CANDIAN TECHNOLOGY TRANSFER CERNAVODA CANDU PROJECT

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CANDIAN TECHNOLOGY TRANSFERCERNAVODA CANDU
PROJECT
The International Nuclear Energy Congress,
Istanbul, Turkey, April 11-12, 2007 Dr. Sardar
Alikhan, Alikhan Consulting Inc. (Ex-AECL-Qinshan/
Cernavoda Projects)
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Cernavoda CANDU Project
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Cernavoda CANDU Project
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Contents

• Cernavoda Unit 1
• Scope of Work/Major Challenges
• Project Management Team/Staffing
• Engineering Management
• Construction Management
• Status Verification/Remedial Work
• Planning and Control
• Commissioning and Operations
• Operations Staffing/Training
• Turnover to Operations

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CONTENTS

• Cernavoda Unit 2
• Scope of Work
• Reference Design
• Project Management Team
• Current Progress
• Localization of Technology
• Nuclear Infrastructure
• Fuel Fabrication
• Heavy Water Production
• Key Factors to Success
• Concluding Remarks

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Cernavoda 1 2 - Romania

• Cernavoda 1
• Unit completed in Dec. 1996
• 87 lifetime capacity factor

• Cernavoda 2
• Commissioning and testing is currently underway,
  ready for first criticality and scheduled for
  commercial operation later in 2007

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CERNAVODA UNIT 1
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CERNAVODA UNIT 1 CONTRACT

• In 1992, Romania signed a new contract with
  AECL-ANSALDO Consortium (AAC) authorizing AAC to
  manage the remaining work to complete Unit 1 and
  to preserve Unit 2-5
• The new contract took full recognition of
  previous technology transfer agreements signed
  with AECL for NSP, with ANSALDO for BOP and with
  GE for T-G
• At this time, Unit 1 and Units 2-5 were at
  various stages of completion. Most of the major
  equipment were already installed for Unit 1 and 2
  but its status needed to be thoroughly verified
  to meet current quality and licensing
  requirements.

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AAC SCOPE OF WORK

• Manage completion of construction, installation,
  commissioning and early operation of Unit 1 and
  preservation of Unit 2-5.
• Provide QA assistance to local nuclear component
  manufacturers
• Provide technical assistance and training to
  construction contractors, especially in welding
  and NDE
• Engineering management and services covering all
  activities required for Unit 1 completion,
  including coordination between NSP, BOP and
  Support Services
• Procurement of goods and services locally and
  outside, maximizing Romanian content
• Perform selection, training of Romanian
  operations staff
• Perform commissioning and operations services,
  extending up to 18 months after in-service

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Project Management Team (PMT)

• Customer delegated its full authority to AAC PMT
  to manage the project on its behalf and placed
  all resources required at its disposal.
• PMT authorized to stop all or part of the work,
  reject any supplies or services, if it does not
  meet the safety and quality requirement.
• Prior customer authorization required to commit
  funding in excess of the approved budget in
  foreign exchange and local currency

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PMT STAFFING

• Project Management
• In Unit 1, led by AECL-ANSALDO and with
  participation of the Owners staff
• Owners staff integrated in the Project
  Management Team and Commissioning Team to the
  fullest extent possible
• Peak Expatriate staff of 400 (240 AECL, 160
  Ansaldo)
• Over 2000 Romanian staff integrated in PMT and
  Commissioning Team
• Expatriate staff provided hands-on field
  supervision.
• Production and quality went hand in hand. If work
  is not done right, it was rejected and redone
  correctly.

