Blue Waters Asset Management Plan (0.61)

BLUEWATERS POWER STATION

For:Griffin Energy

Disclaimer, Limitation, Ownership and ConfidentialityThe concepts contained in this report are owned by Transfield Worley Power Services Pty Ltd.The report is issued to the Client COMMERCIAL IN CONFIDENCE.Copying this report without the permission of the Client or Transfield Worley Power Services Pty Ltdis not permitted.

REV DESCRIPTION PREPARED BY

REVIEWED BY

APPROVED BY

DATE

0.6 Draft Issued for Review SG SD PH 15/09/08

BLUEWATERS POWER STATIONASSET MANAGEMENT PLAN

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY...................................................................................................5

1.1. Plant Vision....................................................................................................................... 5

1.2. Plant Mission....................................................................................................................5

1.3. Safety............................................................................................................................... 5

1.4. Environment.....................................................................................................................6

2. INTRODUCTION................................................................................................................7

2.1. Background...................................................................................................................... 7

2.2. Purpose of the AMP..........................................................................................................7

2.3. Standards of Performance................................................................................................7

2.4. Timing and Structure of the Asset Management Plan.......................................................8

3. BUSINESS CONTEXT.......................................................................................................9

3.1. Key Performance Indicators.............................................................................................9

3.2. Stakeholders.....................................................................................................................9

3.3. Levels of Service............................................................................................................12

3.4. Reporting Requirements.................................................................................................14

3.5. Operational Performance Requirements........................................................................14

3.6. Client Business Model....................................................................................................16

3.7. TWPS Objectives............................................................................................................16

4. ASSET DEFINITION........................................................................................................18

4.1. Asset Description and Boundaries..................................................................................18

4.2. Asset Capability and Limitations.....................................................................................19

4.3. General Arrangement.....................................................................................................19

4.4. Asset Condition Assessment..........................................................................................19

5. OPERATIONS STRATEGY.............................................................................................21

5.1. Strategy.......................................................................................................................... 21

5.2. Electrical......................................................................................................................... 25

5.3. Control & Monitoring.......................................................................................................25

5.4. Generation and Capacity Plan........................................................................................26

5.5. Compliance Monitoring Program....................................................................................26

5.6. Reporting........................................................................................................................ 26

6. ASSET MANAGEMENT STRATEGY.............................................................................28

6.1. Policy.............................................................................................................................. 28

6.2. Overall Asset Management Strategy..............................................................................28

Asset Management Plan Page 2 of 72Version:0.6 15 Sep 2008


7. MAINTENANCE STRATEGY..........................................................................................33

7.1. Equipment Strategy........................................................................................................34

7.2. Condition Monitoring Program........................................................................................36

7.3. Maintenance Program....................................................................................................37

7.4. Outage Management......................................................................................................43

7.5. Configuration Management Plan....................................................................................44

7.6. Warranty Period Strategy – Initial Operation..................................................................46

8. ASSET SUPPORT PLANS..............................................................................................47

8.1. Resource Plan................................................................................................................47

8.2. Technical Documentation Plan.......................................................................................47

8.3. Spares Plan.................................................................................................................... 48

8.4. Repair Plan..................................................................................................................... 50

8.5. Training Plan..................................................................................................................51

9. RISK MANAGEMENT......................................................................................................53

9.1. Plant Risk Management..................................................................................................53

9.2. Risk Mitigation................................................................................................................55

10. SAFETY...........................................................................................................................56

10.1. Policy and Objectives.....................................................................................................56

10.2. Measurement/Auditing....................................................................................................57

10.3. Line Management Responsibility....................................................................................58

10.4. Training and Education...................................................................................................58

10.5. Safety System for Isolation of Plant................................................................................58

11. ENVIRONMENT...............................................................................................................58

11.1. Policy.............................................................................................................................. 58

11.2. Environmental Management Plan...................................................................................59

12. PROCESSES AND SYSTEMS........................................................................................60

12.1. Project Management.......................................................................................................60

12.2. Asset Management Framework......................................................................................63

12.3. Operations Systems Plan (OSP)....................................................................................64

12.4. SAP Maintenance Management System........................................................................65



TABLES

Table 1: Current expected performance......................................................................................17Table 2: Terminal Points for the Services....................................................................................18Table 3: Asset Capabilities...........................................................................................................19Table 4: Asset Condition Assessment Matrix..............................................................................21Table 5: Plant output ratings........................................................................................................24Table 6: Generation and Capacity Plan.......................................................................................26

FIGURES

Figure 1: Market Information Flow...............................................................................................10Figure 2: A Typical Trading Day...................................................................................................13Figure 3: Best Practice Maintenance – The Correct Balance of Work.........................................34

APPENDICES

Appendix A: Engineering risk reviewAppendix B: Asset Management PolicyAppendix C: HSE PolicyAppendix D: Organisation ChartAppendix E: Initial Annual BudgetAppendix F: External Support Structure Organisational ChartAppendix G: Environmental Licence



1. EXECUTIVE SUMMARY

1.1. Plant Vision

“TWPS will be the preferred power plant operator through our commitment to continuous improvement and innovation. We will apply best practice asset management processes and operating practices, resulting in world class levels of safety, asset availability and cost performance”.

1.2. Plant Mission

“Our long term plant mission is that Bluewaters Power Station will meet or exceed its Market Dispatch Requirements. To succeed TWPS will:

o Utilise the latest TWPS management processes and systems, ensure Bluewaters will be a safe, productive, rewarding and environmentally friendly place for its employees.

o Continually reduce overall cost to the owner, Griffin Energy through continual improvement of operational and business strategies and improved commercial performance of the plant.”

o Continually improve maintenance practices to harness new maintenance technologies to reduce maintenance costs and downtime.

o Utilise the external resources of Worley Parsons and Transfield Services in a cost-effective manner to improve our competitive edge.

This document addresses the means by which the plant assets will be managed, and also the systems by which TWPS intends to manage all activities and assets which contribute to the successful delivery of the services to be provided under the O&M Agreement.

Many supporting documents will underpin the Asset Management Plan, wherever there is a need for detailed policy, plans and instructions to supplement this overall document. These documents will be included in the Operational Systems Plan (OSP)

This Asset Management Plan defines the Business Context in which we will be working, the Asset for which we are responsible, and our strategies for Operations, Plant Asset Management, and Maintenance. It also details our Asset Support Plans, and Risk Management Approach. The TWPS approaches to Safety and Environmental Management are also laid out, our Asset Improvement Strategy is explained, and our supporting Processes and Systems are summarised.

This document, and all of our systems and approaches are based on continuous improvement to everything we do. This document and all our systems are regarded as live, and subject to the continuous improvement process at all times. Our continuous improvement will be driven by being attuned to the needs of Griffin and our other stakeholders, and by the use of established processes to manage risks and expectations in a measured and controlled way.

1.3. Safety

Transfield Worley Power Services is committed to providing a work environment that is safe and without risk to the health and safety of employees, contractors and visitors. It is our intent that all levels of management and employees participate and exercise individual responsibility for their own safety and for the safety of all others in our workplaces. Appropriate management systems will be implemented to:



Comply, as a minimum standard, with all relevant statutory obligations

Comply, as a minimum with all contract requirements

Continuously improve Health and Safety performance

Provide adequate resources to establish and maintain safe systems of work

Provide adequate injury management resources to ensure a timely and safe return to work

It is Transfield Worley Power Services’ policy to encourage all employees and contractors alike, working on Transfield Worley Power Services sites or those of our clients, to take the initiative in anticipating, preventing and correcting conditions or practices which may threaten the health or safety of the individual.

The creation of a safe work environment, sound safety management systems, standards and procedures, coupled with the cooperation of individuals in applying and maintaining these safe work practices promote workplace environments where hazards are kept to a minimum and accidents are eliminated.

1.4. Environment

Transfield Worley Power Services is committed to ensuring that its activities at Bluewaters Power Station are not harmful to the environment and the greater community. The Health, Safety and Environment Policy (HSE) was derived from the corporate policies of Transfield Services and Worley Parsons Pty Ltd and is thus supported in the overarching management structure of Transfield Worley Power Services parent companies.

The overriding objective is “Zero Harm”. The policy summarises the methods used to achieve the goals of the HSE management system. In particular Transfield Worley Power Services will comply with all regulatory requirements associated with the Department of Environment and Conservation (DEC) environmental licence, currently No TBA, and implement controls to eliminate pollution and environmental harm. The employee and subcontractor induction process supports the HSE policy by empowering all persons working onsite to avoid environmental damage, report incidents or near misses and promote environmental awareness.

With an annual review of the site Environmental Management Plan and working towards achieving AS/NZS ISO 14001 certification further supports Transfield Worley Power Services’ commitment to responsible environmental management.



2. INTRODUCTION

Under the terms of the Bluewaters Power Station Operation and Maintenance Services Agreement, Transfield Worley Power Services is required to compile and maintain an Asset Management Plan during the Operating Period.

The Asset Management Plan is integral to the achievement of the key objectives and key performance indicators and as such is seen to be part of the continuous improvement process. The Asset Management Plan will therefore be regularly reviewed, and changes submitted for approval. These reviews will be focussed on continuously improving the plant and our asset management performance, based on a condition monitoring and risk assessment approach which includes data from plant historical performance records, technical requirements of plant missions, and external input from specialist sources where appropriate.

2.1. Background

The AMP defines and explains how TWPS propose to perform the Services required by the O&M Agreement with respect to meeting Griffin Energy’s financial and business imperatives, including dispatch requirements, whilst maintaining the long term performance and integrity of the power station in line with regulatory requirements. The AMP is to be consistent with the key requirements detailed in the O&M Services Agreement under the clauses

D4.1(a) – Provide an Asset Management Organisation, D4.1(c) – Prepare necessary management systems and plans, and D4.6(a) – Establish long term asset management procedures and systems.

2.2. Purpose of the AMP

The purpose of the Asset Management Plan is to balance risk exposure, performance and expenditure in order to achieve Griffin Energy’s required levels of service, and the requirements of the O&M Services Agreement, including the Independent Market Operator’s (IMO) dispatch requirements. It is also the defining document which determines minimum performance requirements for TWPS, and expected financial performance for Griffin and TWPS. It contains those strategies and actions which will allow TWPS to perform at a standard which exceeds expectations, and to deliver continuous improvement and excellence.

2.3. Standards of Performance

Underpinning the implementation of the Asset Management plan is the requirement that Transfield Worley Power Services are to perform the Services under the Agreement in a safe and efficient manner and in accordance with:

The Agreement;

Prudent Power Station Practice;

All applicable Law, including without limitation those relating to health and safety and the environment;

Original equipment manufacturer requirements or recommendations as appropriate;

The Power Station operating and maintenance manuals as appropriate;



The Equipment Management Strategy

The Approved Annual Budget;

The prevailing Dispatch instructions;

The Safety and Environmental Management Systems

The Quality Management System.

2.4. Timing and Structure of the Asset Management Plan

The Asset Management Plan has been developed and will be regularly reviewed in the context of the Griffin Energy planning and budget cycle. Transfield Worley Power Services are required to plan and budget for the Services to align with the planning and budgeting requirements of Griffin Energy’s entire portfolio. This is achieved by the compilation and continuous improvement of the Asset Management Plan and submission of budgets to meet Griffin Energy’s planning cycle.

2.4.1. Planning and Budgeting Cycle - Asset Management Plan

The Asset Management Plan and any subsequent revisions require Griffin Energy’s approval and are to be submitted and revised in accordance with the Agreement.

The Asset Management Plan is considered by Griffin Energy as a key component of the provision of the Services. It articulates how Transfield Worley Power Services proposes to perform the Services whilst maintaining the long term performance and integrity of the Power Station.

2.4.2. Annual Budget

The Annual Budget is developed from the Asset Management Plan and the Services to be provided under the Agreement. The Annual Budget is fully itemised and includes all Management Fees, estimated reimbursable costs, all performance incentive fees and estimates of rise and fall adjustments. Included in the budget will be provision for identified plant improvements and associated engineering support. Capital expenditure projects will be identified and budgeted separately.

The Annual Budget and the following 5-year preliminary budget are provided in Appendix E:Initial Annual Budget.



3. BUSINESS CONTEXT

TWPS will manage Bluewaters Power Station to safely meet the generation requirements of Griffin Energy at minimum cost. It will aim to position the plant to meet the commercial targets of the future as a merchant plant and to ensure the long term viability of the business, providing a sustainable return to the owner, thus encouraging further development. TWPS will manage the asset in such a way as to maximise the asset utility in accordance with the life expectancy, and to ensure optimal performance and efficiency.

3.1. Key Performance Indicators

The KPIs used to measure TWPS performance are listed below. These are detailed in Part F of the O&M Services Agreement.

The set of KPIs and formal means of measurement are still to be agreed in detail, and some are subject to initial plant testing and performance. Others have altered relevance in the warranty period (first 2 years) for each Unit. The KPIs are:

Plant Availability – 35% weighting. Incentive payments above 93% availability.

Performance to Budget – 35% weighting (years 1&2), 20% weighting (year 3 on). Incentive payments for performance under budget.

Maintenance Effectiveness – 15% weighting (years 1&2), 10% weighting (year 3 on) Incentive payments for less than 30% total work orders outstanding (12 months rolling average).

Continuous Improvement – 10% weighting (year 3 on). Incentive payments for costs saved through improvement initiatives.

Plant Efficiency – 10% weighting (year 3 on). Subject to initial testing and confirmation of plant capability, but offering incentive payments for heat rate savings

Safety/Environment – 15% weighting. Incentive payments for no Lost Time Injury, No major Environmental incident, and less than 10 minor Environmental incidents (12 months rolling average).

