request for qualification (rfq) tender no. cft/01/791124

Iranian Gas Engineering

and Development Company

REQUEST FOR QUALIFICATION (RFQ)

Gas Storage & Development Project in Shurijeh D Reservoir

1


Tender No. CFT/01/791124 For

Gas Storage & Development Project in Shurijeh D

Reservoir

Islamic Republic of Iran

Iranian Gas Engineering and Development Company

notice

All prospective Tenderers/Bidders are required to confirm the receipt of this document. Fax:02181313736

Revision: B Dated: June 27, 2018

PDF created with pdfFactory Pro trial version www.pdffactory.com

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Table of Contents

2

Table of Contents

1- Instruction for Completion of the Questionnaire ............................................................................................................ 5

1-1 Definitions ................................................................................................................................................................ 7 1-2 Notification to Bidders ............................................................................................................................................. 7

2- Background of the Project .............................................................................................................................................. 9 2-1 General Information ................................................................................................................................................. 9 2-2 Identification Report ............................................................................................................................................... 10

3- Scope of work ............................................................................................................................................................... 12 3-1 General Information ............................................................................................................................................... 12

3-1-1 Summary ......................................................................................................................................................... 12 3-1-2 New Phase-II of Development ...................................................................................................................... 12 3-1-3 Location of the Field ....................................................................................................................................... 13

3-2 Existing Facilities (Phase-I) .................................................................................................................................... 13 3-3 Technical Scope of Work of Phase-II Development .............................................................................................. 14

3-3-1 Upstream Section ............................................................................................................................................ 14 3-3-2 Gas Process Facilities at U.G.S. Plant Phase-II ............................................................................................... 15

3-4 Field Overview ....................................................................................................................................................... 16 4- Bidder General Information .......................................................................................................................................... 18

4-1 Name and Address .................................................................................................................................................. 18 4-2 Nominated Representative ...................................................................................................................................... 18 4-3 Company Registration .......................................................................................................................................... 19 4-4 Type of Entity ......................................................................................................................................................... 19 4-5 Nature of Company Business ................................................................................................................................. 19 4-6 Parent/Holding Company (if applicable) ................................................................................................................ 19 4-7 Company’s Changes (if applicable) ........................................................................................................................ 20 4-8 MISCELLANEOUS ............................................................................................................................................... 20

5- Organisation Chart and Employees ........................................................................................................................... 22 5-1 Table (5-1-1): Details of the Bidder’s Shareholders and Board of Directors ....................................................... 22

5-1-2 Details of the Bidder’s Key Personnel ........................................................................................................... 23 5-1-3 Management Certificates and Standards ........................................................................................................ 24

5-2 Financial ................................................................................................................................................................. 24 5-2-1 FINANCIAL INFORMATION.................................................................................................................... 24

5-3 Bidder’s Investment Capacity ............................................................................................................................ 28 5-4 Insurability ............................................................................................................................................................ 35 5-5 CONDUCT OF BUSINESS ................................................................................................................................... 35

5-5-1 Governing Law ............................................................................................................................................... 35 5-5-2 Parent Guarantee (if applicable) ...................................................................................................................... 35 5-5-3 Language ......................................................................................................................................................... 36

5-6 EXPERIENCES ..................................................................................................................................................... 36 5-6-1 Previous Experience ........................................................................................................................................ 36 5-6-2 Previous Business with Iranian Client(s) e.g. in Iran Petroleum Industry Especially National Iranian Oil Company (“NIOC”) and National Iranian Gas Company (“NIGC”) ........................................................................ 41

5-7 Facilities ................................................................................................................................................................. 42 5-8 QUALITY ASSURANCE & QUALITY CONTROL ........................................................................................... 43 5-9 Bidder’s Experience in the Field of Procurement ................................................................................................... 43 5-10 Bidder’s Machinery and Equipment capacity ....................................................................................................... 47 5-11 Technical, Planning and Operational Capacity ..................................................................................................... 51 5-12 Creativity and Innovation .................................................................................................................................. 54 5-13 CORPORATE SOCIAL RESPONSIBILITY ...................................................................................................... 56 5-14 Bidder shall submit the following information on HEALTH, SAFETY & ENVIRONMENTAL subject: .... 57

5-14-1 HEALTH, SAFETY & ENVIRONMENTAL POLICY ............................................................................... 57 5-14-2 MANAGEMENT AND SUPERVISION OF WORK ACTIVITIES ............................................................ 57 5-14-3 TRAINING OF MANAGERS/SENIOR STAFF ................................................................................... 57 5-14-4 EQUIPMENT CONTROL AND MAINTENANCE .............................................................................. 58 5-14-5 ENVIRONMENT .......................................................................................................................................... 58






Table of Contents

3

6- General Scoring tables ................................................................................................................................................. 60 7- Economic Analysis ....................................................................................................................................................... 69

7-1 Introduction ............................................................................................................................................................ 69 7-2 Principal Assumptions and Input Parameters ......................................................................................................... 69

7-2-1 Exchange Rate and Inflation ........................................................................................................................... 70 7-2-2 Taxation Regime ............................................................................................................................................. 71 7-2-3 Capital Expenditures ....................................................................................................................................... 71 7-2-4 Operating Expenditures ................................................................................................................................... 73 7-2-5 Investor Revenue ............................................................................................................................................. 75

7-2-5-1 Injection and Withdrawal ......................................................................................................................... 75 7-2-5-2 Fee ............................................................................................................................................................ 75

7-3 Cash flow Forecasts (Base Case) ............................................................................................................................ 76 7-4 Financial Results..................................................................................................................................................... 79 7-5 Sensitivity Analysis ................................................................................................................................................ 82




REQUEST FOR QUALIFICATION (RFQ) Gas Storage & Development Project in Shurijeh

D Reservoir

CHAPTER 1

Instruction for Completing

and Submitting the Qualification Documents

4

CHAPTER 1

Instruction for Completing and Submitting the Qualification Documents





D Reservoir

CHAPTER 1



5

1- Instruction for Completion of the Questionnaire

The purpose of this Request for Qualification (hereinafter referred to as “RFQ”) questionnaire

(RFQ) is to enable prospective Bidders, who are interested in receiving the Invitation to Tender

(hereinafter referred to as “ITT”), to provide the Iranian Gas Engineering and Development

Company (hereinafter referred to as “IGEDC”) with sufficient information to make an initial

assessment of their financial standing, capability and suitability for the proposed Build, Operate

and Transfer (BOT) contract, enabling the IGEDC to shortlist for the ITT.

Please note that if the Bidder consists of more than one legal person and the bid is to be

submitted by a contractual (unincorporated) consortium / JV, then each member thereof shall

individually prepare its proposal hereby and the leader shall collect all the proposals and submit

them as a package to IGEDC along with their consortium / JV agreement for attending in the

Tender jointly. IGEDC will evaluate the consortium/JV as a prospective bidder considering the

aggregate score of all members in the appraisal.

All sections of the questionnaire should be completed.

N.B.: An individual company cannot be a joint member of two or more Consortium/JV bidding

for the IGEDC Project.

Notes for completion:

- Please complete in English in type.

- Continue separate sheets if the space in the document is insufficient.

- Please do not use abbreviations.

- Please include, where appropriate, any supporting documents. All enclosures should be

clearly marked with the name of your Company and the question to which they refer.

Bidders shall understand and agree that IGEDC is a governmental company and is

controlled and supervised by some authorities who may require IGEDC to present the

documents of the bidders (If Applicable). In such event, submission of qualification

document by Bidder shall represent Bidder’s consent in this respect.





D Reservoir

CHAPTER 1



6

- Please return one signed and dated hard copy of the completed questionnaire and all

supporting information by courier to IGEDC (not later than 75 days) after the date of

the third public announcement:

- Name: IGEDC

- Address: 5th Floor, No.141, Nejatollahi street., Tehran, Iran, Postal

Code:1598935516

- Telephone: +982181313709

- Fax: +982181313736

Subject of Tender: Gas Storage & Development Project in Shurijeh D Reservoir - All the tables and forms filled in the original copy must be scanned and saved in PDF

format on DVDs in two copies and submitted to IGEDC in addition to the hard copies.

DVDs must carry a label showing name, telephone number, and address of the bidder

as well as CFT No 01/791124

- Further hard / soft copies of this questionnaire shall be provided on request.

- Copies of all the submitted documents must be certified (signed and sealed) by Bidder

and attached to the qualification document.

- Bidders are advised that they are solely responsible for bearing their costs and

expenses incurred in connection with the preparation of responses and submission of

the completed RFQ and all future stages of the selection and evaluation process.

Under no circumstances will the IGEDC or any of its advisers, be liable for any costs or

expenses borne by a Bidder in this process.

- Please note that if any of the information provided in your RFQ response regarding the

Bidder changes in the ensuing evaluation period, you are required to notify the IGEDC

accordingly, giving details of the changes.

- With due consideration to the applicable laws and regulations, IGEDC reserves the right

to reject or disqualify a Bidder where, including without limitation:





D Reservoir

CHAPTER 1



7

- the RFQ response is submitted late (after the CFT deadline. the “Expiry

Date”), is completed incorrectly, is incomplete or fails to meet the IGEDC’s

submission requirements and conditions as set out in these RFQ;

- the Bidder is liable for serious misrepresentation in relation to its

application and/or the procurement process;

- there is a change of identity, control, financial standing or other factor

impacting on the selection and/or evaluation process affecting the Bidder.

- The IGEDC reserves the right to:

- cancel the selection and evaluation process at any stage;

- require a Bidder to clarify its response in writing and/or provide additional

information; and/or

- Amend the terms, conditions and/or requirements of the tender process

including the RFQ document and qualification process.

1-1 Definitions Project Name: Shurijeh-D U.G.S. Development Phase-II

Client/Investee : Iranian Gas Engineering and Development Company (IGEDC)

Site Location: 1km far from Shahid Hashemi Nejad Refinery (Km160 on Mashhad‐Sarakhs

Road)

Furtherance period: 6 months

Construction period (EPC): 36 months

Commercial operation period: 20 years

1-2 Notification to Bidders

All Bidders who satisfy the conditions of qualification will be evaluated and notified within two

months after submission of the application. Unsuccessful Bidders also will be notified in the

same period.




REQUEST FOR QUALIFICATION (RFQ) Gas Storage & Development Project in Shurijeh D

Reservoir

CHAPTER 2

Back ground of project

8

CHAPTER 2

Background of Project





D Reservoir

CHAPTER 2

Background of project

9

2- Background of the Project

This Project is defined under BOT arrangement and the Bidder is required to fully invest in the

Project. The terms and condition of the BOT arrangement shall be submitted by IGEDC along

with the contract strategy as per the specific appendix will be attached to the CFT document.

Under this BOT Contract the bidder shall be obliged to the followings:

- To invest all Capital for the execution of the Project and bear the following risks:

· Not-completion risks

· Technical and operational risks

· Storage reservoir risks

- To carry out engineering studies and detailed engineering of the Project

- To drill production and injection wells and to carry out drilling operations as set out in

the Project

- To supply and procure the goods, materials and equipment necessary for the execution

of the Project

- To construct and install the project equipment and installations in the Project

- To commission, start up and operate the Project

- To maintain the Project during the life of the BOT contact

- To transfer the Project to IGEDC when the BOT contract discharged.

2-1 General Information Shurijeh-D is an onshore gas reservoir, which is one of the Khangiran field reservoirs. Khangiran

field consists of three gas reservoirs named Shurijeh-B, Shurijreh-D and Mozdoran. The field is

located 25 kilometres far from Sarakhs and about 150 kilometres East of Mashhad.

The field was discovered in 1968 and the existence of gas sweet reserve in this formation was

proved. Totally, 18 wells have been completed in this reservoir by the �me. Based on PVT

analysis of the samples taken from KHG-18 the reservoir is gas condensate with 7.9 barrels of

condensate per each MMSCF gas. The reservoir rock mainly consists of consolidated sandstone

with shale, carbonate and small amount of anhydrite.

