dale lindberg_china export model
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Dale LindbergVice President & Director
Power Generation Services- Asia
Dale has spent his entire 40 year career with B&V.
Currently he resides in B&Vs Beijing office
overseeing our Services business in Asia. Dale has
been working in Asia for 30 years. Over the past 4
years he has had extensive experience with the
China Export Model. Office Location
Beijing, Peoples Republic
of China
Education
B.Sc. Civil Engineering
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VICEPRESIDENTANDDIRECTORPOWERGENERATIONSERVICES ASIADALELINDBERG
CHINAEXPORTMODELCHALLENGES/SOLUTIONS
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ChineseEPC contractorshaveinconsistentrecordsfor
thedelivery
of
projects
outside
of
China
TypicalprojectdeliveryinsideChinaisnotEPC model Ownersprojectteamimplementstheproject
management Ownersheadquarterandprojectteamjointly
procure
individual
equipment
with
the
assistance
fromthedesigninstitutewhodesignsthepowerplant
Afewlocalcivilanderectioncompaniesarehired Aprofessionalcommissioninginstitutedoesthe
startup,commissioningandperformancetesting
Historically,China
export
projects
have
been
governmenttogovernmenttypeprojects.NowincludingIPPs
ThecultureandpracticeofprojectexecutioninsideChinaisdifferentthanoutsideofChina
BACKGROUNDOF
CHINA
EXPORTPROJECTS
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Aggressivepricing
FinancingsupportfromChinaEXIMBANK,SINOSURE andChinesegovernment(exportfinancing)
Promiseaggressiveprojectschedules
Todatenotdelivered
WillingtobringChineseconstructionlabortosite
Less
sensitive
to
commercial
terms Aggressivesales/marketing
WillingnesstotakeOwnershiprole
COMPETITIVENESSOF
CHINESE
EPCCONTRACTORSOUTSIDEOFCHINA
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Inconsistentinternationallevelofquality
Conformitywith
owners
contract
versus
China
standardpractices
Projectmanagementexperienceandhumanresourcesforoverseasprojects
Projectcontrols cost,scheduleandrisk
managementprocedures
(lacking
CPM
planning)
Actualimplementationofinternationalandlocalcodesandstandards
Managinginterfaceswithlocalconstruction
contractorsand
local
authorities
EnglishCommunicationskills amajorhurdle
Safety,Health,Environmentperformance
EntryandworkpermitsforChineselabors
CHALLENGESFOR
CHINESE
EPC
CONTRACTORSOUTSIDEOFCHINA
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BLACK&VEATCH
SOLUTIONFOR
CHINAEXPORT
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AsOwnersEngineer,supporttheowner
withmanagement
of
the
Chinese
EPC
OwnersEngineershouldhavesignificantexperienceandresourcesinChinaandshouldbegiventheauthority
to
manage AsEP/EPC ContractortoprocureChinese
equipmentandmanageChinesepartnersandvendors
Black&Veatchbringsleadershipforoverall
project
management,
quality
control,technicalcoordinationandinterfaceswiththeclientandlocalconstructioncontractors
WEHAVE
USED
TWO
APPROACHES
TO
ASSIST
OWNERSADDRESSTHECHALLENGESOFUSINGCHINESECONTRACTORSANDEQUIPMENT
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BLACK&
VEATCH
CHINA
EXPORT
PROJECTS
Project Client Location Capacity(MW) Scope ServicePeriod
Banten Genting Indonesia 660 MW, Coal FullOE 2012 ongoing
Salalah IWPP Sembcorp OmanCombined Cycle430MW/15MIGD
PartialOE 20082012
Rabigh IPPProject
ACWC Saudi
Arabia 2x660,
Oil Full
OE 02/2009
03/31/2013
Tiroda ThermalPower
Adani PowerMaharashtra
PrivateLtdIndia
3x660,PC,Supercritical
Limitedscope 04/2009
ongoing
Tanjung Jati B Sumitomo Indonesia 2X660MW
EP 20092012
PTBABanjasari PT
Bukit
Asam Indonesia Banjasari 2x100MW
OE 07/2007
on
going
BarcarenaPowerPlant
Vale(CVRD) Brazil 2x300,PC,60HZ Fullscope 1/2008
ongoing
PLN10KProgram PLN Java,Indonesia
Suralaya 1x600PC,Paiton 1x660PC,
Rembang 2x300PC,Ad ipala
Limitedscope 11/2007 2014
OyuTolgoiPowerPlant
Ivanhoe Mongolia 3x150,CFB Fullscope 04/2007 pending
MonteEsperanzaPowerPlant
Globeleq Panama 2x135,CFB,60HZ OE 3/2007
onhold
Cilacap S2P Java,Indonesia 2x300,PC Limitedscope 06/2004 12/2006
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ManyoverseasprojectsrequireU.S./InternationalCodesandStandards
ChineseDIs