3.2. Stakeholders

3.2.1. Independent Market Operator

The Independent Market Operator (IMO) administers the Wholesale Electricity Market (WEM) in Western Australia to facilitate trade of energy and capacity. Energy is traded via long-term bilateral contracts with Industrial Customers and the net surplus is traded on the Short Term Electricity Market (STEM). Capacity trading is facilitated by the IMO by managing new generation entering the market.



Figure 1: Market Information Flow

Our success in the market will depend on development of good relationships with the IMO, both directly and through Griffin Energy’s trading group, and through plant performance to meet market commitments.

3.2.2. Griffin Energy

Griffin Energy owns the Bluewaters plant, and the Agreement between TWPS and Griffin defines the role to be played by TWPS in the management of the asset. Griffin’s financial and asset management requirements are of paramount concern.

3.2.3. System Management

Conducts short and medium term (up to 3 years) system planning, including outage planning. In real time it acts as a power dispatcher. Development of good working relationships needed for optimised cooperation and service.

3.2.4. Network Operator

Operates a transmission or distribution network within the SWIS and is required to be registered. They can also provide metering to the IMO. Operates our energy export link, and will require development of good working relationships for optimised cooperation and service.

3.2.5. Other Market Generators

Operate a generating facility that must be registered. For smaller generators (under 10MW) registration is optional. Market Generators are either the Electricity Generation Corporation or Independent Power Producers (IPPs). All will be affected by Bluewaters’ entry into the market in different ways, and will be observing our performance.

3.2.6. Market Customers

A retailer or any other party purchasing power from the market. Surplus Bluewaters energy will be traded in the electricity market, and so market customers will look to new entrants to provide reliable competition, and keep prices as low as possible.



3.2.7. The Electricity Networks Corporation (Western Power)

Is a Network Operator interfacing with generators and customers and providing transport of electricity between the parties. Their interface with Bluewaters is essential to our energy exports.

3.2.8. The Electricity Retail Corporation (Synergy)

Is the former retail business unit of Western Power and is a Market Customer. As the retail supplier for much of WA, their business is linked to ours, and it is probable that they, through the market or otherwise, will become a customer of Griffin Energy.

3.2.9. The Electricity Generation Corporation (Verve Energy)

The former generation business of Western Power and is a registered Market Generator. They are also the owners of Collie Power Station, which is operated and maintained by TWPS. Our concern is that they are treated fairly and equally, that resources and knowledge are shared where appropriate, and that no conflict of interest arises between Verve and Griffin.

3.2.10. TWPS

TWPS is the Asset Manager (Operation and Maintenance) of the plant. Our reputation as an asset manager and operator is at stake, as is our profit.

3.2.11. The Local Community

The immediate community, including Collie, Bunbury and surrounding areas is impacted by many aspects of our activity at site. Employment, business opportunities, and a range of environmental and citizenship issues exist. Our reputation and dealings with the local community are a priority.

3.2.12. External Service Providers

A number of external service providers (specialist and non-specialist) are expected to contribute services to our work. Our effective management of these providers affects both parties.

3.2.13. Industrial Customers

These are the customers with whom Griffin has direct supply contracts. Their satisfaction with the services provided will determine repeat business, and the viability of the plant.

3.2.14. Our Employees

Our commitment to the welfare, training, retention and well-being of our employees is highly important.

DEC, EPA, Worksafe etc…Are organisations that have a statutory obligation by law to administer government acts and regulations regarding environmental conduct reporting and impact, as well as occupational health safety and welfare obligations. They impose regulations whereby mandatory inspections testing and reporting are necessary to maintain appropriate



operational status licences and other business activities. TWPS will service these obligations to the best of its ability.

3.3. Levels of Service

TWPS will provide the services in accordance with the Agreement and with Good Electricity Industry Practice at all times. We will continuously strive to improve all areas of performance and to deliver excellence in all areas.

3.3.1. Asset Management

The Asset Management Plan is prepared and subsequently revised at least on a yearly basis in accordance with clause D5.8 of the O&M Services Agreement.

The implementation of the AMP, and real-time operations and maintenance are the responsibility of TWPS. Scheduling and Market interface are the responsibility of the Griffin Energy Wholesale trading team, supported by TWPS.

3.3.2. Dispatch

TWPS is required to strictly follow dispatch instructions from Griffin Energy Wholesale trading team.

TWPS may only deviate from dispatch instructions if specifically and formally requested by System Control or Griffin Energy to do so, or if there is a plant emergency which requires an immediate deviation to avoid or minimise plant damage. Any deviation from dispatch instructions will have financial consequences and constitute a breach of control. Griffin Energy will be notified as soon as is practicable of such deviations. TWPS will be required to provide a written incident report, which will be submitted to Griffin Energy within 48 hours.

3.3.3. Data Flow Requirements

The flow of accurate and reliable data in a timely fashion is critical to Griffin Energy operations. The IMO requires information submitted by Griffin Energy Wholesale trading team at 8:00am each day for the following trading day (each trading day consists of 48 half hour intervals from 8:00am to 7:30am on the following day). In order to meet this requirement, TWPS will provide a standard suite of data to Griffin Energy Wholesale trading team twice daily.

To facilitate coordination and control on a daily basis, TWPS will advise the Griffin Energy Wholesale trading team precisely what the asset is practically capable of exporting the next trading day. A typical trading day is shown on Figure 2.

TWPS will base the advised figure on conservative estimates for which it is 100% confident of delivering at the time of advice being sent. Any constraints, concerns or risks will be clearly documented and communicated. Any change to that capability will be advised to the trading team as soon as possible. Specific procedures will be developed to outline the requirements to fulfil these obligations. These documents will be held in the OSP.

The two data feeds required to be submitted to the Griffin Energy Wholesale trading team are.



The 'Initial Asset Capability Advice’ to be delivered at 4:00 pm on Day -1 for Day +1 through to Day +4. This will be a draft version for verification (and minor edits) the next day.

The 'Final Asset Capability Advice' will be delivered at 7:00 am on Day 0 for Day +1 through to Day +4. This will be the final go-to-market information that Griffin Energy Wholesale trading team will base their Day +1 market submissions on.

Ad hoc asset status reports may be provided to advice of any changes to operational status re constraints, concerns or risks.

Figure 2: A Typical Trading Day

3.3.4. Operator Requirements

The Plant Operator will determine what the asset is practically capable of producing regarding Sent Out energy for the next trading day and will draft and submit an Asset Capability Advice to Griffin Energy.

3.4. Reporting Requirements

TWPS will prepare and supply to Griffin monthly operational reports by the 10 th working day of each calendar month. This report will include the following.

A review of performance against the AMP and the KPIs as stated in the O&M Services Agreement

Financial Performance against budget.

Plant performance

Safety performance and incidents



Environmental performance and issues

Community relations issues

Plant improvement projects and capital works

TWPS will compare financial reports against yearly forecasts and previous years’ performance and provide Griffin with a detailed written explanation of variances and recommendations for modifications. TWPS will also prepare any other reports and make recommendations as requested by Griffin.

See further detail in Section 5.6

3.5. Operational Performance Requirements

The following parameters form the basis of, and impact on, the agreed KPIs quoted in Section 3.3 of this Asset Management Plan.

3.5.1. Availability

The definition of Availability is contained in Part F, Clause 2.3 of the Agreement. Importantly, it is reduced by all outages, planned or forced, whether partial (load reductions) or full.

The four-year maintenance programme for each unit is based upon the cycle below:

Years 1 and 3 - 10 days routine inspection and maintenance outage

Year 2 - 14 days "standard" outage

Year 4 - 42 days "major" outage

This equates to 76 days of planned outage every 4 years or an annualized outage rate of 19 days per year per Unit, equivalent to 5.2% per annum.

Maintenance is to be scheduled for off-peak and off-season periods, and to coincide with large customers’ shutdowns as far as practicable.

We have identified a number of possible availability constraints. One example is that mill maintenance (see Table 5.2 - IHI overhaul program) will also impact availability by imposing partial load reductions. Each mill is planned to be under overhaul for 56 days every 4 years (14 days per year average). Since the Units can only achieve 90% capacity with a mill out of service, a loss of availability (partial planned outage) of 10% x 56 days (about 1.5%) will occur every year. While TWPS will make all reasonable effort to minimise any availability loss, the mill availability loss should be regarded as an inherent design defect which does not impact TWPS’ performance against our KPI. However, implementation of modifications to increase mill life and reduce maintenance times will become a priority.

3.5.2. Forced Outages

Forced outage predictions, based on our experience for modern plant are:

Operating year 1 – 5%

Operating year 2 – 4%

Operating year 3 and beyond – 3%



Adding forced outages to planned outages, we expect a total average annual loss of availability of less than 8.2% after Year 3.

Note also that Part 1, Clause 10.2 of the Agreement specifically refers to remedies for exceedance of Equivalent Forced Outage Rates (EFOR) by more than 5% for two or more consecutive quarters, or 8% for any rolling 12 month period.

3.5.3. Capacity

The plant gross capacity is 229.3MW and the net capacity is 208MW (both subject to confirmation during tests on completion), which equates to an auxiliary load of 10.2% (ratio of auxiliary load to sent out power).

3.5.4. Starts

The following operating pattern has been assumed by the OEM for the mechanical design (creep, stress and fatigue) during the plant design life.

Cold start up 120 (4 starts per year)

Warm start up 750 (25 starts per year)

Load change from 40% to 100% and 100% to 40% MCR 18,000 (300 per year)

3.5.5. Efficiency

The unit net heat rate is guaranteed at 9980kJ/kWhr at 26°C and 40% relative humidity. This equates to unit efficiency of 36.1%, which is as expected for 208MW unit. This is also subject to confirmation during tests on completion.

This measure is excluded from the KPIs for the first two years. After that time, the heat rate will be reviewed by the parties, and the new target heat rate is to be agreed in accordance with Part F, Clause 2.7 of the Agreement, before it becomes a KPI issue.

It should be noted that tuning and settings adopted for EPC Contract guarantee heat rate tests are rarely suitable for normal operation, so that a heat rate test conducted under normal operating tuning and settings is unlikely to produce a comparable heat rate.

3.5.6. Coal Consumption

Coal consumed should average 900,000 tonnes per annum per unit and is dependent on dispatch, heat rate and coal quality.

3.6. Client Business Model

Bluewaters Power Station is an integral part of Griffin’s business model; therefore BPS will adopt the following business model as guiding principles of management of the plant.

Operate as a vertically integrated energy utility

Be a reliable, competitive and sustainable supplier of energy

Promote the timely development of energy generation assets



Obtain diversity of generation technology and fuel sources

Manage the portfolio of assets and customer loads

Focus on energy sales to large industrial customers

3.7. TWPS Objectives

TWPS’s prime objective is to maximize both capability and reliability from the unit, to meet Griffin Power’s high capacity factor contracts and optimise market opportunity.

TWPS has therefore set a target of achieving better than 93 % long run average availability over its contract period.

Fundamental to achieving the long term TWPS objective is meeting the unique challenge associated with the initial commissioning and operation of the unit, and the shakedown of the plant to identify, solve and implement solutions to plant problems to address warranty issues, and any capability and reliability shortfalls.

It is TWPS’ aim to assist Griffin to achieve the highest possible reliability and performance from the plant, consistent with best practice investment principles and a demonstrated positive rate of return on the investments made.

Issues requiring improvement action will be identified through a number of mechanisms, including:

Defects management process

Operator reports

Engineering and asset management reviews

The risk management processes

Condition based monitoring, including performance and efficiency monitoring

Maintenance management system – data and reports

Direct causes of loss of availability.

Improvements may be made by:

Changing operating techniques or revising limits

Modifying plant to improve reliability, reduce maintenance downtime, provide better control

Modifying maintenance intervals or techniques to improve reliability or reduce downtime

Enhancing control and data gathering systems to provide better data processing and improved capacity for data-based decision-making.

Reducing the need for operator- and maintenance-based activities which can be eliminated or performed automatically.

TWPS will identify opportunities for asset improvements, and will apply the principles of Project Management to each opportunity. If an opportunity reaches the Feasibility Study stage, and



meets the investment criteria, then it will be formally presented to Griffin for further consideration and joint development.

While TWPS does not believe that all such opportunities will involve additional cost, we have already flagged to Griffin that there will be a number of early projects which will fall outside the scope of the EPC Contract, and which will become priority issues for improvement. These issues will require an investment of capital to achieve the desired outcome, and Griffin have indicated their willingness to carry a reasonable contingency budget for such issues. A project management group will be formed to administer and develop solutions to identified plant issues. It is envisaged that this group will meet bi-monthly.

TWPS expects that the Equivalent Forced Outage Rate (EFOR) will be higher in years 1 and 2 of each unit’s life (Refer Section 3.5.2). Our experience is that early plant commissioning omissions, minor initial plant defects, and infantile failure of some components in well-prepared merchant plant will lead to increased forced outage rates in the first year and second year of operation. As indicated previously, our expectation is that EFOR may be as high as 5% in Year 1 and 4% in Year 2.

However, the EFOR effect on total availability loss is offset by smaller planned outage periods in Years 1 and 2, so that total availability should remain at reasonable levels, provided initial operations do not expose plant problems requiring an extended rectification outage.

