The document discusses the NESCO street lighting retrofit project aimed at improving energy efficiency in Saudi Arabia as part of the Saudi Vision 2030. Philips Lighting is involved in retrofitting 2.5 million lighting points, focusing on significant electricity savings, and faced project management challenges that required collaborative efforts across departments to meet a 25-week implementation timeline. Key successes included securing proper testing certifications and local manufacturing capabilities to align with the project's goals.

1. November 01, 2013 _Sector Confidential1
TALAL AL-SEHLI AKBAR THAKUR HASSAN ALHUSSEIN MICHAEL SANTIAGO
PUBLIC & SOLAR
SEGMENT
SYSTEM ARCHITECTURE
MANAGER
SYSTEM ARCHITECTURE
MANAGER
LIGHTING APPLICATION
SPECIALIST (LiAS)
COUNTRY LEADER O & I SEGMENT PUBLIC SEGMENT SUPERVISOR
Philips Lighting Excellence Competition

2. November 01, 2013 _Sector Confidential2
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
INTRODUCTION / BACKGROUND
Saudi Vision 2030 is a plan to reduce Saudi Arabia's dependence on oil, diversify its
economy, and develop public service sectors such as health, education, infrastructure,
recreation and tourism.
NESCO - mandated to manage retrofit projects across government & public
facilities (e.g. street lighting) with the goal of significant savings and develop a
thriving Energy Efficiency industry in the Kingdom
- A commercial enterprise fully owned by the Public Investment Fund
- To be the leading energy services company in the Kingdom
TARSHID (NESCO) partners with Suppliers or ESCO’s
to execute its mandate

3. November 01, 2013 _Sector Confidential3
Significant energy savings via commercially feasible
projects
• Account for ~10% of the Government
electricity consumption
• Can result in ~40-60% electricity savings with
commercially feasible EE retrofits
CURRENT STATE
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
Yearly street lights consumption amounts to ~4 TWh, equivalent to
~1.3 Bn SAR

4. November 01, 2013 _Sector Confidential4
The project includes a total of 33,547
lights, consuming 33.2 GWh/year
distributed over 4 different types in
each package
A World Record goal of
retrofitting 2.5 Million Lighting
Points across the Kingdom
which aims at savings in
energy while having optimum
solution in supply, installation
and maintenance
Philips Lighting Saudi Arabia,
world leader in lighting
products, systems and
services, along with its local
manufacturing capability took
this challenge head on.
The first RFP package consists
of 33k light points and
whoever wins it will have a
strong chance to proceed in
the next RFP worth 600k
lighting points to be awarded
by April 2018.
GOAL / VISION OF SUCCESS
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO

5. November 01, 2013 _Sector Confidential5
The project spans from identifying the streets to be retrofitted – to operating – then to maintaining the
replaced lights
SCOPE OF WORK / ANALYSIS
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO

6. November 01, 2013 _Sector Confidential6
THE ARMY
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO

7. November 01, 2013 _Sector Confidential7
TIMELINE
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
28th Aug 2017 NESCO invited PSLC team to a meeting at the Ritz Carlton to discuss the NESCO ambition and to understand from us about our LED
street light offerings.
18th Sept 2017 NESCO identified 4 types of existing HPS luminaires and asked us to provide/propose our LED equivalent of the same. At this time no
information about the Pole ht and Road details were provided and we were required to propose the equivalent based on the idea of
replacing with LED luminaires with the same Lumens package as the existing HPS luminaires.
8th Oct 2017 Held workshop with NESCO at the Ritz Carlton to further explain our visit to the Al Ahsaa street, audit and proposed Lighting design
substantiating our selection of the 4 types of LED equivalents for the 4 types of existing HPS fixtures for the street lights
NESCO asked PLSA to provide budgetary pricing for the 4 types of LED luminaires considering a total qty of 20K luminaires to be replaced.
The budgetary pricing was include the installation scope too.
9th Oct 2017 Following the workshop NESCO asked us to provide: 1) Max production capacity of local factory; 2) Shortest procurement time; and 3)
Shortest installation time
10th Oct 2017 The above requested information was provided to NESCO via email:

