Global EPC Business model
Agenda Definition of International EPC Projects Definition of EPC Projects Typical International EPC Projects Current Trend of International EPC Projects EPC Projects Development EPC Projects Bidding Procedure Business Model of International EPC Contractors SWOT of Contractors in the International EPC Projects Winning strategy of a Contractor – sharing experiences Open discussion
DEFINITION OF INTERNATIONAL EPC PROJECTS  Investors Foreign Government / State-Owned Enterprises Foreign Private Sectors Project Location A foreign location Project Fund / Budget Source   Foreign Government  Shareholders Project Finance by the Owner (International Financial Institutes and Commercial Banks)  Project Finance by the Contractors (EXIM Bank and Commercial Banks ) Players   International E&C Firms from the Developed Countries
DEFINITION OF EPC PROJECTS E: Engineering & Design Process Design (PFD) Basic Design (FEED) Detailed Design P: Supply of Equipment & Materials Ps: Procurement Service C: Construction Cm: Construction Management Service Ca: Construction Advisory Service K: Commissioning & Start-UP
TYPICAL INTERNATIONAL EPC PROJECTS Gas Processing Chemical Process Industries (Refinery, Petrochemical, Chemical, etc.) Power Plants (Coal-Fired, Gas-Fired, Hydro, Nuclear, Wind, etc.) Steel Mills Infrastructure (MRT, High Speed Rail, Highway, Harbor, Airport, Dam, Desalination, etc. ) Environmental (Wastewater, Municipal Waste Incineration, De-Nox, De-Sox, etc. )
CURRENT TREND OF INTERNATIONAL EPC PROJECTS Booming in the Countries either with Low Cost Raw Material or Huge Market Mid East PR China Mega-Sized and Complicated Project Integrated Complex World-Scale Capacity Global Keen Competition Project Finance Partnering Arrangement
EPC PROJECTS DEVELOPMENT (1/2)  Project Planning & Preparation Phase Project feasibility study and Define Scopes Government / Regulatory Approval Funding / Budgeting Project Definition Phase   Technology / License Selection PMC / Engineer Selection  Process Design / Basic Design
EPC PROJECTS DEVELOPMENT ( 2/2 ) Project Implementation Phase   Pre-Qualification of the Potential Bidders  EPC Bid (ITB, Site Visit, Clarifications, Bid Submittal) Contract Award (Clarification & Negotiation) Project Execution Pre-Commissioning & Commissioning O&M Phase Start-Up & Operation Maintenance
EPC PROJECTS BIDDING PROCEDURE Define Scope Funding  Budgeting Feasibility Study Project Planning & Preparation Phase PMC/Engineer Selection Process/ Basic Design ITB Preparation PQ Evaluation  & Clarification ITB Bid Evaluation & Clarification Bid Negotiation Letter of Intend Contract Negotiation & Signing Owner Marketing/Sales  Approach Bidding Strategy Partnering PQ Proposal Site Survey & Clarification Cost Estimate & Bid Submission Contractor Project Definition & Implementation Phase Project Execution Engineering Design Procurement /Supply Construction Implementation Phase
BUSINESS MODEL OF INTERNATIONAL EPC CONTRACTORS ( 1/2 ) Partner Structuring   (contract scheme) Consortium, Vertical Split, Joint and Several Joint Venture, Share Profit & Loss Prime and Sub, Horizontal Split Global Resources Integration   Low Cost Engineering Offices 1st Layer Management by Expat 2nd Layer Management by 3rd Countries 3rd Layer by Local Sub
BUSINESS MODEL OF INTERNATIONAL EPC CONTRACTORS ( 2/2 ) Risk Management Technical, Commercial, Financial Risk Analysis, Risk Transfer, Risk Mitigation, and Risk Control Support by Financial Institutes   Project Finance by EXIM Bank and Commercial Banks Bonding via Global Network
SWOT OF CONTRACTORS  IN THE INTERNATIONAL PROJECTS S trength  –  Well-Educated Engineers with Diversified Construction Experiences and Devoted Mentality W eakness  –  Lack of Projects Records, English Language Barrier, Poor Support by EXIM Bank and Related Industries  O pportunity  –  Numerous T hreat  –  Contractors from other Asian countries
WINNING STRATEGY OF  CONTRACTOR –SHARING EXPERIENCES How could you be invited to bid alone or with a partner? What benefits you can bring it to a partner? Establishment of projects records Project management capabilities Global EPC capabilities and experiences Finance capabilities Joint forces of contractors
OPEN DISCUSSION
Thank You

EPC Business Model

  • 1.
        GlobalEPC Business model
  • 2.
