Nuclear Program Development in Newcomer Countries –Owner’s Engineer’s Perspective

Alexander SuperfinNuclear Power President, Worley

AFNBP Conference Nairobi | 15 October, 2019

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Without action to provide more support for nuclear power, global

efforts to transition to a cleaner energy system will become drastically

harder and more costly. Wind and solar energy need to play a much

greater role in order for countries to meet sustainability goals, but it is

extremely difficult to envisage them doing so without help from

nuclear power.

Dr Fatih Birol

Executive Director

International Energy Agency

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Thousands of jobs will be created at

the site, many more – off-site

Nuclear Power Current Status

nuclear power reactorsin operation

445

nuclear power reactorsunder construction

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tonnes of CO2 currently avoided each year

2,000 Million

450 Million tonnes of CO2 to be additionally avoided each year

Delete any unneeded

Nuclear and the energy mix

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Nuclear energy now provides about 10% of the world's electricity

10%

However, some two-thirds of today’s nuclear fleet in advanced economies is more than 30 years old

66%

Nuclear is the world's second largest source of low-carbon power after hydropower

2nd largest

DecisionsDecisions to extend, or shut down will have significant implications for energy security, investment and emissions

Delete any unneeded

World Nuclear Association Harmony goal

Nuclear sources to

generate 25% of

electricity by 2050

1000 GWe of new nuclear capacity to be

built by 2050

5Source: WNA Performance report 2019

National & Regional Infrastructure Development

Nuclear Power Plant (NPP) is a large-scale project serving as a catalyst of regional infrastructure development

NPP Construction Impact:

• Power grids

• Motorways

• Localization and employment opportunities

• Social services – schools, hospitals

• Personnel residential quarters (township)

• Retail, entertainment Infrastructure

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Thousands of jobs will be created at

the site, many more – off-site

NPP infrastructure development (cont.)

According to NEA/IAEA study, each 1GW of nuclear capacity creates about 200,000 job-years of employment

Energy sector Healthcare Education Transportation Manufacturing Communications Construction Retail, Entertainment

Increase of education standards Improvement of living standards Industrial development Social development Residential construction

development Complex regional development

NEW JOBS IN:

RESULTS IN:

Development of National Nuclear Competencies in Newcomer Countries

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Development and construction of

infrastructure, including grid connections

NPP Development,

R&D

Equipment production

NPP construction

NPP operationMaintenance, upgradesDecommissioning

National Nuclear

Power ProgramRemoval and transportation of

spent nuclear fuel

Training of NPP operating staff

Licensing and nuclear radiation safety

Physical protection

Emergency response planning

1. Lack of precedent & clear road map in licensing and permitting process

2. Need to create/improve legal and regulatory framework

3. Absence of nuclear infrastructure

4. Untested public opinion

5. Lack of qualified personnel with nuclear competencies

6. Outdated power transmission and distribution infrastructure

Typical 1st NPP project challenges

Key Challenges

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Resource Planning, Training and Development Recruiting appropriate staff is central to the successful implementation of the program. Typically, there is a significant need for qualified staff to support the first NNP project

Cost and Schedule Control Being on track with budget and schedule has always been on one of the biggest challenges for nuclear new build projects

Establishing an effective Project Management System

Crucial for project success and for integrating safety, health, environmental, security,

quality and economic elements and other

considerations such as social responsibility

Project Supply ChainLimited number of suppliers for procurement

of components and materials for nuclear power plants which may affect project quality,

schedule and budget requirements

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title words/phrases Change highlighted words

to white.

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Our global reach

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50+countries

60,000

people

Almost

True global reach

Nuclear project experience in over 40 countries on 4 continents

Technology neutral

Independent of any specific reactor technology, we are uniquely qualified to provide unbiased and fully informed assistance to customers

Full lifecycle support

Customized offerings for the full spectrum of services at all stages of the asset’s lifetime. Unmatched technical capabilities.

Our differentiators

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30,000+ MWnuclear projects

55+ yearsIndustry experience

18 nuclear units engineer of record

Support in all phases of a nuclear lifecycle

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Operations and MaintenanceProject Execution

Program planning and risk assessment

Country nuclear infrastructure development support

Feasibility assessment

Pre-financing analyses

Site selection and site characterization

Technology selection

Assessment and evaluation of execution options and approach

Training Infrastructure and Program Development

Program / Project Structuring

Project Management and Cost/Schedule Control

Engineering and design / design review

Licensing and permitting

Nuclear safety assessment

Supply Chain Management and Procurement logistic support

Construction management and supervision

QMS/QC services

Plant start-up, commissioning, and plant turnover acceptance test support

Life extension / refurbishment

Extended power uprate

Plant relicensing

Emergency management planning

Post Fukushima safety measures

Radioactive waste management and disposal

Decommissioning process development and planning

Safety assessment during decommissioning

Licensing and permitting

Management of decommissioning activities

Decommissioning

Current and recent Worley nuclear projects

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Bulgaria Czech Rep Finland Poland Romania Russia

Middle East & Africa: Egypt Jordan Saudi Arabia South Africa Uzbekistan

America:

USA Canada Mexico

Slovakia Slovenia Spain Turkey UK Armenia

Europe:

Owner’s Engineer experience

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Project

Type of services Bel

ene

NP

P

Bal

tic

NP

P

Clin

ton

NP

P

Jord

anN

PP

Egyp

t N

PP

Akk

uyu

NP

P

Arm

enia

New

U

nit

Mo

cho

vce

New

NP

P

Kozl

od

uy

NP

P

Han

hik

ivi

NP

P

Development / review of Feasibillty Studies √ √ √ √ √ √ √

Consulting services for EPC contractor selection / negotiations √ √ √ √

Development/ review of EIA √ √ √ √ √ √

Economic / financial evaluation √ √ √ √ √ √

Development / review of conceptual / basic / technical design √ √ √ √ √ √ √

Development / review of Safety Analysis Reports (SAR) √ √ √ √ √

Development / review of Site Acceptance Dossier and / or siteevaluation and selection