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Engineering Management and Quality Surveillance

• Overall direction, coordination and
  administration of all engineering services
• Interpretation of technical documents
• Technical direction and resolution of all
  construction, commissioning, and safety/licensing
  issues
• Approval of subcontract work packages
• Check compliance of as-constructed plant with
  design, rejecting any non-conforming items
• Manage NDE inspection program
• Manage project change control process
• Certification of interim and final acceptances
• Approval of as-built drawings

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Construction Management

• Overall direction, coordination and
  administration of construction on Unit 1 and
  remedial work on Unit 2
• Implementation of construction methods,
  schedules, work packages and manpower schedules
• Technical assistance to local construction
  subcontractors
• Support implementation of inspection programs
• Management of construction subcontracts
• Establish a common labour policy with
  subcontractors
• Establish progress reporting system for
  subcontractors

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Baseline Design and Construction Status
Verification

• AAC Engineering and Quality Surveillance team
  performed an in-depth verification of the status
  of NSP, BOP and Support Systems
• Check all design documentation for completeness
• Check all SSCs for correct installation per
  design
• Perform all NDE for systems that require to be
  qualified
• Check locally supplied equipment and materials
  for compliance with equipment specification
• Prepare comprehensive status reports to perform
  remediation

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Remedial Work

• Examples of remedial work included
• All piping welds inspected and repaired as
  required
• Piping system cleaned
• Cracked concrete on containment dome replaced
• Locally made diesel generators replaced with
  imported units
• Refurbishment of support systems e.g. heating
  boilers, WTP, Firewater, common pump house
  equipment etc.

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Planning and Control

• Planning process started before the Contract
  effective date and continued for the lifecycle of
  the Project.
• Establish project work breakdown structure and
  logic
• Develop level 2 coordination and control (CC)
  schedule
• Establish realistic targets for each milestone
• Define project priorities
• Report actual progress
• Identify Critical issues
• Ensure all parties work to a common goal
• Use as-built schedule to input to future projects
  taking into account lessons learned and other
  developments.

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Integration of Inputs to CC Schedule
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COMMISSIONING AND OPERATION

• AAC Commissioning/Operations staff
• Led and supervised commissioning and initial
  operation including in-service inspection and
  maintenance.
• Accepted systems turnover from construction
• Supervised commissioning for compliance with
  approved procedures
• Evaluated commissioning completion to declare
  availability for service
• Supervised operations support programs shift
  operation, maintenance, chemistry control,
  materials control, radiation protection,
  industrial safety, safety and licensing, planning
  and scheduling
• Assist in staff training
• Customer provided full complement of operation
  staff
• AAC staff transferred leadership and supervision
  to customers staff gradually as a function of
  their demonstrated capability

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OPERATIONS STAFFING PLAN

• AAC developed staffing plan along with specific
  position specific requirements
• Covered full complement of operations staff
  trained and available for commissioning and
  operation at least 18 months prior to Unit 1
  connection to grid
• Supported the customer to select personnel
• Developed and conducted training program for key
  operations staff

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OPERATIONS TRAINING

• 90 key Romanian staff identified for training in
  Canada.
• Management and senior supervisory 10
• Shift operations 50
• Maintenance 10
• Computers 4
• Technical support 12
• Other 4
• Training durations ranged from 4 to 24 months
  depending on job requirement
• Classroom training in CANDU technology, skills
  training, in-plant training in Canada, and
  simulator training.
• On-the-job coach and mentoring during
  commissioning and early operation

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Unit 1 Turnover to Operations

• Assessment of all structures, systems and
  components for compliance with design requirement
• Assessment of each operations department along
  with recommendations to fill any gaps
• Following formal turnover of Unit 1, WANO
  conducted a Peer Review in July-August 1997. One
  of the key strengths noted was
• A very knowledgeable and professional
  management team is established. The management
  team willingly embraces new ideas, and is highly
  motivated to achieving excellence in the
  operation of the plant.
• Unit 1 operated by Romanian operating staff since
  in service date has an excellent safety and
  performance record
• Lifetime capacity factor for Unit 1 over the past
  10 years is around 87

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June 30, 1997 at 1700 Sardar Alikhan
handing over Unit 1 to Ionel Bucur
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Unit 1 completed and operating at 87 CF since
in-service
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Cernavoda Unit 2
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Unit 2 Contract Scope