Current expected performance for 2 Units (as per OMA) is shown in the table below:

Year 1* 2 3 4 5 6 7 8 9 10Planned Outage Factor

2% 3% 3% 7% 7% 3% 3% 7% 7% 3%

Forced Outage Factor

5% 4% 3% 3% 3% 3% 3% 3% 3% 3%

Total Outage Factor

7% 7% 6% 8.5% 10% 6% 6% 10% 10% 6%

Station Availability

93% 93% 94% 91.5% 90% 94% 94% 90% 90% 94%

Efficiency** 36.4 36.3 36.25 36.20 ** ** ** ** ** **Table 1: Current expected performance

Notes to Table 1

* OPERATING PERIODS The Year 1 prediction was originally Calendar Year 2009. However, based on current expected in-service dates, it is now more appropriate that this prediction be applied for the Financial Year 2009/10, with subsequent years also applying to the following financial years. This provides alignment with the Asset Management Plan and Budget Cycle. Year 1 will be characterised by having only one Unit in service for the first few months.

The financial year to June 2009 will see only 3-4 months of single Unit operation. Predicted availability and efficiency can be expected to be similar to Year 1 predictions.

** EFFICIENCY - To be reviewed and agreed - Design Performance to be adjusted for actual initial performance (as tested) and assuming some practical ongoing degradation, the rate of which should be measured and agreed.



4. ASSET DEFINITION

4.1. Asset Description and Boundaries

4.1.1. Terminal Points for the Services

The terminal points relevant to the Power Station as defined in the O&M Agreement are tabled below:

Item Comment

Plant Output to GridTermination on the HV bushing connector of generator transformer(s)

Coal Delivery Coal surge bin feeder inlet.Cooling tower make up water supply

Raw water dam inlet.

Ground maintenance Site boundary fence.

Waste WaterDischarge point into the Power Station waste water pond. (Griffin to arrange disposal at its cost.) The operation of the WWTP wil be included with the Power Plant operations.

Bottom Ash storage silo Silo discharge gate. (Griffin to arrange disposal at its cost.)Fly Ash storage silo Silo discharge gate. (Griffin to arrange disposal at its cost.)Sewerage Treatment Plant STP holding tank discharge valve.Oil/Water Separator holding tank

Holding tank discharge valve.

Table 2: Terminal Points for the Services

4.1.2. Utilities

The following utilities are to be supplied by Griffin.

Coal

Raw water supply

Potable water Potable water is produced by the Demineraliser Veolia plant. This is separated out as a Griffin responsibility when TWPS will be operating this plant as an organic plant item.

Fuel Oil

Electricity – External station auxiliary power

Gases – e.g. Hydrogen, C02, Nitrogen

4.2. Asset Capability and Limitations

The following plant capability is as per the EPC Contract. Other data regarding minimum load and ramp rates are given in Section 5.2. All data are subject to confirmation during the tests on completion for each Unit.

Manufacturer Turbine Alstom Power



Boiler IHI

DateCommissioning November 2008Design Life 30 years

Economic Continuous Rating (26/17 degC Dry/Wet)Maximum Continuous Rating (36/24.5 degC Dry/Wet)

229.3MW (208MW sent out)229.3MW (208 MW sent out)

Steam Conditions at MCR

Pressure 16.6 MPaTemperature 566 CFlow 693 tph

Cycle Efficiency at MCR

Nett based on sent out ??

36.4 %

Table 3: Asset Capabilities

****REVIEW AFTER TESTS ON COMPLETION****

4.3. General Arrangement

The General arrangement of the plant is detailed in the plant specification, and the design documentation and drawings, and is contained in the Operating and Maintenance Manuals. Because of the large volume of information, it is not reproduced in detail in this document.

4.4. Asset Condition Assessment

The following graphical representation of the asset condition derives from the more detailed availability assessment and other condition monitoring and assessment tools. It allows easy identification of the current overall “health” of the plant.

No. Plant Area Description BW 1 BW 21 Air heater 2 Bag house filter and fly ash dust system 3 Boiler burners and igniter system

4Boiler chemical control and monitoring (Would change to orange based on cycle chemistry limits and lack of CPP)

5 Boiler Drum 6 Boiler feed pumps 7 Boiler furnace area 8 Chimney Stack 9 Coal bunkers 10 Coal Conveyor system including bunkering ploughs

11

Condensate System and Extraction Pump including suction strainers. (Blue based on the omission of any Condensate Polishing plant. Especially problematic with copper alloy condenser tubes and ammonia dosing. Could only be green if Titanium condenser tubes were installed )

12 Condenser including air extraction and tube cleaning system 13 Cooling Tower

14

Cooling Water and Auxiliary cooling water system (blue colour based on disinfection process. Not capable of effective monitoring and control of tube corrosion)

15 DC power supplies including batteries, UPS 16 Deaerator 17 Demineralised water plant.(Not enough capacity for a cold start or delayed



No. Plant Area Description BW 1 BW 2warm start blue colour needed)

18 Economiser 19 Feed Heater HP and LP 20 Forced Draught Fan 21 General air and gas duct work 22 General lifts and cranes 23 General site buildings 24 Generator 25 Generator transformer 26 HP Turbine 27 HV and LV switchgear 28 Induced Draught Fan 29 Instrumentation field devices 30 IP Turbine 31 Lighting up oil system 32 LP Turbine 33 Magaldi bottom ash system including ash crushers 34 Plant compressed air systems including dryers 35 Primary Air Fan 36 Pulverised Fuel Mill including pyrites removal system

37Raw water treatment plant. (Adequate and well designed as it is the only plant in the area with an iron and manganese reduction process green)

38 Reheater

39Saline pipeline to Collie.(Consider now Blue because of the seal damage on each of the IPLEX Hobias connections)

40 Site fire system including pumps, monitoring systems 41 Site service water system 42 Soot blower system 43 Steam Governor Valve 44 Superheater 45 Transmission Line (outside TWPS scope) 46 Treated water cooling system 47 Turbine lube oil system and Power Oil System 48 Unit Transformer

49Waste water treatment plant. (Seems adequate for the purpose well designed but poorly set out and configured).

50 Yokogawa DCS 51 Diesel generator

Health Indicators Meets specification; high degree of confidence Meets specification but defects present requiring increased surveillance

Defects present resulting in out of spec condition; operatable but under agreed conditions with Customer

Unserviceable; unquantifiable risk of catastrophic failure if operated

Condition yet to be assessed Cannot be assessed via conventional monitoring techniques or substantial dismantling

Table 4: Asset Condition Assessment Matrix



5. OPERATIONS STRATEGY

5.1. Strategy

The production strategy for Bluewaters is focused on two key areas; maintaining high capacity factor, high availability base load operation, and highest economic efficiency consistent with production targets. This will be achieved by implementing targeted improvements in the fundamentals of plant operation and maintenance, and developing and executing projects that will minimise costs and improve operating efficiency and environmental performance.

The following outlines the strategy for the critical plant items based on the plant design and previous coal power station operational experience. This list will be developed further as we gain more experience of the specific operating conditions as the unit is commissioned.

Air Heater Sootblowing system

o Steam temperature must be at maximum (>260C) before admitting sootblowing steam to air heater baskets. This will prevent possibility of wet steam (moisture) to baskets. Wet steam conditions to baskets will quickly begin to block air heater and reduce effectiveness of heat transfer and cause increased load on ID fan. Steam temperature drainage before air heater must be monitored and sufficient Sootblowing warming carried out before each blow.

o Steam pressure to air heater sootblowers must be at >1000kpa for effective sootblow. Steam pressure at air heater sootblower inlet must be monitored to ensure adequate steam pressure is available to ensure effective blow. Control system must be capable of alerting to low sootblow steam pressures before sootblow carried out.

Cold End Temperatureo The air heater cold end temperature must be maintained above 120C to prevent

dew point conditions and possible acid corrosion and plugging of baskets. The control system must be tuned to control this temperature with out of limit alarms and trending.

Sealso Air heater seal gap to be monitored during operation for optimum gap opening. If

seal gap is greater than design then some secondary air could be lost to the gas stream which could affect combustion and cause higher load on ID fan. Development of modelling for the air & gas system via the historian will be a tool used to monitor air heater seal leakage to ensure ongoing efficiency.

Guide bearingo Monitor guide bearing temperature for any gradual increase to high setpoint.

Lubrication system operation will be closely monitored to ensure bearing temperature control.

Boiler Sootblowing

o Ensure each blower is operated at least once each day initially according to the OEM recommended pattern and schedule. The effectiveness of sootblowing will be monitored at least weekly by trending superheat and reheat steam temperature across the boiler and by visual inspection as appropriate. Changes to the sootblowing pattern and schedule are to be carried out accordingly to optimize boiler performance without causing excessive sootblowing wear on the boiler tubes. The non-operation of any blowers may cause localised slagging in



that blower location. This may be extremely difficult to remove at a later date when the blower is operated.

Combustiono It is important that burner and mill pf line tuning is completed during

commissioning and checked at intervals to be determined. Boiler flue gas O2 to be maintained at 2%-3% during operation to ensure combustion is completed in the furnace so no carry over of unburnt pf into the reheater area. Poor combustion will cause boiler clinkering that may cause large damaging clinker drops. The combustion of Iron pyrite contained in the pulverised fuel under reducing conditions further encourage the formation of heavy and hard iron rich clinkers This may impact lower boiler tubes or the magaldi superbelt. Further combustion monitoring will be carried out based on regular flue gas CO surveys and Loss of Ignition tests on fly ash samples. A dedicated team of personnel will be trained to carry out combustion adjustment to the boiler as necessary.

Boiler Water Chemistryo Chemical Control

Unit chemical control and monitoring is of major importance to maintain efficient heat transfer surfaces and to prevent corrosion thus reducing plant life and increased maintenance costs. The reliance of instrumentation for this feedback is paramount and the instrument sample flows must be maintained continuously to enable correct readings. All instrument sample flows will be monitored on a shift by shift basis to ensure reliable feedback to DCS system and operations.

Bottom Ash Magaldi superbelt requires regular operating inspections and lubrication to ensure any

issues are dealt with in a timely manner. Ash crushers may undergo high impact loads from hard abrasive material and should be inspected regularly. Any failure of the crushers will cause build up of material in the bottom of the boiler. (Magaldi). The amount of ash and clinker conditions will determine the operational life of the superbelt.

Fly Ash Bag house filter inlet gas temperature not to exceed 150C as this will impact on bag life

and bags may combust above these temperatures. Attemperating air will attempt to control this temperature, but an uncontrolled temperature rise will cause a unit trip to protect the bags. When any new bags are installed they must be coated with dust before any diesel oil firing is carried out. Any oil firing on unprotected bags will coat them with oil and render them useless and cause fire hazard.

Coal Supply Incline Conveyors

o The coal supply chain to the bunkers is via single incline conveyors. This represents a potential risk to the unit should this conveyor fail. The condition of the conveyor rollers, belt, gearbox and end pulleys must be inspected closely during operation. Failure of an incline conveyor for any extended length of time will impact on unit performance.

o The supply of coal to the bunkers from the consolidated stockpile is to be investigated as at this time it is planned to be done via a loader into a hopper. A hydraulic drag chain feeding up into the hopper may be a more reliable method of moving coal up to the unit rather than via the loader.

Mills



Pyrites systemo Pyrite system outlet gates jam when ash is lodged between the spade and the

seal. Freeing up these gates can be labour intensive. When operational these valves to be monitored for their performance. Pyrite hoppers access requires simplification, currently there are many bolts on access hatch- needs to be altered to a couple of large wing nuts to seal hatch.

o The pyrite collector conveyor is of the drag link type and should only operate when pyrite sequence is running on any mill. This has the potential for high wear and should be inspected periodically for wear checks,

Millo The initial design requires 4 mills for full load. This will require that mills are

inspected for wear during outages to assess condition and future operation limits. Mill investigation required for viability of running full load on 3 mills.

o The coal feeder belt tension and cleanout conveyor require frequent checks during operation. A spilling feeder belt can cause buildup under the belt which will cause the belt to track off and damage the belt.

o Burner igniters and air register actuators and limits can cause problems during mill start up and shutdown. This area will require attention so failure to make limits does not impact on load increase when placing mills in service.

Turbine Ball Cleaning System

o Operation and monitoring of the condenser ball cleaning system requires close monitoring from commissioning through to operation. The retrieval of the cleaning balls after each cycle is essential for the cleanliness and efficiency of the unit. Any lost or hiding balls can indicate tube pluggage or inadequate ball circulation. Any lack of maintenance or operation of this plant will directly affect efficiency.

Auxiliary CoolersThe Aux Coolers are of the plate type and may become gradually plugged with silt from the CW system. Dismantling these coolers can be time consuming and refitting difficult, it may be more effective to install pipe fittings to backflush and clean these coolers in place.

Testso Testing will be carried out at specified intervals to verify protection trips.

Drum level FW tank level Condenser Level Furnace pressure Turbine overspeed Turbine valve stroking

Plant output at Economical Continuous Rating (ECR) and Maximum Continuous Rating (MCR) is shown in Table 5. These outputs will be confirmed during tests on completion.

Minimum load without support ignition will be 40% MCR, burning Design Coal.

Flame stabilization will be required during start-up, shut-down, low load (less than 40% MCR) and for mills being placed in and out of service. This will be provided by the fuel oil system. TWPS will target the reduction of fuel oil usage under all conditions.

Operation Dry/Wet Bulb Net MW Comments



temperatureECR 26/17°C 208MCR 36/24.5°C 208 Expected figures.

Table 5: Plant output ratings

Ramp rates will be as follows:

4 mills in service (fixed pressure mode) 5 % MCR/min (75% - 100% Load)

3 mills in service (fixed pressure mode) 3 % MCR /min (50% - 75% Load)

2 mills in service (fixed pressure mode) 2 % MCR /min (40% - 50% Load)

These rates will apply to each "zone" where each zone relates to 2, 3, or 4 mills in service, with reduction of the rate towards the end of each zone.

