VICTOR PARANHOS CEO OF ENERGIA SUSTENTÁVEL DO BRASIL

Transcription

1 VICTOR PARANHOS CEO OF ENERGIA SUSTENTÁVEL DO BRASIL

2 ESBR: General Framework GDF Suez (40%) ESBR Concession Agreement (ANEEL/MME) Mitsui (20%) Eletrosul (20%) Financing (BNDES) Chesf (20%) Environmental Licensing (IBAMA) Jirau HPP Works Around the Reservoir Interfaces (Concremat) Owner s Engineering (LEME) Owner s Engineering (INTT) Civil Project (Themag) Civil Works (CCCC and JMalucelli) Turbines and Generators (DongFang and Alstom/Voith/Andritz) Assembly and Mounting (ENESA) BS Construtora Other Companies

3 Jirau HPP: Basic Characteristics Part of PAC - Growth Acceleration Program Located at Ilha do Padre, 120 km far from Porto Velho, State of Rondônia, in the North of Brazil 3,750 MW installed capacity - enough to supply more than 10 millions of families Connected to the National Interconnecd Grid System through three 500 kv transmission lines Energy: Power houses: 2, one at each riverbank Installed capacity: 3,750 MW Quantity of turbines: 50 Turbine type: Bulb Individual turbine capacity: 75 MW Reservoir: Variable water level: 82.5 m 90.0 m Reservoir area: km 2 Reservoir area increase due to the project: 21.0 to km 2 Life expectancy: more than 50 years Spillway: Design flow: 82,600 m 3 /s 18 gates, each 22.7 m high by 20 m wide

4 Jirau HPP: Location

5 Jirau HPP: Overview Power House Right Bank Spillway Log-Boom Logs Discharger Power House Left Bank 1ª Phase Power House Left Bank 2ª Phase

6 Jirau HPP: Project Update 13 units in operation (975 MW); 8 additional units already being commissioned (600 MW); Jirau units have already operated successfully at full power and with a performance above auction requirements; 95,5% overall project progress; Work force and night shift increased in order to speed up commissioning. Spillway Power House Left Bank 2ª Phase

7 Largest HPP in the World HPP Installed Capacity HPP Installed Capacity 1 Three Gorges Dam China 22,500 MW 2 Itaipu Dam Brazil/Paraguay 14,000 MW 3 Xiluodu China 13,860 MW 4 Guri Venezuela 8,850 MW 5 Tucuruí Brazil 8,370 MW 6 Xiangjiaba China 7,750 MW 7 Grand Coulle United States 6,809 MW 8 Longtan Dam China 6,426 MW 9 Krasnoyarsk Russia 6,000 MW 10 Nuozhadu China 5,850 MW 11 Churchill Falls Canada 5,828 MW 12 Robert-Bourassa Canada 5,616 MW 13 Jinping-II China 4,800 MW 14 Bratsk Russia 4,500 MW 15 Laxiwa Dam China 4,200 MW 16 Xiaowan Dam China 4,200 MW 17 Sayano-Shushenskaya Russia 3,840 MW 18 Ust Ilimskaya Russia 3,840 MW 19 Jirau Brazil 3,750 MW *HPP under construction are not included. Some HPP may have additional units under construction, but only current installed capacity is listed.

8 A True Challenge INSTALL ONE OF THE LARGEST HYDROELECTRIC REGION PLANTS IN THE AMAZON MEET THE PROJECT DEADLINES INCREASE THE POWER-GENERATING CAPACITY (6 MORE TURBINES) TECHNOLOGICAL CHALLENGES TURBINES, LOG-BOOMS, SEDIMENTS LOGISTICAL CHALLENGES FOR TRANSPORTING OF EQUIPMENT AND MATERIALS CIVIL WORKS ENVIRONMENTAL LICENSING PROCESS

9 Challenge: Jirau HPP s Schedule 50% 55% 61% 68% 75%

10 Contractors and Interfaces: Pursuit of Excellence Civil Project THEMAG Turbines and Generators DONG FANG Hydro-mechanical Equipament BARDELLA Logistics BERTILING MAJOR CONTRACTORS: Civil Works CCCC Turbines and Generators ALSTOM / VOITH / ANDRITZ Assembly and Mounting ENESA International Supervision COYNE ET BELLIER Civil Works JMalucelli Electro-mechanical Equipament SIEMENS/CNEC Transmission Lines TOSHIBA Nova Mutum Paraná BS Construtora Best suppliers; KEY SUCESS FACTORS Responsabilities cleary allocated; Owners-engineer arrangements for every aspect of the project Civil works: LEME Engenharia Transmissions lines: LEME Engenharia Nova Mutum Paraná and works around the reservoir: INTERTECHNE Interface Management: CONCREMAT is a contractor focussed specifically on interface issues with respect to technical aspects of the construction activities, focussing on logistics control, storage, transport, and others. Mix of national and foreign companies.

11 Difficulties and Risks Jirau HPP is being built in a remote area; There are a lot of construction risks: geological, hydrological, topography and others; There is a concentration of players in charge of the civil construction industry: Great difficulty in replacing companies that do not perform in accordance to contracts. Low productivity; High labor turnover; Constructions claims (very common in the construction industry nowadays); Large projects as Jirau HPP tend to suffer adjustments during implementation; Consume precious time, money and resources for both parties. Delays and disruptions (caused by criminal acts); Risks of tax changes.

12 Contractual Structures EPC There is only a basic design of the project when the contract is signed. The size of these projects is such that no one contractor is willing to take the overall risk. There are so many tecnhological risks involved. Unit Price Higher risk for owner. The exact final price of the project is not know until the completos of the project. Open Book Require more work for the owner to manage. Require auditing contractor s invoices. Difficulties to predict the final cost of the project. Contractors pay less attention to cost control and productivity.

13 Final Considerations Local and regional governments should provide health and education services and public safety to ensure that the projects benefits delivered by the project are sustained into the long term. Non-insurable risks (vandalism and others events) cannot be imputed to the owners of the project because they do not have the police power. Risks need to be shared between the owner and the contractors. Types of contracts; Long-term relationship. It is important to have stable and fixed rules from the beginning of the project and to avoid changing existing measures which causes significant increases in a project s cost. Environmental licensing should be simplified. Investors must have a clear vision of what will be their future costs.