.08 193.08 330.84 --------------------------------------------------------------------------------------------------------------- 12 OIL SYSTEM SPARE PARTS --------------------------------------------------------------------------------------------------------------- 12.1 GENERATOR DRIVE END LUB. OIL ORIFICE 2 38.70 77.40 132.63 --------------------------------------------------------------------------------------------------------------- 12.2 GENERATOR OPOSITE DRIVE END LUB. OIL ORIFICE 2 38.70 77.40 132.63 --------------------------------------------------------------------------------------------------------------- 12.3 SEAL OIL MANIFALED ORIFICE 2 68.18 136.36 233.65 --------------------------------------------------------------------------------------------------------------- 12.4 GEAR PUMP COUPLING 2 341.12 682.24 1,169.02 --------------------------------------------------------------------------------------------------------------- 12.5 LUB. OIL ELECTRICAL MOTOR 1 1,059.52 1,059.52 1,815.49 --------------------------------------------------------------------------------------------------------------- 12.6 SEAL OIL ELECTRICAL MOTOR 1 1,008.00 1,008.00 1,727.21 --------------------------------------------------------------------------------------------------------------- 12.7 LUB. OIL GEAR PUMP 1 1,597.12 1,597.12 2,736.67 --------------------------------------------------------------------------------------------------------------- 12.8 SEAL OIL GEAR PUMP 1 1,594.88 1,594.88 2,732.83 --------------------------------------------------------------------------------------------------------------- 12.9 AIR PUMP 1 1,321.60 1,321.60 2,264.56 --------------------------------------------------------------------------------------------------------------- 12.10 HYDRAULIC ACCUMULATOR 2 157.28 314.56 539.00 --------------------------------------------------------------------------------------------------------------- 12.11 SOLENOID VALVE 1 711.28 711.28 1,218.78 --------------------------------------------------------------------------------------------------------------- 12.12 FILTER HEAD TYPE HH6946 1 93.20 93.20 159.70 --------------------------------------------------------------------------------------------------------------- 12.13 OIL COOLER 1 2,298.04 2,298.04 3,937.70 --------------------------------------------------------------------------------------------------------------- 12.14 CHECK VALVE 1"NPT 1 150.18 150.18 257.33 --------------------------------------------------------------------------------------------------------------- 12.15 PRESSURE CONTROL VALVE 2 103.82 207.64 355.79 --------------------------------------------------------------------------------------------------------------- 12.16 CHECK VALVE 3/4"NPT 1 93.32 93.32 159.90 --------------------------------------------------------------------------------------------------------------- 12.17 PRESSURE SWITCH 2 486.08 972.16 1,665.80 --------------------------------------------------------------------------------------------------------------- 12.18 HYDRAUL. BLOCK CHECK VALVE 1 70.76 70.76 121.25 --------------------------------------------------------------------------------------------------------------- 12.19 FILTER REGULATOR 1/4"NPT 1 226.00 226.00 387.25 --------------------------------------------------------------------------------------------------------------- 12.20 FLUID LEVEL & TEMP.GAUGE 1 94.80 94.80 162.44 --------------------------------------------------------------------------------------------------------------- 12.21 PRESSURE GAUGE 0-16BAR 2 93.84 187.68 321.59 --------------------------------------------------------------------------------------------------------------- 12.22 PRESS. GAUGE 0-6BAR 2.5" 2 88.20 176.40 302.26 --------------------------------------------------------------------------------------------------------------- 12.23 PRESS.GAUGE 0-10 BAR 2.5" 2 112.44 224.88 385.33 --------------------------------------------------------------------------------------------------------------- 13 FEED PUMP SPARE PARTS --------------------------------------------------------------------------------------------------------------- 13.1 SET OF BEARINGS & O RING FOR FEED PUMP 1 7,000.00 7,000.00 11,994.52 --------------------------------------------------------------------------------------------------------------- 13.2 COMPLETE STAGE 2 1,982.40 3,964.80 6,793.69 --------------------------------------------------------------------------------------------------------------- 13.3 FEED PUMP MECHANICAL SEAL 1 4,704.00 4,704.00 8,060.32 --------------------------------------------------------------------------------------------------------------- 14 PIPING SYSTEM SPARE PARTS --------------------------------------------------------------------------------------------------------------- 14.1 QUICK RELIEF VALVE 1/2" 2 20.42 40.84 69.98 --------------------------------------------------------------------------------------------------------------- 14.2 1/2" PNEUMATIC VALVE 1 144.80 144.80 248.12 --------------------------------------------------------------------------------------------------------------- 14.3 3/2 SOLENOID VALVE 1/4" 1 631.00 631.00 1,081.22 --------------------------------------------------------------------------------------------------------------- 14.4 VALVE AIR SUPPLY FILTER REGULATOR 1 217.28 217.28 372.31 --------------------------------------------------------------------------------------------------------------- 14.5 INJECTION VALVE AIR BOOSTER 1 481.60 481.60 825.22 --------------------------------------------------------------------------------------------------------------- 14.6 MOTIVE FLUID LEVEL SWITCH 1 873.60 873.60 1,496.92 --------------------------------------------------------------------------------------------------------------- 14.7 PRESS.SWITCH,EX,20-200PSI 1 518.00 518.00 887.59 --------------------------------------------------------------------------------------------------------------- EPC Schedule B Sept. 20.2003
