Hindustan Construction Co Ltd

Xian Zhongdian Energy Co. Ltd.

  Joint Presentation at Bidders’ Conference
 For BS Ispat – 1 x 150 MW
 At Nagpur, Maharashtra
 By HCC and XZD, China


2 01/14/11
Presentation Structure

Executive Summary


HCC’s Profile


XZD’s Profile


Approach to Project Execution



Value Proposition


3 01/14/11
Executive Summary
HCC and XZD, have partnered on exclusive basis, to associate with BS Ispat as its EPC


contractor for both BTG and BOP packages for the upcoming 3 x 150 MW power project
• HCC specializes in technically complex, new age engineering and construction projects in
Power- Hydro, Nuclear and thermal, industrial structures, Transportation and Oil & Gas
– HCC brings world class project management skills and innovative construction
solutions
– HCC has built almost 600 project most of which are first of their kind and regarded as
landmarks in India’s infrastructure development
• XZD is China based, internationally reputed and financially strong EPC firm with strong
business interests in India
– In-house power design institute, for up to 600MW single unit basis, guaranteeing the
most-cost effective solution for this power project.
– Executed thermal power projects between 25 MW and 600 MW on EPC basis, 11780
MW in total executed.
– Strategic alliance with BTG suppliers – in a better position to procure equipments
faster
• HCC and XZD together offer – world class quality, timely completion and cost effective
solutions to BS Ispat
4
•
 HCC’s Profile


5 01/14/11 Enter footer detail within Header and Footer

HCC - Group Companies

Engineering
 HCC HCC
 Lavasa
 Karl Steiner


& Infrastructure Real Estate Corporation AG

Construction  Infrastructure
 Integrated  Urban  Total
projects on Real Estate Developme services
 Lump sum developme nt and contractor
turnkey BOT format
nt Manageme
 nt
 Project
 EPC  Manageme
 Design build
 nt &
Services


construction 

projects 
 Facility

 
Manageme
nt



6 01/14/11
HCC’s Presence across all sectors

 Hydro Water
 Transportatio
 Nuclear &
  EPC
Solution n Special Lump sum
 Dams & 

Barrages  Storage  Roads Projects turnkey

Dams Nuclear / EPC
Tunnels  
  Bridges
 Barrages Thermal
 Powerhous  Tunnels Power
 Design
es  Bulk water Plants Build
transmissio
 MRTS
 Shafts &  Ports
 Engineerin
n canals g Center
Penstocks 

 Tunnels
 Undergrou
nd Caverns
 Pipelines 
 Utility
 Pumping buildings &
Stations industrial
structures
 Treatment
7 01/14/11 Plants 

 
Financials of HCC

Turnover Net worth

CAGR ~ 17%

USD Conversion ~ INR 45 (As on 31st Mar 2010)

INR Crores USD Million

8 01/14/11
 Credentials of HCC in Power Sector


9 01/14/11 Engineering & Construction Strategic Partnership

HCC is a trusted name in power plant construction

HCC has strong presence in power plant


Some of our projects under construction


construction space in India are a testimony to our valued position in

• Constructed 50% of total installed capacity power plant construction market in India
in nuclear power – 13 out of 18 installed • Complete civil works for construction of
reactors nuclear reactor building at Rajasthan
• Over 25% of India’s hydroelectric capacity for 2 x 700 MW expansion project
- largest market share in hydropower – • Construction of 330 MW hydroelectric
offering end-to-end solutions project in J&K on EPC basis
• Four decades of experience in thermal • Around 17 plants aggregating to 4000 MW
power plant construction of hydroelectric plants under
• Vast experience in civil & structural works construction in India and Bhutan
including water intake structures, •
cooling towers and chimneys
•


10 01/14/11
Key Nuclear Power Projects
Nuclear power projects helped HCC develop capacities for executing technologically


complex projects with high level of safety and reliability being the key aspects

Rajasthan Atomic Power Project



• Constructed all the 6 units of the project

• Recently engaged for another 2 units of 700 MW each


Units 1 & 2 of 220 MW each at Kakrapar Power Project



• Civil construction of reactor building, turbines etc.

