• Project Inspection, Testing and Commissioning

Even at the planning phase we would invite our clients to manufacturers workshop to inspect the manufacturing facility and samples, they can go the workshop whenever they want in China. We call this as workshop INSPECTION.

The clients can test and exam all the equipment�parts, material and machining tools or even the testing instrument or meters. All the equipments parts for the power plant are designed, machined and tested to most popular international standard or their equivalent standards for power plant. The final testing results will abide to Supporting documents according to QA/QC standards.

After completion, we will undertake a test on completion.

We will carry out the commissioning of the Power Plant in accordance with the program to be submitted to and approved by the Employer and also in accordance with the provisions of the QA/QC program.

As soon as is the unit operation tests are successful completed the performance tests can be started.  We also conduct guaranteed performance and plant availability test to make sure the plant achieve ideal performance.
          * Project Funding/Financing
          * Power Purchase Agreements/Energy Service Agreements
          * Qualifying Facilities Application and Permitting
          * Long-Term Service Agreements

We usually design and construct the power plant for the operation life span of 20-30 year on normal performance which is the same in China. Sufficient consumable spares and essential replacement parts will be provided to cover the event of breakdown which would affect the operation on safety of the power plant during test and commissioning and life span of the whole power plants.

We also can provide daily operation management services and maintenance services.to the power plant

Now lets come to the individual tasks or jobs of every consortium member. Chinacables as the main contractor has signed agreement with each consortium member for the power generation project in our market areas. Each member has been in its own business for years or even 50 years, most of them are main players in their respective professional area. For example Chinacables and CMEC have been main contractor or supplier in foreign electricity projects for more than 30 years with hundreds of successful credentials.

EPC contractor

In the China-Power-Consortium, EPC contractor acts as main contractor or EPC contractor representing the consortium to contact with our clients for all the power generation business from planning to final maintenance of the power station. And it will bear all the liability and responsibility of the contract signed by our clients and EPC contractor.

EPC contractor’s main task and assignment in this consortium:

1.  Initial business contact and coordination with our clients as power producers and subcontractors;

2.  applying license for foreign projects with Chinese government;

3.  contract signing with power producers;

4.   all the financial issues including payment, bank or performance guarantee, arrangement of government preferential soft loans, buyer’s or seller’s credit  to power producers; And hand pick the equipments and products demanded in the contracts and procure the around the world, most of them from China.

5.   coordinating with all the sub-contractors for plant design, and their equipment procurement; hand-pick the best suitable equipment from the points of our clients;

6.   site equipment erection and commissioning;

7.   after takeover guarantee and spare part supplier;

8.   operation and maintenance.

All of our consortium members have cooperated with us for years or even decades, most of them are the formers subsidiaries of Ministry of Machinery and Electrical Industry. This consortium has completed more than 30% of the whole Chinese thermal power plants EPC contracts. We can provide the most advanced equipments such turbine, boiler, generator and transformer. For detailed information on these main equipments of power plant, please refer to our equipments supplying section.

Credential and reference Lists:

As being introduced, EPC contractor has been a key player from China in the world electricity transmission and distribution industry for decades. During recent years when electricity demand is booming, EPC contractor integrated all its experience and expertise in the electricity industry, especially in the world market, to setup a specialized department fully oriented to the power plant projects in the world market. It has contracted as main contractor or subcontractor in the power generation, transmission and distribution in more than 300 projects.

Here is a example of project information which is needed for us to review:

Project Description
This is a Thermal Power Project with an estimated power generation capability of 625 MW. The Power is going to be generated using indigenous Coal which is being procured via a signed agreement for supply linkage with Coal xxx. The project is expected to be located near the town of xxx and is situated approximately 18 km from the coal mines where coal is going to be supplied to this project. The nearest connect point of the xxx state power grid is located approximately 10 km from the project site. The connection between the project and the grid has to be made as a part of the project and is likely to cost approximately INR 5-7 Lacs per km.
Project - Present Status
Activity	Present Status	Comments
Co-operation MoU with State Government of xxx	Active and signed as per standard Timeframe for completion is by April 2011.industry terms. Working to enter into the fnal Agreement.	Timeframe for completion is by April 2011
Long Term Coal Linkage Agreement	Submitted. considered, approved and signed with Coal xxx Limited for quantities required for generation of 600 MW of power.	Terms are provided in the Letter of Association. Bank Guarantee (BG) of INR 20 Cr provided based on the LoA.
Water Allocation	Permission granted; Deposit of Commitment charges amounting to INR 5 Lacs has been paid. Company is currently working to enter into a final agreement with the State Dept of Water Resources, Govt of Chhattisgarh.	Timeframe for completion is by April 2011
Power Purchase Agreement (PPA)	Not done	Up to 25% of generated capacity can be part of the PPA with the state govt; balance can be used for Merchant Trade.
Project Cost & Financial Closure	Completed. Estimated cost of project is INR 2600 Cr. Consortium ofxxx Banks has sanctioned a debt of INR 2180 Cr with promoters�equity of INR 520 Cr using a DE Ratio of 4:1.	Promoters have currently spent INR 75 Crtowards project related expenses as part of their equity towards the overall project cost.
Land Acquisition	Out of a total requirement of 550 Acres, 50% of land has been acquired;	This activity is expected to be completed by June 2011
Environmental Clearance	ToR and Public Hearing processes completed and approved. Environmental Impact Assessment report has been submitted and final clearance is expected by March 2011.	State and Central Govt to work jointly and issue the EC certificate.
Expected Project Construction Timeframe	27 months duration with work starting immediately after receiving Environmental Clearance Certificate.
Technical Project Consultants	NOT APPOINTED.
Project Technology and Equipment	NOT DECIDED.
Promoters�Intent	Looking for immediate Full Exit upon getting fair value.	Considering joint equity partners as nextoption.

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