These changes will be controlled by the DCS and without manual intervention except for placing a mill in or out of service and a BFP in or out of service.

5.1.1. Start-up and Shut-down

IHI has indicated expected start-up times from light off to 100%Load is as follows;

Cold start-up: 1050 minute

Warm start-up: 620 minute

Hot start-up: 330 minute

Very hot start-up: 320 minute

TWPS will review these times during unit commissioning to confirm actual figures.

5.1.2. Emergency operation

If some essential main or auxiliary equipment trips, the unit will also be tripped or unloading will occur automatically for safety reasons. During the runback, control mode will be transferred from boiler-turbine coordinated control to load following mode. The Turbine inlet steam pressure will be controlled by the turbine governor.

5.2. Electrical

During normal operation, generated power will be sent out to the grid through the generator transformer. Auxiliary power for the plant auxiliaries will be delivered through the auxiliary transformer. When the plant is shut down and not generating power, power for auxiliaries and common plant will be back fed through the generator transformer and auxiliary transformer.

The capacity of the emergency diesel generator will be sufficient for the safe shut down of the Unit, but Black Start-up capability is not available. The emergency diesel generator package includes a fuel oil tank. Filling the emergency diesel fuel oil tank is done manually.

When the generator transformer and/or auxiliary transformer are out of service, some limited site power for lighting, services and maintenance will be available through the ex-construction supply.



5.3. Control & Monitoring

The plant will operate under 24-hour permanent operations staffing. The plant will be controlled and monitored from the control desk, located within the plant control room.

The monitoring & operating interface between the operators and the plant equipment will be through the DCS. The DCS will permit start-up, and shut-down of the Unit and load changes from the plant control room.

The total plant control system will be the combination of DCS control for the boiler island and steam-turbine island, and individual single PLC control systems for the balance of plant, such as ash handling, water treatment system, etc.

Status of BOP will be monitored from the plant control room, but it is understood that the level of monitoring in the Plant Control Room varies from full monitoring of some parameters to general alarms for some plant groups. TWPS will review this detail when the plant is nearing completion, an may suggest further projects to Griffin in order to improve the quality of monitoring, enhance plant safety, and reduce the possibility of unforeseen load reductions.

The station manning philosophy, as detailed in the EPC Contract, requires each unit to be capable of operation by 2 operators. This would suggest a requirement for 4 operators per operating shift (for 2 Units), but TWPS will work with Griffin to reduce this number if possible. It is envisaged that operators will follow a 3 x 12 hour shift roster pattern.

An 8 hour day shift operation will provide routine daily maintenance and roving plant operations.

5.4. Generation and Capacity Plan

2008/2009 2009/2010

2010/2011 and subsequent years

Comment

Capacity Factor (%)

80 80 80Basis of the OMA budget

Starts 4 4 4

Production (GWhrs sent out)

851 1458 1458

08/09 based on year from 1/12/08 to 30/6/09

Coal Consumption (Kt pa)

472 809 809

08/09 based on year from 1/12/08 to 30/6/09

Nominal Max. Output (MW sent out)

208 416 416

Nominal Min. Output (MW)

40% ECR 40% ECR 40% ECR ECR-Economic Continuous



2008/2009 2009/2010

2010/2011 and subsequent years

Comment

RatingTable 6: Generation and Capacity Plan

5.5. Compliance Monitoring Program

A dispatch compliance monitoring and notification program will be implemented to monitor dispatch compliance and ensure that prompt and accurate communications occur between TWPS, Griffin Energy Trading and IMO Management in the event of actual or imminent non-compliance.

In the event that Griffin Energy Trading staff are not available, cannot be contacted, or contact is unnecessary, a protocol will be needed to permit TWPS to communicate directly with the IMO and/or System Dispatch to notify of impending or current problems, and to take advantage of real time market opportunities. This protocol will need to comprehend the degree of responsibility which Griffin is prepared to place with the TWPS operators to deal with minor market and dispatch issues.

5.6. Reporting

Formal reporting requirements are established to meet the information requirements for monitoring and decision making by BW Management, Griffin Energy, and TWPS. As part of the station reporting requirements under the Agreement, the following documents will be prepared and submitted by TWPS;

The Asset Management Plan, which will be revised annually

An Annual Budget for the forthcoming financial year, together with a preliminary budget forecast for the following 5 years, which will be prepared annually,

A monthly operations report

Any other reports which may be reasonably required by Griffin

Regular dialogue will also be kept with the Griffin Energy Trading Group. Bluewaters’ TWPS operations team will conduct monthly meetings with Griffin Energy traders for reporting plant activities and limitations, and to gain the best possible understanding of the market, including new developments, opportunities and requirements.

5.6.1. Monthly Reports

The format and content of the monthly report shall be agreed between Griffin and Transfield Worley Power Services.

The monthly report is due by the tenth working day of each month (Part D, Clause 2.2 of the Agreement).

5.6.2. Quarterly/Annual Reporting

There are no specific requirements for annual reporting, other than the preparation of the annual Asset Management Plan, and the Annual Budget.



Monitoring is carried out via the monthly reporting process, which should review 12 month rolling data, as well as current financial year data. TWPS recommends that the submission of the monthly report should be accompanied by a regular contract review meeting at site between TWPS and Griffin.



6. ASSET MANAGEMENT STRATEGY

6.1. Policy

A copy of our management policy is contained in Appendix B: Asset Management Policy.

6.2. Overall Asset Management Strategy

6.2.1. Asset Management Culture

TWPS recognises that an Asset management culture requires an investment in both time and resources. It is a continual process in the way the assets are managed. The TWPS Asset Management culture is characterised by a commitment to:

Spending time and money to implement the program

Focusing on making cost-effective asset decisions

Providing a sustainable level of service for all stakeholders

Utilisation of operation technicians for all non staff positions

Continuous process approach

Involvement at all levels on a daily basis

To achieve this level of commitment, asset management is implemented by a team that is:

Supported by leaders who have the authority and willingness to commit resources and personnel

Made up of key decision makers who represent the TWPS asset management team.

The following will underpin the strategy for the development of the culture:

Understanding of Asset Management

Training in systems and techniques

Operation Technician culture, no segregation between Operators & Maintainers (See Org Chart)

Recruitment strategy focused on identifying personnel who will best support this culture

Continuous improvement culture

Health of Relationship surveys

Right the first time

The Bluewaters Safety Culture focuses on:

Risks identified and control measures implemented

JSA utilized for all work activities

PTW system developed and implemented

High Risk Activities identified and controlled

Emergency Response strategy in place



Work place inspection system and auditing strategy in place

Training implemented for all systems identified

Lead indicator strategy implemented

Leadership Commitment Program Developed

Incident and investigation reporting

AS4803 compliance

6.2.2. Condition based strategy

Traditional preventative maintenance not only leads to wasteful machine downtime but also premature replacement of parts. Successfully implementing a condition monitoring programme allows the asset to operate to its full capacity without having to halt the machine at fixed periods for inspection. The Asset Management strategy at Bluewaters is based around the continuous monitoring of plant systems, these include but are not limited to:

Vibration analysis

Oil analysis

System modelling

Walk down inspection

Thermographic Surveys

HV equipment monitoring, DGA, DLA, etc

Boiler/ pressure parts creep life calculation and monitoring

Operational running hours to trigger “sleeper” jobs linked via DCS

Routine Ultra sonic eddy current NDT inspection of susceptible areas for FAC.

6.2.3. IT Strategy

As a minimum, will include:

possible upgrade of Yokogawa DCS functionality

DCS data gathering (historian) capability, and links to SAP, and other systems

Ability to download data and trend, analyse

Links between Unit computers, site offices, LAN

Site LAN, and PC-based user network, Microsoft platforms, other software licences, etc. Contingency for upgrades

Hardware – servers, PCs, printers (incl drawing print capability). Contingency for upgrades.

LAN-based storage and backup facility

External interfaces – IMO, network dispatcher, internet, etc.

Firewalls and protection

Interconnection with phone comms, gate access pass system

Emergency systems



Site maintenance and troubleshooting responsibilities

User policy

Training

6.2.4. Training Strategy

Bluewaters recognises the significance and value of training for effective Asset Management. The proper training of personnel is vital to the increase of overall productivity, safety and asset reliability. The following lists the overall goals of the BW training strategy:

Increased awareness of safety

Increased job satisfaction and morale

Increased motivation

Increased efficiencies in processes, resulting in financial gain

Increased capacity to adopt new technologies and methods

Increased innovation in strategies and products

Reduced employee turnover

BW will achieve these goals by:

All personnel to have agreed job descriptions

Competency audit of all personnel to identify skills shortages and need for targeted training

Certified competency/training in all levels of the workforce

Performance Development Review process at all levels

Training matrix approach

Specific training items identified in the budget

6.2.5. Configuration Management

TWPS will implement a Configuration Management program to identify and document the characteristics of the plant’s structures, systems and components and the ensure that changes to these characteristics are properly developed, assessed, approved, issued, implemented, verified, recorded and incorporated into the plant documentation.

6.2.6. Outage Strategy

TWPS Outage Strategy is based on the overall Outage Strategy as detailed in the Power Generation Operational System Plan. The key aspects of the outage strategy are as follows:

Utilize Transfield Services seven phase approach to outage and project management –The seven phases are:

1. Initiation2. Definition3. Feasibility4. Planning5. Engineering



6. Execution7. Close Out

Roles and responsibilities identified for key personnel

Development of budgets and plans in a timely manner

External support from parent companies

Lessons learnt approach fundamental to improving the process

6.2.7. Outsourcing Strategy

TWPS will draw on the expertise of a number of external parties for support in implementing its overall Asset Management strategy. The main support structure is:

Worley Parsons Engineering, supported by RWE when agreed.

Transfield Services

Best Practice application

TWPS regional asset and commercial support team

Other external providers of specialist services as appropriate

Client

It is TWPS strategy that the plant will be staffed sufficiently to manage normal operations and maintenance activities, as well as leading outage projects and plant improvement activities. This will be supported by a number of asset management and other services provided by a TWPS regional group. For work peaks, such as during initial operations, plant improvement projects, outages, etc. the core site team will be further augmented by the external resources listed above.

6.2.8. Project Management Strategy

The Bluewaters Project Management methodology is based on the Power Generation Operational System Plan Section 32, Projects, with a special focus on;

Best practice systems and processes

CAPEX system including NPV principles

Post completion review

Realistic Performance indication

6.2.9. Environmental Strategy

The Bluewaters Environmental Compliance Strategy is based on the Power Generation Operational System Plan, Section 14, Health, Safety and Environment, and on the Griffin Environmental Management Plans and Procedures, including the Licence Conditions, with a special focus on;

Robust system and processes in place prior to commencement of contract

License requirements identified and monitoring and control procedures in place to ensure compliance



Training for all site personnel to ensure compliance

Reporting systems set up prior to commencement of contract

Site induction process developed and in place

Lead indicator strategy implemented

ISO 14001 compliance strategy

6.2.10. Risk Management

Risk Management is integral with every process we employ in delivering the Services required by the O&M Agreement. Risk is an integral part of the lifecycle of the plant from concept to disposal. Its management through a process of identification, analysis, assessment and mitigation is an essential activity, which is built into our systems and methods of working.

Standards which will guide the application of risk management at Bluewaters are AS/NZS 4360:2004 Risk Management, and its accompanying handbook HB 436:2004 Risk Management Guidelines Companion to AS/NZS 4360:2004.

TWPS has developed systems and methodology, based on the above standards, which will allow risk to be successfully managed. Integral with that risk management process will be a need for comprehensive communication between TWPS and Griffin Energy to ensure that all risks are mutually understood and managed by the appropriate prioritisation of risks in alignment with Griffin’s needs, and allocation of appropriate resources to mitigate and manage each risk appropriately.

All TWPS staff will receive training in Risk Management Techniques and implementation of appropriate control measures.



7. MAINTENANCE STRATEGY

The maintenance strategy to support the production objective is:

A targeted routine maintenance regime – this regime will be based on OEM recommendations, and will be progressively fine tuned to eliminate wasteful and unnecessary maintenance activities, to develop improved maintenance techniques and technologies, to improve the measurable results of the maintenance work, and to reduce the overall maintenance effort where possible.

A full maintenance outage regime – this regime will be based on a four year cycle comprising three types of outage:

an opportunity outage normally of ten days duration in years 1 and 3, a short two week outage in year 2, and a six week whole of plant outage for major boiler turbine and other systems work in year

4.

A full efficiency-, capability- and reliability-related condition monitoring programme.

The major maintenance activities for the unit will be based on the assessment of condition monitoring information of critical plant, taking into consideration recommendations of the manufacturer and relevant plant history in its short period of operation or similar plant experience.

Condition monitoring will be used:

To determine maintenance workscope,

To project the mean time to failure for critical plant

To achieve generation targets by a combination of aligning plant maintenance activities and managing plant condition to achieve target life

Maintenance progress is achieved within asset optimisation by moving from unplanned, reactive work towards planned preventive, condition based, proactive and life extension activity.



Figure 3: Best Practice Maintenance – The Correct Balance of Work

7.1. Equipment Strategy

7.1.1. Overall Objectives

TWPS will develop and maintain a consistent long range strategy for equipment that recognizes risk-based decisions to set appropriate Run-to-Failure, Condition Based Maintenance (CBM), Predictive Maintenance (PdM) or Preventive Maintenance (PM) options. The Strategy will cover condition and operations monitoring, plus calendar- and run-time-based PM programs.