8. November 01, 2013 _Sector Confidential8
TIMELINE
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
11th Oct 2017 Budgetary pricing was provided to NESCO
12th Oct 2017 Briefed PLSA CEO (Engr Alaa Ameen) about NESCO and the planned tender for the Retrofit of the Street Lights project.
19th Oct 2017 RFQ received from Waled Gheri of MEIM
RFQ was for 33K Street lights instead of the earlier advised 20K Street lights retrofit scope
RFQ to be submitted in 2 parts: 1) Technical Submission and 2) Commercial submission
Bid submission date for Technical bid was 5th Nov 2017; while bid submission date for Commercial bid was still left open
RFQ did not include the actual Contract, Payment terms and related T&Cs
5th Nov 2017 Received bid extension for the Technical bid upto 15th Nov 2017
15th Nov 2017 Technical Bid was submitted
Nov-Dec 2017 Had several rounds of meetings and tel.calls to discuss and clarify the Technical bid submission
NESCO insisted on having the LM79, LM80 & ISTMT test reports for specific Luminaire wattages as proposed and was not willing to accept
the Tests reports submitted for the Xceed family
15TH Dec 2017 All individual Luminaire Test reports were submitted to NESCO
21st Dec 2017 After several discussions and receipt of extension, the Commercial Bid was submitted to NESCO
26TH Dec 2017 NESCO rejected our proposed Driver with 3KV SPD and asked us to propose suitable driver with 4KV SPD
7TH Jan 2018 NESCO asked for a soft copy of our comments to their proposed Contract for review and discussion
10th Jan 2018 Based on Audit done on site after the installation of our proposed LED luminaires, we found the light levels were too high for our
luminaires and accordingly NESCO asked for a workshop to discuss the same
In the workshop we agreed with NESCO that the light levels need to be measured with the particular Road classification in mind and
accordingly proposed additional 3 types of luminaires to cover the worst and best case scenarios for the different road classifications
provided
15th Jan 2018 New driver with 4KV SPD was proposed to NESCO
17th Jan 2018 NESCO called for workshop with our Legal, Commercial and Technical team to discuss Contract
Several issues related to the Contract, Payment Terms, 10 Yr Warranty, Performance Bond as well as the Retention was discussed
NESCO also discussed our POW (Program of Works) and wanted to know what can be done to support us to improve the same and if
possible to meet their defined deadline of 90 days

9. November 01, 2013 _Sector Confidential9
TIMELINE
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
10th Jan 2018 Based on Audit done on site after the installation of our proposed LED luminaires, we found the light levels were too high for our
luminaires and accordingly NESCO asked for a workshop to discuss the same
In the workshop we agreed with NESCO that the light levels need to be measured with the particular Road classification in mind and
accordingly proposed additional 3 types of luminaires to cover the worst and best case scenarios for the different road classifications
provided
15th Jan 2018 New driver with 4KV SPD was proposed to NESCO
17th Jan 2018 NESCO called for workshop with our Legal, Commercial and Technical team to discuss Contract
Several issues related to the Contract, Payment Terms, 10 Yr Warranty, Performance Bond as well as the Retention was discussed
NESCO also discussed our POW (Program of Works) and wanted to know what can be done to support us to improve the same and if
possible to meet their defined deadline of 90 days
5th Feb 2018 Revised price and contract T&Cs were submitted to NESCO
8TH Feb 2018 NESCO spoke to our CEO inviting him for the final round of discussion/negotiation on the 11th Feb
11TH Feb 2018 Further discount was offered to NESCO
14th Feb 2018 NESCO informed by email their intention to place the order with PLSA
Had several round of exchanges on the Contract T&Cs …
13th Mar 2018 Signed Contract for NESCO Street Light Retrofit

10. November 01, 2013 _Sector Confidential10
TIMELINE
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
As per the Tender document, as shown above, was the project timeline;
however as already explained the project was awarded on the 13th of March
2018 with a project period of 25 Weeks

