Grid Lines

Power Transmission and Distribution Newsletter Issue No. 3 October 2015

Overview, strategic direction and

challenges
This is the third newsletter to be produced within TND, and once
again I started this whilst on my travels. This time I am in Qatar
where Milorad, Ovidiu and I had a meeting with our major client out
here, KAHRAMAA, the power transmission utility. The meeting was
billed as bring along your decision makers, unfortunately it did not
quite turn out that way. They have asked us to recast the offer
which will take a lot of work but they gave us until 1st October
because of the Eid Holiday. Was the meeting worth the effort?
Absolutely. The Client was pleasant and clearly a little confused by
the plethora of different bids they received. We showed them the Company and our
commitment to pursue. Personally, I am quite keen to hold more meetings with the Clients
and in the future this will be aimed across a range, from those that we should keep in
touch with, but who might have distant prospects, to those we are working with and I can
discuss our actual performance.

This brings me to the topic of this note. How do we, and how should we, measure our own
performance? We can see how we deliver projects pretty clearly through the project profit
figures, invoicing and payment, and the fact that many Clients come back to us. It is far
more difficult to understand the various markets we are involved in and whether we are
interfacing with them in the best manner such that we can get the maximum out of them.
Some we know we can do better with and we will be seeking that improvement. Others
look more challenging, but we also know that they can change rapidly with a small change
In This Issue
in regulation, politics, economics or investment capital so we must keep in touch with
Overview, strategic
them. direction and
challenges
If we had the perfect business development, style and interface, a clear measure would be
the number of usable enquiries we actually get on a monthly basis. We will instigate this to Business Development
give us a guide anyway. However, what we are really looking for is a measure of the Update
effectiveness of our business development systems. The e-Forms Decision to Invest and
Decision to Capture are just the start of this. It is evident that we will have to treat our Symes says
business development budget with some rigor and be clear about what we are spending it
HR and BMS news
on and why and be aware of the opportunities, where we can get the most bang for buck.
PE Highlights
We are currently writing our business plans for each region and we will publish them, but
beyond this, what I am really looking for is ideas and ways to improve our business Results of our divisional
development process and to get more people involved but in a managed manner. audit
Performance
Since the last newsletter our financial performance has continued to be below budget and is an increasing challenge. It now
seems very likely that we will miss our revised forecast (set in May this year at 4.8m), by quite a margin. 3.8m for Net
Profit is now looking more likely, as a combination of some significant losses on some projects and increasing overhead
loss has significantly impacted performance. The table below shows our YTD financial position.

Indicator Actual YTD Budget YTD

Net Revenue (m) 23.0 28.0

Project Profits (m) 4.2 5.2

Overhead Loss (m) -1.0 -0.2

Net profit (m) 3.1 5.0

Despite some continuing high profit releases, notably the Alliances in the UK, we continue to be hit by a stream of mid-sized
project losses, which are significantly impacting overall performance. In September these amounted to over 200k, which is
not sustainable for a business the size of PTD. As PMs and PDs, please review all your projects, and do the MPCMs on
time, ensuring PMD is up to date and reflects the current position of the job and that key risks are discussed and mitigated.

Our overhead loss has continued to increase, particularly in the last month, when utilisation across PTD dipped significantly.
The graph below shows the volatility in utilisation this year, and the deterioration of the last two months. We are a global
business and to some extent this protects us from short term volatility in particular markets. However, September through
into October has shown a more marked downward trend in a number of the geographic / service areas particularly in the
UK, South Africa and the Studies team.

Ultimately, the best answer to low utilisation is to win

new, good quality work everyone has a role to play here in terms of business development, either through seeking
opportunities through your existing clients or supporting bidding activity in your own particular areas. If you have any ideas
of how we could better exploit existing relationships with some of your own clients please discuss them with your Program
Directors.

Professional downtime has again become a significant issue in many areas. Please ensure that you discuss with your team
leaders before any bookings to downtime to see if there are any specific activities (preferably fee earning) that you can help
with. Every additional hour, legitimately booked to a project is a big help!

David Holding
Some Great Business Development
Prospects There is a wide range of prospects still within the division. Weve had a good look at
possible HVDC work and have come up with some 20 or so likely projects all at vari-
ous stages of development. And they have a global spread.

The most immediate one is of course the Eleclink/Channel Tunnel prospect for which
Eleclink/Channel Tunnel our bid has been submitted and our role would be as the Owners Engineer.

New York ISO We have more opportunities with the New York ISO, looking at wind connection analy-
sis and also some likely prospects for engineering of wind connections in the Southern
Kahramaa, Qatar and Mid west states of the US.