Operating and equipment conditions will be monitored to identify action required to maintain performance based on preliminary evaluation of options and risks. TWPS will initiate work requests from a database of calendar-based activities with intervals based on the equipment strategy.

Dependent on the knowledge of the failure mode and consequences of its failure, there are a number of strategies that will be adopted at Bluewaters Power Station:

CBM – Candidate for Condition Based Monitoring program.

FTM – Fixed Time Maintenance

OTF – Operate to Failure

RED - Redesign

7.1.2. Process Owner

Asset Engineers



7.1.3. Guiding Principles

Assets required for current operations and inventory equipment are maintained. Obsolete and Redundant assets are stewarded through a Removal/ Disposal Process.

Operators understand the equipment they are operating, operate within approved parameters and are accountable for its operation.

Integrated TWPS-wide engineering standards ensure reliability and control throughout the asset life-cycle.

Assets, Equipment or Systems have a Maintenance Strategy and Program, including Operations monitoring and condition monitoring.

Reliability Methodologies are used for the development and review of Maintenance Strategies and Programs.

Generic Maintenance Strategies/Programs are developed and applied to similar types of assets/systems where appropriate.

Maintenance Strategies establish the criticality of the function of equipment and help identify equipment that justifies emergency work.

Maintenance Programs are approved through the Work Selection Process.

Maintenance Programs are aggregated to produce an Annual and Long Term Maintenance Schedule which serves as input to the Long Term Maintenance Plan.

Maintenance Strategies and Programs are reviewed at least annually and subjected to a periodic Review.

7.1.4. Strategies

The Equipment Strategies are developed starting with current data and information and are consolidated into a multi-year plan. The strategy defines:

equipment that should be mothballed or dismantled, equipment that should run to breakdown, equipment where on-line predictive or condition and operations monitoring should be

deployed, equipment that does not operate often, but which should be tested regularly, especially

equipment which provides plant safety, such as trip devices, fire pumps, etc. equipment where there is redundancy allowing operating hours to be shared or

staggered, and equipment where PM-based interventions are required. In addition, the equipment

strategy provides pre-determined work priorities for critical equipment.

Condition and Operations Monitoring covers all observations regarding the condition of equipment and operating variables which impact on maintenance work requirements and equipment availability. The Condition and Operations Monitoring programs include:

Scheduled on-line and off-line inspection of static equipment and piping based on the equipment strategies consistent with risk based inspection (RBI),

Scheduled monitoring of operating variables, (i.e. catalyst activity, temperature, pressure, corrosion probes, boiler tube temperature limits, etc.)



Scheduled monitoring of equipment condition and status by maintenance technicians or specialists.

Scheduled Operator monitoring of equipment condition and status, (i.e. hot spots, machine oil levels, vibration levels, etc.)

Observations by personnel in the field,

The data captured through Condition and Operations Monitoring are recorded and trended. The results and trends are analysed to forecast future maintenance work. Pre-defined limits are developed where necessary. All recommendations of future work are justified by risk-analysis. The final decision and approval of work is made in the Work Selection Process.

Predictive Maintenance programs include all maintenance activities that are set on the basis of predetermined intervals.

7.2. Condition Monitoring Program


The purpose of this Process is to ensure that equipment condition data is captured according to the agreed plan, procedures and desired quality.


Asset Engineers

7.2.3. Actions

TWPS will establish monitoring programs based on the equipment strategy, and will list minimum acceptable monitoring activities by operators consistent with the operational reliability.

TWPS will develop a detailed monitoring strategy and define the specific activities before initiating monitoring activities. The design should specify: Who, What, Where, When and How, (i.e. a check-list or "Monitoring Activity Sheet" for each tag item or generic type of equipment will be developed to comply with this requirement). This will identify any required mechanical preparation work to obtain monitoring data.

Requests for monitoring activities which require the equipment to be out of service should be included as part of the Equipment Strategy.

Baseline measurements on new or repaired equipment should be obtained before or immediately following initial start-up.

Equipment and tools used for Condition and Operations Monitoring must be certified for each application and personnel must be qualified to operate them.

Quality control or calibration checks of the equipment and tools should be completed according to a pre-defined program. Results will be documented.

TWPS will assign responsibility for data capture, documentation and filing for each activity.



7.2.4. Outputs

Quantitative Data

For quantitative data, readings should be taken with calibrated tools at the same place, using the same techniques, and same conditions.

Vibration Analysis (installed vibration measuring equipment)

Spectral Analysis (Technicians supported by Reliability Engineer)

a. Misalignment

b. Bearing Defects

c. Imbalance

Vibration Analysis (portable equipment) (Operations)

d. First Line Detection system

NDT

e. Ultrasonic Thickness (UT)

f. Weld Thickness Monitoring (Dye Penetrant)

g. Magnetic Particle

h. Eddy Current

Ultrasonic Acoustic Monitoring

Cathodic Protection & Pipeline Monitoring

Thermography

Tribology (Oil Analysis)

Motor Flux Analysis

Legionella Bacteria Count

Qualitative Data

Qualitative data in the form of text or visual documentation will be clear, descriptive, and quantified to the extent possible so that changes in conditions can be easily identified and evaluated. The plant condition assessment will be ranked according to criticality and the control measures prioritised accordingly.

7.3. Maintenance Program


To provide a strategy for each required piece of equipment or generic equipment class.

To provide the planned timing of all outage and non-outage preventive and predictive maintenance work. This is a major input to the Long Term Maintenance Plan (LTMP).

To determine the criticality of each piece of equipment.

To update business unit equipment strategy based on recommendations from the Reliability Improvement Process.




Maintenance Coordinators, Asset Engineers

7.3.3. Planning and Resourcing Maintenance Work

Typically a Work Order is generated for tasks identified to be performed on site. These are generated by the on-site work management process. A unique number is to identify work Orders. This identifier may be the Work Order number, job number issued against that job or other unique identifier and is used to track job costing and provide traceability where applicable.

Planning is the detailed scoping and estimating of a Work Order or task in preparation for execution. This includes identification of all materials and resources required in the execution and the required timing for the task. Scheduling is the placement of planned tasks in a timeline that is resourced.

The Scheduling process identifies the resource requirements to complete the scheduled tasks. Routinely, the resource limits are defined by the available site resources. However, in some circumstances determined at the site level, additional resources may be required in the schedule. This may occur where special projects are added to the routine workload or where shutdowns are undertaken.

Permits to work, access, clearances etc are to be sought and obtained prior to any work commencement. These permit and access requirements are specific to the work location on site and may be obtained during the planning and scheduling activities or once the work package has been issued. Details of these processes and TWPS responsibilities are to be defined within the respective procedures.

Work orders can take different forms depending on the size and complexity of the work. A Work Package can be assembled to include the following documents. This list is nominal and may include some or all of these documents depending on the type of work being performed and the inherent risk associated. Typically a Work package is to contain the following:

Title Page with Job Description and cost coding; (Work Order numbers)

Detailed scope of work; (including man-hour budget)

Material Listing; (Materials required for job)

JSA – Job Safety Analysis for the job;

ITP (Inspection and Test Plan) and QA Checklists;

Isolations;

Permit to Work / Entry Permit / Access

Other information that may be contained within a Work package includes:

Drawings and Isometrics;

Weld Procedures;

Equipment Data Sheet;

OEM data;

Heavy Lift Procedures;

Listing of tooling and special equipment required;



Explanatory notes regarding the work scope;

MSDS – Material Safety Data Sheet;

Photos.

The requirement to complete a Job Safety Analysis for a particular activity each time it is performed, or when it is performed under particular circumstances, is determined during the preliminary hazard review.

Site activities that may have an impact on the quality of work, employee’s health and safety or significant environmental aspects are to be documented in a work instruction or procedure.

Work Packs are not complete until all records are complete, permits signed off, AsBuilts complete, records signed and filed, commercial closeout completed, any additional work required recorded and a follow-up Work Order created.

7.3.4. Actions

Establish for each piece of equipment, critical piping system or generic equipment class all probable degradation mechanisms that could result in inadequate performance that requires maintenance work.

Define the most probable operational and other degradation mechanisms which could result in maintenance work, for example, exchanger fouling, condenser tube fouling, pump seal or bearing wear.

Assemble all other drivers of maintenance work and their timing

Legal requirements.

External recommendations.

For the selected degradation mechanisms, estimate the rate of deterioration and expected life using process simulation tools or actual operating experience.

Evaluate the consequence of continued degradation without mitigation.

For equipment where the consequence is acceptable, establish a run to breakdown strategy. In general, spare equipment and equipment that can be by-passed without significant impact on operational safety, performance or cost should be included in this category. Low cost monitoring programs could be justified in this category if they permit forecasting of repairs or significantly reduce repair or lost production costs.

For equipment where the consequences of breakdown are high and work must start immediately after breakdown, pre-define the requirement for emergency work. Request the Planning Process to develop standard plans for the more probable scenarios, including the need for spares inventory For equipment where the consequence of continued degradation is judged unacceptable, evaluate on-line condition and operations monitoring techniques. For those equipment items where the application of on-line monitoring would cost effectively reduce the consequence or probability of breakdown to an acceptable level or significantly reduce repair costs, establish an on-line monitoring strategy.



For those equipment items where the application of on-line monitoring alone cannot reduce the probability of breakdown to an acceptable level, establish a Predictive Maintenance strategy, including off-line inspection if needed.

For equipment defined above, using the data available, establish the maximum interval between scheduled PM actions that would provide an acceptable probability of unscheduled breakdown.

Define the expected minimum required scope of work for each intervention.

Establish a time line of potentially required shutdowns or scheduled maintenance, including those expected as part of the basis for the Condition and Operations Monitoring Program, and optimise by adjusting the timing.

7.3.5. Major equipment maintenance strategy

The following outlines the maintenance strategy for the critical plant items based on the plant design and previous coal power station operational experience. This list will be developed further as we gain more experience of the specific operating conditions as the unit is commissioned.

Air Heater Sootblowing system

o Outage: Inspection of sootblowing supply pipework and drainage components to be carried out to ensure there are no flange leaks causing pressure drop and drainage is sufficient to maintain high sootblowing temperatures.

Heating elementso Outage: Inspect basket condition for signs of pluggage and acid corrosion.

Sootblower effectiveness to be evaluated during this inspection. Seals

o Outage: Check air heater seals condition for wear and adjustment

Boiler Sootblowing

o Sootblowers are typically high maintenance items. High maintenance components include gland seals, poppet valves, and nozzles and drive units. Maintenance will be preventive ( eg routine lubrication) and condition based ( eg Inspection for leaks, trending motor drive amps to detect binding ,misalignment or distorted lance) As operation progresses, an economic overhaul/replacement interval will be determined for the different sootblowers based on performance and maintenance history. Spare parts are generally essential and will require purchase. A Sootblower that is out of service for an extended period will increase the risk of large clinker drops in clinker prone areas.

Boiler Integrity Managemento AS 3788 stipulates that an inspection (internal and external) is to be carried out

within the first year of service of the boiler. The aim of the inspection is to ensure that the boiler is safe to operate until the next scheduled inspection. TWPS will ensure that the statutory inspection is carried out. Opportunity will be taken at the same time to assess the condition of the boiler for warranty and performance purposes.



o The first yearly inspection tasks are to include but not limited to the following : (1) trevi testing of safety valves (2) NDT inspection of high stressed areas such as sootblower opening fill plates, continuous scallop plates, membrane termination between furnace wall/ convection pass wall tubes and other selected risk prone areas as appropriate to the boiler design and construction (3) UT thickness measurement to determine sootblowing wear rates on all tubes located along the sootblower steam path. (4) Visual inspection followed by UT checks as necessary for ash erosion in local areas of high flue gas velocity. (5) Visual inspection of tubes for fire side corrosion, impact damage or fretting. (6) Internal boroscopic inspection of a select lower furnace wall header to check for debris and magnetite build up. (7) Removal of a short length of furnace wall tube sample at a select position corresponding to the highest heat flux zone. Sample to be analysed in a laboratory for internal build up (8) UT thickness measurement of economizer inlet header riser tubes for Flow Accelerated Corrosion. Internal boroscopic inspection of header for thermal stress induced ligament cracking (9) Internal inspection of Steam Drum (10) Internal inspection of penthouse for ash build up. Carry out select MPI inspection of selected hanger attachments. (11) Radiographic inspection of selected horizontal tubes for water retention (12) NDT inspection of dissimilar weld joints in the secondary re-heater and final super heat tubes where the austenitic CC2328 tubes are welded to the Chrome Moly ferric tubes (13) Inspection and cleaning ( magnetite removal) of disc stack/plug type control valves if fitted. (14) Inspection of burners. (15)Inspection of dampers (16) Inspection of refractory.

o Magnetite exfoliation within the steam exposed surfaces of the ASME Code Case CC2328 austenitic steel developed by Sumitomo and P91 steel used in the boiler will require close monitoring. This is mainly due to the large difference in coefficient of thermal expansion between magnetite and the steels mentioned. Excessive heating or cooling rates should be avoided in far as possible to minimize the risk of exfoliation. Monitoring is to be carried out via oxide thickness testing and radiographic means during the first year and subsequent planned outages

o The first long term creep life assessment will in general be carried out on high temperature piping, headers and tubing at about 100,000 operating hours. Inspections will include replication, oxide thickness measurement, UT, MPI and hardness checks as appropriate. High temperature headers will also be inspected internally for evidence of ligament cracking via video camera/boroscope. Operating history such as metal/steam temperature and pressure trends will be collated to assist life assessment studies

o A risk based inspection system will be developed for the boiler once sufficient operating history is collated. Inspection intervals will in large be governed by the outcomes from condition assessment of the boiler, the identification of potential failure modes, and assessment of its likelihood/consequence and risk management. It provides a structured, knowledge based and auditable approach to manage boiler integrity. It is envisaged that boiler experts from within the industry will form part of the review team to assist TWPS and act as independent reviewers. ( eg Worley Parson, RWE, EPRI ) A Boiler Pressure Parts Manual will be developed to support the program. Procedures and responsibilities will be outlined. Histories pertaining to number of starts, excursions, modifications, repairs and failures will be collated. Technical data on design pressures, temperatures, minimal wall thickness and material will be reviewed. All potential failure modes (typically about 12 or more) for the boiler are to be identified and assessed for risk on a regular basis as required by the procedures.



