Client: Kaltim-2 Independent Power Producer
Location: Sumatra, Indonesia
POWER Engineers was contracted in November 2013 by PT Graha Power Kaltim (GPK) to provide the combined Owners Engineering services and Environmental Advisory services on the Kaltim-2 IPP Power Plant Project. The Kaltim-2 Project is a 2×100 MW coal fired power plant in East Kalimantan, Indonesia. It is an IPP project which requires the World Bank guidelines to be followed in environmental requirement, plant design and project execution for international financing. POWER’s Owner’s Engineering services with GPK includes the followings:
- Review Technical Requirement from PPA. POWER reviewed the pending PPA draft to check for critical issues and also to gain familiarity with the PPA’s requirements.
- Technical Support for Site Selection. POWER visited the site and assisted the EPC contractor with the optimization of the Plant Layout for cost reduction and conformance with the environmental requirement. We also reviewed the topographic, bathymetric and geotechnical surveys conducted on the site
- Establish EPC Scope and Prepare Technical Parts of EPC Contract. POWER’s main task was to turn Human Electric Power Design Institute’s (HEPDI’s) EPC proposal and technical work into an executable EPC contract which involved establishing the EPC contractor scope, finalizing design, QA/QC, procurement, guarantees and a project execution plan. HEPDI was provided with an EPC contract template to use as a base for the technical exhibits of the EPC contract. The EPC contract was broken down into two parts: an onshore contract and an offshore contract. POWER reviewed the technical exhibits and worked with HEPDI to ensure that the proposed scope of supply, design, equipment capacity, redundancy, quality, emissions and project execution were adequate to allow the Plant to meet the obligations agreed in the PPA and local governmental regulations on Chinese labor imports and custom clearance. We also reviewed the proposed scope to ensure it allowed the Plant to meet all local environmental requirements as well as the requirements of international Lenders.
- Provide Technical Assistance During PPA Negotiation. This is currently in progress. There are some technical issues that may surface during negotiations with PLN, which requires POWER to provide assistance to Client during the final negotiation
- Provide Technical Data and Assistance to AECOM. AECOM, an environmental firm, needed to ensure compliance with all environmental regulations and assess the projected environmental impacts. They are modelling the Plant’s impact on ambient air quality and its impact on the marine environment. Under this task, POWER provided technical input to AECOM and will review their air and thermal dispersion model to determine the water intake inlet and discharge locations. POWER will also write the sections of the Indonesian Environmental Impact Assessment (AMDAL) report that describe the Plant’s technical characteristics.
- Provide Technical Assistance during Project Financing. GPK is currently going through the project financing stage. POWER will address the technical questions and comments from the Lenders’ Technical Advisor. This will include addressing the proposed levels of liquidated damages against the EPC Contractor under the EPC Contract and against the Client under the PPA. We will review the Lenders’ concerns and provide responses sufficient to resolve them. We will work with both the Lenders’ Technical Advisor and the EPC Contractor to resolve all open issues to allow financial close to proceed smoothly. We shall review the financial and O&M models to ensure that the technical design of the Plant will support the underlying assumptions for performance, operating cost, availability, etc. that are modeled in the Project pro-forrna.
- Provide General Assistance on All Other Technical Matters. The preceding tasks addressed the majority of technical advisory services that are anticipated. However, in every project, unanticipated situations develop that require technical input. POWER has been required to provide input analysis on issues such as permitting issues, reliability, alternate fuels, part load requirements, emissions with various coals or blends, adequacy of recommended spare parts, fuel storage and site ash storage.
- AMDAL Review and Equator Principles Study. This will require POWER to review and modify AECOM’s scope of work in respect to Equator Principles III, as necessary, and advise the Client in respect to any issues where compliance with Equator Principles III and the recent released World Bank Guidelines that are outside the scope of the AMDAL. The scope also contracted POWER to oversee AECOM’s work in Indonesia as well as remotely from the home office to monitor the quality of the content. Additional work includes:
- Provide technical study analysis and report preparation of any necessary modeling, simulation and/or other technical activity that will be required by international lenders, such as air dispersion modelling (“ADM”), thermal plume modelling (“TPM”), Noise Simulation, etc. If gaps exist between the predicted results and World Bank Guidelines, the papers will explain what cost-effective mitigation measures are proposed, if any.
- Review the contents (tables, graphics, etc.) of the AMDAL as it is being prepared.
- Provide the QA/QC services for the whole process until AMDAL Report and Equator Principles Study approval.
- Review a third-party translation of the AMDAL from Indonesian to English language.