    Agenda Definition ofInternational EPC Projects Definition of EPC Projects Typical International EPC Projects Current Trend of International EPC Projects EPC Projects Development EPC Projects Bidding Procedure Business Model of International EPC Contractors SWOT of Contractors in the International EPC Projects Winning strategy of a Contractor – sharing experiences Open discussion
  • 3.
    DEFINITION OF INTERNATIONALEPC PROJECTS Investors Foreign Government / State-Owned Enterprises Foreign Private Sectors Project Location A foreign location Project Fund / Budget Source Foreign Government Shareholders Project Finance by the Owner (International Financial Institutes and Commercial Banks) Project Finance by the Contractors (EXIM Bank and Commercial Banks ) Players International E&C Firms from the Developed Countries
  • 4.
    DEFINITION OF EPCPROJECTS E: Engineering & Design Process Design (PFD) Basic Design (FEED) Detailed Design P: Supply of Equipment & Materials Ps: Procurement Service C: Construction Cm: Construction Management Service Ca: Construction Advisory Service K: Commissioning & Start-UP
  • 5.
    TYPICAL INTERNATIONAL EPCPROJECTS Gas Processing Chemical Process Industries (Refinery, Petrochemical, Chemical, etc.) Power Plants (Coal-Fired, Gas-Fired, Hydro, Nuclear, Wind, etc.) Steel Mills Infrastructure (MRT, High Speed Rail, Highway, Harbor, Airport, Dam, Desalination, etc. ) Environmental (Wastewater, Municipal Waste Incineration, De-Nox, De-Sox, etc. )
  • 6.
    CURRENT TREND OFINTERNATIONAL EPC PROJECTS Booming in the Countries either with Low Cost Raw Material or Huge Market Mid East PR China Mega-Sized and Complicated Project Integrated Complex World-Scale Capacity Global Keen Competition Project Finance Partnering Arrangement
  • 7.
    EPC PROJECTS DEVELOPMENT(1/2) Project Planning & Preparation Phase Project feasibility study and Define Scopes Government / Regulatory Approval Funding / Budgeting Project Definition Phase Technology / License Selection PMC / Engineer Selection Process Design / Basic Design
  • 8.
    EPC PROJECTS DEVELOPMENT( 2/2 ) Project Implementation Phase Pre-Qualification of the Potential Bidders EPC Bid (ITB, Site Visit, Clarifications, Bid Submittal) Contract Award (Clarification & Negotiation) Project Execution Pre-Commissioning & Commissioning O&M Phase Start-Up & Operation Maintenance
  • 9.
    EPC PROJECTS BIDDINGPROCEDURE Define Scope Funding Budgeting Feasibility Study Project Planning & Preparation Phase PMC/Engineer Selection Process/ Basic Design ITB Preparation PQ Evaluation & Clarification ITB Bid Evaluation & Clarification Bid Negotiation Letter of Intend Contract Negotiation & Signing Owner Marketing/Sales Approach Bidding Strategy Partnering PQ Proposal Site Survey & Clarification Cost Estimate & Bid Submission Contractor Project Definition & Implementation Phase Project Execution Engineering Design Procurement /Supply Construction Implementation Phase
  • 10.
    BUSINESS MODEL OFINTERNATIONAL EPC CONTRACTORS ( 1/2 ) Partner Structuring (contract scheme) Consortium, Vertical Split, Joint and Several Joint Venture, Share Profit & Loss Prime and Sub, Horizontal Split Global Resources Integration Low Cost Engineering Offices 1st Layer Management by Expat 2nd Layer Management by 3rd Countries 3rd Layer by Local Sub
  • 11.
    BUSINESS MODEL OFINTERNATIONAL EPC CONTRACTORS ( 2/2 ) Risk Management Technical, Commercial, Financial Risk Analysis, Risk Transfer, Risk Mitigation, and Risk Control Support by Financial Institutes Project Finance by EXIM Bank and Commercial Banks Bonding via Global Network
  • 12.
    SWOT OF CONTRACTORS IN THE INTERNATIONAL PROJECTS S trength – Well-Educated Engineers with Diversified Construction Experiences and Devoted Mentality W eakness – Lack of Projects Records, English Language Barrier, Poor Support by EXIM Bank and Related Industries O pportunity – Numerous T hreat – Contractors from other Asian countries
  • 13.
    WINNING STRATEGY OF CONTRACTOR –SHARING EXPERIENCES How could you be invited to bid alone or with a partner? What benefits you can bring it to a partner? Establishment of projects records Project management capabilities Global EPC capabilities and experiences Finance capabilities Joint forces of contractors
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