In the Middle east we have some very large to massive prospects included for
ADMA, UAE
Kahramaa in Qatar and ADMA in the UAE.

However, small jobs are just as important to us and even although the oil price is down
and there has been a drop in that market for us, there remains some interesting O&G
related jobs These include another floating LNG project and also Qatar based O&G
work following our long history there for Qatargas and their contractors.

We have some wind connection work coming in Scotland for SSE. Also we have some
interesting loss minimisation work relating to transformer switching at distribution level
for the same client, as well as some overhead approval line work for them too.

This is only a sample of the work coming in the door. All in all an interesting mix with
something for everyone I hope.

Generally, the work situation remains fluid, with a less long term view of work than we
had when the UK NG alliances were in full swing. But there is probably a greater varie-
ty and more unpredictability in work type for many of us.

We are aiming to grow next year in all areas.

Keith McLeay
PE Highlight Yam Jam
Arrangements for our
Barakah Nuclear Power Plant first Yam Jam are
underway and will take
System Studies place before the end of
the year.
A lunchtime seminar was recently presented by Mustafa Elsissi and Aleksandar
Karisik from our Abu Dhabi office in which they described a recent project they were This will be a chance
involved in examining the critical fault clearing times and stability and feasibility of the for you to ask any
Barakah Nuclear Power Plant. questions of the PTD
Senior Management
The presentation discussed ways in which the power system studies were completed team.
efficiently by developing PSS/E python codes that were used to speed up project
completion. In addition to this, the presenters discussed a newly developed MM
software tool created to automate PSS/E dynamic figure plot generation for technical
reports. The advantages of this new tool include saving time, producing consistent
figure plots and allowing multitasking while the tool generates numerous plots.

The presentation was successfully shared with multiple offices via Lync, showcasing
the tool and project experience to teams outside of the Abu Dhabi office. The benefits
of the tool could be used in future projects to increase the efficiency of producing
project deliverables.

The presentation slides can be viewed from Pims at: http://pims01/pims/llisapi.dll/

open/1595611979

Kevin Combe
PE Highlight
4th Engineering Sketches Exhibition and prize-
giving
Early this month, entries were invited for the Engineering sketches competition run by the Engineering Club and Drawing at
Work. There will be prizes for the entries that best show engineering ideas and design through hand drawn illustration. As
per the feedback I received, over 100 entries were received for the competition and the selected entries show outstanding
examples of effective use of hand drawing to communicate engineering of all kinds.

I am glad to inform you that our sketch, based on the gantry development work we are currently carrying out for Statnett,
has been selected to be exhibited at IStructE HQ in London on 21st October 2015.

I have been invited to attend the exhibition to see the selected competition entries, during which the final winners will be
announced.

Seetharam Anantharam
PTD Divisional Internal
Audit Congratulations to
The first STEP PTD
Divisional Internal Audit Simon Kigo who has obtained a Post Graduate Diploma in Financial Strategy.
was held in Brighton &
Glasgow 18 20 August
2015.

The results, overall were

Requires Attention. We
consider this to be a good
start under the new STEP
regime.

Some specific areas that

were noted which did
require improvement were:

Timely completion of
eForms, in particular
for proposal approval,
PPW, and MPCMs.

Reviewers should
receive more support
completing the project
reviews to ensure all
risks have been
considered.

Post project reviews Simon started the program in January of 2014 and graduated on October 3rd 2015.
should be completed
on 20% of all closed
projects. The final qualification is a Post Graduate Diploma in Financial Strategy. Overall the
qualification provides the ability to apply expert analysis techniques in corporate and
PDRs are still business strategy, investment appraisal, capital structure and corporate valuation.
significantly overdue. According to the school, participants typically have ten years professional experience,
and must have a minimum of five years plus a good first degree.
PTDs internal Anti-Bribery
Management System audit
was also held at the same Im sure this qualification will put Simon in an excellent position to continue the
time and was used to development of his career. Congratulations to Simon!
increase awareness and
highlight areas of
improvement.

PTD globally had 99% If you have any more news like thisplease share it with us!
completion of the Ethics
Compliance and Business
Ethics getting it right
mandatory training. An
overall good understanding
of the ABMS was found with
the staff audited.

Well done to all those

involved!!

A similar audit is currently

being carried out in our
Middle East offices.

Jack Ingram
Introducing our Glasgow Applications Team
PTD is well known for its capabilities in optioneering, frontend and owners engineering for transmission and distribution
projects. What is perhaps not so widely recognised is that we also offer a full electrical detail design service for secondary
applications. The Glasgow Applications team has engineers, designers and CAD operators who provide detailed design
solutions and drawings for a variety of clients across voltage levels from 11 kV to 400 kV.

