1. Hwange Rehabilitation Monitoring Project
Hwange Coal Fired Power Station, Zimbabwe
Project Implementation Guideline

2. Hwange Rehabilitation Monitoring Project
Table of Contents
Rehabilitation Project Team – Organisation and TasksRehabilitation Project Team – Organisation and Tasks
Approach to the Hwange Rehabilitation Monitoring ProjectApproach to the Hwange Rehabilitation Monitoring Project
The Hwange Power Station Rehabilitation ProjectThe Hwange Power Station Rehabilitation Project
Purpose of the Project Implementation GuidelinePurpose of the Project Implementation Guideline
AppendicesAppendices

3. Purpose of the Project Implementation Guideline
This Project Implementation Guideline is to be considered as a high-level
project guideline for the parties involved (ZPC, NamPower and Lahmeyer
International).
The guideline reflects the common understanding of the project and its
implementation and describes the extent of envisaged measures and the
management of this measures.
Based on this Project Implementation Guideline a detailed Project Manual will
be prepared for the most efficient cooperation between the parties. Inter alia
the following issues will be addressed with such project manual:
- Project administration;
- Responsibilities;
- Communication;
- Project documentation and filing.
A table of contents for a typical project manual for such purpose is attached
as Appendix 1. The Project Manual will be prepared by the Rehabilitation
Monitoring Team.

4. Hwange Power Station, Zimbabwe - Rehabilitation Project
The current severe situation at the Hwange Power Station can be summarized as
follows:
I. Luck of local and foreign funds for maintenance and repairs;
II. Exceeded normal major overhaul running hours;
III. Overdue for mandatory maintenance work;
IV. Thus increasing the forced outage rates and accelerates equipment
deterioration;
V. Decreased unit efficiency and low plant load factor;
VI. Latent risk of enforced outages by inspection authorities;
VII. Increased risk of critical and severe failures.
Only for Stage II (unit 5 & 6) funds were available and overhauls have been carried
out. However, luck of financing substantially reduced the envisaged scope of work.

5. Hwange Power Station, Zimbabwe - Rehabilitation Project
Due to the situation described aforementioned the plant operating conditions are as
follows as per 31 January 2007:
Unit
no.:
Last major overhaul
Running hours
to next planned
major overhaul
Running hours
since last major
overhaul
Excess running
hours
1 23/03/1996 - 31/05/1996 50 000 74 266 24 266
2 06/10/1997 - 19/12/1997 50 000 66 608 16 608
3 13/11/1994 - 01/02/1995 50 000 71 009 21 009
4 09/12/1995 - 23/02/1996 50 000 70 859 20 859
5 06/09/2002 - 30/05/2003 50 000 17 476
6 25/11/2003 - 08/08/2004 50 000 9 272

6. Hwange Power Station, Zimbabwe - Rehabilitation Project
With the foreign currency funds made available by NamPower via a specific
Stanbic bank account it is envisaged to overcome the severe situation in the
operation and maintenance of the power plant.
With the decided Hwange Power Station Rehabilitation Project the following
targets shall be attained:
I. Recapturing of unit output of 4 x 120 MW;
II. Increase of operational reliability;
III. Reduction of forced outages;
IV. Improvement of unit efficiency;
V. Grid stability.
For the purpose of monitoring the project and assist and support ZPC with the
project implementation NamPower engaged Lahmeyer International and in
addition will provide own resources during the execution.

7. Hwange Power Station, Zimbabwe - Rehabilitation Project
For the successful project implementation the following key challenges have
been identified to overcome in course of the project:
I. Tight project implementation programme;
II. Assignment of experienced experts to the ZPC project team;
III. Reliable tendering process;
IV. Delivery time of manufacturer parts;
V. Availability of local funds.

