INDICATIVE PROPOSAL

FOR
LAS FLORES C.C. EXTENSION
POWER PLANT IN PERU

November, 2014

POSCO Engineering & Construction Co., Ltd.

LAS FLORES C.C. EXTENSION POWER PLANT

CONTENTS

1.

BASIS OF INDICATIVE PROPOSAL

2.

INDICATIVE PROPOSAL

3.

GENERAL

3.1

Introduction

3.2

Scope of Works

3.3

Exclusion of Works

3.4

Division of Responsibility

4.

PROJECT OVERALL SCHEDULE

5.

SITE LAYOUT AND PLOT PLAN

LAS FLORES C.C. EXTENSION POWER PLANT

1

BASIS OF INDICATIVE PROPOSAL

This indicative proposal has been prepared to estimate the EPC price and condition for the
facilities and services to construct Combined Cycle Extension Project in Peru. The Basis of
the Indicative Proposal is stipulated herein-below to define the basis and to clarify the
scope of work to be provided by EPC Contractor.

1.1

Scope of Supply is described and defined in Section 3. General as hereunder.

1.2

Indicative Proposal price is prepared in consideration of the following items;

Gross Output at the steam generator terminal
All equipment or facilities are to be supplied
Air-cooled condenser system
All temporary facilities for construction

1.3

Utilities are provided on the basis of the followings.

Electric power for construction will be available during the construction period from the
existing power source in the neighborhood. The charge for electrical power will be borne
by POSCO E&C.
Power receiving and supplying from/to the grid will be available and provided by Owner
during the Commissioning & Performance Test period.
Fuel and electricity for commissioning and performance test shall be provided by Owner
until the issuance of substantial completion certificate with the limited amount to be
indicated in final proposal according to the proposed master schedule attached
herewith.
Area for site-office and lay-down shall be provided by Owner.

1.4

Training is based on Classroom & field training, On-the-job training and DCS
shop training with two (2) groups up to max. 10 trainees per each.

1.5

Taxes, Dues and Duties

: The Custom duties and Import Duties, VAT,

Owners corporate tax, imposed by the authority of Government of Republica del Peru for
the import of project material and equipment to be installed permanently and used
temporarily for the project, are not included in this Indicative Proposal.
1.6

Construction Period is described and defined in Section 4. Reference Project

Overall Schedules.

LAS FLORES C.C. EXTENSION POWER PLANT

1.7

1.8
1.9

Commencement date shall be regarded as the date for commencement of the

entire scope of work upon the receipt of Notice to Proceed (NTP).
Advance Payment shall be five (5) % of the Contract Price.
Warranty will be warranted free of defects for a period of 12 months from the Combined
Cycle Taking-Over Date.

LAS FLORES C.C. EXTENSION POWER PLANT

2

2.1

INDICATIVE PROPOSAL

Indicative Price Proposal

The Indicative Price for the add-on combined cycle extension Power Plant (one STG and
one HRSG) is as follows:
The indicative price is based on the estimated scope of work and conditions as specified in
the Section 3. General.
Indicative Proposal Price for STG 102MW (gross) x 1 Unit Combined Cycle extension
Power Plant

2.2

Price Currency

Indicative Proposal Price

USD

125,240,000

Remarks

Indicative Performance Proposal

The proposed a Combined Cycle Extension Power Plant will produce the gross electricity
102MW at Steam Generator output.
The actual Performance Guarantees of Electrical Output for the project will be submitted in
the Firm Proposal.

LAS FLORES C.C. EXTENSION POWER PLANT

3

GENERAL

3.1

Plant Description
The Las Flores project is the conversion of one natural gas fired simple cycle gas turbine
into a 1x1 Combined Cycle power Plant (the Facility). The Plant is located northeast of
the town of Chilca, Peru about 62 km south of the city of Lima and approximately 1.6 km
(1 mile) east of the Pan American Highway at an elevation of 43.5m (143 ft) above MSL.
The nearest port is CALLAO in Lima which is also about 62 km away from the project site.