The ini�al gas in place (IGIP) is about 33 GSCM and the cumula�ve gas produc�on �ll July 2006

has been 13.66 GSCM. The gas production from this reservoir was started in 1988 with the rate





D Reservoir

CHAPTER 2

Background of project

10

of 0.35 MMSCMD and increased to 2.7 MMSCMD �ll 1991 then approached to more than 5

MMSCMD by end of 2005. The reservoir gas produc�on poten�al is about 5 Million cubic meters

per day currently. The Accrual capacity for a reservoir development project (phase II) is about

2.25 billion cubic meters per year. The capacity of the gas storage in the reservoir by the

bidder/investor should not be less than 80% of the capacity (i.e. 1.8 BCM) declared by the IGEDC

(i.e. 2.25 BCM). The total Initial accrual capacity and development capacity should not be

reduced every year and eventually during the transfer.

Before storage, Condensate Gas Ratio (CGR) was es�mated about 56 CM/MMMSCM (9

bbl./MMMSCF).

The Initial field deliverability gas pressure was es�mated 353.7 bar a @ 2591 M.S.S. and the

initial temperature is 121.7 °C. The maximum amount of gas was produced in 2006 at rate of

5.31 BCM.

The highest production of condensate was occurred in 2006 about 768 MSCM.

2-2 Identification Report

Khangiran field is in the north east of Iran 25 km far from Sarakhs in Khorasan Razavi province.

N.B.: It should be understood and agreed that since the BOT project shall be implemented in the

existing field where the operation is being carried out, the existing facilities and operation will be

transferred to the Bidder upon the completion of the BOT Development Project, unless earlier

transfer of the existing facilities to the Bidder will be mutually agreed by the Parties.





D Reservoir

CHAPTER 3

Scope of Work

11

CHAPTER 3

Scope of Work





D Reservoir

CHAPTER 3

Scope of Work

12

3- Scope of Work

The scope of the work and services covered by the CFT (hereinafter referred to as "the Work")

shall consist of the following components:

3-1 General Information 3-1-1 Summary

Shurijeh-D reservoir at Khangiran gas field has been nominated as underground gas storage

(U.G.S.) in year 2009. This gas field is located at north east of Iran, 165 km far from Mashhad city

and 25 km far from Sarakhs town near Turkmenistan border. Shurijeh-D is a partially depleted

gas reservoir, which has produced gas since 1973. Depleted reservoirs are the most prominent

and common form of underground gas storages. They are reservoir formations of natural gas

which have produced partial or total of their economically recoverable gas. Shurijeh-D reservoir

has been converted successfully to an underground gas storage since 2014 with the target

capacity of 2.25 billion cubic meter. The Gas Injec�on and Produc�on Facili�es have been

constructed and commissioned effectively at Shurijeh U.G.S. plant Phase-I. During operation of

the UGS plant Phase-I, the mentioned capacity has been confirmed.

Principally, gas storage is used to meet load variations. Natural Gas is injected into storage

during periods of low demand season and extracted from storage during periods of high demand

season. It is also used for a variety of secondary purposes including comprising balance of the

flow in pipeline systems, maintenance of the contractual gas storage balance, maintenance of

the production level during the high demand, market speculation for the supply of the gas,

securing the supply during unforeseen accidents, meeting regulatory obligations, reducing price

volatility and offsetting changes in natural gas demands.

3-1-2 New Phase-II of Development Upon the previous reservoir study and the implementation of Phase-I of U.G.S. development

plan, IGEDC has decided to develop phase-II of Shurijeh-D with targeted storage capacity of 2.25

billion cubic meter.

All procedures for successful development plan of gas storage in Shurijeh-D reservoir shall be

followed including, without limitation, obtaining the environmental license, reservoir study,





D Reservoir

CHAPTER 3

Scope of Work

13

financing supply, injection/production well drilling, procurement, construction according to

technical specification, commissioning, operation & maintenance, preparing assurance

document and gas feeding from/to client. The owner of the plant is IGEDC as one of parties who

undertakes the liability of the development plan from Bidder/Investor at the end of commercial

period.

3-1-3 Location of the Field

3-2 Existing Facilities (Phase-I)

The construction of Phase-I was started in 2010 and commissioned in 2014. Existing Shurijeh Gas

Storage Facili�es are capable to store 2.25 Billion Cubic Meter per year. These process facilities

are divided into two main services of gas Injection and production:

- Upstream facili�es include 21 wells some of which are only gas producers whereas the

others are gas injection/production wells.

- Separation area includes three-phase slug catcher to separate water and condensate

from produced gas.

- Two gas gathering/distribu�on centres which cover 15 and 6 wells

- Two identical water & hydrocarbon adsorption and dew point control unit (with total

capacity of 20 MMSCMD)





D Reservoir

CHAPTER 3

Scope of Work

14

- Condensate stabiliza�on unit (700 m3/day)

- Turbo-Gas Compression units (3 iden�cal trains with total injec�on capacity of 10

MMSCMD)

- U�li�es (Firewater, Water, N2, Instrument Air, Power Generator (2 x 6 MW), flare

network, chemical injection, etc.) Control building, Electricity Switchgear room,

substations, laboratory, restaurant, security building, workshop, Storage, etc.

3-3 Technical Scope of Work of Phase-II Development

Development of Shurijeh-D UGS in Phase-II requires the implementation of Engineering,

Procurement and Construction (EPC) of new surface facilities and Engineering, Procurement and

Drilling (EPD) at upstream part. Development plan of gas storage capacity in the Shurijeh-D

reservoir is up to 2.25 Billion Cubic Meters. Following description highlights the major (but not

limited to this) scope of work of different sections: 3-3-1 Upstream Sec�on - Reservoir study and MDP preparation of phase-II of development including existing conditions

review and establish an optimum development plan reaching up to 2.25 billion cubic meter

gas storage.

- Drilling of 28 new wells. Obviously, Bidder/Investor shall confirm the number of the wells

and complete the new wells through comprehensive reservoir study. This activity includes:

- Well sites & cellars preparation

- Access roads construction

- Drilling and completion of wells

- Construction of wellhead facilities, gas flow lines and main pipelines

- SCADA System for each well

- Construction of new Gas Gathering/Distribution Centre (GDC) and separa�on unit for 28

new wells. The GDC is required to monitor and manage the injection of gas to the injector

wells as well as collection of the produced gas from the wells. At present four GDC are





D Reservoir

CHAPTER 3

Scope of Work

15

considered but, Investor shall optimize numbers and location of the wells during engineering

stage of project.

- The separation area is necessary to separate condensate and water from gas and

transfer to the U.G.S. plant. New GDC and separation unit comprises slug catcher, on/off

valves, flow control valves, flow measurement metering systems, ESDVs and infrastructures

as control room, electrical substation, emergency power generator, vent and flare systems,

chemical injection facilities etc.

- Investor shall assure the existing GDC, separa�on area and 21 phase-1 wells have been

completely constructed and delivered to the Investor for new injector/producer wells.

- Investor shall assure the integrity of the operations between different upstream facilities.

- Investor will operate and manage all injection and production facilities including existing

Phase-I and new Phase-II all together during commercial operation period. This will be the

capacity of 20 MMSCMD gas injec�on and 40 MMSCMD gas produc�on through approximate

49 wells.

3-3-2 Gas Process Facili�es at U.G.S. Plant Phase-II - Gas Pressurizing, Compression and Injection Unit. This unit includes three identical parallel

Turbo-Compressors with total capacity of 10 MMSCMD. All required facili�es such as air

coolers, scrubbers, filters shall be constructed. The future reserved area is available for this unit

at Phase-I site.

- Gas Dehydration Unit: This unit includes two iden�cal trains with the capacity of 10 MMSCFD

each. This unit controls the hydrocarbon and water dew points of produced gas before transfer

to the main gas pipeline. The future reserved area is available for this unit at Phase-I site.

- Associated Water Treatment and Disposal System. To be reviewed by Investor in project

engineering stage.

- Flare and Vent Systems modifications.

- Custody Flow Measurement Systems for inlet/outlet gas.

- Infrastructure and Utilities such as:

- Fire fighting and safety utilities modification





D Reservoir

CHAPTER 3

Scope of Work

16

- New switchgear 400V and 6 kV

- Control room modification or new main control room construction to monitor whole facilities

including U.G.S. plant and all well site data

- Electricity system review and modifications.

- Telecommunication system review and modification

- Modification of the Existing UPS system including Battery Charger

- Any existing facilities operation bottlenecks shall be reviewed and perform the proper

adjustment for development phase-II by Investor.

- New pipelines and tie-ins with the country network gas line if required.

- All equipment must be designed for minimum service life of 30 years.

3-4 Field Overview The Shurijeh-D reservoir brief information is in the following table:

Date 1968 Production Date 1987 Gas Type SWEET IGIP (Initial Gas in Place) 33 GSCM CGR (Condensate Gas Ratio Before Gas Storage) 56 CM/MMSCM (9 bbl./MMSCf) Initial Pressure 353.7Bara @ 2591 m.s.s. Initial Temperature 121.7 oC GWC (Gas Water Content) 2930 m.s.s. (2008) Well No. Till 2008 (at study �me) 8 wells

A.O. F. P. (Absolute Open Flow Production) Approximately 0.75 to 1.77

MMSCMD Max Gas Produc�on (in 2006) 5.31 MMSCMD Cumula�ve Gas Produc�on (2006) 13.66 GSCM Cum+F4:G15ula�ve Condensate Produc�on (2006) 768 MSCM





D Reservoir

CHAPTER 4

Bidder/Investor General

Information

17

CHAPTER 4

Bidder/Investor General Information





Reservoir

CHAPTER 4


Information

18

4- Bidder General Information

4-1 Name and Address

(In the case of consortium/JV, please provide the names of all Companies involved in the

Tender jointly with your company, your relationship with them and the respective roles and

responsibilities as well as to notify the name of the leader/operator in such consortium/JV)

Name of the Company/consortium/JV:

Address for Communications

Telephone Number:

Telefax Number:

Registered Office Address: (if different from above)

Name of the Branch, Subsidiary or Affiliate Company in Iran (for foreign companies)

Name and Share of the Consortium/JV members

Name of the member Companies:

……………………………………………..

……………………………………………..

………………………………………………

Share of Each member company …………………………………………….. …………………………………………….. ……………………………………………..

4-2 Nominated Representative Provide the name and position of your fully authorized representative (a full power of

attorney from the company shall be submitted to IGEDC) to be addressed in future

communications:





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CHAPTER 4


Information

19

Company fully authorized Representative:

Position in Company

Telephone Number

Telefax Number

4-3 Company Registration

Provide the country, date and details of your company registration and the office address

(N.B: Certified copy of the Articles of Association is required. In case of Consortium/ J.V

arrangement, a copy of consortium/ J.V. Agreement along with shareholders agreement shall

also be submitted):

4-4 Type of Entity

Public/Private/State-Owned/Partnership/Association/Joint Venture/ Consortium/ Other (If

other, please specify):

4-5 Nature of Company Business

Provide a description of your company, highlighting the primary nature of your business:

4-6 Parent/Holding Company (if applicable) Detail your relationship to parent/holding company and/or associate/affiliate/subsidiary





Reservoir

CHAPTER 4


Information

20

companies (provide group organisation chart) by specifying the percentage of each

shareholder's stock:

4-7 Company’s Changes (if applicable) Please provide details of any changes in company status since the last published accounts or

any planned changes e.g. acquisitions, mergers, share issues, major investments, major

loans, etc. (In case of any changes or modifications as such to the status of the company, the

latest certificate of such changes published in the national gazette of the country plus any

future changes to the status of the company shall also be submitted.)

4-8 MISCELLANEOUS

Please provide any further information with its assessment of which you believe IGEDC

should be familiar in conjunction with your company's suitability to provide the proposed

services.





D Reservoir

CHAPTER 5

Scoring Tables

21

CHAPTER 5

Scoring Tables





D Reservoir

CHAPTER 5

Scoring Tables

22

5- Organisation Chart and Employees

5-1 Table (5-1-1): Details of the Bidder’s Shareholders and Board of Directors

Attachment (5-1-1-1): Copies of the Board Members’ National ID Cards/Passport

Attachment (5-1-1-2): Copies of the Board Members’ Certificates of Birth

Attachment (5-1-1-3): Certified Copies of the Board Member’s Academic Degrees

Table (5-1-1) Details of the Board of Directors

No. Title Full Name

Nationality & National

ID No./ Passport

No.