11. November 01, 2013 _Sector Confidential11
COUNTERMEASURES
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
PERFORMANCE MANAGEMENT
Challenge: To be accepted by NESCO as an approved Supplier
Solution: Worked with Saudi Energy Efficiency Center (SEEC) to be accepted as an ESCO
company for Lighting
Countermeasures:
Provided NESCO PHILIPS capability in the following:
1) Maximum Production Capacity of local factory
2) Shortest Possible Procurement Time
3) Shortest installation time for 20,000 luminaires
4) Provided NESCO with a flowchart to visualize the steps:

12. November 01, 2013 _Sector Confidential12
COUNTERMEASURES
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
PERFORMANCE MANAGEMENT
Challenge: To provide an equivalent LED luminaire to replace existing conventional
lighting points (100W HPS, 150W HPS, 250W HPS and 400W HPS)
-Solution: Worked across several departments to finally come up with the optimum
replacements.
Countermeasures:
1) LiAS team came up with DIALux calculation which recommended 4 Xceed luminaires
as replacements
2) Public Segment and System Architecture proceeded to come up with Samples that
was used on several streets
3) Customer Satisfaction Team did a lux measurement audit on all sites and later
determined that 8 Xceed luminaire configurations were needed to based on existing
site conditions.
4) These activities were made by NESCO as reference for other suppliers to meet and
satisfy

13. November 01, 2013 _Sector Confidential13

14. November 01, 2013 _Sector Confidential14
COUNTERMEASURES
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
PROJECT MANAGEMENT
Challenge: Instead of 20,000 pcs, an RFP/Tender of 33,000 lighting points with an
aggressive deadline was issued.
Solution: Tapped the resources from local department heads and Global Teams especially
Dubai Center to come up with an exceptional Bid Management
Countermeasures:
1) Technical Submittal and an excellent Bid Management strategy was crafted and
submitted completely and on-time.
2) A detailed task sheet was also created and assigned to task owners which committed
their time and effort to deliver their responsible output.

15. November 01, 2013 _Sector Confidential15
COUNTERMEASURES
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
PROJECT MANAGEMENT AND CONTINOUS IMPROVEMENT
Challenge: Unique 3rd party Test Certificates was given on each LED luminaire instead of
generic one of the Xceed family. NESCO insisted on the driver with 4KV SPD even though
our proposed Luminaire assembly had an external 15KV SPD which would more than
protect the driver
Solution: Tapped the resources from local department heads and Global teams to get the
necessary and appropriate Driver with the 4KV SPD
Countermeasures:
1) With great support from our local Lab team, Product Management / Marketing team
and the BG team in China we were able to get the necessary LM79, LM80 & ISTM reports
from Dekra in China.
2) Management decided to pull in all resources globally, product management, supply
chain and logistics teams, and offered the required Drivers with 4KV SPDs

16. November 01, 2013 _Sector Confidential16
COUNTERMEASURES
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
PROCESS MANAGEMENT, CHANGE MANAGEMENT AND CONTINOUS IMPROVEMENT
Challenge: The Project POW (Program of Works) was a great challenge as NESCO wanted
the project completed in 90 days and our POW was reaching 8 months.
Solution: The entire team worked with all different departments locally as well as globally
to achieve a total POW Period of 25 Weeks.
Countermeasures:
1) This revised 25 weeks POW was the real GAME CHANGER and brought us closer to
wining the project.
2) The other key decision maker was our local manufacturing/assembling capability as this
was in line with NESCO’s strategy to increase local content and local employment.

17. November 01, 2013 _Sector Confidential17
EFFECT CONFIRMATION
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO

18. November 01, 2013 _Sector Confidential18
SUMMARY & KEY POINTS
Philips Lighting Excellence Competition
“NESCO Street Lighting Retrofit Project”
AL-SEHLI – THAKUR – AL-HUSSEIN – SANTIAGO
1. This was a perfect example of a project where a good mapping of the different
stake-holders from the customer was done and addressed effectively
2. Internally too, this was a very good example of Great Together, when the local
team as well as teams across the globe worked together to find a suitable
Driver to meet the project specification
3. Likewise the Project Management team, Supply Chain, System Arch Mngrs &
Sales worked together to improve on the product delivery as well as improve
on the project implementation schedule to meet the target of 25 weeks project
delivery

20. November 01, 2013 _Sector Confidential19
Questions? Thank you for your time