ta-143-d00-g-td005_0_employer's requirements.pdf

National Iranian Steel Co.

Baft Steel Complex

DDRR aanndd MMaatteerriiaall HHaannddlliinngg PPllaanntt

PPrroojjeecctt

“Employer’s Requirements”

Table of Contents Doc No.: TA-143-D00-G-TD005 17-Sep-07 Rev 0

NISCO TARA TARH Engineering & Technological Co.

DR & Material Handling Plant Project

Employer’s Requirements Baft Steel Complex Page 1 of 1

EMPLOYER’S REQUIREMENTS

Table of Contents Page

1 General 1

2 Contractor’s Obligations 3

2.1 General 3

2.2 Supply of plant, equipment and material 3

2.3 Design 13

2.4 Drawings and technical information 23

2.5 Packing and consignment 26

2.6 Transport and delivery 26

2.7 Tests on completion 27

2.8 Civil works construction and erection 27

2.9 Training 27

2.10 Taxation 28

2.11 Quality control, inspection and testing 28

2.12 Technical services 29

2.13 Long term spare parts 30

3 The Employer’s Obligations 31

4 Battery Limits 32

5 Completion of Erection 35

6 Commissioning 37

7 Performance Guarantees 38

7.1 Direct reduction plant performance guarantee tests 38

7.2 Raw material handling plant performance guarantee tests 45

8 Non Attainment of the Guaranteed Figures 50

9 Design Data 55

10 Training 71

11 Manufacturers and Place of Manufacture 75

Single line Drawing

Section 1 Doc No.: TA-143-D00-G-TD005 17-Sep-07 Rev 0

TARA TARH Engineering & Technological Co.

DR & Material Handling Plant Project NISCO


1- GENERAL

National Iranian Steel Company (NISCO) intends to implement a direct reduction plant with

nominal capacity of 800,000 TPY +5 mm DRI (Direct Reduced Iron) and material handling plant

with the capacity of handling 2,500,000 TPY pellets and lump ore (by consideration of future

expansion). The required pellet or lump ore for above capacity of DRP shall be 1,250,000 TPY.

This Employer’s Requirements together with the documents referred to therein covers the

minimum requirements for construction of direct reduction plant and raw material handling plant

which shall be located in the Site of Baft Steel Company, close to Jamil abad village ,12

kilometers from Baft city , Kerman Province.

Direct reduction plant with nominal capacity of 800,000 TPY +5 mm DRI, a cold briquetting

plant with the capacity of 33,000 tonnes/y (12 t/h) and raw material handling plant with the

nominal capacity of 2,500,000 tonnes per year pellet and lump ore, shall be in the scope of

obligations of the Contractor.

Under this Contract the Plant and Material shall be designed, supplied and constructed and shall

be capable of unloading, stacking, reclaiming and handling pellet and lump ore at yearly rate of

2,500,000 TPY and producing screened plus 5mm metalized pellets at yearly rate of 800,000 T

with minimum average metallization of 92%. The metallization under 90% shall not be

considered in production rate calculation.

The provisions of this Employer’s Requirement and documents referred to therein shall, in no

way be considered as a limiting clause relieving the Contractor from any of his obligations to

deliver adequate Plant and Material to meet the direct reduction plant production rate and raw

material handling plant handling rate, specification and performance data.

In addition it should be noticed carefully that the specification of Plant and equipment, drawings,

etc. included in these documents reflects only the minimum requirements and the Contractor

shall make any upgrading of the Plant and equipment or the process deemed necessary to meet

the direct reduction plant production rate and raw material handling plant handling rate,

specification, guarantees and satisfactorily pass the performance tests. Detailed information and

justifications regarding suggested modifications, upgrading, etc. shall be included in the

proposal.

If the tenderer concludes that no modifications, upgrading, etc. are required in the content of

these documents, then it shall be considered as tenderer’s proposal and all the responsibilities of





completeness, fitness, correctness, etc. relies on the tenderer as a proposal made of scratch by

him.

Before any possible Contract signature, technical Contract Documents shall be modified to

reflect possible Contractor's modifications, upgrading, etc.

Any initial of the Contractor on the Contract Documents shall mean that the Contractor’s

suggested modifications, upgrading, etc. are implemented in those documents, drawings, etc.

In the signed Contract Documents none of information, documents, drawings, etc. contained in

the Contract Documents shall be considered as information, documents, drawings, etc. supplied

by the Employer except content of clause 9 (design data) of this Employer’s Requirements.

Tenderers are free to submit in addition to main tender an alternative tender, which according to

their opinion shall result in improving the performance and/or reliability of the direct reduction

plant and raw material handling plant or shall be of economical advantage to the Employer.