Father’s Name

Date of

Birth

Field of Study and

Degree

Date of Acquiring

the Degree

Local or International Certificates

Experience (Year)

1 Managing

Director

2 Chairman of

Board of Director

3 Vice Chairman of

Board of Director

4 Member of the

Board

5 Member of the

Board

SCORING TABLE (5-1-1)-I

Applicant's Points Maximum score for 3 people

Score of degree Type of Degree

Related Irrelevant

9 3 2 Bachelor Degree

12 4 3 Master Degree

15 5 4 PhD degree

15 maximum score1





D Reservoir

CHAPTER 5

Scoring Tables

23

SCORING TABLE (5-1-1)-II

Applicant's Points Maximum score Score every 4 years of relevant

work experience per person DESCRIPTION

4 1 CEO work experience

8 1 Work experience of other members of the board (2

people

12 maximum score2

H1 =(score1+score2) *10/27 5-1-2 Details of the Bidder’s Key Personnel

Attachment (5-1-2-1): Copies of the Key Personnel’s’ National ID Cards

Attachment (5-1-2-2): Copies of the Key Personnel’s Certificates of Birth

Attachment (5-1-2-3): Certified Copies of Key Personnel’s Academic Degrees

Attachment (5-1-2-4): Certified Copies of the Key Personnel’s Acquired Certificates

Table (5-1-2) Details of the Key Personnel

No. Title Full Name

Nationality & National

ID No./Passport

No.

Date of

Birth

Field of

Study and

Degree

Date of Acquiring

the Degree

Local or International Certificates

Experience (Year)

1

2

3

4

SCORING TABLE (5-1-2)

Applicant's Points

Maximum score for 5

people


Related Irrelevant

10 2 0 An B.S with at least 5 years’ experience

15 3 2 Masters with a

minimum of 5 years’ experience

20 4 3 Ph.D. with a minimum of 5 years’ experience

20 maximum score for 5 people

H2 =(score)*30/20





D Reservoir

CHAPTER 5

Scoring Tables

24

5-1-3 Management Certificates and Standards

Attachment (5-1-3-1): Certified Copies of the ISO and HSE Certificates Acquired by the Bidder

Attachment (5-1-3-2): Certified Copies of the Management Models Implementation Certificates

Attachment (5-1-3-3): Proofs of Implementing the Comprehensive Informatics Systems related to

IMS, Including Financial and Administrative Systems

Attachment (5-1-3-4): Risk Management Documents

Attachment (5-1-3-5): ISO and Quality Assurance and Quality Control Certificates

Table (5-1-3) Certificates and Standards

No Description Issuing Authority Date of Expiry Remarks

1

2

3

4

5


Applicant’s score Maximum score Rating of each certificate Description

10 2 Certified Certificates

10 Score

H4 =(score*15)/10

5-2 Financial 5-2-1 FINANCIAL INFORMATION

Table (5-2-1): Bidder’s Financial Capacity

Table (5-2-2): Bidder’s Capital

Table (5-2-3): Bidder’s Credit

Table (5-2-4): Financial Information of Bidders





D Reservoir

CHAPTER 5

Scoring Tables

25

A�achment (5-2-1): Supportive documents related to the liquid assets (audited

financial statements and financial accounts, tangible and intangible assets and

properties, legal records).

Attachment (5-2-2) Bidder balance sheets and profit and loss appropriation accounts

for the last 5 years

A�achment (5-2-3): List of the banks the Bidder works with including name and

address of the branch and date of opening the account

A�achment (5-2-4): Supportive documents related to the annual gross payment based

on the final and provisional invoices cer�fied by the client in the last 5 years

A�achment (5-2-5): Cer�ficate of credit and its amount cer�fied by a bank or credit

and financing institute

Attachment (5-2-6): Annual tax payment cer�ficates of the last 5 years, cer�fied by the

Department of Finance.

Table (5-2-1) Bidder’s Financial Capacity

No. Description 1st Year

(€)

2nd Year

(€)

3rd Year

(€)

4th Year

(€)

5th Year

(€)

CONDITION

1

Supportive documents related to the

annual gross payment based on the final

and provisional invoices certified by the

client in the last 5 years

PASS/FAIL

2 Supportive documents related to the

liquid assets *

SCORE

1&2





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SCORING TABLE (5-2-1)-I No. Description Score 1

1 liquid assets-current liabilities

50 M€< L-C< 150 M€ 50

150 M€< L-C<300 M€ 100

300 M€< L-C< 450 € 150

450 M€<L-C 200


C1 =(score1+score2) *50/300

TABLE (5-2-2) Bidder’s capital

Description Formula Criterion Max. score Applicant’s score 2

Current ratio Current assets More than 1, every .5 extra

points, 5 points 20 Current debt

Asset return ratio Net profit Every 10% returns, 5 points to

30% 15 Total assets

Net profit margin

Net profit

Every 10% returns 5 points to 30% 15 Investment / Operating Income

Total assets

Return on equity Net profit

5 points for 10% efficiency 15 Due of equity

Operating cash flow

ratio

Net Operation Cash Flow

7 points for .2 increase unit 35 Net profit

Total score 2 100

No.

Description

total capital

1 Current





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No. Description Score

1

capital

200 M€< Assets< 300 M€ 25

300 M€< Assets<500 M€ 50

500 M€< Assets< 600 M€ 75

600 M€<Assets 100

C2 =score*25/100

TABLE (5-2-3) Bidder’s Credit

No. Description

Maximum Currency Credit (Converted to 1000 €)

Condition

B1=5% B2=10% B3=15% B4=30%

B5=95%

B6=100

150,000

200,000

250,000

300,000

350,000

450,000 &

OVER

1 A (1, i) : Credit of the company to get bank guarantee( s ) (single or multiple

guarantees at the same time)

70%

2 A (2, j): Capacity of the company to get credit facilities

30%

C3 =(a1*bi+a2*bj) *25





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Table (5-2-4) Financial information of Bidders

ROW DEFINITION 2017 2016 2015 2014 2013 Condition

1 Current Assets Pass / fail

2 Current Liabilities 3 Assets 4 Liabilities

5 Equity

6 Sale Revenue

7 Annual Revenues

8 Total Revenues

9 Operating Expenses

10 Operating Profit

11 Earnings Before Interest and Tax (EBIT)

12 Earning Before Tax (EBT)

13 Retained Earnings

14 Operating Cash Flow

15 Net Cash Flow

16 Borrowed Loans

17 Annual Earning Rare

5-3 Bidder’s Investment Capacity

Table (5-3-1): Investments Made by Bidders/Investors

Table (5-3-2): Financial Capacity to implement this Project

Table (5-3-3): Capacity of Participating in Financing and Investment

Table (5-3-4): Background of experiences in implementing the similar project

Table (5-3-5): Bank Proof of Fund (“POF”) and Bank Confirmation Letter (BCL)

Table (5-3-6): Company /Consortium or J.V. annual balance sheet and turnover (EURO)

Table (5-3-7~9): Company /Consor�um or J.V. efficiency, profitability...

Attachment document: Information about share of each consortium partner in previous

projects

Attachment document: Providing financial profile of the consortium partners in previous

projects





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TABLE (5-3-1) Investing to this project

Row Subject EURO

1 A: Company's internal resources for investment to this project (EURO)

2 B: Company's external financial facility

3 C: Capital cash

4 P: Investment project scale 611,046,516

Note: Total cash capital and investment amount should be greater than the project estimate


Row Subject EURO Investment/ (Investment Project Scale)

Applicant score I/P>= .75 .75<I/P<.5 IP<.5

1 A: Company’s internal

resources for investment to this project (EURO) 100% 75% 50%

2 B: company’s external financial facility 50% 75% 100%

3 Capital cash 4 Investment project scale 611,046,516

I1 = SCORE*20





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Table (5-3-2) Financial Capacity to implement this Project

ROW Description

Amount Date of

evaluation

Condition

B1:25% B2:50% B3:75% B4:100%

20 M€ 30 M€ 40 M€ 50 M€ & OVER

1 A1: Confirmation of a bank deposit or

an account of banks

25%

2 A2: Stock Assets (at the stock market

value today)

10 %

3 A3: Off-exchange assets (at the cost

of similar samples or the official price)

5 %

4 A4: Properties and other tangible and

intangible assets (at the price of

official expert)

5 %

5 A5: Cash and its equivalent 50 %

6 A6: Goods (to market value today) 5 %

I2= (A1*B (1~4) +A2*B (1~4)) +A3*B (1~4) +A4*B (1~4) +A5*B (1~4) +A6*B (1~4)) *15

Balance sheet of the Bidder must be submitted along with the other documents (the Bidder is

required to provide bank account statements, deeds, assets, and other valid official documents,

which prove his capability of providing the investment required in the project).

Table (5-3-3)

Bidder’s Financing Background and Capacity Project Title: …………….

Subject of Project Investment Background

(€/Year) Share (%)

SHARE*INVEST

VALUE

Physical

Progress (%)

* TOTAL

PRICE(EURO)





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DESCRIPTION For Every 10 Million Euros, 4 Points Decreased 200 Million Euro For Every 10 Million Euros,

3 Points Increased

*TOTAL PRICE - 4 * +3

SCORE 80

MAXIMUM SCORE 150

I3=SCORE*10/150

TABLE (5-3-4)

Background of experiences in Implementing the similar project (oil &gas)

Subject of Project

Investment Background

(€/Year)

Updated Value (€)

Share (%)

Share%*invest value

Physical Progress (%)

* TOTAL

PRICE(EURO)


DESCRIPTION For Every 10 Million Euros, 4 Points Decreased 200 Million Euro

For Every 10 Million Eros, 3

Points Increased

*TOTAL PRICE - 4 * +3

SCORE 80

MAXIMUM SCORE 150

I4=SCORE*10/150





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TABLE (5-3-5) Bank Proof of Fund (“POF”) and Bank Confirmation letter (BCL)

Date of evaluation

Price (€) Description ROW

Bank Proof of Fund (“POF”) and Bank Confirmation letter (BCL) from Prime Banks or Banks with International reputation acceptable to IGEDC 1

The bank certifies that the Bidder has access to funds or sufficient credit facilities to

execute and complete the Project. This document should be approved by the Iranian

embassy in that bidder’s country of resident.

The period of approval of the credit by the bank in the letter should be specified (At least

3 Years from the effec�ve date of the BOT contract)

Submit authorised signatories of bids and contracts with financial limits:

Table (5-3-6) Company /consortium or JV annual turnover (EURO)

Year Company annual balance sheet & turnover (EURO)

Group annual balance sheet & turnover (EURO) (where applicable)

2017

2016

2015

2014


Year Company annual balance sheet & turnover (EURO): A

Group annual balance sheet & turnover (EURO) (where applicable): B

Million EURO

2017 A+B 2016 // 2015 // 2014 // 2013 //

TOTAL PRICE (EURO) ***





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DESCRIPTION For Every 10 Million Euros, 5 Points Decreased 300 Million Euro For Every 10 Million Euros, 3

Points Increased ***TOTAL PRICE - 5 *** +3

SCORE 150 MAXIMUM SCORE 200

I6=SCORE*10/200

TABLE (5-3-7)

CREDIT LEVEL

Row DESCRIPTION 2017 2016 2015

1 working capital

2 Total assets

3 Stacked profit

4 Profit before interest and taxes

5 Total liabilities

6 Equity value

TABLE (5-3-8)

ROW DESCRIPTION 2017 2016 2015

1 Working capital)/ (total assets)

2 Stacked profit / total assets

3 Profit before tax and interest / total assets

4 Equity value / total liabilities





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TABLE (5-3-9)

ROW TYPES OF FINANCIAL INDEXES 2017 2016 2015

1 LIQUIDITY INDEXES

1-1 Current Assets / Current Liabilities

1-2 Net Cash Flows / Current Liabilities

1-3 Net Cash Flows / Total Cash Flows

1-4 Working Capital / Current Liabilities

2 EFFICIENCY

2-1 Operating Expense / Operating Profit

2-2 Total Sales (Total Asset Turnover) / Total Assets

2-3 Total Revenue / Working Capital

3 PROFITABILITY

3-1 Profit Before Taxes / Equity Value

3-2 Profit Before Taxes / Assets

3-3 Operating Profit / Profit Before Taxes

4 CAPITAL ADEQUACY

4-1 Total Debt / Equity Value (Max:1.2)

4-2 Net Operation Cash Flow / Total Debt

4-3 Total Debt / Total Assets (Max: %75)

5 EQUITY VALUE

5-1 Total Debt - Total Assets A 333

6 EQUITY VALUE

6-1 Borrowed Loans Annual Average Borrowed Loans B





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5-4 Insurability

5-4-1 Please provide details (name of insurer and indemnity levels) of your company’s

insurance. Bidders must attach the image of the insurance of the similar project.

