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29th Issue - April 2015

News from the International Association of Engineering Insurers

In this edition

Nr. Topic Page

1 News from the Executive Committee 2

2 What is new on www.IMIA.com 2

3 Photo Competition 2015 has started 2

4 Third IMIA Engineering Training Course, March 2015 in Berlin 3

5 IMIA Annual Conference 2015 5

6 Iconic Buildings – Follow-up 5

7 Highest Bridge in Europe 6

8 New Transformer Requirements 7

9 Learning from Losses 8

9.1 Fire shuts in a powerhouse at 240-MW Uri-II hydroelectric project in India 9

9.2 Sicily bridge collapses within days of opening 9

9.3 Doha Metro TBM damaged in tunnel flood 10

9.4 Thieves filch faucets and cause a flood on a construction site 11

IMIA NEWS

Pont de Millau in Southern France :

The highest bridge of Europe

celebrated its 10 years of operation.

It was a challenge not only to all Engineers involved , but also to

Engineering Insurers see page 7

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1. News from the Executive Committee

The EC had its last meeting on 20th March 2015 in Paris. The Minutes of Meeting can be found on www.imia.com (login necessary). Here are some of the key

points:

The preparations for the 48th Annual Conference in Mérida/México in 2015 are underway. More information will be provided via email and in the next issue of IMIA News Sheet.

The 49th Annual Conference in 2016 is being planned to take place in Qatar.

The IMIA Academy has successfully performed its 3rd Engineering TrainingCourse in Berlin, from March 9 – 13, 2015. More courses are being planned for

2016

The roadmap for the next 18 months of IMIA which had been agreed in the last

EC meeting has entered a phase of implementation, the subcommitteesreported on progresses made in their subject areas.

The EC is pleased to welcome Confianza Seguros, Bogotá/Colombia and TorusInsurance London/UK as new members in IMIA :

2 What is new on www.imia.com

The following documents have been placed on www.imia.com during the last three months:

- Offshore Code of Practice http://www.imia.com/wp-content/uploads/2014/10/Offshore-Code-o-P_vds_3549en_web.pdf

- web site statistics (this is for members and requires login, then go to Members area and web suite statistics)

3 Photo Competition 2015

The photo competition 2015 has started. You are invited to submit your outstanding

technical photos (risk, projects, losses) to the IMIA secretary until end of June 2015.

The competition rules are the same as last year and can be found under see

http://www.imia.com/wp-content/uploads/imiamembers/activities/

photo_competition/Entry-rules-for-competition-2015.pdf

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4 Third IMIA Engineering Insurance Training Course 2015

The Third Engineering Insurance Training Course has taken place in Berlin from

March 09-13, 2015.

There were 32 students from 14 countries all over the world.

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The organisation has again been provided perfectly by the German Insurance Association GDV and its entity DVA (German Insurance Academy). IMIA is very

grateful to all persons involved for all their excellent support.

More or less, the same experienced seniors as in the previous courses, from leading insurers, large reinsurers and insurance service providers lectured on

actual engineering insurance topics for four days, we owe them and their employers special thanks. Contents and Agenda are available on

http://www.imia.com/home/imia-activities/imia-engineering-course/

An examination took place on Friday morning, the average grades achieved were again better than in the previous years. Currently two more courses are being

planned for 2016, one again in March Berlin, another one in autumn in

Singapore.

5. IMIA Annual Conference 2015 in Merida (Yucatán), México

The next Annual Conference of IMIA will be hosted by AMIS (Association of

Mexican Insurance Institutes) It will take place from Sept. 26th to 30th, 2015 in Hotel Fiestamericana, Mérida in México.

Preparations are already quite advanced. Invitations have been sent out to

the delegates.

More information is provided on the IMIA websitensuch as Country

Information, General Programme and a preliminary Conference Agenda.

These will be updated from time to time.

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6. Iconic Buildings another follow-up

There is an interesting list of leaning towers in the internet, see http://en.wikipedia.org/wiki/List_of_leaning_towers

A leaning tower is a tower which, either intentionally, or unintentionally (due to errors in design, construction or to subsequent external influence) does not stand perpendicular to the ground.

They pose different problems to underwriters, as well in construction as in operation. If they are constructed intentionally as leaning towers this may be due to the intent of creating iconic buildings, see the Capital Gate in Abu Dhabi.

The respective IMIA paper presented to the Annual Conference 2012 in Rio de Janeiro is therefore still of great actuality. see http://www.imia.com/wp-

content/uploads/2013/02/IMIA_Working_Group_Skyscrapers_final_paper_Sept_2012_b1.pdf.

Capital Gate Abu Dhabi

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7. Highest Bridge in Europe

The Viaduc of Millau, France, the highest bridge in Europe. celebrated its 10th anniversary in Dec

2014

It was designed by Architect Norman Foster. Some of its pylons are higher than the Eiffel Tower in Paris. Engineering Underwriters had Construction All Risk Insurance had to study the outstanding exposures, not only due to storm in the Valley of Tarn, but also due to the unusual height and slimness of its pylons. During launching and prior to the tower and cable stay erection.calculated deformations had to be conceded.

Whilst the height of the bridge is given with 277 mtrs, the total height of 343 mtrs even exceeds the Eiffel Tower, Paris in height.

Some technical details can be found under

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http://highestbridges.com/wiki/index.php?title=Millau_Viaduct

more info under http://highestbridges.com/wiki/index.php?title=Millau_Viaduct – note the

deformations of the deck.

8. New transformer requirements

A transformer seminar arranged by an important supplier of such equipment was recently conducted in Europe.

One of the topics of discussion was the EcoDesign Directive 2009/125/EC which becomes effective from 1st July 2015. This directive could have a significant impact on insurance of power plants in the European Union!