3.1.1 Existing Plant Description

Las Flores Plant in Chilca includes one simple cycle gas turbine train. One existing gas
turbine is a Siemens SGT6-5000F3 model. One Heat Recovery Steam Generator
(HRSG) will be added at the site. A single steam turbine will also be added to make the
plant a 1 x 1 x 1 Combined Cycle.
The existing stack will be modified to bypass stack with diverter damper and guillotine
damper.
The Plant is designed for single fuel (natural gas only: no oil backup) operation. High
pressure natural gas is supplied to the Plant. The existing gas yard includes fuel cleaning,
pressure reduction and dew point heating to support the requirements of gas turbine.
Water availability at the site is very limited and therefore, the cooling system of this Plant
is accomplished using an Air Cooled Condenser and Fin Fan cooler.
Generated power leaves the Plant at 220 kV via connection to the Peruvian national grid.
All power generation equipment and systems are located outdoor. The gas turbine
generator is provided with individual weather protection enclosure. There is an existing
control and administration building and a warehouse building at the site.

LAS FLORES C.C. EXTENSION POWER PLANT

3.1.2 Conversion and New Plant Description
This Plant is to convert Las Flores Power Plant with its one simple cycle gas turbine
generator unit to a 1x1 Combined Cycle Plant. The arrangement of the new Plant
equipment and system are shown on Site Lay-out and Plot Plan Section 5 in this
proposal.
The completed facility incorporates a 1x1 configuration capable of a gross steam
generating capacity at the design ambient of 19/ 89.5% RH, at the site elevation in
combined cycle configuration. The Plant includes one (1) existing simple cycle gas turbine
generator to be connected to a new heat recovery steam generator (HRSG) to produce
steam to drive one (1) new steam turbine generator (STG).
The Facility will be supplied electricity at 220 kV. The switchyard design and construction
and transmission connection at the high voltage side terminal of the GSU will be done by
others (not Contractors scope of supply).
The existing stack of Las Flores of 27.5m (90ft) will be replaced to 40m (131 ft) height
bypass stack equipped with an automatic diverter damper and a manual isolating
guillotine damper for positive gas isolation of the HRSG.
The HRSG does not have any supplementary firing. The HRSG includes space and
supporting structures for possible future installation of a SCR system designed for 80%
NOx reduction. The bypass stack and the main stack include blanked EPA ports to
accommodate Continuous Emissions Monitoring System (CEMS) installation.
A 100% steam turbine bypass system for the HRSG is provided to allow full load gas
turbine/HRSG operation without any safety valve lift off while the diverter damper open to
the bypass stack during a STG trip. The bypass system is used to facilitate individual
GTG/HRSG train start-up and shutdown. The bypass system includes capability for
bypass of HRSG steam output.
The facility includes an outdoor type Steam Turbine Generator (STG) complete with
weather protection & noise enclosure.
The Plant is designed with an air cooled condenser for rejecting the heat into the
atmosphere. The Plant auxiliary cooling system uses inhibited demineralized water in a
closed circuit with final heat rejection via fin fan cooler.

LAS FLORES C.C. EXTENSION POWER PLANT

The STG set, critical electrical and distribution system and other combined cycle Plant
system are laid out to enable ease of construction and to provide adequate space for
operation and maintenance.
The combined cycle control room and electronic room are utilized on existing
administration and control building.
The power distribution center for HRSG, switchgear building and Water Treatment &
Waste Water Treatment Building (WT & WWT building) are provided by the Contractor.

LAS FLORES C.C. EXTENSION POWER PLANT

3.2

Scope of Works

3.2.1 General
The project involves the engineering,

procurement, construction, start-up and

commissioning and turning over the Facility and related work for the 1x1 Combined Cycle
Extension Project.
The scope of supply and works included in this proposal comprises of :
1)

Design and engineering

2)

Supply of equipment and materials

3)

Civil and building works

4)

Technical supervisory and advisory services

5)

Construction and erection

6)

Commissioning and test

7)

Performance test

8)

Guarantee of Plant

9)

Quality plan

10) Site training of operating staff

11)

Spare parts for start-up and commissioning

12) Special tools

13) Operating and maintenance manuals
14) As-built documents and drawings

3.2.2 Mechanical Equipment and Works

1)

Heat Recovery Steam Generator (HRSG) with auxiliaries including a 60m (196 ft)
stack

2)

Steam Turbine and Generator (STG) with auxiliaries including enclosure for
weather and noise protection

3)

Air Cooled Condenser (ACC) including vacuum pump as vacuum system complete
with condensate storage tank and deaerator.