Table (5-4-1)

Insurability level ROW Insurer Limit for single incident Indemnity level

1

2

3


Insurance level For Every 10 Million Euros, 2 Points Decreased 100 Million Euro For Every 10 Million Euros,

1 Points Increased

- 2 *** +1

SCORE 20

MAXIMUM SCORE 40

J1=Score*100/40

5-4-2 The IGEDC requires coverage for each loss and damage under an Investor’s liability

insurance policy. Please confirm that you will provide this level of cover for the

proposed BOT contract.

YES/NO 5-5 CONDUCT OF BUSINESS 5-5-1 Governing Law

The BOT Contract for the implementation of IGEDC project shall be governed by Iranian

Law.

5-5-2 Parent Guarantee (if applicable)





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Would parent/holding Company be willing to provide a guarantee? YES/NO

and Indemnity in the event of a contract being awarded? YES/NO

5-5-3 Language

IGEDC uses English as its language of communication for foreign companies.

5-6 EXPERIENCES

5-6-1 Previous Experience Does your company have previous Oil and Gas Industry experience (including overseas and

the relevant experience to the Work proposed)? YES/NO

Attachment (5-6-1-1): Copies of pages of the contracts (document/agreement) which

contain names of the parties, subject and value of the contract, and signatures

Attachment (5-6-1-2): Copies of the provisional-handover certificates of the previous

projects

Attachment (5-6-1-3): Copies of the final hand-over certificates of the previous projects

Attachment (5-6-1-4): Copies of cer�ficates for the ongoing projects along with the latest

invoice or physical progress report and copy of the acceptance of work certified by the

client.

Good Performance Records:

Attachment (5-6-1-5): Copies of the certificates of acceptance of work showing no

unauthorized delays in the last 5 years.

Attachment (5-6-1-6): Copies of the evaluation forms for completed projects.

Attachment (5-6-1-7): Copies of the letters of appreciation/confirmation.

Attachment (5-6-1-8): Reasons of delays from the scheduled completion (maximum one

page).

Attachment (5-6-1-9): Certified copies or certified proofs academic degrees of the

technical team.





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Attachment (5-6-1-10): Cer�fied copies or certified proofs of the certificates acquired by the

technical team.

Table (5-6-1-1) Bidder’s Experiences in similar project

No. Subject

of Contract

Completed Ongoing

Name, Address,

Telephone/Fax Number of the

Client

Delays

Type of Contract

Value of Contract Duration Starting

Date

Source of

Fund

Scheduled Date of

Completion Country

Real Date of

Completion

Physical Progress

up to This Date

According to the Paid

Invoice(s) 1

2

3

SCORING TABLE (5-6-1-1) Source of Fund for Every

Project For Every 10 Million Euros,

3 Points Decreased 200 Million Euro For Every 10 Million Euros, 2 Points Increased

PROJECT SCORE 1 - 3 60 +2

PROJECT SCORE 2 -3 60 +2

SCORE=(SCORE1+SCORE2)/2 60

MAXIMUM SCORE 80

A1=SCORE*20/80





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Table (5-6-1-2) Bidder’s Experiences in Procurement Services

No. Subject

of Contract

Completed Ongoing

Name, Address,


Client

Delays Type of

Contract Value of Contract Duration Starting

Date

Scheduled Date of

Completion

Real Date of

Completion

Physical Progress

up to This Date


Invoice(s) 1

2

3

4

5

6




PROJECT SCORE 1 - 2 +1

PROJECT SCORE 2 -2 +1


MAXIMUM SCORE 12

A2=SCORE*10/12





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Table (5-6-1-3)

Bidder’s Good Record in the Field of BOT Contract like the subject matter of the Tender

ROW Subject

of Contract

Value of Contract

Type of Contract

Starting Date

Date of Completion

Source of

Fund

Letters of

Appreciation/Confirmation

Work Quality

Evaluation

Work Completion Certificate

Name, Address,

Telephone Number, and Fax Number

of the Client

1

2

3

4

5

6

7

SCORING TABLE (5-6-1-3)

Applicant’s score Maximum score

Each certificate for similar project Description

EPCF BOT project 15 2 3 Letters of Appreciation/Confirmation

Score

B2=SCORE*10/15





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Table (5-6-1-4) Details of the Bidder’s Technical Team

No. Job Title

Full Name

National ID

Number

Date of

Birth

Degree and Field of Study Date

Local and International Certificates

Experience (Years)

1

2

3

4

5

SCORING TABLE (5-6-1-4)-I

Applicant's Points Maximum score for 5 people


Related Irrelevant

10 2 0 Bachelor

15 3 2 Masters

20 4 3 Ph.D.

20 Maximum Score 1 For 5 Person

B3=score1*20/20

SCORING TABLE (5-6-1-4)-II

Applicant's Points Maximum points every 4 years of relevant work experience per person: Score DESCRIPTION

20 1 Bachelor

24 1.5 Masters

32 2 Ph.D.

32 Maximum Score2 for 5 People

B4=score2*20/32





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Table (5-6-1-5) Bidder’s Experiences in BOT/EPCF project

No. Subject

of Contract

Completed Ongoing

Name, Address,


Client

Delays Type of


Date

Source of

Fund

Scheduled Date of

Completion Country

Real Date of

Completion

Physical Progress

up to This Date


Invoice 1

2

3

4

5

6




PROJECT SCORE 1 - 3 +2

PROJECT SCORE 2 -3 +2


MAXIMUM SCORE 90

A4=score*50/90

5-6-2 Previous Business with Iranian Client(s) e.g. in Iran Petroleum Industry especially National Iranian Oil Company (“NIOC”) and National Iranian Gas Company (“NIGC”)

List details of the contracts, if applicable.





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Table (5-6-2-1) Bidder’s Experiences in Iran industry e.g. Petroleum Industry such as NIOC/NIGC Project(S)

No. Subject

of Contract

Completed Ongoing

Name, Address,


Client

Delays Type of


Date

Source of

Fund

Scheduled Date of

Completion IRAN

Real Date of

Completion

Physical Progress

up to This Date


Invoice 1

2

3

SCORING TABLE (5-6-2-1)

Source of Fund for Every Project (2 project)

For Every 10 Million Euros, 1.5 Points

Decreased 100 Million Euro

For Every 10 Million Euros, 1 Points

Increased

PROJECT SCORE 1.5 - +1

15

MAXIMUM SCORE 25

A3=score*20/25

5-7 Facilities If applicable, provide by location, a summary of the facilities (e.g., office, workshop,

fabrication, manufacturing, engineering, construction, transport etc.) at your company's

operational base(s) and fabrication/manufacturing site(s) inside and outside Iran.





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5-8 QUALITY ASSURANCE & QUALITY CONTROL

Does your company have:

5-8-1) A Quality Policy for Quality Assurance & Quality Control YES/NO

If yes, please provide a copy

5-8-2) Documented arrangements for Quality Assurance & Quality Control YES/NO

If yes, please provide list of procedures

5-9 Bidder’s Experience in the Field of Procurement

Table (5-9-1): Quality System and Guarantee Policy

Attachment (5-9-1-1) Product Guarantee Policy and Bidder Guarantee

Attachment (5-9-1-2) After Sales/Supply/Procurement Service (e.g. Warrantee) Policy

Attachment (5-9-1-3) Packaging and Transportation Methods Employed by the Bidder

Attachment (5-9-1-4) Equipment Installation Methods Employed by the Bidder

Attachment (5-9-1-5) Operation and Maintenance Training

Table (5-9-2): Goods Produc�on/Supply Capacity

Attachment (5-9-2-1): Proofs of the Current Capacity, particularly Supply Chain Management (SCM)

Attachment (5-9-2-2): Bidder’s Facilities to Increase Production/Supply Capacity (with Supportive

Documents)

Attachment (5-9-2-3): Produc�on/Supply Capacity in the Last 5 Years (with Suppor�ve Documents)

Attachment (5-9-2-4): Certified Copy of the Production/Exploitation Permit or Trade Licenses

Table (5-9-3): List of Manufacturers





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Attachment (5-9-3-1): Copies of the Contracts with the manufacturers/Suppliers/Producers

Attachment (5-9-3-2): Suppliers/Producers Confirmation on Cooperating with the Bidder

Attachment (5-9-3-3): Valid Certifications of the Partner Manufacturing Companies

Attachment (5-9-3-4): Copies of the Certificates Issued by the Inspection Companies

Attachment (5-9-3-5): Copies of the Contracts with Inspection Companies

Attachment (5-9-3-6): Copies of the Documents Related to the Training Courses and Valid Certificates

Table (5-9-1)

Quality System and Guarantee Policies No. Description Remarks

1 Quality Assurance, Quality Control, and Guarantee

Type of Guarantee: Repair Replace No Guarantee Guarantee Period: months

Other Remarks:

2 After Sales Service (Warranty) Policy

Do the products have a warrantee? Yes No Warrantee Period: …… months

Other Remarks:

3 Packaging and Shipping Method

Type of Packaging: Freight Type: Land Air Ocean

Shipping Cost Calculation: Place of Delivery:

Other Remarks:

4 Installation Method

Is the bidder responsible for installation? Yes No

Installation Costs: Bidder FOC

Installation can be done by ordinary persons: Yes No

Other Remarks:

5 Operation, Maintenance and Overhauling Training

Using the goods require training: Yes No

Training Costs: Bidder FOC

The required training course is organized by the bidder: Yes No

Other Remarks:





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Table (5-9-2) List of Creditable Manufacturers/Suppliers/sellers that Cooperate with the Bidder

No. Manufacturer/Supplier Nationality Field of Activity (Type of Product)

Type of Activity (Manufacturer/Supplier)

Address and

Telephone

Beginning of

Cooperation

Status of Cooperation

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25





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Table (5-9-3) Supply Capacity

No. Description No. Remarks

Product Production/Supply capacity Remark

1 Current Supply Capacity 1

2

3

4

5

6

7

8

9

10

Other Remarks:

2 Trend of Supply in the

Last 5 Years

Trend of Produc�on/Supply in the Last 5

Years: Increasing Decreasing

Average Annual Increase/Decrease:

……% Increase/Decrease

Increase/Decrease of Production Lines:

If production/supply capacity has declined, please explain the reasons in brief:

3

Production/Exploitation

Permit or Trading

License (if any)

No. Permit No. Permit Type Issuing

Authority

Date of

Issue

Expiry

Date

1

2

3

4

5

6

7





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SCORING TABLE (5-9-3) Production/Supply

capacity For Every 5 Million Euros,


2017 - 2 20 +1

2016 -2 20 +1

2015 -2

20 +1

2014 -2

20 +1

2013 -2

20 +1

MAXIMUM SCORE 130

G1=score*40/130

5-10 Bidder’s Machinery and Equipment capacity Table (5-10-1): List of Bidder’s Machinery and Equipment including rigs

Attachment (5-10-1-1): Copies of the certified ownership documents.

Attachment (5-10-1-2): Valid leasing agreements for the leased machinery and equipment

Attachment (5-10-1-3): Copies of the machinery catalogues

Table (5-10-2): Bidder’s Computer Hardware

Table (5-10-3): Bidder’s Computer Software





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Table (5-10-1) Bidder’s Machinery and Equipment e.g. drilling rig

No.

