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Slide 1 - Asia-Pacific Partnersh

VIEWS: 24 PAGES: 27

									GAIL (India) Limited

Welcomes Participants of International Workshop on Energy Efficiency Procurement
13 & 14th July 2007

New Delhi.

GAIL (India) Limited
Presentation On Procurement process in GAIL EE-Procurement Case Study Sh. S K Singh, Executive Director. Sh. Shyamsunder, DGM.

GAIL – An Introduction

• • • •

GAIL(I) is India’s Principal Natural Gas Company under MOPNG. Activities: Transportation and Marketing of NG. Production of LPG, Propane and SBP. Production of Petrochemicals. Leasing of Telecom Bandwidth.

GAIL - BUSINESS PROFILE
GAS PIPELINES 6,400 KMs (143 MMSCMD) 11 States LPG PIPELINES 1922 KMs (3.8 MMTPA) GAS PROCESSING 7 Plants (1.2 MMTPA LPG) PETROCHEMICALS 310,000 TPA (Polyethylene)
RAJASTHAN

JL

PL
PATA LAKWA

R HA VAGHODIA ND GA

J HV

PL DV ,

VIJAIPUR TRIPURA

USAR

VSPL
KG BASIN NATURAL GAS PIPELINE LPG PIPELINE LPG PLANT PETROCHEM PLANT CAUVERY BASIN

GAIL - BUSINESS PROFILE
OFC CONNECTIVITY 13,000 KMS Through JVs E&P 30 blocks (4 Overseas ) & 3 CBM blocks
TRIPURA KOLKATA

DELHI

INDIA

NELP I

MUMBAI

HYDERABAD

R-LNG PLL- Dahej, RGPPL- Dabhol (10 MMTPA) Gas Retailing (8 JVs) IGL, MGL, BGL, CUGL, GGL, MNGL, TNGCL, AGCL Power 156 MW GSEG, Hazira

CHENNAI

OFC E&P BLOCKS MYANMAR BLOCKS DAHEJ LNG TERMINAL

Procurement Procedure

GAIL’s procurement procedure is in line with : 1) General Finance Rules (GFR) 2) CVC Guidelines 3) World Bank Procurement procedures.

TENDERING OBJECTIVE

Objectives of Public Procurement are : Transparency Fairness Equality Non- Discriminatory Non-Restrictive Quality Product and Value for money.

TENDERING MODE

• Modes of Tendering : Conventional Tendering E- procurement- Launched in Feb 07’ • Types of Tenders : Limited Open Single Tender (Exceptional cases)

TENDERING PROCESS

1.Bidder Eligibility Criteria : Technical Criteria Financial Criteria 2.Preparation of Tender Documents 3.Publication of NIT in Newspapers 4.Hosting of tender on GAIL/NIC websites.

TENDERING PROCESS

5. Sale of Tender Documents or downloading of Tender Documents 6.Reciept and accounting of Tender Documents or Electronic receipt of tender documents (Bids). 7. Opening of bids in Public.

TENDERING PROCESS.

8. Technical /Commercial Evaluation of Bids. 9. Technical/Commercial clarifications ,if any. 10.Opening of Price Bid, Disclosure of Prices/Rates

TENDERING PROCESS.
11. Evaluation/Comparison of Bids 12. Purchase/Price preference as per GOI Guidelines. 13. Loading Criteria: Deviation to tender conditions Life Cycle Costing (Efficiency/Operating cost) 14.Placement of order on evaluated L1 bidder.

LOADING CRITERIA.

In addition to the Bid Price, Comparison for Life Cycle Costing ( Energy Efficiency) will be carried as part of Bid Evaluation.

CASE STUDY-1

Procurement of Power Source :
(CCVT/ TEG /SOLAR) Evaluated price = A + B Where A = Total Installed capital cost .

CASE STUDY-1.
B = Operating + Maintenance Cost n=15 =∑(1/(1+DR)^n ) *{(FR*FCB)+1.5%*A)} n=1 Design life cycle = 15 years. Operating hours = 8760 hrs. Cost of Natural Gas = FR= Rs .8.0 / per SCM Number of power Generating system =N Guarantee fuel consumption in SCM/hr/station = fcb FCB= N * 8760 * fcb DR = Discount Rate =12%

CASE SUTDY-1.

Penalty for Non performance during shop test: penalty on account of excess fuel consumption over the guaranteed values of fuel individually will be calculated as per pre defined formula, with a limiting value ( 15% of contracted value).

CASE STUDY-2
Procurement of Gas Turbine/Compressors. i. Loading criteria shall be based on individual guaranteed performance of Compressor and Gas Turbine. ii. The parameter for Loading of the Compressor shall be the Compressor BKW at guaranteed ( certified) point.

CASE STUDY-2…

3.The parameter for loading for the gas turbine shall be guaranteed heat rate at site conditions corresponding to the compressor guarantee( certified) conditions.

CASE STUDY-2…
Bidder to furnish the guaranteed values for the following : 1. Compressor : BKW of compressor including all losses with zero percent tolerance including errors in instruments and measurement, at the guaranteed ( certified) point specified in the data sheets.

CASE STUDY 2…
2. Gear Box( if any): Efficiency of gear box while transmitting the guaranteed shaft power of compressor. However, for loading purposes the maximum efficiency of gear box shall be limited to 98%. 3. Gas Turbine : Heat Rate ( kcal/kw-hr) of gas turbine with zero percent positive tolerance at the specified rated site conditions, while generating at the turbine output shaft, the power required by the compressor and the gear unit when operating at the guaranteed( certified) point specified in the compressor data sheets.

CASE STUDY-2…

4.Site Rated power i.e. the shaft power developed by the gas turbine when it is operated at site firing temperature , rated speed and site rated conditions of inlet temperature, inlet pressure, exhaust pressure, and normal fuel composition, with zero percent negative tolerance including errors in instruments and measurements.

CASE STUDY-2…

• TOTAL COST : Total cost of the package for Evaluation purposes = A+ B + C Where • A= Capital cost of all GTC packages( including all working & standby packages) including cost of commissioning spares & special tools • B= Cost of mandatory spares

CASE STUDY 2…

• C= Differential Operating Cost C(in rupees)= ( Fe-Fr)*Cf* 8000* Df Where, Fe = Fuel consumption as calculated for the bidder. Fr = Lowest fuel consumption ( amongst the technically acceptable bidders) Cf = Cost of fuel ( Rs 9.00 per SCM)

CASE STUDY 2…

Df = Discounting factor based on no .of operating years
n=k+1

=∑ [1/{1+(R/100)}Λn ]
n=1

Where, K= Number of operating years for which loading is to be done=5 years R= Percentage rate of interest.

CASE STUDY 2…
• The maximum loading to be applied shall not exceed 15% of the total capital cost ( A+B). • Penalty for Non performance during shop test : During the performance test at the bidders works, in case a compressor fails to meet the guaranteed values, penalty will be charged as per pre defined formula with a limiting maximum penalty ( 15% of contracted Value).

CONCLUSION

• While procuring Plants/Equipments life cycle cost i.e. efficiency, fuel & spares consumption for operation & maintenance are loaded for arriving at lowest bidder. • Procurement procedures are not a hindrance to innovative procurement.

THANK YOU


								
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