Turnkey projects

Review Policy The review policy should estabhsh when project safety reviews should be done. All capital projects, large or small, should have one or more safety reviews during the course of the project. The number and types of review shoiild be stated in a management policy. Any reasons for exceptions to the policy should oe documented as well. The policy should address not only projects internal to a company, but also any joint ventures or turnkey projects by outside firms. 

Turnkey projects on miniature process plants, demonstration units, etc. 

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For large turnkey projects this is usually provided by guarantee or acceptance runs which are described in Chapter 8. 

The D C contract in any project financed on a project finance basis is, invariably, based on a turnkey arrangement, This ensures that a single contractor assumes an undivided responsibility for completion date, final cost and performance of the facility. Liquidated damages are payable by the contractor for delay in completion or shortfall in performance. Such a contract is based on a carefully-written perfoimance specification issued by the project conpany against which the contractor submits a fixed price tender in competition with other contractors. The contract is generally arranged so that the turnkey contractor accepts all the major construction risks. 

The financing of such projects, unless heavily underwritten as a stimulus to their commercial application from grant support of their capital cost from public funds, will require intensive analysis of the intrinsic technical risks of the process. The satisfaction of such a risk analysis will require the production of comprehensive data (and its intensive semtiny) on operational performance and design, particularly in relation to scaling-up from the test-bed to the turnkey, commercial, installation. 

Work has begun on this aggressive project to determine the viability of a commercial turnkey H2 fueling station. Initial conclusions will be communicated at the completion of the Phase 1 tasks and will be included in the Phase 1 report. 

The Finnish Okiluoto III project developed by an existing cooperative of consumers has three main characteristics it is developed in a political environment of consensus it is the benchmark of a consumers consortium project in which consumers share equally project costs and risks and the reactor vendor assumes the construction risk via a turnkey contract. It relies typically on two contractual structures for electricity price risk and construction cost risk - a set of PPAs with the consortium members and a turnkey contract with the vendor. This type of arrangement makes possible a corporate financing approach, in which the cooperation between the borrower (with the backing of the shareholding companies) and the set of PPAs allows for an unusual high gearing ratio of 75/25. 

With the combination of a low debt cost, a high leverage, and a low return on equity, the project has a low WACC of about 5 percent. According to some studies this leads to a cost price as low as 24/MWh for the owner-operator (Tarjanne and Luostarinen, 2003). This low level of cost assumes a load factor of 91 percent, a performance which is guaranteed by the turnkey contract with AREVA. 

We have developed a software application, ATOMPLUS,i38 which can be used in a turnkey fashion to illustrate theoretical features of two electron atoms, such as basis set effects, correlation energy, virial ratio, variational principle, and multideterminantal wavefunction. The program is provided in executable format for either the IBM or Macintosh platform. The source code can be obtained from Project Seraphim and, since it is written in FORTRAN 77, it compiles readily on other platforms. 

No mailer whelher complele turnkey plants or systems for individual process steps are concerned - projects like this call for experienced specialists. 

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