Direct reduction plant shall be based on one of the Midrex, HYL3 or PERED processes.

In these documents technical data is mostly based on Midrex process, if the tenderers intend to

select other mentioned process, the proposed technical specifications shall be accordingly

specified.





2- CONTRACTOR’S OBLIGATIONS

2.1- GENERAL

Contractor’s extent of responsibility shall cover process design, basic design, detailed design,

engineering, fabrication, testing, painting, protection, packing, marking and delivering of the

complete Plant, machinery, equipment, material and spare parts DDU Site delivery (as per

INCOTERM 2000) of Foreign Supply (including all its related customs formalities and risks

resulting there from) and DDP Site delivery (as per INCOTERM 2000) of Local Supply, proper

off loading and storage of both Foreign Supply and Local Supply at Site, civil works,

construction, erection, testing, tests on Completion and putting into operation the entire Plant on

Site as well as provision of training, licenses (construction and operation) and know-how to

operate the Plant properly and efficiently.

Supply of systems outside the Plant battery limits are outside Contractor's scope of supply but

Contractor shall have the obligation to review the drawing of designed systems and shall ensure

that the systems are adequate and fit for the service intended for.

2.2- SUPPLY OF PLANT, EQUIPMENT AND MATERIAL

Plant, equipment and material to be supplied shall comply with the requirements of all Contract

Documents including related specification. Scope of supply of Contractor shall consist of supply

of Plant, equipment and material for direct reduction plant and raw material handling plant.

Scope of supply shall include but not limited to the following:

2.2.1- Supply of plant, equipment and material for direct reduction plant

The following equipment and material shall be supplied:

- Oxide pellet storage bin including continuous level indicators and vibrating feeder with a

capacity of at least 3600 tonnes.

- Oxide pellet screens

- Oxide pellet handling and shaft furnace charging system; complete with all necessary

machinery, equipment, belt conveyors, feeders, bins (under size bin and top of furnace

charging bin) , chutes, drives, hoists, scales, supporting steel structure, control and warning

devices. Collection systems of under size oxide material and means for transportation of





the same to out side battery limits and open storage area for later transportation shall be

provided. Collection system for over size oxide material shall be supplied.

- All machinery and equipment for coating of oxide pellets including receiving, storing and

handling of coating material and coating application systems.

- Shaft furnace including reduction zone, transition zone and cooling zone with all necessary

equipment, oxide pellet distribution system, refractories, gas distribution system, seal legs,

slide gates, discharging system, platforms, stairways, supporting steel structure, passenger

and goods elevator, cladding and roofing for the required places, etc.

- Burden feeders complete with all necessary hydraulic systems equipment, machinery and

control devices, instrumentation and control system, etc.

- Reformer with all necessary systems, refractories, reformer tubes, catalysts, tube

supporting systems, piping, combustion air supply, fuel supply systems, combustion gas

discharge ducting, sampling facilities, both main and auxiliary burners, reformed gas

cooler, stairs, ladders, inspection openings, instrumentation and control system, etc.

- Recuperators with all necessary equipment for preheating the combustion air, feed gas and

natural gas by using the waste gas heat from reformer combustion chamber flue gas.

Provision for future addition of feed gas desulphurization is included in design and supply

of recuperator system.

- Ejector type stack complete with lining and fan.

- Process gas system including scrubber, rotary lobe type blowers, silencers, mixers, mist

eliminators, piping, etc. and provision for future addition of feed gas desulphurization is

included in design and supply of compressors.

- Cooling gas system including scrubber, rotary lobe type blowers, silencers, mist eliminator,

piping, etc.

- Production of inert gas from flue gas, inert gas storage and distribution system consisting

of compressors (seal and purge gas), coolers, refrigerators, dryers, purge gas tanks, piping,

control and alarm devices system, etc. to meet total inert gas requirements of the direct

reduction plant for a safe and reliable operation of the Plant.

- Inert gas generator with all necessary equipment and materials.





- Process water system including all necessary equipment and instrumentation for cooling,

clarifying, recycling, thickening, and removal of sludge to outside battery limits

(contaminated and clean process water shall have separate cycles).

- Machinery cooling water system complete with heat exchangers, cooling towers, pumping

system, chemical injection systems, instrumentation and control system.

- Rain water collecting and transferring up to battery limit. (considered part of civil

construction works)

- Sewage system collection and transferring sewage up to battery limit. (considered part of

civil construction works)

- Make up water treatment system including pumps, softeners, softeners regeneration system

and all necessary instrumentation and control system.

- Cold briquetting plant complete with all necessary conveyors, bins, tanks, pipes, feeders,

mixers, cranes and hoists, roller press, electrical system, instrumentation and control

system, etc.