• The Contract between SNN, AECL and ANSALDO became
  effective on March 24, 2003
• With CED, relevant financial agreements
  finalized, allowing rapid build up of expatriate
  staff
• AECL and ANSALDO provided firm price home office
  support to
• perform conceptual engineering
• procurement of sole source pre-assigned supply
• procurement of other items as a result of SNN
  international tender process.
• Balance in Romanian scope including detailed
  engineering, equipment and /material supply and
  construction

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Unit 2 Reference Design

• Unit 2 reference design took into account current
  licensing requirements and factored in
• Unit 1 as-built design as of 30 June 1997
• Assessment of Unit 1 commissioning reports
• Assessment of design changes implemented on
  Wolsong 3 and 4 and Qinshan
• 129 major design changes and 154 design
  improvements

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Cernavoda 2 Project Management Structure
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Unit 2 Project Management

• Engineering, Procurement and Construction
• Led jointly by SNN and AECL-ANSALDO
• Required full integration and team effort of all
  parties including AECL-Canada, ANSALDO-Italy and
  SNN-owner
• Project management though a site-based Management
  Team (MT)
• SNN providing deputies at all levels providing
  full integrated team approach
• Peak staffing 180 expatriates, and 1450
  Romanians. Site construction contractors staff
  peaked around 3000
• Expatriate staff split 60/40 AECL/ANSALDO
• More than 80 of project management staff were
  Romanian

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Current Progress

• Commissioning of all systems required for fuel
  load completed
• Fuel loading completed
• Unit ready to achieve first criticality
• Commercial operation expected in fall 2007.

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LOCALIZATION OF TECHNOLOGY
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Nuclear Infrastructure

• Nuclear Fuel Fabrication Plant in Pitesti. Heavy
  Water Production Plant in Drobeta-Turnu Severin
• Heavy Nuclear Equipment Factory in Bucharest
• Nuclear Research Institute in Pitesti for RD
• CITON engineering and technology centre for
  nuclear project in Magurele, near Bucharest
• Romanian construction contractors in civil,
  mechanical, electrical and CI
• Other specific nuclear materials and devices
  manufacturing plants

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Fuel Fabrication

• Romania has localized nuclear fuel fabrication
  from the mine to the fuel bundle since the start
  of Unit 1 operation
• Local fuel has excellent quality and reliability
• Canadian Zircatec provided technical assistance
• The facilities are expanded to supply fuel to
  unit 1 and 2 starting in 2007
• Local fuel supply results in domestic industrial
  benefit

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Heavy Water Production

• Produced by ROMAG-PROD located at Turnu Severin
• All heavy water requirements for Unit 1 operation
  and Unit 2 initial load
• 350 tonnes of heavy water leased for Unit 1
  initial load from Canada returned

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Key Factors to Success

• Extensive pre-project planning to reduce project
  risk
• Continuous development of human resources to
  balance attrition to other industries
• Completion of design prior to start of work at
  Site
• Availability of project management tools to train
  staff
• Capable construction and installation contractors
• Smaller number of contracts minimize interface
  complexities
• Development of do it right first time culture

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Key Factors to Success

• Ability to stop work to enforce quality
• All Site staff to act as quality surveyors
• Quality and safety culture accepted at every
  level
• All parties worked to international quality
  programs
• Effective and productive partnership and team
  work through an integrated organization

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Concluding Remarks

• Cernavoda 1 has resulted in reduction of oil
  imports of around 150M a year
• Nuclear technology has introduces a higher level
  of technology and QA
• Success of Unit 1 operation and Unit 2 completion
  project has resulted in Romania's decision to
  complete Units 3 and 4
• Project model is joint SNN and private sector
  investment
• Interest to invest by major European utilities
• Project expected to start in 2008
• Romanian companies to play leading role in
  engineering, construction, commissioning and
  project management.

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