Originally, the secondary Applications team in Glasgow

was developed to complement the work being
undertaken by our old TDU Leeds office and our first
major client was National Grid. A successful outcome led
to us winning similar work from Alstom for the
replacement of substation control systems at Landulph
and Wymondley substations. When GE Energy Systems
entered the UK transmission market we were able to win
further interface works from them including installation of
new protection panels as well as control systems. Latterly
we completed several successful projects in collaboration
along with our SEESA colleagues with Alstom in Stafford
a working relationship we intend to maintain well into
the future.

Although NG and SEESA/ALSTOM are an important client, of course not all our work has been in the UK and nor has it
been exclusively at transmission level. We contributed to interfacing work for fault recorder and control system
replacements for NG USA and we have also carried out major works at 150 kV, 220 kV and 380 kV for TenneT, the Dutch
grid operator. These projects brought their own challenges as we had to adopt new engineering and CAD standards. Closer
to home, we have recently completed interfacing works at 110 kV for NIE and at 132 kV for Miller Construction on behalf of
Scottish Power.

In addition to our T and D works we have also developed an expertise in 11 kV infrastructure solutions for private network
operators and provide designs for switchboards, transformers, cabling, earthing and associated control and protection. An
interesting ongoing project is to develop the site construction supply for the Hinkley C Power Station, where we have
designed a supply network from point of connection at the National Grid system right through to the 400 V feeder pillars that
will power the construction machinery. This project, although led out of Glasgow, has actually been a model of collaboration
between disciplines in Motts with primary, secondary, cabling, earthing, building services, civil and studies engineers all
contributing to a fully joined-up design. In fact the client acknowledged early in the project that he had never before come
across a company that could truly do everything under one roof.

So can we ask our colleagues who work primarily on consultancy: please remember when talking to your clients, that here
in Glasgow, we have a capability to take your front-end designs through to completion!

Ian Kirkpatrick
Symes Says
Profit Release

Up until this year, MML used a conservative method to release profit throughout the life of a project,
based on the cube of the fractional completion applied to the projected total profit at completion.

This is referred to as M3 profit release (CLB).

i.e. profit to date = total budgeted profit x (labour costs to date/total budgeted labour costs)3

From this year MML have moved to a less conservative method to release profit, this is known as Straight line Labour (SLB).
So if you labour actual spend is 50% of your budgeted labour, then 50% of the total budgeted profit is released.

One impact is that under Straight Line profit is released earlier than it was under M3. This means it is even more important to
keep your budgets up to date and accurate. This will avoid any nasty negative profit releases if budgets do need significant
adjustments!!

Patrick Symes

Case Study

400 kV Double Circuit Cable Crossing of the Menai Strait, Wales

MML have recently been awarded the FEED Contract from NG for the above work and to bring the project to
Development Consent Order level. This cable development is part of the two new 400 kV circuits that will be required to
connect the new Horizon Nuclear Station to be built at Wylfa, on the West Coast of Anglesey Island.

The work involves considerable support works in looking at the various route options that might be considered for the
Menai crossing.

The MML Project Manager, Evert Van Iwaarden, leads a multi- disciplinary team that includes the following specialties:

Tunnelling/HDD - Michael Gaunt and Jonathan Lee

Geology - Gareth Mason
Marine and Coastal Engineering - Kevin Keating and Evan Lewis
Environmental - Joanne Bates and Melanie Reid
HV Cables - Kenneth Benton and Eugene Bergin
Civil - Callum Jones, Evert Jan van Iwaarden and John Weeks

Eugene Bergin
HR News
Mott MacDonald will be launching a Global Employee Engagement Survey this November. The aim of the survey is to
obtain an understanding of the level of employee engagement across Mott MacDonald. This survey will give employees
the opportunity to provide feedback to senior management in a confidential way. The results from the survey will be
published in January 2016, and this new style of survey will allow Units/Divisions/teams to produce action plans that
enable us to improve or sustain levels of engagement, based on the survey results. Look out for further communication
on the 2016 Mott MacDonald Engagement survey. Please take the time to complete this survey in November so that your
voice can be heard.

Our new starters since our last publication

Ljiljana Breberina, Qatar. I am a Civil (Structural) Engineer with over 12 years of professional experience
in Buildings and Oil & Gas sector. My experience includes the analysis and design of RCC and steel
structures, including commercial, industrial and residential buildings. All stages of the structural design;
concept and detailed design. Drawings preparation, site supervision and project coordination. Particular
skills that have added value to the above technical parts of the projects include co-ordination of
multidisciplinary design including interfaces with all parties of the project; client, local authorities,
contractors, consultants from tendering stage through design and construction to invoicing.