Various Equipment, Heavy

and Light Machinery and

Tools

Year of Production

Year of Overhauling

Number of Existing Machines Quality Status

General Machinery

Specialized Machinery

General Machinery

Specialized Machinery

Ow

ned

Leased

Ow

ned

Leased

Ow

ned

Leased

Ow

ned

Leased

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16


Description Quality (brand) Quality (not

brand) Maximum

Score Applicants Score General Machinery and Equipment for 10 no. 5 2 5

Total Score 50 D1=SCORE*20/50





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SCORING TABLE (5-10-1)-II Description Quantity Point Maximum Score Applicants Score

General Machinery and Equipment(Owned) 3 15

General Machinery and Equipment(Leased) 1 5

Total Score 20

D2=SCORE*10/20

SCORING TABLE (5-10-1)-III

Description Quality (brand) Quality (not

brand) Maximum

Score Applicants Score Specialized Machinery for 10 no. 5 2 50

Total Score 50

D3=SCORE*20/50

SCORING TABLE (5-10-1)-IV

Description Quantity Point Maximum

Score Applicants Score Specialized Machinery (Owned) 5 25 Specialized Machinery (Leased) 2 10

TOTAL SCORE 35

D4=SCORE*10/35

SCORING TABLE (5-10-1)-V

Specialized Machinery and Equipment Owned Point Leased Point Maximum

Score Applicants Score 1 5 3 5 2 5 3 5 4 5 5 5 6 5 7 5 8 5 9 5

10 5 Total Score 50

D5=SCORE*10/50





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Table (5-10-2) Bidder’s Computer Hardware

No. Name of Hardware Specifications Quantity Remarks

1

2

3

4

5

6

7

8


Applicant’s score Maximum score Each No. Description

15 3 Computer hardware Score

D6=SCORE*20/15

Table (5-10-3) Required Software

No. Name of Software Application Quantity Remarks

1

2

3

4

5

6

7

8





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15 3 Software Score

D7=SCORE*10/15

5-11 Technical, Planning and Operational Capacity

Table (5-11-1): Various Services and Opera�ons done by the Bidder in the similar project

Table (5-11-2): List of Business Partners in Various Fields

Table (5-11-3): List of Companies that have Inspected Bidder’s Works

Table (5-11-4): List of Prac�ced Methods Prepared by the Bidder

Attachment (5-11-1-1): HSE Policy

Attachment (5-11-1-2): Copy of HSE Policy

Attachment (5-11-1-3): Copies of HSE Certificates

Attachment (5-11-1-4): Copies of HSE Performance Evaluation in Earlier Projects

Attachment (5-11-1-5): Bidder’s Organization Chart

Attachment (5-11-1-6): Complementary Information on Technical, Planning, operational and Project

Control Capacity of the Bidder

Attachment (5-11-1-7): Copies of Contracting Insurance Policies (earlier and ongoing works)

Attachment (5-11-1-8): Project Control Policy

Table (5-11-1)

Various Services and Operations done by the Bidder in the Similar Project No. Description Name and Address of the Earlier Projects





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Table (5-11-2)

List of Business Partners in Various Fields No. Name of the Company Field of Activity Address and Telephone Number





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Table (5-11-3)

List of Companies Inspected Investor’s Works No. Name of the Company Nationality Type of Work Name of the Project





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Table (5-11-4)

List of Practiced Methods Prepared by the Bidder No. Method Applications

1

2

3

4

5

6

7

8

9



15 3 HSE Certificates Score

E5=SCORE*10/15



15 3 Good record on HSE performance in previous project

Score

E6=SCORE*10/15

5-12 Creativity and Innovation Table (5-12-1): Creativity and Innovation in Previous Projects Table (5-12-2): Structure of the Research Department

Attachment (5-12-1-1) Value Engineering Program Documents and Introduction of the Investor’s

Value Engineering Team

Attachment (5-12-1-2) Proofs of Having a Research and Development (R&D) Department

Attachment (5-12-1-3) Certificates of Innovation Issued by an Executive Department





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Attachment (5-12-1-4) Articles and Research, Technical, and Specialized Achievements Presented

in Creditable Seminars and Magazines

Attachment (5-12-1-5) Membership of Scientific and Industrial Associations

A�achment (5-12-1-6) Certified copies of the Research Department’s Degrees

Table (5-12-1)

Creativity and Innovation in Previous Projects

No. Description Status

Remarks Yes No

1 Conducting Value Engineering Program

2 Utilizing a Research and Development Department

3 Innovations Certified by the Executive Department

4 Presenting Articles and Research, Technical, and Specialized Achievements in Creditable Seminars and Magazines

5 Membership of Scien�fic and Industrial Associa�ons (2 scores for each membership)

6 Certified Inventions and Innovations

7 Possessing the Knowledge in the Fields of Design and Construc�on (at least 3 cer�ficates of training courses issued by creditable training institutes



5 1 Innovations Certified by the Executive department Score

F3=score*20/5





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Table (5-12-2) Structure of the Research Department

No. Full Name Degree Experience Role in Value Engineering Department

1

2

3

4

5

6

7


Applicant's Points

Maximum score for 5

people


Related Irrelevant

10 2 0 expert

15 3 2 Masters

20 4 3 Ph.D.

20 Maximum Score 1 For 5 Person

SCORING TABLE (5-122)-II

Applicant's Points Maximum points every 4 years of relevant work experience per person: Score DESCRIPTION

20 1 An expert

30 1.5 Masters

40 2 Ph.D.

40 Maximum Score2 for 5 People

F5= ((score1+score2)/2) *10/40

5-13 CORPORATE SOCIAL RESPONSIBILITY

Please explain your corporate social responsibility program and provide related

certificates and documents in this regard.





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57

………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………

SCORING TABLE (5-13)-I


5 1 C.S.R program in previous project Score

L1=score*50/5

SCORING TABLE (5-13)-II


6 2 C.S.R certificate in previous project Score

L2=score*50/6

5-14 Bidder shall submit the following information on HEALTH, SAFETY & ENVIRONMENTAL subject: 5-14-1 HEALTH, SAFETY & ENVIRONMENTAL POLICY

i) ATTACHMENT (5-14-1-1): Highlight the ways in which the policy demonstrates your

commitment to Health, Safety and the environment within your business activity.

5-14-2 MANAGEMENT AND SUPERVISION OF WORK ACTIVITIES

i) ATTACHMENT (5-14-2-1): Detail the arrangements that your Company has for the supervision and monitoring of Health, Safety and Environmental performance.

ii) ATTACHMENT (5-14-2-2): Describe the systems, guidance and procedures used to

implement your Health, Safety and Environmental Policy.

5-14-3 TRAINING OF MANAGERS/SENIOR STAFF

i) ATTACHMENT (5-14-3-1): Confirm whether the Managers and Supervisors, at all levels,

who will plan, monitor, control and carry out the work, have received formal Health and

Safety training in their respective responsibilities.





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5-14-4 EQUIPMENT CONTROL AND MAINTENANCE ATTACHMENT (5-14-4-1): Detail how it is ensured that plant and equipment used within

your premises, by your employees and sub-contractors is correctly registered, controlled

and maintained in a safe working condition.

5-14-5 ENVIRONMENT ATTACHMENT (5-14-5-1): Advise your procedures and practices to protect the

environment, especially for spill prevention, mitigation, control and waste disposal.

Advise methods by which you obtain commitment to your environmental controls and

monitor your environmental performance.





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General Scoring Tables

59

CHAPTER 6






D Reservoir

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60

6- General Scoring Tables

Note: The attached tables will be filled by the host company representatives;

so please do not fill these tables.

Subject: Qualification

Bidder: ………… Score:

Attached Table Criterion Code Description of

Qualification Factor Maximum

Score Acquired

Score

Method of Scoring

Qualification Criteria

No:

(5-6-1-1) (5-6-1-2) (5-6-1-5) (5-6-2-1)

A. Experience and Knowledge

A-1

Relevance of the experiences to the similar project (oil & gas industries)

20

Scoring table

5.6.1.1

A-2 Type of experiences in procurement services

10 Scoring table 5.6.1.2

A-3

Relevance of the experiences to the similar project in Iran industry e.g. Petroleum Industry such as NIOC/NIGC


A-4 Relevance of the experiences to the BOT project


A-5 Total Score 100

A-6 Weight Factor 25% 25%

A-7 Bidder’s Experience (Investment Experience) Score

25

(5-6-1-3) (5-6-1-4)

B. Good Performance Record

B-1 Work Quality 30

PASS or FAIL

DOC.

B-2

Relevance of Letters of Appreciation and Confirmations to Subject of the Tender


B-3 Adequate Knowledge of the Technical Staff 20

Scoring table 5.6.1.4-I

B-4 Adequate experience of the Technical Staff 20 Scoring table 5.6.1.4-II

B-5 Project Timing 20 PASS or FAIL DOC.





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61

B-6 Total Score 100

B-7 Weight Factor 5% 5%

B-8 Bidder’s Good Record Score 5

(5-2-1) (5-2-2) (5-2-3) (5-2-4)

C. Financial Capacity*

C-1 Financial Capacity 50 Scoring table 5.2.1-I&II

C-2 Bidder’s Capital 25 Scoring table 5.2.2

C-3 Bidder’s Credit 25 Scoring table 5.2.3

C-4 Total Score 100

C-5 Weight Factor 20% 20%

C-6 Bidder’s Credit and Financial Capacity Score

20

(5-10-1) (5-10-2) (5-10-3)

D. Equipment Capacity

D-1 Quality of the General Machinery and Equipment

20 Scoring table 5.10.1-I

D-2 Quantity of the General Machinery and Equipment

10 Scoring table 5.10.1. II

D-3

Quality of the Specialized Machinery and Equipment

20 Scoring table 5.10.1.III

D-4

Quantity of the Specialized Machinery and Equipment

10 Scoring table 5.10.1-IV

D-5

Ownership of the Specialized Machinery and Equipment

10 Scoring table 5.10.1-V

D-6

Variety, Modernity, and Capabilities of the Hardware Used by the Bidder

20 Scoring table 5.10.2

D-7

Variety, Modernity, and Capabilities of the Software Used by the Bidder

10 Scoring table 5.10.3

D-8 Total Score 100

D-9 Weight Factor 2% 2%

D-10 Bidder’s Equipment Capacity Score 2





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62

- Estimated value of the subject tender should be equal or less than one of the following

amounts:

1. Gross annual income, based on final/provisional invoices

2. Certificate of credit issued by a bank or a creditable credit and financial institute to the

value of the required amount





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63

Subject: Investor Qualification Company: Score:

Attached Table Criterion Code Description of Qualification Factor Maximum

Score Acquired

Score

Method of Scoring

Qualification Criteria

NO:

Tables (5-11-1) (5-11-2) (5-11-3) (5-11-4)

E. Technical, Planning and operation Capacity

E-1 Completeness of Bidder’s Organizational Structure 20

PASS or FAIL DOC.

E-2 Introducing partner companies in various fields (design, engineering, construction, and finance)

20 PASS or FAIL DOC.

E-3 Providing previous Investor insurance policies 10

PASS or FAIL DOC.

E-4 Introducing companies who have inspected Bidder’s works 5

PASS or FAIL DOC.

E-5 Providing HSE System Certificates 10 Scoring Table 5.11.1~4

E-6 Good Record and Approval on HSE Performance in Previous Works 10 Scoring Table 5.11.1~4

E-7 Planning and project control capacity* 25

PASS or FAIL DOC.

E-8 Total Score 100

E-9 Weight Factor 5% 5%

E-10 Bidder’s technical and planning capacity score 5

(5-12-1) (5-12-2)

F. Bidders Technical Capacity in the Field of Innovation and (R&

D)

F-1 Value engineering plan of the previous projects 20

PASS or FAIL DOC.

F-2 Proof of Activity of the R&D Department 40

PASS or FAIL DOC.

F-3 Innovation Certificates Issued by the Executive Organs of the Previous Projects

20 Scoring Table 5.12.1

F-4 Articles and Research, Technical, and Specialized Achievements Presented in Creditable Seminars and Magazines

10 PASS or FAIL

DOC.

F-5 Membership of the Scientific and Industrial Associations 10 Scoring Table 5.12.2-I&II

F-6 Total Score 100

F-7 Weight Factor 1% 1%

F-8 Bidder’s Score for Technical Capacity in the Field of R&D 1

Tables (5-9-1)

erience in the FielG-1 High Supply Capacity 40

Scoring Table 5.9.3





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64

(5-9-2) (5-9-3)

G-2 Potential of Increasing Supply Capacity 10 PASS or FAIL DOC.