• Cooling towers and water intake structures


 Constructed India’s largest nuclear power plant

 of 2000 MW capacity at Kudankulam based on imported LWR technology from
Russia

11 01/14/11
Key Hydroelectric Projects
HCC has acquired strong EPC capabilities by virtue of constructing over 10 hydro projects
in tough terrains and geological features of Himalayas
Chamera St - I
 Chutak HEP


New  Located at an
Austrian altitude of
method for 10,000 ft
tunnelling
used for
 Two intake
second channels of 4.5
widest m dia and 160
powerhouse m length and
cavern in 47.5 long, 15
India m high barrage
Koyna Power Uri-II
 HEP
under
Complex
2.7 km
 constrcution
tunnelling by  4.23 km
Four
HCC pressure  long HRT,
shafts of up to 78 m deep
3.9 m diaat an surge shaft
angle of 58 and 3.6 km
degrees. Tail  long TRT
race tunnel of
size 10.4 m X  Under
10.4 m Constructio
Yamunanagar
constructed n
Chamera III



 HCC  HCC
constructed
involved in
dam,
second
spillway 
Chamera
gates,
stage
hoists, HRT,
projects
surge tank,
after Stage I
penstocks,
of 540 MW
power
house.  231 MW
Intake etc.
12 01/14/11



Key Thermal Power Projects

Vast experience in over 20 thermal power projects constructing chimneys, cooling

tower, water intake systems and undertaking other civil works across the country


Gandhinagar Thermal Power Station, 2 x 210 MW



• Design & construction of 120 m high NDCTs with cooling

water flow of 33,000 cu.m. per hour

Trombay Thermal Generating Station, 500 MW



• 275 m high single flue RCC chimney for Tata Power’s

utility project
• Recognized as the most outstanding concrete structure
from American Concrete Institute

13 01/14/11
 XZD’s Profile


14 01/14/11 Enter footer detail within Header and Footer

Introduction to XZD

Leading and certified EPC company based in Xi’an, China



• XZD was established in 1965 with pollution control

equipment manufacturing for industrial applications
– ESP, FGD and ash handling systems including HCSD
systems
• EPC works started in 1988 in power and cement plants
• Diversified into infrastructure space and steel business

Presence in multiple sectors and geographies



• Sectors: Power, Cement, Steel, Highways, Railways,

industrial estates, residential buildings
• Geographies: China, India, Africa, West Asia, South East
Asia and South America

15 01/14/11
XZD – Capabilities…1

Power Sector


• Company offers turnkey solutions in thermal power

business
–
–
–
– 2 x 600 MW

• Services offered for thermal, hydro, wind, solar and diesel

based plants
• Coal based thermal power plants – capability for capacity
ranges of 25 MW to 600 MW per unit
•

2 x 300 MW

16 01/14/11
XZD – Capabilities…2

17 01/14/11
Resources at XZD

18 01/14/11
Experience in EPC works
Projects Capacity Completion Year
Shaanxi Binchang Coal Mining Co. 2 x 135 MW (CFB) 2006
Shanxi Weihei Power Plant 2 x 300 MW 1996
Pucheng Power Plant 2 x 330 MW 2002
Baoji Power Plant 2 x 330 MW 2009

Harbin III Power Plant 2 x 600 MW 1996

Tianjin Panshan Power Plant 2 x 600 MW 2001
Hebei Xibaipo Power Plant 2 x 600 MW 2006
Anbatowi Power Plant, Madagascar 2 x 235 MW CFBC 1999
CCPP Power Plant, Sudan 2 x 100 MW 2004
Silop Power Plant, Turkey 1 x 135 MW 2007
Ventanans Generating Units, Chile 2 x 350 MW 2009
Iquique Generating Units, Chile 2 x 200 MW 2006
Full list of experience being provided separately

19 01/14/11
XZD’s Experience in India

First order for ESP awarded in 2006



• 6 orders awarded by JSW Steel

• 1 order awarded by BGR Energy
– More than 50 site engineers work on Indian sites for supervision of erection and
commissioning works for the supplied equipments
• XZD is pre-qualified by TCE for 2 x 210 MW project of Surana Power
• Also pre-qualified by MN Dastur for 3 x 60 MW project for Anrak Aluminium
–
–
–


20 01/14/11
Performance of Installations by XZD

Average Performance Data for 150 MW unit



Parameter Value


PLF > 75%

Availability (as per Chinese standards) 85.6%
Boiler efficiency 88% for PC boilers
Achieved TG heat rate 1953 kcal / kWh

21 01/14/11
Financials of XZD

Turnover Net worth

CAGR ~ 22%

USD Conversion ~ RMB 6.75 (As on 31st Dec 2009)

INR Conversion ~ RMB 0.145 (As on 31st Dec 2009)
INR Crores USD Million

22 01/14/11
 Approach to Project Execution


23 01/14/11 Enter footer detail within Header and Footer

 Approach to Project Execution
PROJECT EXECUTION FRAMEWORK

BS Ispat

Wrap-up EPC Agreement and

overall performance guarantee (PG)

Integrated JV

HCC XZD

Main Plant
Engineering services BOP supplies with
supply and PG
and design appraisal guarantees

meyer International as Engineering Consultant BOP Suppliers Main Plant Supplier (Imported)

Feedback Ventures as Project Management Consultant

(integration services to HCC-XZD partnership)