8. The envisaged scope of rehabilitation works for Stage I, unit 1 – 4 is
summarized as follows:
I. Boiler and auxiliaries:
- Super heater, evaporator and economizer tubes;
- PF-burner repair;
- Start-up burner repair;
- Tubular air heater tube replacement;
- Coal mill overhaul.
II. Steam turbine/generator and auxiliaries:
- Extensive turbine overhaul;
- Generator excitation system overhaul.
III. Ancillary systems:
- Station coal conveyer system overhaul;
- Ash disposal system;
- Water treatment plant;
- Transformer repair;
- Switchgear (LV,HV) replacement;
- Control system, unit instrumentation;
- Compressor station.
Hwange Power Station, Zimbabwe - Rehabilitation Project

9. Appendix 2 to this Project Implementation Guideline outlines a more detailed
summary of the envisaged scope of rehabilitation works prepared by ZPC.
The preliminary planning for the execution of works is listed below.
However, the detailed planning for the execution of the rehabilitation works
is subject to the next steps, the priorities of measures and the feedback from
the contractors and/or equipment manufactures:
Hwange Power Station, Zimbabwe - Rehabilitation Project
Unit Preliminary planning for rehabilitation works
Unit no.: 3 01/11/2007 - 31/12/2007
Unit no.: 1 01/01/2008 - 31/03/2008
Unit no.: 4 01/05/2008 - 30/06/2008
Unit no.: 2 01/07/2008 - 31/08/2008
Auxiliary systems 01/04/2007 - 31/10/2007

10. Based on the envisaged scope of rehabilitation works ZPC worked out a
preliminary break down of the rehabilitation works costs compiled in the
following table:
Hwange Power Station, Zimbabwe - Rehabilitation Project
Item Local currency (Mio. Z$)
(as at Mid Feb 2007)
Foreign expenditures
(Mio. US$)
Aux Plant 770.0 6.5
Unit 3 Major Overhaul 1 410.0 7.1
Unit 1 Major Overhaul 1 290.0 7.3
Unit 4 Major Overhaul 1 225.0 7.1
Unit 2 Major Overhaul 1 125.0 6.8
Contingencies 1 164.0 5.2
Total 5 823.0 40.0

11. NamPower / LI
Monitoring Team
ZPC
Managing Director
Hwange Power Station
General Manager
Hwange Power Station
Project Manager
Accounting
Quality &
Engineering
Procurement
& Stores
Works
Supervision
Contracts
Management
For the success of this project it is mandatory that ZPC’s Rehabilitation Project
Team is equipped with capable manpower during the complete project execution
period. Particular the positions for “Quality & Engineering” and “Works
Supervision” shall be continuously assigned to experienced engineers, capable of
providing the mandatory services for planning, scheduling, tendering and works
supervision.
Rehabilitation Project Team - Organisation and Tasks

12. NamPower
Lahmeyer
International
ZPC
Rehabilitation Monitoring Team (RMT) Rehabilitation Project Team
Rehabilitation Project Team - Organisation and Tasks
NamPower Tasks:
• Requirements from
PPA
• Funding of bank account
• Loan management
• Release of payment
ZPC Tasks:
• Tender documents
• Contract award
• Scheduling
• Utilities
• Works supervision
• Acceptance tests
• Works certificates
RMT Tasks:
• Support and assistance
in tendering and
evaluation
• Project monitoring
• Payment release
certificates

13. Project Preparation and Implementation Phase – Coordination between ZPC / RMT
Award of contract (ZPC)
Document distribution (ZPC)
Evaluation of bidders’ proposals
(ZPC)
RMT to support and assist in the
evaluation process
RMT to recommend contract
award
RMT to monitor the progress
Hwange Rehabilitation Monitoring Project – Task Structure
Clarification for scope of work
(ZPC)
Compilation of tender docs.
(ZPC)
RMT to support and assist in the
tender process
Issuance of request for proposal
(ZPC)
RMT to monitor the progress
Evaluation Process
Implementation
Process
Tendering Process
Project scheduling (ZPC)
Project supervision (ZPC)
Project progress meetings with
ZPC project team
Acceptance tests and certificates
(ZPC)
Project support for utilities and
resources (ZPC)
RMT to monitor the progress
Payment Release Certificate

14. Hwange Rehabilitation Monitoring Project – Approach
Stage 1- Project Preparation:
I. ZPC defined / will define the scope of rehabilitation work for
Unit 1 - 4 and ancillary systems:
- RMT will compare the suggested scope of work with the recommended measures
from the assessment report and discuss with the ZPC-Rehabilitation Project Team
the prioritised measures for:
Boiler, turbine, generator, switch yard, ancillary system rehabilitation.
II. Preparation of project time schedule for all activities:
- Priorities;
- Delivery times;
- Operational constrains.
III. Compilation of tender documents by ZPC, supported by RMT:
- Technical specification (system description, data sheets, extract from drawings,
documents, manuals etc.);
- Financial specification (to be discussed and agreed upon between the parties);
- Contractual terms and conditions (to be discussed and agreed upon between the
parties);
- Instructions to bidders (to be discussed and agreed upon between the parties).