/Contractors
have
limited
or
no
capability
to
designtointernationalstandards
Limitedcapabilityin:
Heatbalancesandperformancecalculations
Dynamicfoundationdesign
NFPA
Noiseplanning/modeling
Difficultcoordinating
with
vendors
and
other
contractors
EffectivedrawingcontrolandmanagementsystemsarenotusedbyDIs
ENGINEERINGOBSERVATIONS
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MustensurethatContractorunderstands
localmandatory
requirements
Fire/explosionprotection,environmental,health,safety
Expectthattheprojectwillbedesigned
primarilyto
GB
(China
National
Standards)
Significantcostbenefitsandshorterdeliveryperiodsforequipment
RequireInternationalStandardsonlywherecritical
AmericanASME,ANSIandInternationalISO,IEE,IEEC
MaterialApplicationGuide
CODES&STANDARDS
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Kickoffmeeting(reviewofreqm andalignment)
Agreeonbasicdesignfirst
Reviewcriticaldrawings
Design
liaison
meetingsLimitdrawingreviewcycles
UseBeijingofficedesignreviewteam
Weeklycoordination
Actionitemlists
ENGINEERINGSOLUTIONS
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DonotuseCPM planning
Donotuseprogressmodel
Littleinterface/coordinationamongEPC
Do
not
plan
for
floatDonotuseLNTP
Missschedules
PROJECTCONTROLS
OBSERVATIONS
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Black&VeatchguideEPC indevelopmentofCPM plan
Black&VeatchguideEPC indevelopmentofprogressmodel
DonepriortoNTP
Black&VeatchinstructEPC onCPM analysis
Black&VeatchmonitorEPC monthlyprogressreportandschedulestatus
Quicklyelevate
critical
deviations
Review/discussscheduleinmonthlyprojectmeetings
PROJECTCONTROL
SOLUTIONS
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Ensurequalified,toptierChinesevendorsareincludedinthe
EPC Contract
Qualitycontroliscritical significanttimeneedstobespentinvendorshopstoverifyproperproceduresare
followedEPC ContractRequirementsareoftennotfloweddownto
vendors
Obtainingtimelydesigninformationcanbedifficultinfluences
overall
design
schedule
Technicaladvisorcapabilityislimited
PROCUREMENTOBSERVATIONS
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EnsureprequalifiedvendorsinEPC contract
Black&Veatchhasdoneduediligenceon400Chinesevendorsandprequalfied 180
Procurement/QCkickoffmeeting
LTP planBlack&Veatchinspection
Surveillancereports
Resolveissuestimelyinshop
Deviationmanagement
Expediting
PROCUREMENTSOLUTIONS
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Constructionactivitiesaregenerallynot
plannedin
detail
Difficultiesincoordinatingwithlocalsubcontractors
Coordinationbetweenconstructionand
commissioningneeds
improvement
Chineseconstructioncontractorsareaccustomedtofielddesignchangesproblemscanoccurwithforeigncontractors
notused
to
this
approach
Safetyisnotafocus
Reportingislimited
CONSTRUCTIONOBSERVATIONS
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QualifiedSiteManager
QualifiedSiteManager
DisciplineSiteEngineers
DisciplineSiteEngineers
ProjectControlsProject
Controls QCManagerQCManager
SpecialtyEngineering
Support
SpecialtyEngineering
Support
WeeklyCoordination
Meetings
WeeklyCoordination
Meetings
ActionItemLists
ActionItemLists
ClaimsManagement
ClaimsManagement
CONSTRUCTIONOVERSIGHT
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Donebysubcontractors
Commissioningprocessisnotintegratedintotheoverallprojectplan
Astructuredprocessisnotfollowed
Notenough
time
is
typically
allotted
for
commissioning
Constructiondoesmanyequipmentcommissioningtasksthatwouldnormallybedonebythecommissioningteam
Hydrotesting
of
critical
pipe
not
done
Steamblowcompletedonacceleratedbasis(3days)
STARTUP/COMMISSIONING
OBSERVATIONS
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QualifiedCommissioningManager
Disciplinestartupengineers
Startuppackages
Startup
scheduleFireprotectionandDCS protectioninplacepriorto
hotcommissioning
STARTUP/COMMISSIONING
OVERSIGHT
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Needperformancetestplan
Agreementoncalculatedresults(correctionmethods)
Black&Veatchwitnessand
performancereport
review
PERFORMANCETESTING
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Q&A
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