Lessons learnt from recent nuclear construction projects. Greg Kaser Senior Project Manager, World Nuclear Association

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1 Lessons learnt from recent nuclear construction projects Greg Kaser Senior Project Manager, World Nuclear Association

2 LESSONS LEARNT FOR AFRICA FROM RECENT NUCLEAR CONSTRUCTION PROJECTS Recognize risks Align stakeholder interests and goals Engage with key external stakeholders Be realistic on schedule

3 WORLD NUCLEAR ASSOCIATION 12 Working Groups: Fuel Cycle CORDEL Economics Supply chain Transport Law, etc. Strategic outreach: Decision-makers Industry partners Media Business associations

4 TRILEMMA IN PROJECT MANAGEMENT Time All procurement must find a balance between cost, quality and delivery. Fast Poor Quality Expensive PRESENTATION GUIDELINES Cheap Late Good Cost Quality

5 RELATIONSHIPS MANAGING COMPLEXITY The quality of knowledge among the key stakeholders (client, contractors, regulators, political representatives). The relationships between the key stakeholders (client, contractors, regulators, political representatives). Far from agreement AGREEMENT WITH KEY STAKE- HOLDERS= COMMON AIMS & VISION PRESENTATION GUIDELINES Close to agreement SIMPLE Good practice exists follow it More certainty COMPLICATED More than one answer is possible consult and agree COMPLEX Manage risks through collaboration CHAOTIC Things go wrong Less certainty QUALITY OF KNOWLEDGE Adapted from Ralph Stacey, 1996, Strategic Management and Organizational Dynamics, London: Pearson. IMPACT OF DECISIONS

6 RELATIONSHIPS AND RISKS Recognize risks Project planning should involve key internal stakeholders (client, operator, EPC, technology vendor, major suppliers, etc.) Risks should be assigned to the party best able to manage them Align interests and goals among internal stakeholders Collaborative working arrangements and incentives Contracts that support collaboration and dispute resolution rather than encourage adversarial relations Engage with external stakeholders PRESENTATION Participatory approaches to engagement GUIDELINES with local communities (including local authorities) Recognize the durability of the plant s relationship with its neighbours

7 MANAGE THE INTERFACES Safety Regulator Licenced Operator Delivery Tier 1: Technology Vendor/ EPC Interface management Tier 2: System Integrators Integrated management system Tier 3: Original Equipment Manufacturers Tier 4: Sub-component Suppliers/ Distributors Tier 5: Processors/ Fabricators Tier 6: Raw Material Suppliers/ Miners

8 GENUINE ENGAGEMENT WITH EXTERNAL STAKEHOLDERS Local concerns must be addressed by the Project sponsor Local and national governments Worries over safety may be a sign of dissent PRESENTATION GUIDELINES 3,000 fishermen protest against loading nuclear fuel at Kudankulam, Tamil Nadu, in September 2012 (India Today)

9 REALISTIC DELIVERY TARGETS Experience suggests that the nuclear industry is capable of delivering a nuclear power plant within 110 months from: Application for a construction licence to Grid connection Localization of manufacturing will add time to the schedule Utility contracts with reactor Limited work vendor authorization Final investment decision by utility First revenue Prepare application EIA approved Detail design Order longlead items Construction License Issued Plant construction Commissioning Operating License Issued Months

10 REALISTIC DELIVERY TARGETS Best practice shows that a nuclear power plant can be delivered within 90 months. Utility contracts with reactor Limited work vendor authorization Final investment decision by utility First revenue Prepare application EIA approved Detail design Order longlead items Plant construction Construction License Issued Commissioning Operating License Issued Months

11 MEASURES TO IMPROVE CONSTRUCTION PERFORMANCE Owners should build fleets of standardized reactor designs to reduce the capital cost of nuclear energy A collaborative approach to enable working across organizational boundaries and access suppliers knowledge so that resources are available when they are needed An international nuclear industry production system would ensure high quality from competing suppliers from many different countries based on common (e.g. ISO) standards Remove activities that do not add value to the construction process and invest in the work force Strive for continual improvement in repeatable construction processes Controlled construction environments to achieve high quality and factory-scale productivity Nuclear safety regulators should be prepared to take account of the licensing and inspection undertaken by their peers elsewhere, leading to lower regulatory costs

12 GENERATION III REACTORS ARE COMING ON LINE 2018/2019 Finland: Olkiluoto 3 EPR China: Sanmen 1 & 2 and Haiyang 1 & 2 AP1000 China: Fuqing 5 Hualong UAE: Barakah 1 APR1400

13 Thank you Greg KASER