√ √ √ √ √ √ √ √

Licensing and Permitting support √ √ √ √ √ √ √ √

Project management support / consultancy √ √ √ √

Quality management support √ √ √ √ √ √ √

Support to investor selection √ √ √ √ √

Supervision of NPP construction / commissioning √ √

Representative Projects

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South Africa new nuclear build program

Transactional Advisory Services to review nuclear new build program in South Africa. Scope included:

Review of procurement strategy

Review of pre-procurement activities

Review the existing Request for Proposals

Risk assessment and development of procurement process risk register

Development of the Request for Proposal

Development of the draft EPC contract

Representative Projects

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Egypt NPP – El Dabaa

Intergovernmental agreement with Russia for construction of first Egyptian nuclear power plant.

Scope: EPC

Technology: 4 x 1200 PWR units

Site: El Dabaa on the Mediterranean coast

Financing: Russian state export loan for $25b to cover 85% of the cost. Repayments start upon commissioning

Local content: 20 % for first unit, increasing with further construction

In April 2019, the Egyptian Nuclear Regulation and Radiological Authority (ENRRA) issued a site approval permit for the El Dabaa site

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Egypt NPP – El Dabaa (cont)

Various consultancy services to support the implementation of Egypt’s first NPP project, including:

Site selection and evaluation

EIA preparation

Preparation of the technology/investor selection

process

Development of infrastructure and quality

assurance program

Support in the development of financing strategy

Assistance in negotiations of EPC, Fresh Fuel, Spent

Fuel Storage and O&M contracts

Training and technology transfer to the NPPA

Representative Projects

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Saudi Arabia new nuclear build program

In 2011, we developed a study to identify possible areas for locating future nuclear power plants in KSA. The scope of work included:

Site Survey and Site Screening Site Ranking and Selection

In 2018, we were contracted by KA CARE to provide PMO Consultancy Services to SNAEP-LNPP with a wide ranging scope, including development of:

Project Management Systems

Change and Configuration Management Plan

Safety and Quality Policies

Stakeholder Management Plan

Quality Management Plan

Project Organization Manual

Risk Management Plan

Training Plan and Modules

PMO Workstreams

• Governance

• Resource Management

• Training

• Compliance

• EPMS

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Sample PMO deliverables for KA CARE

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Sample PMO Deliverables for KA CARE

Governance

PMO Workstreams

Resource Management TrainingCompliance EPMS

PMS Process Map

Document Identification Guideline

Document Formatting Guideline

Risk Management Plan and Register

Stakeholder Management Plan

List of 1st Priority Documents with resources assigned

Resource Management Plan draft

Project Lessons Learned Procedure

Project Organization Manual

Project Dashboard, Project KPIs and KPIs Metrix

Project Quality Assurance Program

Internal and External Audit Procedure

Project Assessment Plan and Schedule

Nonconformance ManagementProcedure

Corrective and Preventive Actions Procedure

Root Cause Analysis Procedure

Schedule Management

Risk Management

Document and Data Management

Stakeholder Management

Quality and Compliance Management

Project Initiation, Scope Management, Close Out

Planning and Project Controls

Managing Project Risk

HSE & Environmental Management

EPC Contracting

Managing Construction and Completions

Team Leadership, Project Communications

Delivered

Mission, Vision and Values for the LNPP Project

Project Implementation Policy Project Safety Policy Project Quality Policy Project HR Policy Project HSE Policy Environment Protection Policy

Sample PMO Deliverables -Governance

Safety Culture Program Change and Configuration Management Project Management System Manual Document and Data Management Plan

Consultancy services for KA CARE

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Assistance with implementation of IAEA guidelines

Identification and closure of gaps in implementation

process

Assistance with implementation of national nuclear

infrastructure

Assistance with establishment of Nuclear Holding Company

Assistance with establishment of Nuclear Operating

Company

Uzbekistan NPP Profile

General project features of the Uzbekistan NPP

• CAPEX: $ 11 bn.

• EPC contractor: Rosatom

• Project design: Generation III+, VVER-1200

• Number of units: 2

• Total capacity: 2400 MW

• Implementation period: 2019-2030

Project implementation environment

• The first NPP to be built in Uzbekistan

• The project will be financed by Uzbekistan's own funds and Russia’s state loan

• External infrastructure facilities will be financed by the State budget, the Nuclear Energy Development Fund and other sources

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NPP site preliminary selected and is currently evaluated

UzAtom Worley Joint Venture

Parties Joint Venture Heads of Agreement signed on 15 May 2019

Engineering and Project Management function of UzAtom

Main objective – development of nuclear power industry in Uzbekistan

Main activities - render services to nuclear energy operating and contracting companies, including, but not limited to:

• Engineering and design services

• Project management services

• Procurement services

• Construction management and maintenance services

• Licensing and regulatory support

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DISCLAIMER

This presentation has been prepared by a representative of Worley.

The presentation contains the professional and personal opinions of the presenter, which are given in good faith. As such, opinions presented herein may not always necessarily reflect the position of Worley as a whole, its officers or executive.

Any forward-looking statements included in this presentation will involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies—many of which are outside the control of, and may be unknown to, Worley.

Worley and all associated entities and representatives make no representation or warranty as to the accuracy, reliability or completeness of information in this document and do not take responsibility for updating any information or correcting any error or omission that may become apparent after this document has been issued.

To the extent permitted by law, Worley and its officers, employees, related bodies and agents disclaim all liability—direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Worley and/or any of its agents)—for any loss or damage suffered by a recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.