EGYPT
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Mr. Asem El-Gawhary, General Manager og PGESCo

Interview with Mr. Asem El-Gawhary,
General Manager
Read our exclusive interview


Egypt - Winne.com


PGESCo
Power Generation Engineering and Services Company


Mr. Asem El-Gawhary

General Manager

Contact:
105, Omar Ibn El-Khattab street, Heliopolis
CAIRO, EGYPT
Tel: (202) 417 62 70
        (202) 417 58 63
Fax: (202) 417 58 62
         (202) 403 22 84
E-mail: info@pgesco.com
Website: www.pgesco.com
Company profile

Egypt - Winne.com
PGESCo is a joint stock company incorporated in Egypt on March 18, 1993. The company is engaged principally in engineering, procurement, project and construction management consulting services for power generating stations.

Company partners include the Ministry of Electricity and Energy of Egypt (40%), Bechtel Corporation of the USA (40%), and the Arab African International Bank of Egypt (20%).

PGESCo has elected Bechtel Corporation as its general manager. Accordingly, the company has a continuing services contract agreement with Bechtel by which Bechtel provides technical and management assistance in the design and construction of power plants and provides technology training to the PGESCo Egyptian national staff. This agreement puts PGESCo in a unique situation to draw on the experience that Bechtel gained through its involvement in hundreds of power projects worldwide while providing economical solution through providing these services with local staff.

The front-line Egyptian national engineering staff of PGESCo has received intensive hands-on training in design, procurement, and project and construction management techniques, both in Bechtel's U.S. office in Gaithersburg, Maryland and in PGESCo's office in Cairo. The company has a total staff of 202 of which 119 are directly involved in engineering, procurement, and construction and project management activities.

PGESCo operates in a fully automated environment. PGESCo has implemented a high speed Local Area Network (LAN) connecting its 200 computers, high-end workstations, servers and peripherals. The office is automated with electronic mail and Internet connectivity. All engineering activities are done on computer aided design software and intelligent databases to facilitate high-level detailed design activities.

Services offered

PGESCo offers full or partial scope support for power plant projects. Services include Feasibility studies, Siting and environmental engineering, Power plant selection and specification, Project and construction management, Procurement services, Training and transfer programs, Quality Control, Plant betterment, Maintenance and rehabilitation management, Localization promotion.

Activities

At present PGESCo executed three major projects, Sidi Krir 1&2, Ayoun Moussa and Sidi Krir 3&4. Both Sidi Krir 1&2 and Ayoun Moussa are equipped with two 320 MW oil- and gas-fired conventional steam generating units. The company's services include engineering, procurement, construction, and project management activities.

In addition to the work on the Sidi Krir and Ayoun Moussa Projects, PGESCo is supporting Bechtel in the design and construction of the Sidi Krir 3&4 Power Plant Project. The Sidi Krir Units 3&4 Power Plant is Egypt's BOOT #1 project. The EPC contract for this project is Bechtel. Under this contract, PGESCo is currently providing over 75% of the total engineering level effort required to develop all the detailed designs of the project in the civil, mechanical, electrical, and control systems. PGESCo scope includes also supporting Bechtel in all procurement activities. PGESCo will provide all field Non - Manuals personnel to carry over the site supervision activities.

Bechtel will also utilize PGESCo resources to support startup and commissioning activities of the plant. PGESCo scope in this project includes also provide support to the developer of the project (InterGen) in securing construction permits for the project and other required consents. The project is currently executed out of PGESCo facility in Heliopolis, Cairo.

PGESCo is targeting related business opportunities in other strategic industries namely Oil & Gas, Steel, and Tourism.

Knowledge of Power Plant Projects in Egypt

PGESCo utilizes its technical expertise in performing the engineering services. PGESCo has a thorough knowledge and understanding of the power plant projects in Egypt, acquired through its present involvement in the engineering, procurement, and construction management of Sidi Krir and Ayoun Moussa projects.