24 01/14/11
Execution Philosophy
Supply Chain – Main Plant Equipments

Boilers Turbines Generators

Harbin Boilers Harbin Turbine Harbin HEC

Essar, India Essar, India Essar, India

Beijing Boiler Beijing Turbine Beijing Turbine & Generator

Adani Power, Mundra Adani Power, Mundra
Western Power
RKM Powergen, Chhattisgarh Wuhan Turbine Jinan Generator
Chhattisgarh
Wuxi Boiler Hangzhou Turbine
Vedanta, Cogen Plant Chhattisgarh

Supplier Manufacturing Capacity (MW) Max. Capacity of a Unit (MW)

Harbin 30,000 1,000
Beijing Boiler & Turbine 8,000 600
China Western Power - 300
Jinan Generator 7,000 200
Wuxi Boilers - 200

26 01/14/11 Enter footer detail within Header and Footer

 Value Proposition


27 01/14/11 Enter footer detail within Header and Footer

Value Proposition

28 01/14/11 Enter footer detail within Header and Footer

Achieving Faster Execution – Proposition Details

 Achieving Faster Execution

• Prompt basic and detail engineering completion backed up by XZD’s in-house design
institute and huge database of thermal power plants.
• Strategic association with BTG vendors guaranteeing faster time of delivery than most EPC
contractor
• Fast payment thus incentivizing the vendors
• High efficient matching of delivery of equipment, erection, commissioning till hand over, by
thermal power plant project management expertise
• Effective logistics solutions
 Typical delivery timelines achieved by XZD

29 01/14/11 Enter footer detail within Header and Footer

 Thank you


30 01/14/11 Enter footer detail within Header and Footer

Export Buyer’s Credit…1

Disbursement
China Exim Bank Supplier in China

Repayment

Delivery of Supplies and Services

Down Payment
Commercial
Contract
Loan
Repayment
Agreement
Guarantee

Export Credit
Insurance

BS Ispat
Borrower’s Bank
Insurance Company in China “Importer”
(In India)

Typical Export Buyer’s Credit Arrangement

31 01/14/11 Enter footer detail within Header and Footer

Export Buyer’s Credit…2
 Guarantee Conditions can be discussed on case-to-case basis
• Guarantees by Indian Bank / borrower and / or Indian Govt.
 Lending Conditions (Typical)
• 3 years (construction period) + 10 / 12 years (repayment period)
• Loan currency – US Dollars or as mutually agreed
• Up to 85% of the contract value is financed
• Interest rate linked to LIBOR (currently ~ 8% - 9%)
• Details to be worked out with lenders


•
•
•
•
–
–
32 01/14/11 Enter footer detail within Header and Footer


 Scope Split between HCC and XZD
Scope of work HCC XZD
Design & basic engineering √
Detailed engineering & design Support for D & E √
Procurement √ (Indian Supplies) √ (Chinese supplies)
Inland and overseas transportation, port clearance, storage, √
Erection & Commissioning and handing over

Construction √ √ (Methodology)
Project Management √ √ (Supervision & Planning)
Erection √ Support & supervision
Commissioning Support Services TBD* between XZD and OEM
All statutory approvals including IBR and CEIG √ Support
Trial run Support Services TBD between XZD and OEM
PG test Support Services TBD between XZD and OEM
Overall performance Front ending TBD between XZD and OEM
Documentation incl. O&M manuals, “as made” drawings √ √

* To be decided

Companies will take joint responsibility of overall performance. OEM suppliers provide PG on critical


equipments

33 01/14/11
Human Resources at Power Division of XZD
Key personnel Designation Achievement
Qu Shouli Director - Technical Participated in establishment of Harbin Steam Turbine Co. in
1958. Designed and constructed power plants of up to 1000 MW
Yao Chengkai Chief Engineer Expert
unit sizeon equipment specifications and project planning
Chen Baolin Chief Engineer Executed first set of imported 2 x 300 MW units from US
Yi Dongfang Chief Engineer Expert on power project design and transmission projects

Ni Shiquan Chief Designer Expert on structural and civil engineering for power plant
Gu Quanyong Coal Handling System Empanelled as senior expert in Coal Handling Association in
Expert China
Ma Yinsuo Chief Engineer Expert in project planning, monitoring and control
Zhong Dawen Chief Designer Expert on design and engineering of electrical systems
Ou Yangfang Environmental Expert Empanelled on key associations and ministries in Chinese
Government for Environmental Protection Services
Zhao Wenzhi Engineer First-degree government registered construction engineer

34 01/14/11
 Organization Structure at HCC

HCC - Engineering & Construction Business

EPC Vertical Hydro Vertical Water Vertical NTSP Vertical Transport Vertical

Horizontals
BD & Construction Solutions Integrated Resource Management

Tendering & Construction Solutions Equipment Sub-contracts

Sourcing & Supply Chain

Tendering CEMG Engg & Design R&D

Project Management
Contracts Management

35 01/14/11
Organizational Structure at XZD

36 01/14/11