Boiler Asset Support Plan.o To provide timely response in the event of a boiler leak, an asset support plan will

be established to identify personnel and equipment resource requirement and availability. Leak detection procedures, welding procedures, welding consumables, tubing/material spares, welding equipment and accessories, weld joint preparation equipment and spare tubing/material will be identified and either purchased or made readily available. Ways and means of getting to hard to access areas within the boiler will be investigated with the appropriate scaffolding contractor. The scaffolding structure will require design for quick and safe access. Ways to remove overhanging clinkers in the furnace zone, removal of dust in the penthouse via vacuum truck, and boiler water wash prior to entry will be investigated.

o De-super heater spray nozzles and liners are prone to thermal cracking after a period in service. The cracked away portion/s is more than likely to lodge in the down stream boiler tube causing short term local overheating and eventual rupture. The de-superheaters should be inspected internally at least during the second year. Spares should be purchased in the medium term to mitigate the risk as they are typically long lead items from most vendors. They are a high cost item purchased as a complete assembly. Local reverse engineering and fabrication opportunities should be identified.

o Burner maintenance will in general be condition based initially. They will be inspected during the first year and subsequent years to determine wear/corrosion rates. On establishment of wear/corrosion history a time based replacement/overhaul approached can be put in place. Spares will require purchase prior to replacement and has to be carefully planned as they are typically high cost and long lead items.

o Boiler tube spares should be identified and be made available on site for all sizes and material types.

Bottom Ash Magaldi superbelt will require inspection at each outage due to limited access during unit

operation. Impact and wear areas will require special attention.

Fly Ash Dust transport pipework will require thickness checks and monitoring. Dust is abrasive

and will cause wear to any unprotected sections of pipework.

Coal Supply Incline Conveyors

o **Spare gearbox and motor for these conveyors required as contingency**

Mills Pyrites system

o Pyrite system outlet gates will require ongoing maintenance checks to ensure smooth operation.

o Pyrites disposal system. This has the potential for high wear and should be inspected periodically for wear checks,

Millo Internal inspections will be required to ascertain wear rates for procurement of

spares for future replacement



o The coal feeder and cleanout conveyor require maintenance and inspection while mill is shutdown for internal maintenance. During major mill refurbishment this will also include feeder calibration.

o Burner wear over time will affect burner performance and boiler combustion. Burner wear is to be assessed and repairs carried out at each major outage to ensure continued efficiency.

Turbine Enclosure

o The turbine enclosure will require special attention if access is required by overhead crane. The structure will require dismantling in a systematic manner to gain access, before the start of each outage. This process will need to be trialled and modified at each outage.

Lube oil systemThe lube oil tank is situated in open conditions and will be subject to all weather conditions. This may cause some operational and maintenance issues into the future. The possibility of providing a roof structure to protect this area may be required in future.

7.4. Outage Management


To perform work or inspections requiring an outage that can not be done safely or economically at any other time. The intent is to ensure that the asset continues to perform to its intended function through to the next outage period.

7.4.2. Process Owners

Operations Manager, Asset Engineers

7.4.3. Guiding Principles

The following guiding principles apply to Outage Management:

Liaison with stakeholders to obtain approval for Outage timing and duration.

Budget preparation and approval, and financial control processes to be established.

Outage work scope is minimized - only work that cannot be done safely or economically at any other time will be included.

Risk Based work selection will be utilized to screen potential work list items.

The initial work list is developed as per a set program chart - any work proposed for inclusion after this will be subject to more rigorous work approval.

Non-invasive, proactive measurement and analysis and condition monitoring will be conducted to best determine outage work Scope.

Formal quality checks and turnover documents are used for all work.

Work will be evaluated to fit into appropriate resourcing strategy.

Key roles within Outage teams will be staffed to enable knowledge retention and continuity for future Outages.



7.4.4. Actions

With the higher risks associated with outages, planning activities are critical in ensuring the outage is completed on time and on budget. The following areas are particularly important at this stage:

Finalisation of work scope

Control and approval processes for additional work found as a result of outage investigations, especially where the work must be completed in the current outage.

Establishment of work standards

Preparation of work packages

Confirm Duration and Budget for Outage

Establishment of Inductions

Establishment of databases and software

Industrial relations management

Pre-outage activities are the last steps in preparations for the execution. This stage includes distribution of labour and trades, preparation of materials, walk-through work scope and issue of final work packages to supervisors.

Outages are executed in line with the implementation plan. During the Outage, monitoring of the progress, daily reporting/updating and analysis is required to ensure outage activities are being carried out as planned.

On completion, a review of Outage activities occurs. This review or debrief provides TWPS with information that can be used to gain a better understanding of trends common to outages and assist in improving overall performance on future work.

7.5. Configuration Management Plan


The purpose of the Configuration Management Process is to ensure that the plant data is current and any changes are documented and approved as follows

Any changes to plant are:

1. recorded along with the reasons for the change;

2. Reviewed to evaluate the effects on the safety and integrity the plant;

3. Reviewed with risks evaluated;

4. Economically justified;

5. Designed or planned on the basis of accurate, up to date information;

6. Competently designed or engineered;

7. Approved by Griffin Energy;

8. Implemented according to the specification;

9. Allowed for by reviewing and amending the relevant Operation and Maintenance documents;



10. Recorded in the relevant plans, procedures, instructions, drawings, forms and documentation;

11. Reflected in the Risk Control Plan, if applicable.

12. Reviewed on completion to ensure compliance with the designed change.


The Asset Manager

7.5.3. Actions

The computerised maintenance management system is used to plan and manage all maintenance and plant improvement activities. The CMMS identifies every asset on site with a unique identifier and also holds the configuration information

All assets on site are to be subject to configuration control. The asset register is contained in the CMMS and includes the Asset Types, Items and Sub-items. The numbering conventions used during the construction period for the identification of assets will continue to be used throughout the operations and maintenance phase.

The configuration information contained in the site O&M Manuals consists of:

System and equipment O&M manuals;

TWPS Operations and Maintenance plans and procedures including the Code of Maintenance Standards;

Copies of the current approved version of software used if applicable

Manufacturers specifications; and

As built drawings.

Configuration items and information are to be baselined at the completion of Stage 1. During operations and maintenance the configured baseline along with any approved changes will represent the current approved configuration.

The process of identifying, approving and documenting changes to configured items is described in change the control procedure. In general, ail changes are to be documented and recorded and will include:

A description of the change and its justification;

An evaluation of the consequences or impacts of the change in relation to safety, risk, statutory and regulatory compliance, functional performance, interfaces with other assets or systems, and the cost of the change over the life of the asset;

Details of how the change will be implemented and verified.

The design of any of the O&M Work or Asset Renewal is to be carried out in accordance with the O&M Agreement and any other relevant documentation.



All changes to the configuration baseline are to be reviewed by the TWPS Asset Manager and approved by the Station Manager and Griffin Energy.

Notification of changes is to be made via the change control and approval process, and recorded in the Operational Monthly Report.

Records and reports relating to each configured asset and its configuration information to be created through the change control process during the defect liability period and during operations. The records will allow for visibility and traceability and for efficient management of the evolving asset configuration. Records to be kept on the TWPS network so that:

The change history is readily retrievable

The information is backed-up at regular intervals

Unauthorised changes are prevented

An initial configuration audit is to be carried out after the completion of Stage 1 and following issue of the As Built drawings. A representative sample of records relating to key asset systems is to be selected for audit:

7.6. Warranty Period Strategy – Initial Operation

It is essential to quickly resolve plant problems which affect plant capability and reliability experienced in early operation in order to maximise revenue for Griffin Power.

TWPS will:

Maintain and inspect the plant in accordance with OEM O&M Manuals. Establish capability limitations of critical plant and develop appropriate condition

monitoring programmes to monitor output and identify condition control mechanisms. Register in the maintenance management system any plant problems it observes during

pre- and post -Acceptance operation of the plant. This will include the two year Warranty Period, and any extended Warranty on significant plant repairs.

Assist Griffin Power to raise all EPC contract defects with the EPC contractor, and monitor their rectification progress.

Promptly create Work Orders for, and rectify, any defects for which TWPS is responsible. Identify and track costs for all activities.

The management process is to be agreed with Griffin, and will address:

Defect Identification Defect Tracking – either Warranty or TWPS work Identify Potential Modifications (if not Warranty Related) Provide justification and costing to Griffin for Modifications Implement approved modifications to agreed schedule

Experience shows that it is imperative that a supplementary resource be utilised to support site staff during the initial operation of the unit if the strategy is to be successful. The contract has a budget allowance to bring in the necessary expertise to develop solutions in the first year of operation.



8. ASSET SUPPORT PLANS

8.1. Resource Plan

The Plant Organisation Chart is contained in Appendix D: Organisation Chart.

8.1.1. External Support Structure

The External Support Structure is contained in Appendix F: External Support StructureOrganisational Chart.

8.2. Technical Documentation Plan


To control all documentation related to the operations and maintenances of the Power Station. The following is a listing of documents that will be controlled as applicable includes but is not limited to:

Specific System Element Procedures/Instructions/Forms

Specifications/Drawings

Contracts

Tender Documentation

Customer Technical Data

Codes and Standards

Acts and Regulations

Engineering Reports

Asset Management Plan and its Appendices

Management Systems Documentation

All financial data and reports

All sensitive market information

O&M Manuals

Safety Rules

Personal Files and Information


Operational manager/administration Officer,

8.2.3. Actions

New and revised documents are to be on the standard TWPS format and reviewed by the respective Department Manager and the appropriate site function for site specific documents. A procedure/instruction template allows for the nomination of whether or not the procedure/instruction is mandatory, where a procedure/instruction is not mandatory the site is able to develop its own procedure/instruction to cover the requirement using the Group



procedure for guidance. Mandatory documents shall be identified with an M in the document header.

The Admin Officer is to control all Group documents through the Intranet and ensure policies/procedures are included in the OSP.

Where documentation requires issue as a controlled copy they are to be identified and their distribution controlled to ensure the most current version is available at the point of use and any obsolete documents are removed or identified as such.

To ensure site data is not lost and is retained for future reference/use the Site Manager is to appoint a site backup operator who will manage the site backup process. This process will involve loading up of backup tapes, arranging for off site storage and corresponding with Group IT personnel in resolving problems.

Documents containing information that is business sensitive or gives TWPS a competitive advantage are protected from misuse through restricted access controls. Documents referenced in the System that have this restriction are identified with an IP notation beside the document number. Requests for access to these documents can be made through the Document Controller.

All document numbers are to be in a standardised format, and together with the revision will be shown on all pages.

All documents prepared on site are to be reviewed by the Station Manager to ensure formatting and content are acceptable.

Methods for archiving including retention periods, retrieval and disposition for records are to be determined and documented.

8.3. Spares Plan


The overall objectives on the Spares Plan are as follows: To identify and acquire sufficient strategic emergency spare parts, insurance spare parts

and rotable spares to ensure the security of the plant and its output, and to permit efficient maintenance of wearing plant, consistent with economic risk management principles and expected maintenance cycles.

To identify and acquire sufficient consumable spares to ensure the security of the plant and its output.

To develop alternative strategies where spares holdings for large and costly items are not economically justifiable.

To identify and acquire the Support Equipment consisting of additional tools, mobile equipment, workshop, laboratory and ancillary equipment, furniture and fittings.

To acquire before the Operational Services Date any Equipment necessary to conduct the Services.

To maintain all Equipment in good condition, fair wear and tear excepted.




Engineering logistics officers

8.3.3. Actions

TWPS is to identify and recommend the necessary Strategic Spare Parts and Consumable Spare Parts and Supplies to Griffin for its approval.

The spares identification process is to include reviewing the EPC Contractor's list of recommended spares.

TWPS will advise Griffin regarding which Strategic Spare Parts to purchase from the EPC Contractor's list and any Strategic Spare Parts not mentioned on the EPC Contractor's list that TWPS reasonably believes should also be purchased.

The EPC Contractor is responsible for the supply of all Consumable Spares for the first two years of operation for each Unit, including the consumable spares required for the planned inspection outage after one year’s operation. TWPS will review the Consumable Spare Parts list supplied by the EPC Contractor (which is intended to be the EPC Contractor's warranted list of all Consumable Spare Parts required for the first 2 years of operation) for adequacy for the first 2 years of operations. If TWPS considers the list is inadequate it will advise Griffin giving its detailed reasons.

TWPS will receive the Strategic Spare Parts and Consumable Spare Parts from the EPC Contractor or any other source into the Power Station store and be responsible for the management of all Spare Parts. Griffin is to supply all required storage and handling facilities for the spare parts and Supplies. TWPS will ensure all spare parts and Supplies are stored in conditions appropriate to preserve the spare parts and Supplies in good condition.

Strategic Spare Parts

Griffin is to procure the Strategic Spare Parts it believes are warranted, after considering TWPS’ advice, before the end of the first 2 years following the Operational Services Date.