G-3 Trend of Supply in the Last 5 Years 5 PASS or FAIL DOC.

G-4 Goods Production or Supply Permits 5 PASS or FAIL DOC.

G-5 Possessing Knowledge Supplying Goods and Materials 10

PASS or FAIL DOC.

G-6 Packaging and Shipping Methods 5 PASS or FAIL DOC.

G-7 Number and Credit of Partner Manufacturers 10

PASS or FAIL DOC.

G-8 Work Quality and Performance in the Operation Time 10

PASS or FAIL DOC.

G-9 Quality of Support Services and Performing the Obligations Timely 5

PASS or FAIL DOC.

G-10 Total Score 100 PASS or FAIL

G-11 Weight Factor 2% 2%

G-11 Bidder’s Procurement Capacity Score 2

Tables (5-1-1) (5-1-2) (5-1-3)

H. Managem

ent Capacity

H-1 Adequacy of the management structure 10 Scoring Table 5.1.1-I&II

H-2 Adequacy of the key personnel related to the subject qualification 30 Scoring Table 5.1.2

H-3 Risk management program in previous projects 15

PASS or FAIL DOC.

H-4 Providing Quality Assurance System certificates 15 Scoring Table 5.1.3

H-5 IMS Policy 10 PASS or FAIL

DOC.

H-6 Providing quality, production, installation, and operation standards 20

PASS or FAIL DOC.

H-7 Total Score 100

H-8 Weight Factor 8% 8%

H-9 Management Capacity Score 8





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65

Tables (5-3-1) (5-3-2) (5-3-3) (5-3-4) (5-3-5) (5-3-6) (5-3-7) (5-3-8) (5-3-9)

I. Bidders Investm

ent Capacity

I-1 Investments Made by Bidders


I-2 Financial Capacity to implement this Project


I-3 Bidder’s Financing Background and Capacity


I-4 Background of experiences in Implementing the similar project 10 Scoring Table 5.3.4

I-5 Providing of Bank Confirmation letter 30 PASS or FAIL

DOC.

I-6 company /consortium or JV annual turnover (EURO) 10 Scoring Table 5.3.6-I&II

I-7 Financial information of Bidders

5 PASS or FAIL DOC.

I-8 Total Score 100

I-9 Weight Factor 30% 30%

I-10 Bidder’s Investment Capacity Score 30

Tables (5-4-1)

J. Bidders insurance level

J-1 Bidder’s Insurance level of indemnity 100 Scoring Table 5.4.1

J-2 Total Score 100

J-3 Weight Factor 1 % 1 %

J-4 Bidder’s Insurance Capacity Score 1

K. Bidders Facility

k-1 Bidder’s facility in IRAN 50

PASS or FAIL

DOC.

k-2 Bidder’s facility outside IRAN 50

PASS or FAIL DOC.

k-3 Total Score 100

k-4 Weight Factor .5% .5%

k-5 Bidder’s Insurance Capacity Score .5





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66

L. CO

RPORATE

SOCIAL

RESPON

SIBILITY (C.S.R)

L-1 Corporate social responsibility program 50

Scoring Table 5.13-I

L-2 Previous Certificates 50 Scoring Table 5.13-II

L-3 Total Score 100

L-4 Weight Factor .5% .5%

L-5 Bidder’s Insurance Capacity Score .5

TOTAL SCORE 100

Remarks:

1. Qualification score of each Bidder is equal to the sum of the scores gained for each

criterion multiplied by the related weight factor.

2. Minimum Financial score of the qualified Bidders is 60. Minimum acceptable score of the qualified applicants is 60

No. Full Name Title Signature

1.

2.

3.

4.

5.

Commitment letter:

Bidders shall answer all questions in full sincerity and honesty and provide IGEDC with

correct information and authentic documents. Otherwise, IGEDC, at its own discretion,

shall have the right to remove the Bidder from the approved list at any time

Signature…………





D

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Economic Analysis

67

CHAPTER 7

Economic Analysis





D

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Economic Analysis

68

Abbreviations MM: milliion

LOP: Life of Project

cbm: Cubic Meter

Bcbm: Billion Cubic Meter

mmRial: million Rial

FS: Feasibility Study

IR: Interest Rate

NCF: Net Cash Flow

IRR: Internal Rate of Return

NPV: Net Present Value

PI: Profitability Index

PP: Payback Period

DPP: Discounted Payback Period

UOC: Unit Operating Cost

UDC: Unit Development Cost

UTC: Unit Technical Cost





D

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69

7- Economic Analysis

7-1 Introduction This report is the economic analysis of the feasibility of Gas Storage and Development Project in

Shurijeh D reservoir under Build, Operate and Transfer (BOT) Contract.

The primary basis for this analysis are Cost Es�ma�on performed by IPAC in Q1 2018 and Injec�on

& Withdrawal Volumes reported by NaftKav Company. These Technical inputs along with other

economic ones including, inflation and exchange rates were inserted into an economic model.

Financial evaluation of the project has been undertaken using conventional discounted cash flow

techniques, through which Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period

(PP) and other measures can be calculated to determine the viability of this project. Economic

model has been implemented on a monthly, post-tax and 100% equity basis with no debt

financing. However, summarized annual cash flow model is presented in this section.

7-2 Principal Assumptions and Input Parameters Technical and Financial assumptions are discussed in detail throughout this section. Although, the

principal utilized assumptions of the project are men�oned in Table (7-2).

Table (7-2)

Basic Model Parameters

Source: IGEDC, 2018

Description Value Construction Start Year Commercial Operation Commencement Year Valuation Year Construction Period LOP from effective Date of Contract Yearly Capacity of Phase-I Yearly Capacity of Phase-II Yearly Capacity of total Project (Phase-I & Phase-II) Annual Rise in Investor Fee Annual Euro Inflation Rate EuroMMRial Rate at the time of FS Estimates Base Discount Rate Capital Depreciation (From Project Operation Commencement)

2019 2022 2019

3 years (36 months) 23 Years

2.250 Bcbm 2.250 Bcbm

4.5 Bcbm 1.5% 1.5% 0.049

5% 12 years





D

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70

7-2-1 Exchange Rate and Inflation The Cost Estimates of the project are MMRial-based and Euro-based, as operating costs are

approximately 73% Euro-based while capital costs are approximately 50% Euro-based. The

remaining costs are MMRial-based. All of reported costs by IPAC were on Real terms of 2018.

However, all cost information is input into the model in Euro and in nominal terms. Therefore,

inflation has been taken into account in calculations. For this purpose, to convert all costs to Euro

at first received quota�ons in MMRial were converted into Euro (Real terms, 2018) with exchange

rate of 1€/0.049MMRial at the �me of FS Es�mates, which is in accordance with published data of

Central Bank of Iran. Subsequently, forecasted yearly Euro infla�on rate of 1.5% is used to reach

nominal terms. The methodology of forecasting Euro inflation rate is based on historical long Term

Euro Area GDP deflator, as illustrated in equa�on 1. Also, Historical GDP deflator Index is shown in

Figure (7-2-1).

Figure (7-2-1)

Historical Euro GDP Deflator Index

Source: IMF, World Economic Outlook Database, April 2017

GDP.Deflator -GDP.Deflator2017 2002GDP.Deflator2002IR =Euro (2017-2002+1)

(1)





D

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Economic Analysis

71

7-2-2 Taxation Regime Taxa�on and deprecia�on was also taken into account in the model. Capital is depreciated at 12

(twelve) years using the straight line method star�ng at Year 1 of commercial Opera�on

commencement of the Project.

Tax calcula�ons of the project is according to Ar�cle 105 of Direct Taxes Act and provisions of

Ar�cles 31 of “Tax-related provisions of the Law for Removing Obstacles to Competitive

Production and Promoting the Country’s Financial System”, approved on April 21, 2015 by the

Islamic Consultative Assembly (the Majlis), as published on May 20, 2015 in issue No. 20448

of Official Gaze�e. This ar�cle has been replaced Ar�cle (132) of Direct Taxes Act.

Based upon aforementioned provisions, Income tax holiday has been allowed for the first ten (10)

years of exploitation of the project, Since the project is located in a less developed area.

Additionally, in order to promote and increase the level of economic investments and incentivize

investors, as long as the aggregate taxable income is less than or equal to twice the registered and

paid-in capital, the zero Tax rate shall s�ll apply. However, beyond that level, the rate of 25% on

profits after allowances for all cash operating expenses, and capital depreciation shall be applied,

as s�pulated in Ar�cle (105) of Direct Taxes. Therefore, Iranian na�onal taxa�on policies

materially affect this Project economic metrics. Based on the assumptions listed in this section,

Income Tax shall be paid just during the last years of project, which will be further explained,

numerically.

7-2-3 Capital Expenditures Summary of Capital investment estimations for the construction period as the LOP CAPEX

including contingency with distribution of CAPEX quotations, in terms of Euro and MMRial, is

provided in Table (7-2-3). Presented CAPEX estimations in Table (7-2-3) are in Real Terms 2018

(not inflated) with an accuracy of +10%/-10% (plus or minus ten percent).

For es�ma�on of CAPEX, the overall con�ngency of 10% was used based on previous similar

projects. As per exchange rate of 1Euro/0.049MMRial, total investment cost of the project is

es�mated 611.046 MMEuro.





D

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72

Table (7-2-3)

LOP Investment Cost

Source: IPAC,2018 Also, Cumulative and monthly CAPEX of Construction period is indicated in Figure (7-2-3).

Figure (7-2-3) Monthly Capital Expenditures of Construction Period

Source: IPAC,2018

Description Total Cost Approximate Sharing % Sharing Value

Euro MMRials Euro MMRials Euro

MDP 1,000,000 50 50 24,500 500,000

Engineering 9,848,318 50 50 241,284 4,924,159

Procurement 172,345,561 20 80 1,688,986 137,876,449

Construction 64,014,065 90 10 2,823,020 6,401,407

Well Locations and Roads 18,200,000 100 - 891,800 -

Drilling Engineering 2,600,889 50 50 63,722 1,300,445

Drilling Major Equipment Procurement 39,424,000 - 100 - 39,424,000

Wells Drilling (4 Rig In Opera�ons) 218,064,000 80 20 8,548,109 43,612,800

Management (Approx. 5% of total) 30,000,000.0 30 70 441,000 21,000,000

Con�ngency (10% of total) 55,549,683.0 - 100 - 55,549,683

Total 611,046,516 - 100 14,722,421 310,588,942

0.0

50.0100.0150.0200.0250.0300.0350.0400.0450.0500.0550.0600.0650.0

0.01.02.03.04.05.06.07.08.09.0

10.011.012.013.014.015.016.017.018.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Cum

.CAP

EX,

mm

Euro

, Rea

l Ter

ms

2018

CAPE

X, m

mEu

ro,R

eal

Term

s 20

18

Month.No

Contingencies

Management

Engineering

MDP

Wells Drilling

Drilling Major EquipmentProcurementDrilling Engineering

Procurement

Well Locations & Roads

Construction

Cum. CAPEX, mmEuro





D

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Economic Analysis

73

7-2-4 Operating Expenditures Operation of existing facilities will be transferred to investor since commercial operation

commencement of the project. Therefore, the investor takes over operation of the existing

facilities (Phase-I) and Phase-II, together.

The total opera�on cost is es�mated 38.379 MMEuro per year (not inflated, Real Terms 2018),

which is intended to cover both project phases(I&II). Summarized breakdown of OPEX in details of

Euro-based and MMRial-based is shown in Table (7-2-4). Given the similarity of both phases, the

opera�ng costs of exis�ng facili�es (Phase I) and Phase II are the same. Thus, OPEX of 19,189,500

euro is es�mated for injec�on and withdrawal of 2.25 billion cubic meters per year for each phase.

The overall opera�ng cost accuracy level is es�mated +10%/-10% (plus or minus ten percent) and

the con�ngency of 10 % was applied in es�ma�on of opera�ng costs.

Figure (7-2-4) shows the relative composition of yearly operating cost of project such as

Maintenance /Equipment Change(Overhaul), Workover of wells and repair and Insurance which

are the three largest cost items at 22%, 21%, and 18%, respec�vely.