Design and Engineering

Egypt - Winne.com

The experience gained in the design and engineering and in developing technical specifcations for purchase orders and contract packages to successfully implement major projects such as Sidi Krir and Ayoun Moussa will be efficiently applied to any new project.

Environmental Considerations

PGESCo can provide, based on previous experience gained in Egypt, modeling and monitoring studies including the following:

  • Air quality/meteorological-monitoring program

  • Air quality-modeling analyses

  • Water and wastewater quality analyses (for the entire plant)

  • Environmental impact assessment


  • Egyptian Participation in the Project

    PGESCo has participated in a localization program to identify, enhance, and create manufacturing facilities capable of supporting the power industry in Egypt. This experience will be fully utilized to identify to contractors manufacturing and fabricating facilities capable of serving projects'needs and requirements.

    Ayoun Moussa is equipped with two 320 MW oil- and gas-fired conventional steam generating units whose boilers are fired by Mazout (#6) oil or natural gas or a combination of either fuel. Plant cooling is once- through, from the Red Sea. Boiler makeup water is supplied via two 100% Desalination units. The switchyard is a 220/500 kV GIS type. The company's services include engineering, procurement, construction, and project management activities.

    Engineering

    The engineering work includes:

  • Developing of a Preliminary Design Report detailing the design bases, codes, and standards and the concept of developing procurement and contract packages.

  • Developing technical specifications and design drawings.

  • Developing technical packages for tendering purposes.

  • Evaluating technical bids and conducting technical negotiations.

  • Preparing contract and procurement technical packages for contract award.

  • Reviewing technical submittals of contractors and suppliers.

  • Providing technical support to construction and startup activities and coordinating contractors' technical manual submittals.

  • Developing a Plant Data Book, which is a technical manual describing the as-built plant systems and components.


  • In performing these tasks, PGESCo has developed detailed civil designs for plant buildings and structures, including structural steel, foundations, site layouts, offshore structures, and hydraulic and thermal modeling of the circulating water system; mechanical designs, including plant general arrangements, plant system descriptions, piping and instrumentation diagrams (P&IDs), underground and aboveground piping layout and routing drawings, pipe stress analyses, and pipe support designs; electrical designs, including single line diagrams, schematics, termination drawings, raceway drawings and schedules; and plant control and instrumentation designs, including logics for the distributed control system (DCS), the instrument index, and instrument installation details.

    Procurement

    Project procurement work has included developing approximately 20 packages for the project, each made up of 10 contract packages and 10 purchase order packages. The contract packages include equipment supply, installation, testing, and commissioning. The purchase orders include only equipment supply. The packages were competitively bid internationally. Since the project is funded by international funding organizations, procurement rules dictated by such agencies were strictly adhered to Bechtel's resources in the procurement arena are called upon extensively. These resources include worldwide expediting, inspection, and quality surveillance teams; a procurement database of international contractors; long-term experience with international procurement; and knowledge of funding agency requirements for a number of executed international projects, especially in Egypt and the Middle East.

    Project/Construction Management

    PGESCo uses various tools that have been developed and successfully applied by Bechtel on a number of international projects. These tools include ones used to develop project milestone and intermediate schedules and various cost control reports, including cost status, cash flow, trend, progress, performance tracking, and critical action. These reports and the monitoring tools are geared to controlling the schedules and the costs of the projects.

    The project and construction management teams are supported by personnel qualified to monitor safety, construction methods, quality control, and contractor interface control; assign laydown areas; process contractor invoices; review startup procedures and monitor startup and testing interfaces; and supervise methodical and proper turnover of the various parts of the plant to Owner.

    Other projects

    * Aleppo Power Project

    In addition to the work on the Sidi Krir and Ayoun Moussa Projects, PGESCo assisted Bechtel in the engineering of the Aleppo Power Plant Project in Syria by seconding PGESCo engineering personnel to Bechtel at the project site. Aleppo is a five-unit steam power plant with a unit size of 200 MW. The plant is located 18 km east of Aleppo. Bechtel provided engineering and procurement services for the balance-of-plant for the project.