4)

Bypass stack Modification

5)

Condensate pumps and drives

6)

Boiler feedwater pumps and drives

7)

Closed cooling water (CCW) system with expansion tank, pumps, drives and Fin
Fan cooler

8)

CCW chemical injection system

LAS FLORES C.C. EXTENSION POWER PLANT

9)

Raw water system complete with storage tank and transfer pumps

10)

Demineralized water system consisting of pre-treatment, filtration, RO/EDI

complete with pumps, drives and storage tank

11)

Waste water storage tank

12)

Fire Fighting system

13)

Ventilation and air conditioning equipment and system

14)

Air compressors, dryers and receiver

15)

Plumbing and drainage system

16)

Oily water treatment system

17)

Miscellaneous tanks, pressure vessels, pumps and heat exchangers for water
treatment system

18)

Chemical injection system

19)

Piping, valves, support and appurtenances

20)

Insulation and cladding

21)

Steam turbine bypass system for HP, HRH and LP

22)

Painting and coating

23)

Start-up and commissioning spare parts

24)

Access platform (only main maintenance)

3.2.3 Electrical Works

1)

STG Generator step-up (GSU) transformer(220kV)

2)

STG Generator excitation system

3)

STG Generator and step-up transformer protection/metering

4)

STG Isolated phase bus duct

5)

STG Generator circuit breaker

6)

STG Auxiliary transformer

7)

Cable and Raceway

8)

Medium voltage (4,160V) switchgear and starters

9)

LV transformer and LV switchgear and motor control centers(480V)

10)

Batteries and chargers

11)

Balance of Plant protective relaying/metering/control panels

12)

Uninterruptible power supply system (UPS) sized for 4 hours continuous operation

13)

Station

grounding,

facility

lighting,

intercommunication system
14)

Fire Alarm system

3.2.4 Instrumentation and Control Works

lightning

protection,

telephone

and

LAS FLORES C.C. EXTENSION POWER PLANT

Plant instrumentation and control system including microprocessor based distributed

control system, field instruments, steam and water sampling system, control valves and
CEMS which shall be integrated with the existing DCS system

3.2.5 Civil and Building Works

3.2.5.1 Civil works
1)

All excavation, back filling and foundation work is included in the contract,
starting on a power station site cleared

2)

Road network system & Paving work

3)

Pipe rack with ladder

3.2.5.2 Building works

1)

WT & WWT Building

2)

Power Distribution Center Building for HRSG

3)

Switchgear Building

4)

N2 Cylinder Shelter

10

LAS FLORES C.C. EXTENSION POWER PLANT

3.3

Exclusion of Works
The following equipment and service are excluded from the Contractor's extent of works
and to be provided by the Owner, or others.
1)

Access to existing equipment

2)

Site preparation and grading

3)

Site and land procurement, real estate rights, easement, rights of way

4)

Furniture, laboratory furniture including storage rack and interior work for all existing
buildings(Administration, Control Building, Maintenance shop building, AIS control
building, Power Distribution Center)

5)

Emergency diesel generator, diesel day tank, pumps and room

6)

Mobile equipment (not including construction equipment)

7)

All fuel, electricity and raw water required during start-up(Contractor shall pay Owner
for electricity of 500KVA and all fuel required for construction. Owner will provide up to
10m3/h of raw water for free during construction)

8)

Waste water treatment system

9)

Potable water system including storage tank

10) Landscape work

11) Demolition and/or relocation of any existing facilities, structures/buildings other than
those included in the Contractors scope of work
12) Relocation/removal of underground obstructions, hazardous materials and wastes
including asbestos (Contractor to take care of any such materials brought in by
Contractor)
13) Back feed power
14) Disposal of treated effluent during operation
15) Operational spare parts
16) Interface with the Peruvian transmission system
17) Licensing, permits, government approvals and environmental clearances required to
operate the Plant including presentation of the public or government agencies
18) Owner's costs, such as interest during construction, financing charges, Owner's
engineering and project management costs, supply of fuel and utilities.
19) Security during operation (Contractor is responsible for security of its equipment and
materials stored on the Site)

11

LAS FLORES C.C. EXTENSION POWER PLANT

3.4

Division of Responsibility
The following table defines which organization has responsibility for the tasks listed:
Division of Responsibility
Category

Contractor

Owner

Remarks

Engineering design

Architectural

As-built drawings and documents

after completion of works

Provide 3 hard copies and 3

digital (CD or DVD) copies.

