IHA 2013 World Congress: Sarawak Energy: Incorporating Sustainability into Business Practice

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Mr Mohammed Irwan bin Aman, Sustainability Manager, Sarawak Energy Berhad (SEB)


SESSION 7: Incorporating sustainability into business practice
The expectations on organisations involved in hydropower have increased dramatically, both at the corporate and project levels. The scope of accountability has grown from the technical, legal, financial and regulatory, to broader developmental responsibilities and greater disclosure. It is a strategic challenge to adjust business and information systems to incorporate sustainability into assessment, planning, operations, reporting and reviewing. An international panel will discuss this challenge from a range of perspectives.

For more information about this event, visit: http://ihacongress.org

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IHA 2013 World Congress: Sarawak Energy: Incorporating Sustainability into Business Practice

  1. 1. Mohamad Irwan AmanSarawak EnergyThe Sarawak Energy Journey –Incorporating Sustainability into Business PracticesPresented at theIHA 2013 World Congress
  2. 2. The Sarawak Energy Journey –Incorporating Sustainability intoBusiness PracticesByMohamad Irwan AmanSustainability ManagerSarawak Energy Berhad
  3. 3. Sustainability in Sarawak Energy?– Continuously developing, introducing andembedding sustainability into our businesspractices2EnvironmentSocialEconomicPolicies,Processes,ProductsBottomLinesImpacts Mitigation measures Outcomes
  4. 4. Sarawak Energy Sustainability Overview3SustainabilityRoad Maps, HSE Policy , Operation Excellence & R&D ProgramsContinuous Improvement; Company going ConcernEconomic Social EnvironmentSustainability ReportingIHAProtocolGlobalReportingInitiativeComplianceandCertificationOperation(Improvement;Procurementsetc)Sustainabilityprojects, (Env Mgmt;Social Inv;Economic)
  5. 5. 46/17/2013Phase 1InitiationPhase 2ConceptPhase 3Pre-EngPhase 4ExecutionDG 0 DG 1 DG 2 DG 3SEB Project Model (SPM)- Key Activitiesa) Start-up Meetingb) Functional and financialrequirement (refine)c) Continue site selectiond) Develop Concept/DesignBasise) Concept engineering Identify/evaluatedesign andoperationalalternatives Conceptual design Value ImprovingPractices Develop permittingstrategyf) HSE Assessmentg) Execute project cost, time,risk/QA management processh) Refine execution strategyi) Pre-qualify contractorj) Update contract strategyk) Tender/select maincontractor forFEED/executionl) Define Project Mandatenext phasea) Start-up meetingb) Define business objectivesc) Define initial Scope of Workd) Assess alternative solutionse) Conduct first technicalassessmentf) Rough define operationalconceptg) Conduct initial profitability anduncertainty analysish) Define financingi) Initiate site selectionj) Investigate national/localconditionsk) Identify patent relatedconsiderationl) Define budget for concept phasem) Develop and approve projectexecution strategyn) Conduct contractor and labourmarket surveyo) Preliminary contract strategyp) Develop project cost estimatea) Start-up Meetingb) Functional and financialrequirements (refine)c) Perform Pre-engineering/FEEDd) Update HSE programe) Initiate Permit applicationsf) Risk assessmentg) Refine project executionstrategyh) Refine contract strategyi) Award FEED contractj) Prepare decisiondocumentationk) Prepare for project Execution(Management system,contracts, WBS etc)l) Project Mandate next phase(Execution)m) Develop firm plans/estimatesfor Owner’s activitiesn) Start mobilize resources forexecutiona) Start-up Meetingb) Establish ProjectManagement Teamc) Contract/PO awardd) Develop relations to- Main Contractor- Local authoritiese) Project Management- Follow-up of (main)contractor(s)- Monthly reporting- Stakeholder managementand anchoring- Communication andinformation- Uncertainty managementprocess, ind, mitigation plan- Interface management- QA/QC- Change Management- Construction- Commissioningf) Prepare hand-over to ownerg) Project close-outDG 4FID – Final InvestmentEmbedding Sustainability Elements in SarawakEnergy Business Practices