    * Ghazlan Power Project

    PGESCo supported Bechtel in the engineering of the Ghazlan Power Plant Project in Saudi Arabia. Ghazlan is a four-unit steam power plant with unit size of 600 MW totaling 2400MW. The plant is located on the Arabian Gulf coast 20 km northwest of RAS Tanura. Bechtel is responsible for providing engineering, procurement, project management, and construction management services.

    *Al-Taweelah B Power Project

    PGESCo supported Bechtel in the detailed design of the Al-Taweelah B Power Plant Project in United Arab Emirates. Al-Taweelah B is a 320 MW Combined Cycle power plant.

    *El-Arish Shoreline Erosion Protection

    PGESCo developed a conceptual design for shoreline protection against erosion due to a problem in the intake and discharge structures of El-Arish Power Plant.

    *500 kV Suez Canal Tower Crossing

    PGESCo assisted the Egyptian Electricity authority (EEA) in the design review of the steel structure and foundation for the 500kV Towers as well as construction management for the project.

    *500 kV Tower Termination to Sidi Krir and Ayoun Moussa

    PGESCo scope of work in this project includes sag and tension calculations, design review of terminal tower

    *Electrical Studies for Proctor & Gamble new facilities

    PGESCo performed local studies to determine the most effective and economical method of adding new load to the Proctor & Gamble Facilities. This study developed also the design of a new distribution system to accommodate the future load from the new CSX+ project. A second study looks at the long-term load growth at the facility to determine the best methods to accommodate future load growth

    *Prefeasibility Study for SUMED Oil Company

    PGESCo investigated the feasibility of building an 80 MW power plant for SUMED at their facilities in Ain-Sokhna

    *Cairo Sheraton Hotel Co-generation Units

    PGESCo finalized the conceptual design for the Cairo Sheraton Hotels Co-generation units. The purpose of this project is to provide the Sheraton with the electricity and steam requirement for operation.

    *Sidi Krir Units 3&4 Power Plant

    The Sidi Krir Units 3&4 Power Plant is Egypt's BOOT #1 project. The EPC contract for this project is Bechtel. Under this contract, PGESCo is currently providing over 75% of the total engineering level effort required to develop all the detailed designs of the project in the civil, mechanical, electrical, and control systems. PGESCo scope includes also supporting Bechtel in all procurement activities. PGESCo will provide all field Non - Manuals personnel to carry over the site supervision activities. Bechtel will also utilize PGESCo resources to support startup and commissioning activities of the plant. PGESCo scope in this project includes also provide support to the developer of the project (InterGen) in securing construction permits for the project and other required consents. The project is currently executed out of PGESCo facility in Heliopolis, Cairo.

    *Sidi Krir and Ayoun Moussa Power Projects

    At present, PGESCo is executing two major projects, Sidi Krir and Ayoun Moussa, each equipped with two 320 MW oil- and gas-fired conventional steam generating units. The company's services include engineering, procurement, construction, and project management activities. A brief description of the services being provided on these projects follows.
    Engineering

    The engineering work for the two projects includes:

  • Developing of a Preliminary Design Report detailing the design bases, codes, and standards and the concept of developing procurement and contract packages.

  • Developing detailed design for the civil package.

  • Developing detailed design for the critical piping and valves package including support design.

  • Developing detailed design for the electrical package.

  • Developing technical specifications and design drawings.

  • Developing technical packages for tendering purposes.

  • Evaluating technical bids and conducting technical negotiations

  • Preparing contract and procurement technical packages for contract award.

  • Reviewing technical submittals of contractors and suppliers.

  • Providing technical support to construction and startup activities and coordinating contractors'technical manual submittals.

  • Developing a Plant Data Book, which is a technical manual describing the as-built plant systems and components.