Design documentation

To be provided electronically
using secure web based
system.

Engineered equipment
procurement specifications

Engineered equipment purchase

and expediting services

Manufacturers' service
representatives and technical
field assistance

Construction specifications

Equipment lists

Environmental consultant
permitting services
Obtain spare parts
recommendations and pricing
from equipment vendors

Purchase operating and

maintenance spare parts

Startup and commissioning spare

parts

12

Contractor is responsible for

spare parts during start-up
testing and commissioning.
Contractor may borrow and
replace from Owner'
operating and maintenance
spares inventory, if available.
Owner to purchase and
supply for Owner supplied
equipment.

LAS FLORES C.C. EXTENSION POWER PLANT

13

LAS FLORES C.C. EXTENSION POWER PLANT

Division of Responsibility
Category

Contractor

Engineering and construction QA

and QC programs

Site acquisition, land purchase,

easements, and rights-of-way

Site survey

Site Security

Construction Laydown Area

Owner

Remarks

X(2)

1) Contractor is responsible
for any requirements
associated with the
transportation of
Contractor furnished
equipment.
2) Acquisition of project site
and road access.

X(2)

1) As required for design

and construction only.
2) Owner shall provide the
overall property survey.

X(1)

X(2)

1) As required for
construction only.
2) Owner shall provide
Overall property security.

(1)

(2)

1) Contractor to define area

required
2) Owner to provide lay
down area

X(1)

X(1)

Geotechnical
Soil borings

X(1)

X(2)

Soils reports, foundation

recommendations

X(1)

X(2)

Soils resistivity

X(1)

X(2)

Interior furnishings

14

1) Basis for detailed design;

Contractor to perform all
tests and surveys as
needed
2) Basis of Contractor's bid;
Owner supplied
geotechnical report
1) Owner will provide
laboratory furniture,
instruments, apparatus,
and reagents, office
furniture, spare parts,
storage shelves, etc.

LAS FLORES C.C. EXTENSION POWER PLANT

15

LAS FLORES C.C. EXTENSION POWER PLANT

Division of Responsibility
Category

Contractor

Disposal of chemical cleaning

waste during construction

Fuses, lamps, filters, gaskets,

and other similar consumables
required for startup

Owner

Remarks
Neutralized wastes shall be
hauled offsite and disposed
of per local regulations:

X(2)

1) Contractor to provide
initial charge and
additional supplies for all
equipment it supplies
through Taking Over.
Fluid levels shall be full
at time of turnover of
care, custody and control
to Owner.
2) Owner to provide
continuous supply as
needed after Taking Over
and all feedstocks
needed for equipment
not provided by
Contractor.

Operating Fuel supply

For GTG during start up and

operation

Site preparation and earthwork

design and construction

Site clearing and grubbing

Site Final Stabilization

Initial charge of resins, gases,

chemicals, desiccants, lubricants,
and hydraulic fluids

Construction power and

construction water supply

X(1)

X(1)

16

X(2)

1) Owner will provide at one

point. Contractor to provide
all required temporary
facilities and distribution
system(s) within the site
boundary. Contractor to pay
for construction power used
through Taking Over.
2) Construction power
provided by Owner is
limited to 500 KVA and
water usage is limited to
10 m3/h.

LAS FLORES C.C. EXTENSION POWER PLANT

17

LAS FLORES C.C. EXTENSION POWER PLANT

Division of Responsibility
Category

Contractor

Construction debris, excavation

spoils, sewage and waste
disposal services

Construction telecommunications

All Equipment and Materials for a

Complete operating Facility within
the terminal points of the Work

All Construction Works

All construction craft labor and

supervision

Substation and Transmission

Permits and Fees

Owner

Remarks

As defined in the Contract

document provided in
Volume I

Construction Inspections
Safety

Electrical

If required

Plumbing

If required

Fire protection

If required

All Other Required

Existing Plant

Warranties

Issues warranty claims on

equipment to vendors

X(1)

18

X(2)

1) Contractor shall issue

claims while onsite.
2) At demobilization,
Contractor with input
from Owner.