Fiorald Liko, Doha. I have worked as a civil engineer in the construction of new, and refurbishment of,
overhead lines from 22 kV to 220 kV. My working experience also includes the construction of new
substations ranging from 35 kV to 220 kV. I have also worked on the refurbishment of the 500 MW
substation for the biggest hydropower plant in Albania. Before joining Mott MacDonald in Qatar ,I had
been part of the supervision team on the construction of the new 220 kV overhead transmission line for
the Devoll Hydropower Project.

Fay Lelliott, Brighton. I am an Electrical Project Engineer with over 5 years experience in the transmission
and distribution sector. I have experience in substation design, cable design, grid connections, technical
advisory services, OFTO regimes, O&M Contracts, and project management. I am an enthusiastic
supporter of the use of BIM in client deliverables. I am keen to develop new skills and enjoy supporting
others to develop theirs. I have just returned to Mott MacDonald following a 6 month career break to fulfil
some personal travelling ambitions and am very happy to offer advice on travelling in South East Asia,
China, Japan, or Scandinavia! I am looking forward to throwing myself back in to the T&D team and look
forward to working with each of you.

Jack Hunter, Brighton. I am an Electrical Project Engineer within the Cables team down on
the sunny south coast. Before arriving at Motts I spent nine years in Southampton studying
for both of my degrees. My PhD was focused on applied signal processing and I also got to
play around in the High Voltage Laboratory - allowing me to develop my technical, practical
and commercial experience. I recently arrived back from eight weeks in Australia and South
America having been completing detailed research in the fields of extreme sports and liquid
refreshment. Ive really enjoyed the first week in this new and exciting environment and
look forward to meeting and working with many of you.
 Laura Orton, Brighton. I am the Recruitment and
Health, safety
Personal Assistant supporting Gareth Sharp and David and wellbeing
Holding. I have just returned to the UK having spent the
past two years living in Calgary, Canada, where me and Anti Bullying
my family were able to travel in and experience the North
American way of life including attempts at ice skating! I
have returned to Mott MacDonald having previously been Mott MacDonald has a zero
an HR Assistant for PTD for six years. I will be responsible for revamping our tolerance approach to bullying,
interview process and managing the way that our candidates and prospective new harassment and victimisation
starters experience the company. I will also be taking on some administrative and we want to ensure our
responsibilities for the team. managers and staff are able to
create a professional and
Georgios Perlepes, Brighton. I am an electrical engineer who has inclusive workplace for
joined the protection and control team. I received my MEng in everyone.
Electrical and Computer Engineering in Greece before moving to
Glasgow to complete the MSc in Electrical Power Engineering with Our companys policy is to
Business at the University of Strathclyde. With a background in provide a working environment
HVDC protection and power system reliability, I am looking forward free from bullying, victimisation
to working on various projects and becoming a specialist in the and any other form of
design and operation of transmission and distribution networks. harassment constituting
unacceptable, offensive,
Andy Murray, Glasgow. I have just joined the Transmission and
frightening or distressing
Distribution department after graduating with a Masters in Electrical
behaviour.
and Mechanical Engineering from the University of Strathclyde. I
have previous experience working for a DNO and am looking
To support professional
forward to putting the skills and knowledge I have learnt to good use
conduct and create an inclusive
on all projects I will be working on.
workplace we have brought
together a working group of HR
and Business Unit
Also welcome to Hardik Shah, Metropark-Iselin; Michelle Evans, Boston; Rajan Seri representatives to collaborate
Palanisamy, Doha; Venkatachalam Adimoolam, Doha; Henry Zvekare, Botswana;
on raising awareness of our
Dinesh Kachaleeswaran, Doha; Beau Burgau, Boston and Radostin Nikolov, Doha.
professional standards.

We will keep you informed as to

how this progresses and the
Welcome aboard!
various initiatives that will come
out of it.
Obituary Contact Us
Ralph Wylam. Ralph worked for Mott MacDonald in the Power Transmission & Weintendtoissuethis
Distribution Division in both the Middle East and the UK from 1982 until his onaregularbasistokeep
retirement in 2003. He passed away peacefully on Saturday 7 September 2015 at youinformedoflatest
the St Peter and St James Hospice in Wivelsfield.
developmentsacrossthe
division.

We would particularly like

to see more contributions
from outside the UK so
please, ifyoudohave
anycommentsor
sugges ons,letDavid
Holdingknowon01273
365270or
david.holding@mo mac.
com

Please do not circulate

this publication outside of
PTD.