A Step Ahead ( into HFO A Step Ahead ( into HFO Generation)Generation)

1

Site LocationSite Location

MUKALLA

REPUBLIC OF YEMEN

Power Plant Site (Google Power Plant Site (Google Layout)Layout)

Project Set UpProject Set Up From Feasibility /Load /Site

study –

To Customized Engineering

To Turnkey Project

Execution …….

Table of ContentsTable of Contents

Brief Project DescriptionStakeholdersFew Site Progress PhotosCurrent Site Progress Report

Brief Project DescriptionBrief Project Description Hadhramout Investment Power Company Limited (“HIPC”) is a public limited company

principally sponsored by Sabson Group (75% of shareholding), Al-Rehab Group and Arab Fund together (25% shareholding) (“Sponsors”) for undertaking power generation projects in the Republic of Yemen.

o The Total Cost envisaged for the entire Project is 90 Million Euro.o The total power plant capacity under installation is 75 MW of gross electrical power

at Al-Mukalla – Industrial District in the Republic of Yemen ,heavy furnace oil fired based fuel. The Construction activities for 52.5 MW comprising of 7 engines is under way in full swing and further extension by another 22.5 MW (3 more engines) is envisioned for April 2010.

o The envisaged project will supply electricity to the national grid & partly to Sabson Groups’ – Integrated Steel Plant (currently in progress) under contractual agreements.

o The Engines are identical of Wartsila Make , Finland, Type 18 V 32 , Quantity 10 Nos.

o Electrical Power Guarantee at Site Conditions is 7500 kWe (75 MW)o Minimum Electrical Power guaranteed by Wartsila at Generator Terminals is 7125

kWe (71.25 MW). 3 % can be considered for Ancillary Power Usage (Designed at Site Ambient conditions of 40 deg cent).

o Wartsila is solely responsible for ensuring its scope of supply comprises all Equipment within the specified battery limits that is patently indispensible for a complete operating power plant in accordance with Wartsila standards.

continuedcontinued The main Supply of Engine and its associated Systems & Auxiliaries is Wartsila

Scope of Supply. The BOP along with Installation is entrusted to Hideleco, Egyptian Construction

Company, the Contractors for this Project. The Consultants chosen for this Project is Dastur Engineering International GmbH,

Germany having its office in India. Operation & Maintenance will be managed by the OEM ( Engine Supplier), hence

yielding high consistency in the long run. High Reliability, Maintainability & Availability of Electric Power at all times. Conformity with environmental requirements.

Plant Master LayoutPlant Master Layout

Plant 3D View (Storage tank Plant 3D View (Storage tank area)area)

Plant 3D View (Pipe Plant 3D View (Pipe Bridge)Bridge)

Plant 3D View (Stacks)Plant 3D View (Stacks)

Plant 3D View (Engine Plant 3D View (Engine Hall)Hall)

Plant 3D View (Engine Hall, Plant 3D View (Engine Hall, Internal View)Internal View)

Plant 3D View (Engine Hall, Plant 3D View (Engine Hall, Internal View)Internal View)

Stakeholders Stakeholders (Sponsors)(Sponsors)

Sabson Group (“Sabson”) :o HIPC is backed by Sabson Group, one of the oldest business houses

in Yemen with an operating history of over 100 years. Sabson Group is engaged in various manufacturing, trading and other activities catering to the needs of the local demands and requirements.

o The group is managed by Bajersh family. The Group is one of the most industrious business groups in the Hadhramout Region.

Al-Rehab Group:o Al-Rehab Group is one of the most reputed business houses

engaged in infrastructure projects i.e. big and medium sized turn-key industrial and residential projects and other related activities in the Republic of Yemen.

o They are also engaged in various other activities as industrial and engineering services, real estate development, Information Technology and IT enabled services.

o The group is managed by Ahmad Sofan who is the ex-minister for planning and currently a member of parliament and holds minority shareholding in HIPC.

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Arab Fund:

o The Arab Fund for Economic and Social Development (AFESD) is an autonomous regional Pan-Arab development finance organization. Its membership consists of all states who are members of the League of Arab States.

o The Fund’s function is to assist the economic and social development of Arab countries through

– Financing development projects, with preference given to overall Arab development and to joint Arab projects;

– Encouraging the investment of private and public funds in Arab projects; and

– Providing technical assistance services for Arab economic and social development.

Stakeholders Stakeholders (Contractors)(Contractors) Wärtsilä Finland OY (“Wartsila”):

o Wartsila is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasizing technological innovation and total efficiency, Wärtsilä maximizes the environmental and economic performance of the vessels and power plants of its customers. In 2008, Wartsila's net sales totaled EUR 4.6 billion with 19,000 employees. The company has operations in 160 locations in 70 countries around the world.

o Wartsila has been contracted to provide Ten W18V32 Diesel Generator Sets (“DG Sets”) to HIPC and the associated & common auxiliaries.

High Dam Electrical & Industrial Projects Co. (“Hideleco”)

o Hideleco, formed in July 1971 is involved in installation of the hydro-electric power station (12x175 MW) and the extra high voltage substations and overhead transmission lines of 500, 220 & 132 KV.