Figure (7-2-4) Operating Cost composition

Source: IPAC, 2018





D

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Economic Analysis

74

Table (7-2-4) OPEX estimates for a year

OPEX Breakdown

S. No.

Description Cost in MMRials Cost in EURO Total Cost

(Euro)

Surface facilities 398,920 9,048,142 17,189,373

2 Operating Team 198,334 0 4047632.627

4 Power and Utilities 52,800 0 1077551.02

5-1 Maintenance and Repairs (consumable) 42,224.66 2,585,183.42 3446911.22

5-2 Maintenance / Equipment Change ( Overhaul) 105,561.66 6,462,958.54 8617278.05

6 Operating Supplies included in 5 0 0

7 Laboratory Charges included 5 0 0

9 Catalysts and Solvents included in 5 included in 5 0

Subsurface ( well Work Over) 0 8,000,000.00 8,000,000.00

10 Workover of 4 wells a year

8,000,000.00 8,000,000.00

Fixed Charges 0 6,893,822.44 6,893,822.44

13 Insurance

6,893,822.44 6,893,822.44

Plant Overhead Costs 51,419 1,408,351 2,457,715

15 Plant Overhead Costs 26,400 0 538,775.51

16 Management 25,019 1,408,351 1,918,939

Con�ngency (10%) 50,038 2,816,702 3,837,879

Total Summation of OPEX of PH-I & PH-II 500,377 28,167,017 38,378,789

Source: IPAC, 2018





CHAPTER 7

PRE-Feasibility study

(PRE-FS)

75

7-2-5 Investor Revenue Multiplying gas Injection/Withdrawal volumes by unit Fee make investor revenue, which is

explained in this section:

7-2-5-1 Injection and Withdrawal According to technical reported data by Naftkav Company, injection and withdrawal capacity of

each phase is 2.25 Bcm per year as men�oned in Figure . As per proposed timing of injection and

withdrawal, injection and withdrawal periods are from April to November and December to March

during each operation year respectively, as provided in Table (7-2-5-1). Given the similarity of both

phases, this capacity equals 4.5 Bcm per year for total project (Phase-I&Phase-II).

Table (7-2-5-1) Proposed timing of Injection & Withdrawal of a typical year

Source: IGEDC, 2018

Figure (7-2-5-1) Injection and Withdrawal Volumes of each Phase in a typical operation year

Source: Naftkav Company

7-2-5-2 Fee

End Beginning Description November April Injection Period March December Withdrawal Period

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarInjection,Phase-I 281.25281.25281.25281.25281.25281.25281.25281.25 0 0 0 0Withdrawal,Phase-I 0 0 0 0 0 0 0 0 562.5 562.5 562.5 562.5Injection,Phase-II" 281.25281.25281.25281.25281.25281.25281.25281.25 0 0 0 0Withdrawal,Phase-II 0 0 0 0 0 0 0 0 562.5 562.5 562.5 562.5

0

100

200

300

400

500

600

Volu

me,

mm

cm

Injection,Phase-I

Withdrawal,Phase-I

Injection,Phase-II"

Withdrawal,Phase-II





CHAPTER 7


(PRE-FS)

76

This BOT Project covers an entire infrastructure system, which includes taking over existing assets

as well as building and operating new assets by the investor. Therefore, the investor obtains its

revenues through 2 kinds of fee for injec�on and withdrawal of gas per cubic meter; that are

payable to it in monthly instalments starting from the of commercial operation commencement.

First fee will be paid to operator due to operating and maintenance of the existing facilities

(Phase-I). The second one will be generated from the operation of Phase-II that is intended to

cover operating costs, maintenance, development and construction costs and a return for the

shareholders of the purpose company.

It should be pointed that %60 of the fee per cubic meter will be paid during the injec�on period

and %40 will be paid during the withdrawal period.

In order to eliminate the devaluation and considering time value of money and covering the

increase in project costs, from the second year of commercial operation, the investor will be

en�tled to an annual Fee rise by rate of 1.5%. This increase will be applied con�nuously, un�l the

end of the project.

Offered Unit Fees for each phase will be further elaborated numerically in this section. 7-3 Cash flow Forecasts (Base Case) A full LOP annualized cash flow Forecast for Phase-II and total project (Integration of two phases)

is shown in Table and Table , respectively.

Cash flow is modelled to calculate Fee per cubic meter of gas and other indicators, where IRR is

assumed 14%. In IGEDC’s opinion, this Internal Rate of Return is appropriate enough.

Furthermore, in cash flow modelling, an es�mate of 3.2 MMEuro of working capital is considered

for the first year of commercial opera�on for each Phase and totally 6.4 MMEuro for total project.

All working capital is recaptured by the end of the project life with a net cash flow (NCF) impact of

0 Euro.





CHAPTER 7


(PRE-FS)

77

Table (7-3-1) Annualized Economic model, Phase-II

Source: Dana Consultant

Year Total 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 20411 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Technical Data

Injection Volume, mmcm - - - 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00

Withdrawal Volume, mmcm - - - 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00

Capital Expenditures (Real Money, 2018)

Construction, mmEuro 64.01 1.92 30.73 31.37 - - - - - - - - - - - - - - - - - - -

Well Locations & Roads, mmEuro 18.20 7.86 7.83 2.51 - - - - - - - - - - - - - - - - - - -

Procurement, mmEuro 172.35 70.66 96.51 5.17 - - - - - - - - - - - - - - - - - - -

Drilling Engineering, mmEuro 2.60 1.59 0.75 0.26 - - - - - - - - - - - - - - - - - - -

Drilling Major Equipment Procurement, mmEuro 39.42 31.14 4.73 3.55 - - - - - - - - - - - - - - - - - - -

Wells Drilling, mmEuro 218.06 47.10 94.20 76.76 - - - - - - - - - - - - - - - - - - -

MDP, mmEuro 1.00 1.00 - - - - - - - - - - - - - - - - - - - - -

Engineering, mmEuro 9.85 9.85 - - - - - - - - - - - - - - - - - - - - -

Management, mmEuro 30.00 12.15 12.60 5.25 - - - - - - - - - - - - - - - - - - -

Contingencies, mmEuro 55.55 8.89 26.66 20.00 - - - - - - - - - - - - - - - - - - -

TOTAL CAPEX, mmEuro 611.05 192.16 274.02 144.86 - - - - - - - - - - - - - - - - - - - -

Working Capital, mmEuro - - - (3.20) - - - - - - - - - - - - - - - - - - - 3.20

Opera�ng Costs (Real Money, 2018)

Operating Team, mmEuro 40.48 - - - 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02 2.02

Power & Utilities, mmEuro 10.78 - - - 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Plant and Overhead Costs, mmEuro 5.39 - - - 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27

Insurance, mmEuro 68.94 - - - 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45

Workover of 4 Wells a year, mmEuro 80.00 - - - 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00

Maintenance / Equipment Change (Overhaul), mmEuro 86.17 - - - 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31 4.31

Maintenance and Repairs (consumable), mmEuro 34.47 - - - 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72

Management, mmEuro 19.19 - - - 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96 0.96

Contingency, mmEuro 38.38 - - - 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92

TOTAL OPEX, mmEuro 383.79 - - - 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19 19.19

Economic Assumptions

Euro Inflation Factor 1.5% 1.02 1.03 1.05 1.06 1.08 1.09 1.11 1.13 1.14 1.16 1.18 1.20 1.21 1.23 1.25 1.27 1.29 1.31 1.33 1.35 1.37 1.39 1.41

Annual Rise in Fee 1.5% 1.00 1.02 1.03 1.05 1.06 1.08 1.09 1.11 1.13 1.14 1.16 1.18 1.20 1.21 1.23 1.25 1.27 1.29 1.31 1.33

Discount Factor 5.0% 1.00 0.95 0.91 0.86 0.82 0.78 0.75 0.71 0.68 0.64 0.61 0.58 0.56 0.53 0.51 0.48 0.46 0.44 0.42 0.40 0.38 0.36 0.34

Fee/cm (EuroCent/cm) - - - 5.47 5.55 5.64 5.72 5.81 5.89 5.98 6.07 6.16 6.25 6.35 6.44 6.54 6.64 6.74 6.84 6.94 7.05 7.15 7.26

Cash Flow Schedule (Money Of the Day)

Investor Revenues, mmEuro 2,845.95 - - - 123.08 124.92 126.79 128.70 130.63 132.59 134.58 136.59 138.64 140.72 142.83 144.98 147.15 149.36 151.60 153.87 156.18 158.52 160.90 163.31

Investment, mmEuro 628.83 195.05 282.30 151.48 - - - - - - - - - - - - - - - - - - - -

Opex, mmEuro 470.96 - - - 20.37 20.67 20.98 21.30 21.62 21.94 22.27 22.60 22.94 23.29 23.64 23.99 24.35 24.72 25.09 25.46 25.85 26.23 26.63 27.03


Tax Calculation

Depreciation Charges, mmEuro - - - 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 - - - - - - - -

Deductible Charges, mmEuro - - - 72.77 73.07 73.38 73.70 74.02 74.34 74.67 75.01 75.35 75.69 76.04 76.39 24.35 24.72 25.09 25.46 25.85 26.23 26.63 27.03

Taxable Income, mmEuro - - - 50.31 51.85 53.41 55.00 56.61 58.24 59.90 61.59 63.30 65.03 66.79 68.58 122.80 124.64 126.51 128.41 130.34 132.29 134.27 136.29

Income Tax, mmEuro 25% 122.13 - - - - - - - - - - - - - - - - - - - 21.41 33.07 33.57 34.07

Cash Flow (Money Of the Day) 1,624.03 (195.05) (282.30) (154.68) 102.71 104.25 105.81 107.40 109.01 110.65 112.31 113.99 115.70 117.44 119.20 120.98 122.80 124.64 126.51 128.41 108.92 99.22 100.71 105.41

IRR 14%

SUMMARY OF ANNUAL ECONOMIC MODEL FOR "GAS STORAGE & DEVELOPMENT PROJECT IN SHOURIJEH D RESERVOIR", EQUITY ANALYSISREFERENCE CASE, PHASE2





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Table (7-3-2)

Annualized Economic model, Whole Project (Phase-I and Phase-II)


Year Total 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 20411 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Technical Data Injec�on Volume, PH1, mmcm - - - 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00

Withdrawal Volume, PH1, mmcm - - - 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00

Injec�on Volume, PH2, mmcm - - - 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00

Withdrawal Volume, PH2, mmcm - - - 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00

Capital Expenditures (Real Money, 2018)Construction, mmEuro 64.01 1.92 30.73 31.37 - - - - - - - - - - - - - - - - - - - -

Well Locations & Roads, mmEuro 18.20 7.86 7.83 2.51 - - - - - - - - - - - - - - - - - - - -

Procurement, mmEuro 172.35 70.66 96.51 5.17 - - - - - - - - - - - - - - - - - - - -

Drilling Engineering, mmEuro 2.60 1.59 0.75 0.26 - - - - - - - - - - - - - - - - - - - -

Drilling Major Equipment Procurement, mmEuro 39.42 31.14 4.73 3.55 - - - - - - - - - - - - - - - - - - - -

Wells Drilling, mmEuro 218.06 47.10 94.20 76.76 - - - - - - - - - - - - - - - - - - - -

MDP, mmEuro 1.00 1.00 - - - - - - - - - - - - - - - - - - - - - -

Engineering, mmEuro 9.85 9.85 - - - - - - - - - - - - - - - - - - - - - -

Management, mmEuro 30.00 12.15 12.60 5.25 - - - - - - - - - - - - - - - - - - - -

Contingencies, mmEuro 55.55 8.89 26.66 20.00 - - - - - - - - - - - - - - - - - - - -

TOTAL CAPEX, mmEuro 611.05 192.16 274.02 144.86 - - - - - - - - - - - - - - - - - - - -


Opera�ng Costs (Real Money, 2018)Operating Team, mmEuro 80.95 - - - 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05

Power & Utilities, mmEuro 21.55 - - - 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08

Plant and Overhead Costs, mmEuro 10.78 - - - 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54 0.54

Insurance, mmEuro 137.88 - - - 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89 6.89

Workover of 4 Wells a year, mmEuro 160.00 - - - 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00