TWPS is to assist in the procurement of the initial Strategic Spare Parts inventory and the replacement of those spare parts as the need arises.

TWPS will, throughout the Operational Services Period, review the inventory of Strategic Spare Parts at least yearly and advise Griffin regarding additions to or disposals from the inventory that TWPS believes are warranted.

TWPS will use the Strategic Spare Parts when required to perform any Services, if the spare part is obtainable at a cost of less than $10,000 (in 2008 dollars) TWPS will replace the spare part, unless TWPS reasonably believes replacement of the spare part is not warranted despite its recent actual or planned use.

For more expensive spare parts TWPS will advise Griffin of the intended or actual use of the spare part and give TWPS’ recommendation regarding replacement or otherwise. Griffin must agree to any replacement before TWPS commits to its purchase.

If TWPS has incurred the cost of the replacement Strategic Spare Part Griffin will reimburse the actual replacement cost of the Strategic Spare Part.



A list of all Strategic Spare Parts will be maintained on site. Title and risk for the Strategic Spare Parts will remain with Griffin at all times.

Consumable Spare Parts

TWPS will manage and replenish Consumable Spare Parts and maintain a consolidated list of Consumable Spare Parts.

8.4. Repair Plan


To ensure spares and equipment are efficiently repaired and retained in inventory consistent with Griffin Energy’s operating, reliability and performance objectives.


Engineering Logistics Officer

8.4.3. Actions

TWPS will complete a request to issue the required items to the Maintenance Section to be repaired

A determination is to be made as to whether the unserviceable item is potentially repairable and if so then where the repair should be completed. Non-repairable items are to be scrapped. Repairable items should be identified as requiring either internal or external repair.

Internal Repairs

If repair is deemed internal, the Maintenance coordinator will raise a work order to authorise the stripping & inspection of the unit by maintenance personnel.

Repairable units will be assessed for spare part requirements and these will be ordered. Items which are held as inventory should be processed via a separate process.

Non-repairable items are to be scrapped under a “Disposal of Unwanted Material” process. A decision will also be made regarding any need to initiate action to purchase a new item as a replacement spare

The repairs will be completed and tested to ensure repair effectiveness. An inspection is to be carried out to confirm acceptance of the repairs prior to return of the item to stores inventory

External Repairs

If the repair is deemed external, a repair quotation and date for return of the unit is to be obtained from a nominated Vendor.

An Operations Coordinator will review the repair quotation and determine whether the cost and time required is acceptable.



On receipt of the repaired item it is to be inspected to confirm acceptance of the repairs by the plant. New spares are also to be inspected on receipt for fitness for service.

All repairs are to be recorded in the Maintenance Management System.

8.5. Training Plan


To facilitate skill development, and establish a clear set of critical business competencies, and a training matrix to ensure Bluewaters has the right mix of people, and skills, to meet its current and perceived future needs.


Plant Manager

8.5.3. Actions

It is vital that training needs be identified and recognised, and those needs must be filled in a proactive and comprehensive way. To facilitate the process of gap analysis a management training matrix is to be prepared for the site, and work skills identified through a Skills Matrix database.

TWPS encourages its employees to undertake external further study as part of their career development. The study can be at a certificate, diploma, degree or other appropriate level and must be clearly relevant to the employee’s current or future role with the Company.

TWPS has access to training and development services and a range of packages for enhancing the skills and knowledge of key players. Some of these courses and/or programs are aimed at specific areas of the business, whilst others are more generic in nature. Their aim, together, is to provide a complementary package for lifting the skill-sets, competencies and marketability of each individual within the business. Core areas incorporated into the Business Skills development are:

Business Systems

Risk Management

Contract Management

Incident Management, and

Emergency Management

The electricity industry has a number of very specialist requirements and accordingly has its own, detailed, requirements for training. Industry training programs can be on-the-job of more generally a combination of classroom and on-the-job training.

Operator training will commence with the OEM training packages, and will be enhanced through additional training and mentor programs as required.



A key strategy for managing and developing our people is the establishment of relationships between an experienced employee (the mentor) and a less experienced employee. Our experience is that this type of arrangement, in concert with more formal training, allows the less experienced employees to benefit from the experience and knowledge of their mentors, filling out the difficult areas of the formal training, while building their confidence on the job. .

In order to address common topics and utilise the invaluable resource our people represent, periodic BBQs, social events, and informal sessions are to be held to promote cohesiveness of the team, and to facilitate the sharing of knowledge and experience.

An HSE development program is to be developed to achieve the following for every employee:

A sound knowledge that identifies and supports TWPS HSE strategies;

The ability to identify, assess and control occupational hazards;

An understanding of legislative frameworks relating to HSE; and

Skills in the area of leadership, guidance and interpersonal skills.



9. RISK MANAGEMENT

Plant risks will be identified, and risk management and mitigation strategies will be developed for every issue identified. Operational and business risks will similarly be identified, and risk management and mitigation strategies will be developed for each identified risk.

9.1. Plant Risk Management

A list of issues has been identified during the engineering reviews carried out so far, and prioritised using the TWPS risk management process.

It may be expected that many further issues will emerge during the commissioning and warranty period. TWPS will work with Griffin to address as many of these issues as possible, consistent with their agreed risk ranking.

As a consequence of this approach, the EPC Contract Outstanding Items List will be able to be developed as a subset of the complete Issues List.

The initial risk review matrix is attached in Appendix A: Engineering risk review.

Based on the Engineering RISK assessments which we have carried out to date, the following is a list of the most serious plant risks which have been identified so far.

9.1.1. Unit Plant

Item 3 – MILLS - Each Unit requires 4 mills in service for full load. 3 mills are only capable of 90% CMR, so that where mill maintenance cannot be coincident with Unit outages, mill maintenance will result in a loss of availability. Griffin and TWPS have already discussed this, and need to explore options for shortening mill downtime, increasing periods between mill maintenance outages, and increasing mill capability so that 3 mills can achieve 100% CMR.

Item 4 – MILLS AND IGNITION SYSTEMS – IHI have listed many departures from NFPA codes in their initial tuning and testing program for the mills and ignition systems. A report has been provided to Griffin detailing these departures, and making suggestions with respect to these departures. Some of the testing and tuning proposed to be omitted is considered critical to plant safety and/or performance. Agreement needs to be reached urgently between Griffin and IHI, before the shortened commissioning program allows these matters to be passed over without due consideration.

Item 8 – BOILER EROSION – Maximum gas velocity is stated as 15m/sec, with some areas appearing to approach or exceed this velocity. Given the extremely abrasive nature of the Collie area coals, early erosion of the boiler and gas path is expected. This will require early monitoring and resolution by appropriate means during the commissioning and warranty period.

Item 11 – MILL WEAR – Mill rolls and table segments are stated as being suitable for 16,000 hrs operation. Our experience is that this is unlikely, given the mill roll and table materials being supplied, and the wearing characteristics of the local coal. IHI have refused to entertain weld overlaid wear components as used successfully at Collie. Griffin have agreed to purchase one set of emergency replacement components sufficient for 1 mill. Wear rates to be monitored and appropriate refurbishment technology applied, after exhausting warranty entitlements options. Refer also Item 194.



Item 13 – SYSTEM STRAINERS – No condensate pump suction strainers shown, and only single in-line feed pump suction strainers shown. Main concern is for effective system cleanup of particulates, condensate pump wear, and the need for removal of a feed pump from service for every feed pump suction strainer clean. This is a potential source of availability loss, and not regarded as good industry practice. To be monitored and suitable improvement suggested if a problem exists.

Item 16 – COAL QUALITY FROM MINE – The quality and consistency of coal supplied from the mine is critical. It is normally a cultural issue to be understood by the mine operators. The coal needs to be free of tramp iron and contain as little pyrites as possible to improve mill life and reduce maintenance in the power plant. The coal quality needs to be as close as possible to the design specification, so that guarantee performance can be checked and the boiler and mills can be tuned appropriately. The warranties for mill wear, boiler erosion and other performance issues are all linked to the coal quality specification. Mill and boiler combustion tuning, furnace fouling, and other factors are all dependant on a consistent coal quality to which the boiler must be tuned to achieve optimised performance.

Item 34 – FAN LUBRICATION SYSTEMS – PA, FD and ID fans are all fitted with oil ring lubricated bearings. This is not regarded as good industry practice, and a number of well-respected generating authorities banned their use some time ago, as being unreliable for long term operation Monitor during service. Refer Collie failures. Refer also Items 196, 200, 201.

9.1.2. Water Treatment and Supply

TBA

9.1.3. Electrical Systems and Control Systems Item

6 – CONTROLS AND INSTRUMENTATION – For critical auxiliaries such as the PA, FD, ID Fans, Air Heater, and some turbine auxiliaries, where the loss of the auxiliary means a Unit trip, it is essential that the instrumentation is duplicated and/or the control system is set up so that the failure of any single instrument does not cause spurious plant tripping. The initial plant P&IDs indicate many single point instruments with tripping potential. This to be checked and rationalised during commissioning and warranty.

Item 10 – BOILER RUNBACK AND UNIT CONTROL – There is no auto runback from 2 mills to 1, in the event of a mill trip, nor is there an MFT generated. The control system leaves the Unit without intervention, with an unstable set of conditions unsuitable for operational safety. Matter needs urgent resolution before commercial operation commences.

9.1.4. Coal Handling Plant

Item 24 – BUNKERING CONVEYOR PLOUGHS – The bunkering conveyor plough unloaders are not regarded as best practice equipment, and represent significant risk for belt damage and high maintenance. Since the Unit feed is via a single coal conveyor, belt damage and plough failures can cause loss of availability. To be monitored and contingency plans for rapid repair developed.

Item 25 – BELT AND SCRAPER DISCHARGE – Belt and scraper discharge from the bunkering conveyor is directed into the A mill bunker. Our experience from other power plant is that this leads to accumulation of water and fines in the A bunker, and loss of availability for A



mill and feeder. Monitor during warranty, but expected to become a warranty issue at first wet weather period.

9.1.5. Ash & Dust Handling Plant

TBA

9.1.6. Fire Protection

TBA

9.1.7. Balance of Plant

Item 5 – EMERGENCY WARNING SYSTEM – IHI’s supply for the EWS is limited to the boiler / turbine areas for each Unit. The system needs to be extended to all areas of the site, so that safe evacuation of persons from all parts of the plant can be achieved in an emergency.

9.2. Risk Mitigation

Our business success depends on utilising our resources to manage the asset to the best possible standards. These resources are to be directed towards managing all risks by developing and implementing risk mitigation strategies for every known risk. Many of those risks are embodied in the processes described in Sections 9.1 and 9.2.

We must also be prepared to manage the unquantifiable and unpredictable risks, so that any credible plant emergency risk is covered by appropriate emergency response plans and resources. Development of rapid response capability for a range of scenarios is required as follows:

Plant emergencies affecting load or causing serious damage to the plant – need to determine most likely scenarios and develop response plans and emergency operations procedures and training.

Power system emergencies, which are external to the plant, but which require response by Bluewaters staff, either to assist the grid operations, or to protect the plant from external grid disturbances or emergencies.

Accidents involving serious injury or death – need to develop emergency treatment capability and equipment stock, and plans for ongoing management, including local area medical rescue and retrieval agencies

Events requiring emergency rescue services – need to develop capability, or source through local agencies

Fire – need to develop first line capability in house, check adequacy of in-house equipment, and backup capability from local agencies (and possibly Griffin Mine)

Environmental Emergencies – develop in house capability and response equipment, and source local capability to respond to larger emergencies.

Security Emergencies – develop in-house security breach protocols and source local police response capabilities.



10. SAFETY

Transfield Worley Power Services is committed to providing a work environment that is safe and without risk to the health and safety of employees, contractors and visitors. It is our intent that all levels of management and employees participate and exercise individual responsibility for their own safety and for the safety of all others in our workplaces. Appropriate management systems will be implemented to:

Comply, as a minimum standard, with all relevant statutory obligations

Comply, as a minimum with all contract requirements

Continuously improve Health and Safety performance

Provide adequate resources to establish and maintain safe systems of work

Provide adequate injury management resources to ensure a timely and safe return to work

It is Transfield Worley Power Services’ policy to encourage all employees and contractors alike, working on Transfield Worley Power Services sites or those of our clients, to take the initiative in anticipating, preventing and correcting conditions or practices which may threaten the health or safety of the individual.

The creation of a safe work environment, sound safety management systems, standards and procedures, coupled with the cooperation of individuals in applying and maintaining these safe work practices promote workplace environments where hazards are kept to a minimum and accidents are eliminated.

10.1. Policy and Objectives

Transfield Worley Power Services is committed to the health and safety and welfare of all employees, and strives to be an acknowledged leader in the field. We believe that all incidents are preventable and our goal is to have injury free workplaces. With the objective of zero harm, we are committed to identifying hazards, eliminating all risks and preventing incidents that could cause accidents, injuries or illness to employees, contractors, visitors and where applicable, the general public. Continuous development of our culture is the key to achieving continuous improvement in the field of health and safety and forms the basis from which we derive our corporate policies.

The primary goal of the Health and Safety Policy and associated procedures is to assist in providing a safe and healthy work environment for Transfield Worley Power Services employees, contractors and visitors. We are also committed to ensuring that our activities are not harmful to the environment and the greater community.

Our Principles

All Incidents are preventable.

No task is so important that risk of injury to people or damage to plant or to the environment is justified.

Effective HSE Management is a critical foundation for sustainable management.