ContinuedContinuedo Hideleco has successfully undertaken a)Loading, transportation and

unloading of heavy equipment up to 300 tons and 180 meters length using heavy trucks and trailers with truck mounted cranes up to 150 tons; b) Customs clearance for equipment; and c) Testing and operation trials.

Dastur Engineering International GMBH (“Dastur”):

o Dastur specializes in project planning and appraisal; economic evaluation; design and detailed engineering, procurement assistance services, project management and supervision of construction and erection; environmental engineering and pollution control; energy management and optimization; human resources development; marketing and management consultancy.

o Dastur also specializes in business consulting; integrated information technology strategy; automation and control strategy; simulation & modeling and optimization; and program management services.

o Dastur is internationally recognized as one of the largest independent consulting engineering organizations in the world.

Few Progress PhotosFew Progress Photos

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Continued (HFO Tank 1 & Continued (HFO Tank 1 & LFO Tank)LFO Tank)

Continued (Fuel unloading Continued (Fuel unloading station floor under station floor under construction)construction)

Continued (Fuel unloading Continued (Fuel unloading station floor casting)station floor casting)

Continued (Fire Water Tank Continued (Fire Water Tank Foundation)Foundation)

Continued (Engine Hall Continued (Engine Hall Ventilation Unit & Exhaust Ventilation Unit & Exhaust Duct Support Foundation)Duct Support Foundation)

Continued(Encased Cable Continued(Encased Cable Conduits from Utility Block to Conduits from Utility Block to Step Up Transformers)Step Up Transformers)

Continued(Day Tanks)Continued(Day Tanks)

Continued (Day Tanks Continued (Day Tanks Area)Area)

Continued (Day Tanks Area Continued (Day Tanks Area View)View)

Continued (Boiler Foundation Continued (Boiler Foundation & Engine Hall)& Engine Hall)

Continued(Boiler & Exhaust Continued(Boiler & Exhaust Duct Support Foundations)Duct Support Foundations)

Continued (Wartsila Continued (Wartsila Consignment from India)Consignment from India)

Continued (View of Tank Continued (View of Tank Farm Area)Farm Area)

Continued (View of Engine Continued (View of Engine Hall)Hall)

Continued(View of DG Continued(View of DG Sets 1-4)Sets 1-4)

Continued (View of Boiler & Continued (View of Boiler & Exhaust Duct Support Exhaust Duct Support Foundations)Foundations)

Continued (Utility Block Continued (Utility Block Under Construction)Under Construction)

Continued(Utility Block Continued(Utility Block Building Under Construction)Building Under Construction)

Continued(Shuttering & Continued(Shuttering & Reinforcement Work for Aux Reinforcement Work for Aux Container Foundation)Container Foundation)

Continued (Shuttering & Continued (Shuttering & Reinforcement Work for Reinforcement Work for Dyke Wall in Tank Farm Dyke Wall in Tank Farm Area) Area)

Continued (Mud mat for Continued (Mud mat for Station Transformers & Station Transformers & Utility Block , Backside) Utility Block , Backside)

Current Status of the Current Status of the ProjectProject

The Project’s progress for the month as at 30th November 2009 & till 16th of December 09 month is summarized below:

o Subsequent to receipt of first four (4) DG sets at site, second Shipment comprising of compact booster unit, exhaust gas module, engine auxiliary module, HFO/LFO unloading unit / LFO transfer unit & boiler washing water pump unit have reached site.

o After taking the decision to extend the Utility Block by around 5.5 M, foundation work for utility block extension is under progress.

o Construction work for Fuel treatment House has been completed.

o Foundations for the Radiator & Fire Water Tank have been completed.

o In the Tank Farm Area , foundations for all (3) Storage Tanks have been completed. Column foundations & flooring for Engine Hall building has been completed & foundation work of utility block side cable end is under progress.

o Major flooring for Engine side ventilation unit has been completed.

Progress of Work as on Progress of Work as on 30.11.200930.11.2009S Curve weight ageS Curve weight age Description Scheduled (Nov ’09) Actual (Nov ’09) Procurement 47.30% 51.50% Engineering 85.36% 64.0 % Construction 19.89% 21.11% Overall Progress 39.15% 39.54%

ContinuedContinued Erection work of Shell plates & Base plate has been virtually completed for

LFO storage tank.

Erection work for HFO Storage tankNo.2 in Tank farm area is under progress.

Base Plate for HFO Storage tank no. 1 has been placed on foundation.

Erection of all tanks in Day tank area is under progress & fabrication work for 100 Cu M LFO tank is under progress.

Raft has been cast for extension portion of Utility Block building (approx. concrete quantity 22 m3)

Encasing done for cable conduits from Utility Block towards Step-up transformers

Mud mat laid for four (4) Nos. boiler foundations

Mud mat laid for ten (10)Nos. exhaust duct support foundations.

Concreting done for balance five (5) Nos. (total 10 Nos.) exhaust duct support foundations. (approx. conc. qty 11 m3).

Concreting done for floor of generator side ventilation unit of Engine Hall (approx. conc. qty. 26 m3). 

Concreting done for four (4) Nos. Boiler foundations (approx. conc. qty. 45 m3).

Concreting done for floor of Unloading station at Tank Farm Area (approx. conc. qty. 30 m3).