- Metallized pellet discharge and handling system, complete with all necessary machinery,

equipment, belt conveyors, bins (DRI silos and other bins), feeders, screens, chutes, drives,

hoists, scales, control and warning devices. Feeders under storage silos are included in

scope of supply of the Contractor.

- Complete sponge iron screen station after silos with all the necessary connecting conveyors

form silos to screen station, fine handling from screen station to fine bin and from fine bin

to the cold briquetting plant.

- Grizzly feeder for separation of possible cluster.

- Remet conveying system, complete with all necessary belt conveyors, hoppers, etc.

- Dust collection system, for removing dust from all dust generating points within the plant,

complete with all necessary duct works, hoods, scrubbers, motors, fans, instrumentation

and control devices. The maximum dust laden in the discharge stack, shall comply with the

requirements set forth, in Clause 9-Design Data.

- The Contractor shall provide all necessary equipment, machinery and piping for collecting

and transporting the dust to the plant thickener or equivalent means.





- The Contractor shall provide all necessary equipment and machinery for collecting and

handling metallized dust to use it for briquetting machine in case dry type dust collecting

system is used.

- All necessary equipment and machinery for conveying, charging, storing, reclaiming and

separation of the off grade product of the direct reduction plant during testing and start-up.

- Compressed air generation and distribution system required with all necessary equipment

and piping.

- Instrument air system complete with compressors and all necessary equipment for pressure

regulation, cooling, filtering and drying of the compressed air, pipes, instruments and

control devices.

- Natural gas receiving, pressure reducing, metering station, complete with all necessary

piping, pressure reducer, safety valves, ball valves upstream and downstream, filter and

instrumentation for recording the pressure, temperature, specific gravity and the net

calorific value.

- Water separator equipment with sufficient capacity must be also provided, together with an

automatic shut off device to operate in case the supply pressure drops below design value.

- Desulphurization system for natural gas ( if required) with all necessary equipment.(It is an

optional item and Contractor shall propose it’s optional price.)

- All required piping, fitting, flanges, gaskets, bolts, nuts, strainers, valves, supports, etc.

required for the plant.

- Centralized grease lubrication system.

- All in plant sampling equipment

- Complete direct reduction plant substation including transformers, switchgears, control

equipment, protection equipment, measuring equipment and accessory equipment, etc. 33

kV power shall be supplied by the Employer up to incoming of 33 kV switchgear in DRP

substation.(Refer to single line diagram No. TA-143-D00-E-LD001 attached)

- All in plant 6.6 kV switchgears complete with protective, measuring, control and accessory

equipment.

- All in plant low voltage AC and DC distribution systems including transformers, power

centers, motor control centers, lighting distribution boards, etc.

- All 6.6 kV and low voltage AC and DC motors.





- Emergency power system.

- Earthing and lightning protection systems.

- Complete outdoor lighting, indoor lighting automatic emergency lighting for all required

rooms and areas and socket outlet systems.

- All in plant cabling and wiring systems; including cable trays/ladders, conduits, etc.

- In plant telephone system.

- In plant intercommunication and paging system.

- Power factor correction equipment.

- All in plant electrical installation material needed for installation of electrical equipment.

- Complete DC UPS system including battery chargers and batteries for supplying and

commanding the electrical switchgears and etc.

- Color CCTV system.

- Complete AC UPS system including batteries, battery chargers and inverters for control

and monitoring system.

- All necessary equipment for further treatment of the supplied water at battery limit such as

R.O. unit, demineralization unit, etc.

- All necessary lifts, hoists and cranes; The lifts shall be sized for normal maintenance work;

- All required mobile equipment for handling of pellets, DRI, coating materials, etc. (in

battery limits).

- Potable water treatment and distribution system and production of potable water from make

up water.

- Air conditioning, heating and ventilating equipment and duct work for control rooms, low

and high voltage switchgear rooms, electronic equipment rooms, laboratory, office

buildings, showers and lockers, etc. (considered part of civil construction works)

- All laboratory equipment for carrying out all required analyses and tests for servicing DR

plant and raw material handling plant.

- All necessary field instrumentation and an advanced control system (DCS/PLC) including

all required hardware and software components to operate and control the process safely

from a central control room with all necessary accessories for shutting the reformer and

furnace promptly and safely in case of emergency and operator’s error.





- All I&C cables including control and network cables and all control panels including PLC,

remote I/O, local and remote panels and computer desks.

- Alarm system to alert operators to malfunctioning of equipment and to operate interlocks

and all other safety devices.

- First fill of oils and greases.

- All required refractories.

- Capital and two years operating spare parts of the plant, and commissioning spares.

- All special tools and tackles for erection of the plant.