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Wairakei EPC --------------------------------------------------------------------------------------------------------------- EQUIVALENT PART NO DESCRIPTION QUANTITY UNIT PRICE PRICE (USD) VALUE (USD) NZ$ --------------------------------------------------------------------------------------------------------------- 14.8 PRESS.SWITCH,EX,50-500PSI 1 518.00 518.00 887.59 --------------------------------------------------------------------------------------------------------------- 13.13 INSTRUMENT AIR PRESSURE REGULATOR 2 163.06 326.12 558.81 --------------------------------------------------------------------------------------------------------------- 13.14 VAPORIZER RUPTURE DISC 2 629.26 1,258.52 2,156.48 --------------------------------------------------------------------------------------------------------------- 13.15 CONDENSER RUPTURE DISC 2 1,102.30 2,204.60 3,777.59 --------------------------------------------------------------------------------------------------------------- 13.16 RECUPERATOR RUPTURE DISC (SUBJECT TO DETAIL 1 426.84 426.84 731.39 DESIGN) --------------------------------------------------------------------------------------------------------------- 13.17 INJECTION VALVE I/P 1 739.20 739.20 1,266.62 --------------------------------------------------------------------------------------------------------------- 13.18 PRESSURE GAUGE 0-10 BAR 2 71.68 143.36 245.65 --------------------------------------------------------------------------------------------------------------- 13.19 PRESSURE GAUGE 0-16BAR 1 114.24 114.24 195.75 --------------------------------------------------------------------------------------------------------------- 13.20 PRESSURE TRANSMITTER 1 1,184.96 1,184.96 2,030.43 --------------------------------------------------------------------------------------------------------------- 13.21 VAPORIZER LEVEL TRANSMITTER 1 2,172.80 2,172.80 3,723.10 --------------------------------------------------------------------------------------------------------------- 13.22 TEMPERATURE TRANSMITTER 2 55.42 110.84 189.92 --------------------------------------------------------------------------------------------------------------- 13.23 CONTROL VALVE SPARE PARTS SET (FOR EACH Set 925.34 5,552.04 9,513.43 VALVE TYPE) --------------------------------------------------------------------------------------------------------------- 13.24 CONTROL VALVE POSITIONER (FOR EACH VALVE Set 163.06 326.12 558.81 TYPE) --------------------------------------------------------------------------------------------------------------- NOTE: 1. Spare part list is preliminary. Changes may occur following the detailed design. 2. A 25 % discount on the purchase price will be granted in case spares will be ordered within 60 days after submittal of the final spare part list. RECOMMENDED ASSEMBLY TOOLS --------------------------------------------------------------------------------------------------------- PART NO DESCRIPTION QUANTITY UNIT PRICE (USD) --------------------------------------------------------------------------------------------------------- 1 TURBINE ASSEMBLY TOOLS --------------------------------------------------------------------------------------------------------- 1.1 TURBINE SHAFT-TO-PISTON ADAPTOR 1 EA 436 --------------------------------------------------------------------------------------------------------- 1.2 SHAFT ASSEMBLY LIFTING TOOL 1 EA 51 --------------------------------------------------------------------------------------------------------- 1.3 AUXILIARY RODS FOR TURBINME DISASSEMBLING 1 EA 384 --------------------------------------------------------------------------------------------------------- 1.4 HYDRAULIC PISTON W/PUMP 1 EA 1,340 --------------------------------------------------------------------------------------------------------- 1.5 HOLDER FOR NOZZLE STAGE-2 1 EA 74 --------------------------------------------------------------------------------------------------------- 1.6 SHAFT ASSEMBLY LIFTING JIG 1 EA 1,364 --------------------------------------------------------------------------------------------------------- 1.7 SET BAR M12x680mm 1 EA 220 --------------------------------------------------------------------------------------------------------- 1.8 INDICATOR-ON-SHAFT HOLDER 1 EA 1,254 --------------------------------------------------------------------------------------------------------- 1.9 FLANGE FOR LEAK TEST 1 EA 2,193 --------------------------------------------------------------------------------------------------------- EPC Schedule B Sept. 20.2003
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Wairakei EPC --------------------------------------------------------------------------------------------------------- PART NO DESCRIPTION QUANTITY UNIT PRICE (USD) --------------------------------------------------------------------------------------------------------- 1.10 WHEEL G