Maintenance / Equipment Change (Overhaul), mmEuro 172.35 - - - 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62 8.62

Maintenance and Repairs (consumable), mmEuro 68.94 - - - 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45 3.45

Management, mmEuro 38.38 - - - 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92 1.92

Contingency, mmEuro 76.76 - - - 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84 3.84

TOTAL OPEX, mmEuro 767.58 - - - 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38 38.38

Economic AssumptionsEuro Inflation Factor 1.5% 1.02 1.03 1.05 1.06 1.08 1.09 1.11 1.13 1.14 1.16 1.18 1.20 1.21 1.23 1.25 1.27 1.29 1.31 1.33 1.35 1.37 1.39 1.41

Annual Rise in Fee 1.5% 1.00 1.02 1.03 1.05 1.06 1.08 1.09 1.11 1.13 1.14 1.16 1.18 1.20 1.21 1.23 1.25 1.27 1.29 1.31 1.33

Discount Factor 5.0% 1.00 0.95 0.91 0.86 0.82 0.78 0.75 0.71 0.68 0.64 0.61 0.58 0.56 0.53 0.51 0.48 0.46 0.44 0.42 0.40 0.38 0.36 0.34

Fee/cm (EuroCent/cm), PH1 - - - 0.93 0.94 0.95 0.97 0.98 1.00 1.01 1.03 1.04 1.06 1.07 1.09 1.11 1.12 1.14 1.16 1.17 1.19 1.21 1.23

Fee/cm (EuroCent/cm), PH2 - - - 5.47 5.55 5.64 5.72 5.81 5.89 5.98 6.07 6.16 6.25 6.35 6.44 6.54 6.64 6.74 6.84 6.94 7.05 7.15 7.26

Cash Flow Schedule (Money Of the Day)Investor Revenues, mmEuro 3,327.21 - - - 143.89 146.05 148.24 150.46 152.72 155.01 157.33 159.69 162.09 164.52 166.99 169.49 172.03 174.62 177.23 179.89 182.59 185.33 188.11 190.93

Investment, mmEuro 628.83 195.05 282.30 151.48 - - - - - - - - - - - - - - - - - - - -

Opex, mmEuro 941.92 - - - 40.73 41.34 41.97 42.59 43.23 43.88 44.54 45.21 45.89 46.57 47.27 47.98 48.70 49.43 50.17 50.93 51.69 52.47 53.25 54.05


Tax CalculationDepreciation Charges, mmEuro - - - 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 52.40 - - - - - - - -

Deductible Charges, mmEuro - - - 93.14 93.75 94.37 95.00 95.64 96.28 96.94 97.61 98.29 98.98 99.68 100.38 48.70 49.43 50.17 50.93 51.69 52.47 53.25 54.05

Taxable Income, mmEuro - - - 50.75 52.30 53.87 55.46 57.08 58.72 60.39 62.08 63.80 65.54 67.31 69.11 123.33 125.18 127.06 128.97 130.90 132.86 134.86 136.88

Income Tax, mmEuro 25% 124.70 - - - - - - - - - - - - - - - - - - - 23.55 33.22 33.71 34.22

Cash Flow (Money Of the Day) 1,631.76 (195.05) (282.30) (157.88) 103.15 104.70 106.27 107.87 109.48 111.13 112.79 114.48 116.20 117.94 119.71 121.51 123.33 125.18 127.06 128.97 107.35 99.65 101.14 109.06

IRR 14%

SUMMARY OF ANNUAL ECONOMIC MODEL FOR "GAS STORAGE & DEVELOPMENT PROJECT IN SHOURIJEH D RESERVOIR", EQUITY ANALYSISREFERENCE CASE, PHASE1&2





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7-4 Financial Results Based on the results of financial modelling, which is modelled based on equity IRR of 14% for the

whole project, following Fees are offered for first commercial operation year:

· 5.47 Euro cent per cubic meter for Phase-II (Development Phase)

· 17% of Unit Fee of Phase-II as the Phase-I Unit Fee (Existing facilities)

It should also be noted from the second year of commercial operation the investor will be entitled

to annual Fee rise by rate of 1.5%. It needs to be explained this Fee is es�mated by the investee

and the eligible investors will submit their proposals in line with their own estimates and

ultimately the lowest bidder selected according to the rules governing governmental transactions.

Over LOP, the undiscounted cash flow is 1,631.8 MMEuro a�er tax, which generated from 3,327

MMEuro as total Investor revenue minus total costs including 629, 942 and 125 MMEuro as

CAPEX, OPEX and the project Tax, respectively. For the Tax, Iranian national taxation policies

materially affect this Project metrics. With respect to the aforementioned provisions in Taxation

regime, cash flow projec�ons result in from a total project taxable income of 1,756 MMEuro,

124.7 MMEuro will be paid as the project Tax based on the assump�ons listed in this sec�on.

For Net Present Value calculation, it is assumed that cash flows are discounted back to 1 January

2019.The results indicate that at men�oned Unit Fees (5.47 Euro cent per cubic meter for Phase-II

and 17% of Unit Fee of Phase-II as the Phase-I Unit Fee), the Project returns an after-tax NPV 5% of

666 MMEuro and IRR of 14%. Undiscounted and discounted Cumula�ve Investor Revenues and

Costs for whole LOP is shown in Figure (7-4-1) and Figure . A detailed discounted and

undiscounted breakdown of annual Investor revenues and costs are illustrated in Figure (1 and

Figure (7-4-4).





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Figure (7-4-1)

Undiscounted investor Revenue and Costs over LOP

Source: Dana Consultant, 2018

Figure (7-4-2)

Discounted investor Revenue and Costs over LOP


Figure (1-4-3)

Breakdown of Investor Undiscounted Annual Cash flow


Figure (7-4-4)

Breakdown of Investor Discounted Annual Cash flow






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81

The cash flow results in a Payback Period (PP) of 5.935 years and a Discounted Payback Period of 7.605 years from the commercial opera�on commencement, as Figure and Figure illustrate schematic figures:

Other indicators such undiscounted and discounted Unit Technical Cost are calculated, which

shows the summation of Unit Operating Cost (UOC) and Unit Development Cost (UDC). Also,

Profitability Index (PI) and DPI are selected for the economic analysis to evaluate the efficiency of

the project, first one obtained by dividing the after tax Project NCF by total Costs (Summation of

CAPEX, OPEX and Tax) and the latter is measured by dividing after tax Project NPV by the present

value of the total Costs. Undiscounted and discounted economic metrics are summarized in Error!

Reference source not found.-4-1) and Error! Reference source not found., respectively.

Figure (7-4-5)

Cumulative Investor NCF


Figure (7-4-6)

Cumulative Investor Discounted NCF






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Table (7-4-1) Table (7-4-2)

Summary of Undiscounted Economic Results Summary of Undiscounted Economic Results

Source: Dana Consultant, 2018 Source: Dana Consultant, 2018

7-5 Sensitivity Analysis Sensitivity analyses for key economic parameters including Fee, CAPEX, OPEX and Exchange rate

are performed. Each variable is individually fluctuated between “up-side” “down side “cases,

whilst leaving the other base case parameters unchanged to test the sensitivity of the model to

changing conditions. The resulting effect on Net present value (NPV) at discount rates of 5%, 7.5%

and 10%, internal rate of return (IRR) and Payback Period is presented in Table , Error! Reference

source not found., Error! Reference source not found. and Table . It should be noted

1Euro/0.049MMRial, 5.47Euro/cbm and 17% of Unit Fee of Phase-II are used as the base case

Exchange Rate, Unit Fee of Phase-II and Phase-I, respectively. Project is nominally most sensitive

to unit Fee. The Project’s NPV sensitivity to capital and operating costs are similar but IRR and

Payback Period Sensitivities are more susceptible to Capital Expenditures, as results indicated in

Figure , Figure and Figure .

Metrics Unit Value

NPV@5%,MOD MMEuro 666

DPP years 7.605

Discounted UOC Eurocent/Cubic meter 0.853

Discounted UDC Eurocent/Cubic meter 2.298

Discounted UTC Eurocent/Cubic meter 3.151

NPV/Cubic meter Eurocent/cbm 0.740

DPI (Total Costs) - 0.63

Metrics Unit Value

NCF (including Tax) MMEuro 1,631.8

IRR (including Tax) % 14%

PP years 5.935

UOC, MOD Eurocent/Cubic meter 1.047

UDC, MOD Eurocent/Cubic meter 1.397

UTC, MOD Eurocent/Cubic meter 2.444

NCF (including Tax)/Cubic meter, MOD

Eurocent/cbm 1.813

PI(Total Costs), MOD - 0.96





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Table (7-5-1)

Resulting effects of CAPEX changes on NPV, IRR and payback time (tax included)


Table (7-5-2) Resulting effects of OPEX changes on NPV, IRR and payback time (tax included)

OPEX

Variation to Base Case -15% -10% -5% 0% 5% 10% 15%

Investor NCF 1737.7 1702.4 1667.1 1631.8 1596.4 1561.1 1525.8

Investor NPV@ 5% 729.4 708.2 687.0 665.6 644.2 622.8 601.3

Investor NPV@ 7.5% 445.9 428.9 411.9 394.8 377.6 360.5 343.2

Investor NPV@ 10% 244.7 230.9 217.1 203.1 189.1 175.2 161.1

Investor IRR 14.8% 14.5% 14.3% 14% 13.7% 13.5% 13.2%

Payback Period 5.614 5.716 5.823 5.934 6.048 6.166 6.289


CAPEX


Investor NCF 1655.3 1647.5 1639.6 1631.8 1623.9 1616.0 1608.2

Investor NPV@ 5% 726.0 706.2 686.0 665.6 644.9 623.7 602.3

Investor NPV@ 7.5% 463.4 440.9 418.0 394.8 371.3 347.4 323.3

Investor NPV@ 10% 276.5 252.4 227.9 203.1 178.1 152.8 127.2

Investor IRR 16.3% 15.4% 14.7% 14% 13.4% 12.8% 12.2%

Payback Period 5.085 5.368 5.651 5.934 6.213 6.492 6.771





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Table (7-5-3) Resulting effects of Fee changes on NPV, IRR and payback time (tax included)

Fee


Investor NCF 1257.4 1382.2 1507.0 1631.8 1756.5 1881.3 2006.1

Investor NPV@ 5% 435.8 513.2 589.8 665.6 740.7 815.3 889.4

Investor NPV@ 7.5% 210.3 272.5 334.0 394.8 454.9 514.5 573.6

Investor NPV@ 10% 52.8 103.5 153.6 203.1 252.1 300.5 348.6

Investor IRR 11.1% 12.1% 13.1% 14% 14.9% 15.8% 16.7%

Payback Period 7.418 6.848 6.357 5.934 5.561 5.234 4.944


Table (7-5-4) Resulting effects of Exchange Rate changes on NPV, IRR and payback time (tax included)

Exchange Rate


Investor NCF 1598.6 1610.9 1621.9 1631.8 1640.7 1648.8 1656.3

Investor NPV@ 5% 645.5 652.9 659.6 665.6 671.0 675.9 680.5

Investor NPV@ 7.5% 378.7 384.6 390.0 394.8 399.1 403.1 406.7

Investor NPV@ 10% 190.0 194.8 199.2 203.1 206.6 209.9 212.8

Investor IRR 13.76% 13.85% 13.94% 14.01% 14.08% 14.14% 14.19%

Payback Period 6.041 6.001 5.965 5.934 5.905 5.880 5.856






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85

Figure (7-5-1) Project NPV Sensitivities (Tornado Analysis)


Figure (7-5-2) Project IRR Sensitivity (Tornado Analysis)


-300 -250 -200 -150 -100 -50 0 50 100 150 200 250

Exchange Rate

CAPEX

OPEX

Fee

NPV Varia�on vs Base Case NPV@5%

Tornado analysis, PH-I&PH-II-15% 15%

-15%15%

15% -15%

-15%

-5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5%

Exchange Rate

OPEX

CAPEX

Fee

IRR Variation vs Base Case IRR

Tornado analysis, PH-I&PH-II-15% 15%

-15%15%

15% -15%

-15% 15%





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86

Figure (7-5-3)

Project PP Sensitivity (Tornado Analysis)



