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CANDIAN TECHNOLOGY TRANSFERCANDIAN TECHNOLOGY TRANSFERCERNAVODA CANDU PROJECT CERNAVODA CANDU PROJECT

The International Nuclear Energy Congress, The International Nuclear Energy Congress, Istanbul, Turkey, April 11-12, 2007 Istanbul, Turkey, April 11-12, 2007

Dr. Sardar Alikhan, Alikhan Consulting Inc.Dr. Sardar Alikhan, Alikhan Consulting Inc.(Ex-AECL-Qinshan/Cernavoda Projects) (Ex-AECL-Qinshan/Cernavoda Projects)

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Cernavoda CANDU Project

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Cernavoda CANDU Project

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Contents

Cernavoda Unit 1Scope of Work/Major ChallengesProject Management Team/StaffingEngineering ManagementConstruction ManagementStatus Verification/Remedial WorkPlanning and ControlCommissioning and OperationsOperations Staffing/TrainingTurnover to Operations

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CONTENTS

Cernavoda Unit 2 Scope of Work Reference Design Project Management Team Current Progress

Localization of Technology Nuclear Infrastructure Fuel Fabrication Heavy Water Production

Key Factors to Success Concluding Remarks

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Cernavoda 1 & 2 - Romania Cernavoda 1:

Unit completed in Dec. 199687% lifetime capacity factor

Cernavoda 2: Commissioning and testing is currently underway, ready for

first criticality and scheduled for commercial operation later in 2007

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CERNAVODA UNIT 1

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CERNAVODA UNIT 1 CONTRACT In 1992, Romania signed a new contract with AECL-ANSALDO

Consortium (AAC) authorizing AAC to manage the remaining work to complete Unit 1 and to preserve Unit 2-5

The new contract took full recognition of previous technology transfer agreements signed with AECL for NSP, with ANSALDO for BOP and with GE for T-G

At this time, Unit 1 and Units 2-5 were at various stages of completion. Most of the major equipment were already installed for Unit 1 and 2 but its status needed to be thoroughly verified to meet current quality and licensing requirements.

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AAC SCOPE OF WORK

Manage completion of construction, installation, commissioning and early operation of Unit 1 and preservation of Unit 2-5.

Provide QA assistance to local nuclear component manufacturers Provide technical assistance and training to construction

contractors, especially in welding and NDE Engineering management and services covering all activities

required for Unit 1 completion, including coordination between NSP, BOP and Support Services

Procurement of goods and services locally and outside, maximizing Romanian content

Perform selection, training of Romanian operations staff Perform commissioning and operations services, extending up to

18 months after in-service

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Project Management Team (PMT)

Customer delegated its full authority to AAC PMT to manage the project on its behalf and placed all resources required at its disposal.

PMT authorized to stop all or part of the work, reject any supplies or services, if it does not meet the safety and quality requirement.

Prior customer authorization required to commit funding in excess of the approved budget in foreign exchange and local currency

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PMT STAFFING

• Project Management

- In Unit 1, led by AECL-ANSALDO and with participation of the Owner’s staff

Owner’s staff integrated in the Project Management Team and Commissioning Team to the fullest extent possible

Peak Expatriate staff of 400 (240 AECL, 160 Ansaldo) Over 2000 Romanian staff integrated in PMT and

Commissioning Team

Expatriate staff provided hands-on field supervision. Production and quality went hand in hand. If work is

not done right, it was rejected and redone correctly.

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Engineering Management and Quality Surveillance

Overall direction, coordination and administration of all engineering services: Interpretation of technical documents Technical direction and resolution of all construction,

commissioning, and safety/licensing issues Approval of subcontract work packages Check compliance of as-constructed plant with design,

rejecting any non-conforming items Manage NDE inspection program Manage project change control process Certification of interim and final acceptances Approval of as-built drawings

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Construction Management

Overall direction, coordination and administration of construction on Unit 1 and remedial work on Unit 2: Implementation of construction methods, schedules,

work packages and manpower schedules Technical assistance to local construction subcontractors Support implementation of inspection programs Management of construction subcontracts Establish a common labour policy with subcontractors Establish progress reporting system for subcontractors

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Baseline Design and Construction Status Verification

AAC Engineering and Quality Surveillance team performed an in-depth verification of the status of NSP, BOP and Support Systems Check all design documentation for completeness Check all SSCs for correct installation per design Perform all NDE for systems that require to be qualified Check locally supplied equipment and materials for

compliance with equipment specification Prepare comprehensive status reports to perform remediation

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Remedial Work

Examples of remedial work included: All piping welds inspected and repaired as required Piping system cleaned Cracked concrete on containment dome replaced Locally made diesel generators replaced with

imported units Refurbishment of support systems e.g. heating

boilers, WTP, Firewater, common pump house equipment etc.

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Planning and Control

• Planning process started before the Contract effective date and continued for the lifecycle of the Project.– Establish project work breakdown structure and logic

– Develop level 2 coordination and control (C&C) schedule

– Establish realistic targets for each milestone

– Define project priorities

– Report actual progress

– Identify Critical issues

– Ensure all parties work to a common goal

• Use as-built schedule to input to future projects taking into account lessons learned and other developments.