LAS FLORES C.C. EXTENSION POWER PLANT

19

LAS FLORES C.C. EXTENSION POWER PLANT

Division of Responsibility
Category

Resolve warranty claims on

equipment with vendors

Performs warranty work on

equipment

Contractor

X(1)

X(1)

Owner

Remarks

X(2)

1) Contractor shall resolve

warranty claims throughout
Warranty Period.
2) Upon expiration of
warranty period Contractor
shall assign warranties to
Owner for administration.

X(2)

1) Contractor shall provide

in and out labor as well as
replacement of defective
parts(repair of parts may be
done only if agreed to by
Owner).
2) Upon Contractor's
request, Owner shall
provide the in and out labor
if available from O&M staff
and back charge the
Contractor.

Checkout, Startup, Testing, and

Training

On site testing during

Construction

Checkout procedures

Checkout and turnover

Mechanical/electrical / control
checkout of systems
Set, check out, and test all
electric protective and metering
devices including protective
relays, breaker trip devices,
motor control center trip and
overload devices and metering.

X(1)

20

All construction testing of all

installed materials and
equipment as required by
Codes, standards, laws,
and specifications.

1) Using Owner's operators

when appropriate

LAS FLORES C.C. EXTENSION POWER PLANT

Division of Responsibility
Category
Startup procedures

Contractor

X(1)

Performance and Acceptance

Testing procedures

Test equipment

Demineralized water during

hydro-test, flushing,
commissioning etc.,

X(1)

X(2)

1) Supervision and craft

labor; supervision of
operating personnel during
startup
2) Operating personnel

X(2)

1) Supervision and craft

labor
2) Operating personnel

Back-feed power during

commissioning and testing

Gas turbine benchmark test, if

required.

Remarks

Startup of systems and Plant

Plant operations during testing

Owner

X(1),(2)

Fuel

Material for performance test

(e.g. Air filter etc., if required)

Additional instrument required

by test procedure.

X(1)

Installation of test instruments

Recommendation of
measuring points
Leader for execution of test

21

X(2)

1) Operating personnel
2) If supervision will be
required by GT
manufacturer, supervisor
shall be provided by
Owner.

1) General instrument will

be supplied by Contractor.
2) Additional special
instrument according to
procedure will be provided
by Owner or others.

By Siemens procedure

: Inspection

LAS FLORES C.C. EXTENSION POWER PLANT

22

LAS FLORES C.C. EXTENSION POWER PLANT

Data gathering

Division of Responsibility
X

Category
Preparation of test procedure

Contractor

Reparation of test procedure

Responsibility for test result

Performance and Acceptance

Tests

Emission testing
X

Water analysis and monitoring

1) Operating personnel

X(1)

1) Owner's personnel to
perform under
Contractor's supervision.

X
X

Engineered equipment
instruction manuals

Detailed operating procedures

Maintenance prior to Taking

Over

X(1)

Remark
Siemens Procedure

Performance and Acceptance

Test report

Overall Plant Operator training

and training manuals
Equipment Operating and
maintenance manuals

Owner
X

Contractor to be
responsible for
maintenance until Taking
Over. Contractor may use
Owner personnel with
reasonable back charges
to be applied.

Witness of performance tests

Witness certification of
emissions monitoring
equipment

Permanent power, fuel, and

water for startup and testing

23

LAS FLORES C.C. EXTENSION POWER PLANT

4.

PROJECT OVERALL SCHEDULE

Contractor shall achieve the substantial completion of the unit no later than twenty-nine (29)
months from the date of NTP (Notice to Proceed) with two (2) months LNTP (Limited Notice
to Proceed) before the date of NTP. Attached please find Project Overall Schedule for
reference.

24

LAS FLORES C.C. EXTENSION POWER PLANT

5.

SITE LAY-OUT and PLOT PLAN

25