Our Objectives

Zero harm to people and the environment

To show leadership in the field of HSE Management;

To work in a responsible and sustainable manner

Our Methods

Transfield Worley Power Services will meet these objectives by:

Promoting a positive culture based on improving our HSE Performance.

Complying with all legal and regulatory requirements.

Maintaining management systems that comply with certified standards.

Eliminating hazards, practices and behaviours that could cause incidents, injuries or illnesses.

Implementing controls to eliminate pollution and environmental harm.

Providing training and resources for staff to maintain safe systems of work.

Employing contractors who aspire to the same HSE Standards and

Reporting publicly and annually on HSE Performance, measured against objectives and targets.

The commitment to HSE is our highest priority and will not be compromised.

Recording

Transfield Worley Power Services aim is to prevent all injuries and whilst we accept statistical analysis of injury data is in fact a ‘lag’ indicator, it does provide the opportunity to observe trends. At Transfield Worley Power Services, we measure our statistics as rolling 12 month figures in order to observe trends rather than the peaks and troughs of observing the performance of a single month. A Leadership Commitment Program (LCP) has also been established which uses a system of metrics designed to measure positive ‘lead’ indicators as opposed to ‘lag’ indicators. Examples of ‘lead’ indicators include measuring the effectiveness in the implementation of safety inspections, audits, toolbox meetings, HSE meetings and improvement initiatives by comparing the number of completed tasks with those that are outstanding.

10.2. Measurement/Auditing

Audits are an important part of managing and improving Health and Safety performance. Transfield Worley Power Services has an extensive audit program which requires all contracts to be audited each year.

The compilation and completion of corrective/preventative actions from all audits are included in our monthly reporting regime. There has been a progressive approach to ‘signing-off’ on all items identified from our audits, with all sites being reviewed twelve months after the initial audit to verify completion.



10.3. Line Management Responsibility

Within Transfield Worley Power Services, Health and Safety is a line management responsibility. Supervisors are responsible for the day to day requirements of our personnel in the field, they are a conduit for information flow and are best equipped, through experience, Health and Safety training and education, to coach, guide and monitor their personnel. Supervisors are accountable to the Bluewaters Power Station Manager for the safe conduct of all work activities under their control.

10.4. Training and Education

We aim to provide appropriate training to all persons who work on, or visit our site. Permanent employees and others who will work unaccompanied on the site are given a comprehensive induction to the site.

Our employees receive further training and refresher training, and our Contractors are required to hold toolbox meetings and to manage their employees’ safety and safety awareness to TWPS required standards.

We will also conduct specific campaigns for known risk periods. For example, our experience is that sprains and strains are more common in the colder weather, but can be minimised if correct warm-up techniques are used. Similarly, eye injuries and manual handling injuries such as cuts and contusions can be more prevalent during outages, when large plant is being dismantled and reassembled. At these times we will focus on eye protection, correct handling techniques and the use of correct PPE.

10.5. Safety System for Isolation of Plant

TWPS has purchased a licence to use the Verve Energy system for plant isolations for Bluewaters Power Station, and elsewhere if required. TWPS has operated with this system for some time, and is satisfied that it delivers excellent safety, and is efficient in delivering the appropriate isolations within reasonable time constraints.

The Verve system has the added advantage that it allows TWPS to operate one system across Bluewaters and Collie, so that there is no need to train a shared and mobile workforce in two systems, and there is a greatly reduced probability of confusion and mistakes.

11. ENVIRONMENT

11.1. Policy

Transfield Worley Power Services is committed to ensuring that its activities at Bluewaters Power Station are not harmful to the environment and the greater community. The Health, Safety and Environment Policy (HSE) was derived from the corporate policies of Transfield Services and Worley Parsons Pty Ltd and is thus supported in the overarching management structure of Transfield Worley Power Services parent companies.

The overriding objective is “Zero Harm”. The policy summarises the methods used to achieve the goals of the HSE management system. In particular Transfield Worley Power Services will comply with all regulatory requirements associated with the Department of Environment and Conservation (DEC) environmental licence, currently TBA, and implement controls to eliminate pollution and environmental harm. The employee and subcontractor induction process supports



the HSE policy by empowering all persons working onsite to avoid environmental damage, report incidents or near misses and promote environmental awareness.

With an annual review of the site Environmental Management Plan and working towards achieving AS/NZS ISO 14001 certification further supports Transfield Worley Power Services’ commitment to responsible environmental management.

11.2. Environmental Management Plan

Griffin has obtained an environmental operating licence, and have developed a management plan. TWPS will implement this plan. TWPS will also conduct an independent initial environmental audit. The audit will identify any other potential environmental risks, and will be used to update and augment the existing risk-based environmental management plan.

The EMP will address all licence discharges, and all other risks identified during the audit, including:

Flue gas emissions Process water disposal Potential contamination of ground water, and control of rainwater runoff Control of hazardous chemicals, oils and other substances on site Noise Dust Flora and fauna Impact on any nearby neighbours Training of employees and visitors to the site.



12. PROCESSES AND SYSTEMS

12.1. Project Management


To reduce the risk of not achieving a positive outcome, TWPS has adopted a phased approach to Project Management. The process below outlines and defines the phases of the project life cycle and describes the deliverables for each phase. This is inclusive from the creation of the Project in the TWPS financial system to project closeout.

The classification of whether a project is “Major” or “Minor” shall be based on the exposure to financial and operational risk.


Asset Engineers

12.1.3. The Seven Phases and Actions

The Initiation Phase of a project involves defining the project opportunity and associated business benefits, ensuring that this opportunity is aligned with strategic objectives and then securing appropriate support and funding from the relevant business unit and/or stakeholders in order to fully define, cost and assess the opportunity. A number of activities take place during the initiation of the project. These include but are not limited to:

Contract Review

Risk Identification

Establish Project KPIs

Initial Project Planning

Study Estimate

Identify long lead items

The Project Definition stage is to establish the general criteria of the Project that will enable the desired outcome, and verify that the business solution proposed is a net benefit to the Client. It comprises of the following elements:

Establish steering committee

Initial Project Planning

Stakeholder Management

Risk Identification and establish a risk register

Establishment of business parameters

Screening Estimate

The Feasibility stage aims to analyse and evaluate the various concept options against the pre-determined project parameters and definitions. Following evaluations in this phase, should



none of the concept options meet the parameters established for the project, the issue is returned to the previous phase for re-evaluation. The feasibility phase may comprise the following elements:

Formalise and evaluate concept options

Preliminary engineering

Constructability review

Identification of long lead Items

Justification for Expenditure

Contract review to determine specific requirements

Study Estimate

Project planning

The Planning phase of a project involves the collection of required information, investigation of the possible options to achieve objectives, the evaluation of these options and the choice of the most appropriate solution. The preferred option will then be sufficiently developed such that the scope of work, cost and schedule parameters (including a timeline for the work) are appropriately defined and that associated risks and opportunities are well understood. This activity involves carrying out sufficient initial planning such that the project execution process is sufficiently developed to enable a seamless transition into execution once approved. The planning phase consists of a number of activities including:

Project Management and Reporting

Procurement

Risk Review

Establish Project team and engage resources

Programming and Timeline Review

Subcontract tender and evaluation

Establish Project Team and engage resources

Off-site fabrication

Develop project Execution plan

Detailed Budget Estimate

Establish administration systems and processes

Approval to proceed with the project

The Engineering phase fully defines the Project scope including all detail diagrams, general arrangement and construction drawings and to ensure compliance with all Engineering Standards. With progressive completion of the activities within this phase, project strategies can be created to align the technical and commercial aspects of the work to the overall delivery requirement. These strategies would include procurement logistics, construction methodology, subcontracting philosophy, industrial relations policies and schedule approach. The engineering phase comprises of the following elements:

Engagement of engineering provider

Finalise Budget Estimate



Subcontractor tender and selection

Establish project team and engage resources

Development of Project Execution Plan and detailed Timeline, including commissioning schedule, if needed.

Design Control

Approval and issue of design handover

Off site fabrication

Project Management and reporting

Procurement processes

Workpack Development

Establish administrative systems and processes

The Execution phase is the actual delivery phase of the project and involves the implementation of the project against the given set of authorised delivery parameters The execution phase involves implementing the work scope as defined in the engineering phase in accordance with the agreed parameters of cost, schedule and quality whilst ensuring compliance with comprehensive health safety and environmental processes. The execution phase comprises the following elements:

Construction kick-off

Project Management and reporting

Mobilisation

Site inductions

Early work execution

Schedule monitoring and overrun control

Management of scope (variations), time and delays (extensions of time)

Quality Control

Cost Control

Monitoring the commissioning schedule

Mark-up as built drawings

It is important that TWPS aligns its project delivery with our client’s business driver expectations and works toward achieving these as a seamless integrated team focused on a common project objective. The measurement of success in this area shall be the review of the established project Key Performance Indicators whilst maintaining effective relationships with the client.

Project Completion

The Operations Handover and Project Closeout Phase of the project is the final phase of project development and include the commissioning, in-service tuning, and subsequent handover of the facilities or system to Operations and Support. The Project Closeout phase involves:

Practical Completion



Managing Equipment Commissioning

Performance Verification

Finalise engineering documentation

Demobilisation

Develop and submit Close-out Report

Project Review and Debrief

Finalise Contractor Payments

Commercial Close-out

Archive

The close-out report is to be submitted to Griffin, and will highlight the important details of the project, including a summary of the work done and improvements achieved, final costings, any highlights, and capturing any experiences or lessons which may be of use in improving future outcomes.

12.2. Asset Management Framework

TWPS uses a tailored set of processes from its “end to end” asset management system to suit each plant.

The adjacent diagram depicts the Asset Management System (AMS). The total suite of AMS products can be implemented as an integrated solution or separately to meet a specific site or client’s needs at the same time maintaining the total integrity of the Asset Management vision.

The products have been developed in such a way as to enable the plant to use its existing policies, procedures and work instructions to be incorporated into the overarching business processes defined within the AMS.

Each of the business processes are mapped and applied to the Bluewaters power station in specific linked policies, work flow procedures, instructions,

forms, performance measures, position descriptions, training material and engineering tools and manuals.

TWPS uses these specialist management systems, engineering tools and expertise and those of its service providers through this advanced framework. These solutions are part of our service offering to our clients.

The benefits of implementing this integrated Asset Management System include:


MAINTENANCEMANAGEMENT

RELIABILITYMANAGEMENT

ASSET INFORMATION

LOGISTICSMANAGEMENT

MODIFICATIONSMANAGEMENT

LIFE CYCLEPLANNING

Client Business ContextClient Business Context


Delivering savings and/or tangible benefits in both the short and long term with an unsurpassed capability to deploy structured business processes

Implementing best practices derived through the continuous improvement and lessons learned from each existing and new site under management by TWPS and its partners

Identifying opportunities to maximise growth in performance and returns to organisations

Bringing alignment of asset operations and maintenance

Reducing costs and improved reliability in the utilisation of assets as well as reduced capital expenditure requirements

Improving governance and sustainability standards

Improving the sharing of knowledge and innovation

Providing and maintaining the reporting required by sites and delivering the confidence that results are being achieved in the best interests of each sites business

12.3. Operations Systems Plan (OSP)

The Operations System Plan (OSP) is an auditable Quality, Safety and Environment management system with integrated risk management processes covering all business functions. The OSP itself forms the Quality Management System. The OSP acts as a tool to navigate through integrated systems including Health and Safety, Quality Assurance, Environment, Finance & Administration, Plant and Equipment and Human Resources & Industrial Relations. The OSP has hyperlinks throughout, linking to procedures and forms, and an index is included to help with navigation through a keyword search system.

The site OSP was developed from a generic Operational System Manual (OSM) and comply with ISO 9001 (Quality Assurance), AS 4801 (Safety Management) and ISO 14001 (Environment Management). The existing station policies and procedures are incorporated along with other task specific technical and work procedures.

At the site level, various individual and local considerations are addressed within the OSP. Bluewaters Power Station follows procedural guidelines that are used in the development of site specific procedures and documentation. These cover legislative requirements such as Plant and Equipment, Manual Handling, Dangerous Goods and Hazardous Substances, Emergency Preparedness, Subcontractor Management, Confined Spaces, Personal Protective Equipment etc.

The OSP embraces all systems on site and hence includes the following systems:

Risk Management System and Manual

Safety Management System and Plan

Environmental Management System and Plan

Human Resources and Industrial Relations Systems

12.4. SAP Maintenance Management System

Bluewaters utilises the SAP Computerised Maintenance Management System (CMMS) to effectively conduct planning, coordination, and scheduling of the maintenance functions, and for rapid and economical data communication, job preparation and statistical analysis.



The SAP strategy is based on the following functionalities:

Based on KKS configuration of plant

Budget based on plant structure

Link from DCS data acquisition facility to SAP inputs

Life cycle costing

System capable of producing reports at the required level and detail

Work pack approach with all relevant details attached

Links to external sources of information including DCS system, Microsoft office applications, etc

Stores and procurement processes in place linked to work pack information

Links to PTW system

The CMMS is an integral part of the overall maintenance strategy. It is implemented in accordance with the Power Generation OSP section 6 – 12 and the Transfield Services Asset Management System (AMS) section 2 Maintenance Management (MM) process.



Appendix A: Engineering risk review



Appendix B: Asset Management Policy



Appendix C: HSE Policy



Appendix D: Organisation Chart



Appendix E: Initial Annual Budget



Appendix F: External Support Structure Organisational Chart



Appendix G: Environmental Licence


Blue Waters Asset Management Plan (0.61)

Documents

asset description

asset capability

asset definition

asset condition assessment

operations strategy

maintenance strategy

client commercial

capacity plan