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Integration of Inputs to C&C Schedule

L2 Schedule(C&C)

Engineering Procurement

Construction(Area)

Commissioning(System) Conversion

Project Budget

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COMMISSIONING AND OPERATION

AAC Commissioning/Operations staff: Led and supervised commissioning and initial operation including in-

service inspection and maintenance. Accepted systems turnover from construction Supervised commissioning for compliance with approved procedures Evaluated commissioning completion to declare availability for

service Supervised operations support programs: shift operation,

maintenance, chemistry control, materials control, radiation protection, industrial safety, safety and licensing, planning and scheduling

Assist in staff training Customer provided full complement of operation staff AAC staff transferred leadership and supervision to customer’s staff

gradually as a function of their demonstrated capability

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OPERATIONS STAFFING PLAN

AAC developed staffing plan along with specific position specific requirements

Covered full complement of operations staff trained and available for commissioning and operation at least 18 months prior to Unit 1 connection to grid

Supported the customer to select personnel

Developed and conducted training program for key operations staff

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OPERATIONS TRAINING

90 key Romanian staff identified for training in Canada. Management and senior supervisory 10 Shift operations 50 Maintenance 10 Computers 4 Technical support 12 Other 4

Training durations ranged from 4 to 24 months depending on job requirement

Classroom training in CANDU technology, skills training, in-plant training in Canada, and simulator training.

On-the-job coach and mentoring during commissioning and early operation

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Unit 1 Turnover to Operations

Assessment of all structures, systems and components for compliance with design requirement

Assessment of each operations department along with recommendations to fill any gaps

Following formal turnover of Unit 1, WANO conducted a Peer Review in July-August 1997. One of the key strengths noted was: “ A very knowledgeable and professional management team is

established. The management team willingly embraces new ideas, and is highly motivated to achieving excellence in the operation of the plant.”

Unit 1 operated by Romanian operating staff since in service date has an excellent safety and performance record

Lifetime capacity factor for Unit 1 over the past 10 years is around 87%

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June 30, 1997 at 17:00Sardar Alikhan handingover Unit 1 to Ionel Bucur

Pg 23 Unit 1 completed and operating at 87% CF since in-service

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Cernavoda Unit 2

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Unit 2 Contract Scope

The Contract between SNN, AECL and ANSALDO became effective on March 24, 2003

With CED, relevant financial agreements finalized, allowing rapid build up of expatriate staff

AECL and ANSALDO provided firm price home office support to: perform conceptual engineering procurement of sole source pre-assigned supply procurement of other items as a result of SNN international

tender process. Balance in Romanian scope including detailed

engineering, equipment and /material supply and construction

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Unit 2 Reference Design

Unit 2 reference design took into account current licensing requirements and factored in: Unit 1 as-built design as of 30 June 1997 Assessment of Unit 1 commissioning reports Assessment of design changes implemented on Wolsong 3 and

4 and Qinshan 129 major design changes and 154 design improvements

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Cernavoda 2 Project Management StructureCernavoda 2 Project Management Structure

OwnerSNN Construction

Site EngineeringProject Management

AECL (Lead)/Ansaldo/SNN

Commissioning

Conceptual Engineering AECL

Conceptual Engineering Ansaldo

Equipment- Ansaldo

Equipment- AECL

T/G - GE

Equipment - Alstom

Equipment - NEXANS

Construction– Romanian

Fuel– FCN

Heavy Water– RAAN

Equipment - Romanian

Detailed engineering– Romanian

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Unit 2 Project Management

Engineering, Procurement and Construction- Led jointly by SNN and AECL-ANSALDO Required full integration and team effort of all parties including

AECL-Canada, ANSALDO-Italy and SNN-owner Project management though a site-based Management Team (MT) SNN providing deputies at all levels providing full integrated team

approach Peak staffing: 180 expatriates, and 1450 Romanians. Site

construction contractors staff peaked around 3000 Expatriate staff split 60/40 AECL/ANSALDO- More than 80% of project management staff were Romanian

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Current Progress

Commissioning of all systems required for fuel load completed

Fuel loading completed Unit ready to achieve first criticality Commercial operation expected in fall 2007.

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LOCALIZATION OF TECHNOLOGY

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Nuclear Infrastructure

Nuclear Fuel Fabrication Plant in Pitesti. Heavy Water Production Plant in Drobeta-Turnu Severin

Heavy Nuclear Equipment Factory in Bucharest Nuclear Research Institute in Pitesti for R&D CITON engineering and technology centre for nuclear

project in Magurele, near Bucharest Romanian construction contractors in civil,

mechanical, electrical and C&I Other specific nuclear materials and devices

manufacturing plants

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Fuel Fabrication Romania has localized nuclear fuel fabrication from

the mine to the fuel bundle since the start of Unit 1 operation

Local fuel has excellent quality and reliability Canadian Zircatec provided technical assistance The facilities are expanded to supply fuel to unit 1 and

2 starting in 2007 Local fuel supply results in domestic industrial benefit

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Heavy Water Production

Produced by ROMAG-PROD located at Turnu Severin

All heavy water requirements for Unit 1 operation and Unit 2 initial load

350 tonnes of heavy water leased for Unit 1 initial load from Canada returned

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Key Factors to Success

Extensive pre-project planning to reduce project risk Continuous development of human resources to

balance attrition to other industries Completion of design prior to start of work at Site Availability of project management tools to train staff Capable construction and installation contractors Smaller number of contracts minimize interface

complexities Development of “do it right first time” culture

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Key Factors to Success

Ability to stop work to enforce quality All Site staff to act as quality surveyors Quality and safety culture accepted at every level All parties worked to international quality programs Effective and productive partnership and team work

through an integrated organization

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Concluding Remarks Cernavoda 1 has resulted in reduction of oil imports of

around $150M a year Nuclear technology has introduces a higher level of

technology and QA Success of Unit 1 operation and Unit 2 completion

project has resulted in Romania's decision to complete Units 3 and 4: Project model is joint SNN and private sector investment Interest to invest by major European utilities Project expected to start in 2008 Romanian companies to play leading role in engineering,

construction, commissioning and project management.

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Beni dinlediginiz icin tesekkurler!!