Power > Fossil Fueled POWER PLANTS

Ave Fenix Power Plant
Tucuman, Argentina

Engaged by the Engineer-Procure-Construct (EPC) Contractor, Engineering Design Group (EDG), on this four-unit GE gas turbine, 160 MW power plant in northeastern Argentina. Final closing by the Developer occurred 11 months later than the initial plan, and the Performance Acceptance Date was seven months late. The four GE LM6000s, each nominally 40 MW, were packaged and supplied by Stewart & Stevenson (S&S), one of GE's authorized packagers. EDG was responsible for all engineering, procurement and construction under a lump sum agreement. Although the agreement was signed in June 1995 for a nine-month design-build period, Notice to Proceed was not given until late August 1995. EDG was mechanically complete at the end of June 1996. Major changes had to be accomplished, as the Operator changed the operating system philosophy three times during the design-build-start-up period, which led to major revisions in the operations control system. The initial change was from a PCS-based system to a DCS-based system. Thereafter, the Owner / Operator continued to direct changes in the performance requirements and scope DCS system. These changes led to other delay and disruption impacts including re-routing of the electric interconnect, expansion of the control center to enable management of Ave Fenix and two other nearby plants, and changes in the routing, size and service requirements for the fuel gas. S&S (OEM and General Contractor for the complete project) directed the changes, but refused to grant time extensions and cost relief to EDG (Prime Contractor). Nielsen-Wurster evaluated issues of delay, acceleration, disruption and allegations of design error and poor workmanship. The latter issues were the alleged basis for not paying the second half of the original contract value (part of the original agreement), the cost of the changes and the cost of the impacts. The changes and impacts resulted in severe delay/acceleration, disruption and cost impacts. At the conclusion of the international arbitration under AAA International Rules, the Arbitration Panel awarded EDG nearly all of claimed amounts.

ISAB Energy S.r.l. Integrated Gasification Combined Cycle Power Plant
 Priolo Gargallo, Siracusa, Sicily, Italy

Engaged by Consorzio Snamprogetti-Foster Wheeler-Energy (SFW) to prepare expert analyses in support of its claims regarding the heavy oil Integrated Gasification Combined-Cycle Project located in Sicily, Italy. This multi unit plant is owned and operated by ERG Petroli S.p.A. (the refining arm of the Italian energy company ENI), and Mission Energy International, through a joint venture known as ISAB. It is designed to process, in an environmentally acceptable manner, high sulphur residues from the nearby ERG refinery, to produce 500 MW electrical power and to process steam. We analyzed SFW’s project management and issues of delay, acceleration, disruption and cost quantification. We also evaluated ISAB allegations of SFW design errors, omissions and impacts and ISAB’s project management. Results of our expert analyses were presented in testimony at an UNCITRAL Arbitration in Geneva. All remaining issues of Quantum were settled prior to the Tribunal’s decision.

Liquefied Natural Gas Plant
Bintulu, Malaysia

Engaged by a subcontractor for assessment of the construction and Project management issues, including delays and resource inefficiencies, on the largest Liquefied Natural Gas (LNG) plant in the world. The Project was located in Bintulu, Eastern Malaysia, undertaken by a multinational consortium, with the total construction cost of approximately $1 billion and an overall construction duration spanning several years. The total cost claim sought by Client was $126 million relating to contract termination. Our evaluation began with analysis of the overall Project management, interface of various work activities and impact of various management actions on the overall Project duration and labor productivity. The analysis included a comprehensive schedule delay analysis, which quantified all delay events as well as the responsibility for each of those delay events. We also performed a detailed resource productivity analysis for various areas and work components of the plant. Upon completion of this analysis, we prepared a detailed report of Project delays, disruptions and labor inefficiencies. Based on our findings, an expert written and oral testimony was presented  in an International Chamber of Commerce (ICC) Arbitration held in Kuala Lumpur. The multinational Arbitration Panel rendered a decision granting our Client $125.5 million of the $126 million claimed.

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