  • Egypt - Winne.com

    In performing these tasks, PGESCo has developed detailed civil designs for plant buildings and structures, including structural steel, foundations, piling design, site layouts, offshore structures, and hydraulic and thermal modeling of the circulating water system; mechanical designs, including plant general arrangements, plant system descriptions, piping and instrumentation diagrams (P&IDs), underground and aboveground piping layout and routing drawings, pipe stress analyses, and pipe support designs; electrical designs, including single line diagrams, schematics, termination drawings, raceway drawings and schedules; and plant control and instrumentation designs, including logics for the distributed control system (DCS), the instrument index, and instrument installation details.

    Sidi Krir 1 & 2

    The Sidi Krir Power Station is located on the Mediterranean Sea coast approximately 30 km from the city of Alexandria.

    The power station consists of the following major components:

  • Two indoor condensing steam turbine generator units, each capable of delivering 320 MW net power at generator terminals.

  • Two outdoors, duel fuel fired (natural gas and Mazout), pressurized furnace steam generators.

  • Necessary auxiliary equipment including onsite oil storage, a natural gas reduction and handing facility, desalination plant for plant make-up water, off-shore structure for plant cooling water intake, water and wastewater treatment facilities, a GIS 220 kV indoor switchyard, 220 kV transmission lines, and a residential colony.


  • Contracting Plan

    Procurements activities for Sidi Krir Unit 1 & 2 Power Plant Project included the full scope of Contract/Purchase order formation and administration activities covering Pre-qualification and evaluation of bidders; issuance of bid documents; bid evaluation, contract negotiations and contract award, expediting, supplier quality surveillance, and supplier schedule monitoring.

    A multi-package-contracting plan is used for plant design and procurement of goods and services for the power station. A thirteen (13)-contract package, including Wrap Up Insurance, and seven purchase orders were awarded by EEA to different contractors and suppliers to provide the station goods and services.

    Design Concept

    The power station is designed using a modular concept to permit the same power block to be duplicated at other sites. The major building modules include turbine generator with turbine cycle equipment, steam generator, control complex, water treatment, 220 kV switchyard, administration, and a warehouse and maintenance shop facility. The turbine generator and steam generator modules are duplicated in a same hand, slide-along arrangement. The control room is centrally located to provide a common control room for the two units. The plant layout consists of two power generation units (units 1&2), single intake structure, discharge structure; water treatment facilities, switchyard building, fuel oil tank area with containment walls, and other associated support facilities.

    The power block island for the two generating units includes steam generator structures of outdoor-type construction and fully enclosed turbine generator structure. A single stack is designed to serve the two units and is located north of the power block island. One outdoor-type auxiliary boiler with associated stack is located within the service area.

    The main, auxiliary, start-up transformers are located south of the turbine area with a service road between them and the switchyard building. The switchyard building is centered between the power block for Units 1&2 and the future Units 3&4.

    A four-story administration building, and the restaurant facilities are located at the north-east corner of the plant facing the Mediterranean sea. The plant includes warehouse, maintenance shops, Benzene fueling station, Sodium Hypo Chlorite and Hydrogen generation facilities to serve the operation and maintenance of the two units as well as other EEA facilities in the north coast area.

    The plant site includes a housing residential colony; a compound including housing, shopping facility, mosque, nursery school, entertainment facilities, post office, and other municipal facilities.

    Localization

    The Ministry of Electricity & Energy (MOEE) has striven over many years to increase the participation of the local companies in all of its projects. The last two decades have witnessed a continuous trend of larger participation of the local companies in MOEE's projects. Ten years ago the Ministry of Electricity and Energy initiated a program which aimed at the development of the Egyptian industrial capabilities.

    The primary objective of the this program is to identify reliable sources and capabilities in Egypt that will maximize the design, engineering, fabrication, testing, erection and commissioning of components for Electric Power Plants. This objective has been achieved by establishing legal entities in Egypt that has the appropriate capabilities to perform such tasks. This target has been materialized in the following areas:

    Design, engineering, procurement, construction and project management services for power projects (PGESCo).

    Steam boilers for power plants (B&W Egypt).