Essentially there is a requirement for any new or replacement transformers to conform to a higher specification to reduce energy losses.

If the Generator Step Up transformer fails on a power plant and the transformer is beyond repair it will have to be replaced with a transformer conforming to the new regulations – this would mean a lengthy downtime probably 12 to 18 months to manufacture a new replacement transformer conforming to the new standards. This could lead to much longer BI .

If the plant already has a spare GSU transformer then this could be installed. However, they would not be able to replace the damaged transformer with a second hand transformer from anyone else unless it conformed to the new directive; i.e. where there is a change of ownership the replacement transformer must comply with this Directive. In the past where large transformers have failed replacements have sometimes been acquired from other utilities, this may not be possible in the future.

Consequences raise attentions especially by aging equipment (particularly transformers) and if there are no spare transformers available within the company.

Contributed by Helvetia Insurance

For a discussion of this topic see the IMIA grouip on www.linkedin.com which meanwhile counts 179 members.

9. Learning from Losses

9.1 Fire shuts in a powerhouse at 240-MW Uri-II hydroelectric project in India

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The 240-MW Uri-II hydroelectric project in the district of Baramulla in Jammu and Kashmir, India

A transformer ignited a fire in the main powerhouse of the 240-MW Uri-II hydroelectric project in the

district of Baramulla in Jammu and Kashmir (J&K), India, at 6 a.m. local time on Nov. 20. The fire

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destroyed part of the powerhouse and forced its four 60-MW generators to shut down at the US$450

million project.

Uri-II is a hydroeleectric project with a 52-meter-high concrete gravity dam and an underground

powerhouse connected to the dam by a tunnel. The main power station is only accessible through a

subterranean tunnel.

Uri-II was commissioned July 4, 2014, and it is the second power project on the Jhelum River

operated by India’s hydro authority, National Hydroelectric Power Corp. (NHPC). It is located

downstream from the 480-MW Uri-I hydroelectric project, which began operating in 1997.

According to the Atomic Energy and Alternative Energies Commission and NHPC, the Uri-II

hydroelectric project consists of the following:

• Concrete Gravity Dam — 52 meters high (43.7 m above riverbed) by 172 meters long

• Headrace Tunnel — Horse shoe type; 8.4 meters in diameter, 4.27 kilometers long

• Powerhouse — Underground; four 60-MW units; net head 118 m

• Turbines — Vertical Francis

• Tailrace Tunnel — 8.4 meters in diameter, 3.78 kilometers long

• Original commissioning date — 2009, actually commissioned July 2014

• Switchyard — 400 kV

When Uri-II was commissioned, it increased NHPC’s hydropower generation capacity to 2,009 MW in

J&K. NHPC has additional hydroelectric projects throughout J&K that include 690-MW Salal, 390-MW

Dulhasti, 120-MW Sewa-II, 45-MW Chutak and 44-MW Nimo Bazgo.

First loss estimates are 30 – 50 mio USD.

Sources see

http://www.hydroworld.com/articles/2014/11/fire-shuts-down-powerhouse-at-240-mw-uri-ii-hydroelectric-project-in-india.html

http://kashmirwatch.com/news.php/2014/11/20/kashmir-major-fire-breaks-out-in-uri-ii-power-project.html

http://www.dailyexcelsior.com/major-fire-destroys-uri-ii-power-house/

9.2 Sicily bridge collapses within days of opening

There are hundreds of unfinished public projects around Italy, so those behind the Scorciavacche viaduct, which lies on a stretch of highway between Palermo and Agrigento, had reason to celebrate when it opened on December 23rd - three months ahead of schedule.

But less than two weeks later the bridge had to be closed after part of it collapsed. The company responsible for public roadworks and maintenance, said an "abnormal subsidence" had occurred.

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Sources see

http://www.thelocal.it/20150105/13m-sicilian-bridge-collapses-within-days-of-opening

http://www.ilgiornale.it/news/cronache/ponte-crollato-sicilia-procura-apre-uninchiesta-1080318.html

9.3 Doha Metro boring machine damaged in unexpected tunnel flood

Doha News report on damage to a TBM during pilot drilling, although there are no details on the loss itself the article contains interesting information on the challenges of the project which will use 21 TBMs in total and which could even suffer a delay of start-up.

Quote : One source said there is a surprising amount of subterranean water in Qatar, despite its dry desert climate, and that the water entering the tunnel is likely being forced in from Doha Bay unquote

http://dohanews.co/doha-metro-boring-machine-damaged-in-unexpected-tunnel-flood/

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9.4 German ‘Watergate’: Thieves filch faucets, flood new BND Berlin HQ

The new HQ of Germany's Federal Intelligence Service (BND), one of the “most guarded” spots in the country, has suffered extensive flooding after thieves stole taps and caused a deluge. The burglars got into the building, which is under construction, unnoticed and the incident was first discovered on Tuesday when staff saw the flooding. The raiders made off with taps from bathrooms on the fourth, fifth and sixth floors in a passageway leading to the main part of the complex. This caused a massive leak that spread over several floors and also saturated cable and ventilation shafts.

Removing faucets is simple and can cause huge losses So at a first glance this could be covered as vandalism in the construction policy.

However, as it seems there were no burglars in this highly protected site. it must be suspected, that insiders have caused the flooding deliberately. In this case it might also be sabotage.

In any case, these are cover extensions which are more often than not neglected or overlooked when assessing the exposure of a project“.

More see http://rt.com/news/238145-germany-bnd-leak-flood/

And http://www.t-online.de/nachrichten/panorama/kriminalitaet/id_73358534/bnd-zentrale-in-berlin-wasserschaden-am-neubau-war-sabotage.html

hhm 31.03.2015