15. Hwange Rehabilitation Monitoring Project – Approach
Stage 1- Project Preparation:
IV. Evaluation of bidders’ proposals by ZPC, supported by RMT:
- Completeness and responsiveness of submitted proposals;
- Technical evaluation to verify compliance with technical specification and QA
requirements, review of provided technical information;
- Commercial evaluation to verify the compliance with the dedicated budget and
financial requirements;
- Contractual evaluation to verify the compliance with the terms and conditions and
time schedule;
- Considerable deviations;
- Recommendation from RMT for the contract award.
V. Award of contract to successful bidders by ZPC:
- ZPC and RMT to agree on the conditions for contract award;
- RMT will confirm the contract award to NamPower and bank;
- ZPC will award the contract to the successful bidders.
VI. Project progress monitoring by RMT:
- Regular reporting to NamPower to compile status and outlook on tenders,
contracts, supplies, services and works, budget forecast and cash flow, noticeable
events.

16. Hwange Rehabilitation Monitoring Project – Approach
Stage 1- Project Preparation:
The tendering process shall be in compliance with ZPC’s tendering and
purchasing procedure which is attached as Appendix 3. ZPC’s tendering and
purchasing procedure compiles the following:
- Raising and authorisation of purchasing requisitions;
- Foreign purchases;
- Floating of direct enquiries and order placement;
- Informal tender floating and order placement.
For an effective tendering process it is mandatory that a standard procedure
will be implemented to compile the technical specifications, financial and
contractual conditions.

17. Hwange Rehabilitation Monitoring Project – Approach
Stage 2 - Project Implementation:
I. Project supervision by ZPC:
- Regular meetings with the ZPC rehabilitation project team (status, scheduling, site
activities, inspections, tests and necessary actions);
- Rehabilitation works supervised by ZPC;
- Acceptance tests verified by ZPC and witnessed by RMT (major contracts);
- ZPC will issue the acceptance certificates (PAC/FAC);
- Mandatory update of As-build drawings, documents, manuals by ZPC.
II. Project progress monitoring by RMT:
- Verification and approval of contractors’ request for payment (Payment Release
Certificate);
- Regular reports to compile status and outlook on supplies, works and services,
budget forecast and cash flow, noticeable events;
- Clarification on discrepancies between the parties;
- Recommendation on measures to be taken to ZPC and NamPower;
- RMT will monitor rehabilitation works and completion (commissioning, acceptance
tests and recommendation for completion).

18. Hwange Rehabilitation Monitoring Project – Approach
PAYMENT RELEASE CERTIFICATE
Stanbic Bank,
Botswana
NamPower PM
approves
Instruction for Payment
Payment release from
Stanbic Bank to Contractors
Contractors’
payment request
RMT verifies
and approves
Feedback on transactions to
ZPC, NamPower and RMT
ZPC approves
and signs
NamPower
Treasury releases
Process for the release of payment

19. PAYMENT RELEASE CERTIFICATE
ZPC order no.: Date of issue:
Beneficiary:
Reference no.:
Scope of work:
Approved invoice no.: Attachments:
Requested payment: - Payment instructions
Total amount to be released: (- Letter of award)
(- Contract)
Stanbic Bank, Botswana
Bank account no.:
Approved by:
NamPower ZPC Lahmeyer International
Name: Name: Name:
Signature: Signature: Signature:

20. Appendix 1 – Table of contents for a typical project manual;
Appendix 2 - Outline of the envisaged scope of rehabilitation works prepared by ZPC;
Appendix 3 – ZPC’s tendering and purchasing procedure.
Project Implementation Guideline - Appendices