Rosatom State Atomic Energy Corporation

Long-term Service (O&M) Contract

15.06.2016

Evgeny Salkov

Rusatom Service JSC

INTEGRATED PROPOSAL OF ROSATOM STATE CORPORATION

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O&M Contract*

EPC ContractFuel Contract

Back-end

Integrated Proposal of Rosatom State Corporation contains a complete main

package of services ranging from NPP construction and

maintenance to decommissioning

* O&M – Operation & Maintenance

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WHAT IS AN O&M CONTRACT FOR?

Safe operation and mitigation of Customer's risks

Assistance in arrangement of operation using the resources of highly skilled and experienced personnel of Contractor

Savings

Cost reduction due to:

- prevention of possible mistakes during operation and maintenance

- use of engineering, scientific, design potential of RosatomState Corporation

Transfer of experience and localization

During joint operation, experience is transferred to Customer's personnel and local servicing companies

Convenience of work with a single O&M contractor

There may be dozens of contractors working on large service projects

WHY IS OUR COMPANY THE O&M CONTRACTOR YOU NEED?

4Current clients

Future clients

Branch offices/representativesRusatom Service JSC

Market leader

CHINA

VIETNAM

INDIA

BANGLADESH

EGYPT

KAZAKHSTANUKRAINE

FINLAND

BELARUS

BULGARIA

IRAN

CZECH REPUBLIC SLOVAKIAHUNGARY

ARMENIA

TURKEY

• … a specialized service company, a single point of contact for maintenance of foreign NPPs

• … performs orders in seven countries

• … a leader of service market in three countries

• … value of orders is about $500 million

Amount of personnel

270.000

Number of companies

> 250

• The companies of State Corporation have the highest competences in servicing VVER based NPPs

Rusatom Service JSC ...Rosatom State Corporation

Units in operation

35

WHY DO YOU NEED AN O&M CONTRACT RIGHT NOW?

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Nuclear power plant personnel training

OperationDesign and Construction

Signing of O&M Contract already now allows...

•...reservation of resources for Customer

•…long-term planning of activities

•…guaranteed stability of relations with a pool of contractors

-9 -8 … -5 -4 -3 -2 -1 1 2 3 … 60

Works under EPC Contract

Works under O&M Contract

1

2

1 1

2

4 4 4 4 4 4

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Units commissioning schedule for VVER based NPPs abroad

• Some works under O&M contract start 5 years prior to Unit startup

• Signing of O&M Contract in parallel with EPC Contract facilitates their harmonization and will ensure transfer of experience and preservation of personnel continuity from construction stage to operation stage

Rosatom state corporation plans to build 36 NPP’ Units abroad by 2030

Increased demand for service

PRINCIPLES OF O&M CONTRACT FORMATION

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Long validity period• O&M Contract will provide Customer with everything required for

effective and safe operation throughout NPP lifecycle

Modular design• O&M is based on modular principle so that Customer could have a

possibility of selection from the list of proposed services, works, supplies

• Customer selects the required scope and pays only for the works and services actually received

Transfer of knowledge and localization

• Continuous transfer of experience and knowledge to Customer's personnel during joint operation

• Involvement of local suppliers in large service projects

Technical assistance during NPP commissioning, operation and also arrangement and performance of preventive maintenance

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Maintenance and repair of mechanical equipment, electrical equipment and I&C hardware, and metal inspection during operation

Training of NPP personnel, proficiency maintaining and improvement of personnel qualification

Development of repair documentation

Equipment and spare parts supply during NPP commercial operation

KEY MODULES OF O&M CONTRACT

TECHNICAL ASSISTANCE DURING NPP OPERATION

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Assistance in equipment acceptance after repair/commissioning

Technical support during plant testing and equipment commissioning

Participation in Provisional Takeover and Final Takeover of NPP Unit

Technical support for Customer's operating personnel during NPP operation

Consulting of Customer regarding provision of design parameters of NPP Units operation

Participation in development, inspection and update of operational documents

Arrangement of planning, preparation and performance of scheduled preventive maintenance

Up to 350 highly skilled specialists will be deployed to NPP site to provide technical assistance to Customer

ARRANGEMENT AND PERFORMANCE OF MAINTENANCE AND REPAIR

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Mobilization and transportation of Contractor and Subcontractor personnel

Management of repair&maintenance process

Maintenance and repair of safety related equipment and systems

Work quality control, acceptance of equipment and systems after maintenance and repair

Assistance in preparation and issue of reporting documents

Provision of designer's support during preparation and performance of maintenance

Contractor can deploy to NPP Site amount of up to 600 maintenance specialists for scheduled preventive maintenance performance

PERSONNEL TRAINING

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Development of programs and procedures for NPP personnel training

Training of NPP operating and maintenance personnel

Creation of NPP Unit full scale simulators

Establishment of Training Center at Customer's Site

Arrangement of NPP personnel internship at operating Russian NPPs

Services on additional professional training (advanced training, improvement of personnel qualification, retraining)

Depending on Customer's needs, NPP personnel may be trained in total amount from 300 to 1800 people

DEVELOPMENT OF MAINTENANCE DOCUMENTATION

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Organizational documents for maintenance and repair

Maintenance and repair regulations and procedures

Specifications for equipment maintenance

Technical documentation packages for maintenance of equipment and systems

Process instructions for welding, heat treatment, diagnostics, inspections, etc.

Projects of work organizational management documents

The amount of maintenance documentation for NPP consisting of two Units is over 400 documents

SUPPLY OF EQUIPMENT AND SPARE PARTS AND ACCESSORIES

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Customer's technical support in generation and support of IT system for materials management

Development of a bill of strategic spare parts (emergency stock)

Development of a bill of annually scheduled supply of spare parts, accessories and consumables

Signing of contracts with vendors (manufacturers) of spare parts and accessories

Provision of spare parts, accessories and materials supply to Customer

Contractor ensures supply of spare parts and accessories during the entire period ofNPP commercial operation

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EXAMPLES OF SUCCESSFUL COOPERATION

• Unit 1 operation technical support/assistance since 2012

• Maintenance performance during the first intermediate repair (2014) and first overhaul (2015)

• Signing of contract for maintenance, repair and personnel training in 2018 – 2021 (expected in 2016)

• Signing of contract for supply of spare parts and accessories (expected in 2016)

• Technical support/assistance during scheduled preventive maintenance of Units 1, 2 (starting 2008)

• Supply of equipment and spare parts and accessories (starting 2008)

• Personnel training (2015)

Bushehr NPP (Iran)

Tianwan NPP (China)

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EXAMPLES OF SUCCESSFUL COOPERATION

• Full package of works on lifetime extension project (LTE) (2015–2019)

› Comprehensive assessment of Unit› Assessment of LTE possibility› Technical condition assessment and justification of

equipment lifetime extension› Justifying calculations / safety justification› Upgrade and replacement of systems and equipment

(equipment supplies, construction and installation, testing)

• Supply of equipment and spare parts and accessories (2013–2015)

• Upgrade of NPP Unit 5 and 6 generators in order to increase power rating to 1100 MW (2015–2016)

• Evaluation and justification of Unit 5, 6 lifetime extension (2014–2018)

Metsamor NPP (Armenia)

Kozloduy NPP (Bulgaria)

CONTACTS

Evgeny Salkov

Rusatom Service JSC

Director general

info@rusatomservice.ruTel. +74959957680

Fax +74959957682