    Turbine-Generators and Condensers for power plant projects (Egyptian Turbine Company). Along with that, the services and supplies of existing Egyptian entities have been successfully utilized for different areas in Sidi Krir Power plant such as:

  • Power & Control Cables.

  • Structural Steel

  • Yard Tanks

  • Shop Fabricated Tanks

  • Heat Exchangers

  • Desalination Plant

  • Electrical Switchgear (6.3 kV, 400 V)

  • Pre-cast concrete panels and concrete piping

  • Non-critical piping


  • As a result of the successful implementation of the localization policy, the overall local content of Sidi Krir Power plant has reached 37%.

    Sidi Krir 3 & 4

    The Sidi Krir 3& 4 Power Station is located on the Mediterranean Sea coast approximately 30 km from the city of Alexandria.

    The power station consists of the following major components:

  • Two indoor condensing steam turbine generator units, each capable of delivering 341 MW net power at generator terminals.

  • Two outdoors, duel fuel fired (natural gas and Mazout), pressurized furnace steam generators.

  • Necessary auxiliary equipment including onsite oil storage, a natural gas reduction and handing facility, desalination plant for plant make-up water, two mazout tanks, Auxiliary structure which include transformers (main and service), a water treatment and desalination plant. Offshore structures for the plant cooling water intake and discharge. The cooling system includes circulation water pump house, seal well, etc


  • Contracting Plan

    Procurement activities for Sidi Krir Unit 3 & 4 Power Plant Project included the full scope of Contract/Purchase order formation and administration activities covering Pre-qualification and evaluation of bidders; issuance of bid documents; bid evaluation, contract negotiations and contract award, expediting, supplier quality surveillance, and supplier schedule monitoring.

    Design Concept

    The power station is designed using a modular concept to permit the same power block to be duplicated at other sites. The major building modules include turbine generator with turbine cycle equipment, steam generator, water treatment and administration building. The plant layout consists of two power generation units (units 3&4), single intake structure, discharge structure; water treatment facilities, fuel oil tank area with containment walls, and other associated support facilities.

    The power block island for the two generating units includes steam generator structures of outdoor-type construction and fully enclosed turbine generator structure. A single stack is designed to serve the two units and is located north of the power block island. One outdoor-type auxiliary boiler with associated stack is located within the service area.

    The main, auxiliary, start-up transformers are located south of the turbine area with a service road between them.

    A four-story administration building is located at the south side of the plant. The plant includes Sodium Hypo Chlorite and Hydrogen generation facilities to serve the operation and maintenance of the two units.

    Studies and Review

  • Compilation of basic data

  • Concept development

  • Site studies

  • Cost-benefit analysis

  • Cost determination

  • Energy management alternatives and whatever else our clients request - from project development to market studies to contract consulting


  • Engineering

  • Conceptual design and permit planning

  • Plant and component design

  • Comparison of alternatives

  • Performance of licensing procedures

  • Plant arrangement

  • Preparation of bidding documentation including standard technical specifications

  • Technical and commercial evaluation of bids

  • Coordination of contracted suppliers

  • Implementation, review, and release of detail engineering

  • Preparation, review and release of quality assurance concepts

  • Manufacturing inspection and expediting

  • Project Management

  • Central contact for the client

  • Technical documentation

  • Coordination of all engineering services involved

  • Computer-aided expediting and cost control

  • Administration of all technical and commercial reporting

  • Construction Supervision/Owner's Engineering

  • Supervision, organization, and coordination of construction and installation

  • Initiation and evaluation of functional and acceptance tests

  • Allowance control of deliveries, invoice verification

  • Quality control during construction

  • Commissioning/Trial Run

  • Coordination and supervision by our professional personnel

  • Supervision of warranty tests

  • Supervision/performance of acceptance tests

  • Monitoring of trial runs

  • Training operational staff

  •   Read on  

    © World INvestment NEws, 2000.
    This is the electronic edition of the special country report on Egypt published in Forbes Global Magazine.
    August 7th 2000 Issue.
    Developed by AgenciaE.Tv