  6. 6. 5Phase 1InitiationPhase 2ConceptPhase 3Pre-EngPhase 4ExecutionPhase 5OperationDG 0Decision to initiatea formal projectDG 1Decision to startconcept phaseDG 2Decision to startpre- engineeringDG 3Final investmentdecisionDG 4Acceptance by Operations/ project close-out&SEB Project ModelHydropower DevelopmentHydro –Specific StationMng.SEBProjectModelFourStagesofIHAProtocolAssessmentToolsMainProjectOwners-Early Stage Preparation Stage ImplementationStageOperation StageProject ExecutionFour Protocol Assessment ToolsEmbedding Sustainability Elements in SarawakEnergy Business Practices
  7. 7. Linkages between the EIA Format and Sustainability TopicsEIA Report Heading Titles Sustainability TopicsSECTION II Dates, Sources and Consultation P01 - Communications & ConsultationSECTION IIIChapter 1 Introduction1.1 Title of Project1.2 Project Initiator1.3 Statement of Need P3 - Demonstrated Need & Strategic Fit1.4 Objectives of Study P5 – Environmental & Social Impact Assessment & ManagementChapter 2 Project Description2.1 Project Location P5 – Environmental & Social Impact Assessment & Management2.2 Project Size P5 – Environmental & Social Impact Assessment & Management2.3 Project Site Options P3 - Demonstrated Need & Strategic Fit; Assessment of AlternativesP4 - Siting & Design2.4 Project Concept P5 – Environmental & Social Impact Assessment & ManagementP8 – Infrastructure Safety2.5 Project Schedule P5 – Environmental & Social Impact Assessment & Management2.6 Project Cost-Benefit Analysis P9 - Financial ViabilityP10 - Project BenefitsP11 - Economic ViabilityChapter 3 Existing Environment3.1 Physical characteristics of Project Area- Geology and Soil Conditions- Topography and Landuse- Meteorology- HydrologyP5 – Environmental & Social Impact Assessment & ManagementP20 - Erosion and SedimentationP21 - Water quality6Embedding Sustainability Elements into SEIAProcess
  8. 8. Concept Phase (DG 1 – DG 1)7Mapping Sustainability Assessment ToolsConceptEngineeringActivitiesDevelop Concept/Design Basis1. Identify/evaluate design andoperational alternatives2. Conceptual design3. Power and Energy ReviewP-3 Demonstrated Need and Strategic Fit- Update on the assessment and statement of needsP-4 Siting & Design- Conceptual design that account the following factors:TechnicalEconomicFinancialEnvironmentalSocialP-8 Infrastructure Safety- Dam and other infrastructure management plans and processes1. Hydrology and ReservoirSediment Review2. Geosciences Review andPlanning3. Survey and TopographyReviewP-7 Hydrological Resource- Hydrological resource availability assessment- Technical considerationsPower system opportunities and constraintsSocial, environment and economicP-20 Erosion & Sedimentation- Initial assessment on Soil erosion and sedimentation issuesP-22 Reservoir Planning- Initial assessment on reservoir preparation, filling and operationP-23 Downstream Flow Regimes- Initial assessment on the variation of the flow regimesP-19 Biodiversity & Invasive Species- Initial assessment of High Value of Biodiversity areas that might be affected by theproject development (e.g. biodiversity map)
  9. 9. 8SEB Sustainability . . . The journeycontinues
  10. 10. Conclusion• IHA Sustainability Assessment Protocol is a comprehensiveassessment tools that can help SEB identify gaps andweaknesses• Internalize and systematize the Protocol as part of projectdevelopment.• Embedding sustainability elements into business practices is achallenging process.– involves changes of mindsets– new solutions/processes to address the sustainability issues.• Based on the feedback that we have received, we areconvinced that we are on the right road to sustainability
  11. 11. Thank You

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