- In plant roads and pavements. (considered part of civil construction works)

- All foundation bolts, anchor bolts, base-plates, washers, nuts, and all necessary materials

under and with foundations such as tubes, casing, etc.

- All necessary steel structures, bins, hoppers.

- All structural steel buildings including cladding, roofing, ventilators and down pipes.

(considered part of civil construction works)

- All required supporting steel structure for equipment (reduction furnace, reformer,

scrubbers, coolers, clarifiers, belt conveyors, screening stations, etc.), cabling, piping,

valves, etc. and also structural items like passage, gang ways, handrails, etc.

- In plant maintenance shop for servicing both DR plant and raw material handling plant

including all required machinery and tools.

- All necessary steel structure, civil work, etc. for construction of storage area for passivation

of DRI in case the operators can’t send DRI to silos.

- All special tools for routine maintenance of the plant.

- All electrodes and other site fabrication and erection material.

- All required painting material.

- All civil materials including architectural items such as windows, doors, sanitary

equipment, etc. (considered part of civil construction works)

- All required buildings including control room, switch gear room, laboratory building,

stores, office building, locker and shower building, etc. (considered part of civil

construction works.)

- Fire detection fighting system including fire alarm panel, detectors(fire, smoke, heat,

explosion), fusible links, frangible bulbs, automatic valves, audible and visual alarms,





sprinkler and emulsifier installations (if required), manual and automatic fire-extinguishers

and all other installations and equipment necessary to reduce fire risks and facilitate rapid

detection of fire, accurate transfer of fire alarm to fire alarm panel located in DR control

room and provision for sending signals to the main fire fighting station and rapid and

effective extinguishing of the fire .Fire fighting water ring is out of scope of Contractor

,but building internal pipelines and other facilities are included in the scope of Contractor.

- All equipment, machinery, vessels, steel structures, civil materials, piping, pipe racks,

cabling, instruments and controls, alarms, measuring system, interlocking necessary for the

safe and satisfactory testing, setting to work, operation and maintenance of the plant and to

make the plant complete in all respects shall be supplied whether mentioned or specified in

this Employer’s Requirements or other Contract Documents or not ,free of charge to the

Employer, except those detailed in clause 3 of this Employer’s Requirements.

2.2.2- Supply of plant, equipment and material for raw material handling plant

- Truck unloading station including two hydraulic truck unloader (truck tipper) and three

substations for dump trucks , hoppers, feeders with all necessary equipment, electrical

system, instrumentation and control system, steel structure, civil work materials, etc.

- Two truck weighing stations for trucks.

- Screening station including screen decks, isolation frame, drive unit, etc.

- A combined stacker-reclaimer machine complete with all belt conveyors, reclaiming

bucket wheel, rails, electrical system, instrumentation and control system, etc.

- Provision of all necessary materials for pellet and lump ore storage area.

- Pellet and lump ore handling system complete with all belt conveyors, diverters, chutes,

movable heads, drives, weighing systems, hoists, steel structures, control and warning

devices, etc.

- Complete raw material handling substation including transformers, switchgears, control

equipment, protection and measuring equipment and accessory equipment, etc.

- Dust collection system, for removing dust from all dust generating points within the plant,

complete with all necessary duct work, hoods, scrubbers, motors, fans, instrumentation and

control devices.

- Water spray system for unloading stations and other points if required.





- Compressed air generation and distribution system within battery limits with all necessary

equipment and piping.

- Instrument air system complete with compressors and all necessary equipment for pressure

regulation, cooling, filtering and drying of the compressed air, pipes, instruments and

control devices.

- All necessary steel structure and civil work, etc for warehouse. (considered part of civil

construction works)

- All the necessary roads and pavement inside battery limits. (considered part of civil

construction works)

- Potable water distribution system and production of potable water from make up water.

- Rain water collecting and transferring to the battery limit. (considered part of civil

construction works)

- Sewage system for collecting and transferring to the battery limit. (considered part of civil

construction works)

- Feeding the raw material handling plant substation shall be supplied from DRP substation

by 6.6 kV cables including all power cables, control cables and terminals.

- All in plant low voltage AC and DC distribution systems including transformers, power

centers, motor control centers, lighting distribution boards, etc. The transformer(s) of MHP

shall have extra capacity for future car tippler.

- All low voltage AC and DC motors.

- Earthing and lightning protection systems

- Complete outdoor lighting, indoor lighting, automatic emergency lighting for all required

rooms and areas, and socket outlet systems.

- All in plant cabling and wiring systems; including cable trays/ladders, conduits, etc.

- In plant telephone system.

- In plant intercommunication and paging system.

- Power factor correction equipment.

- All in plant electrical installation material needed for installation of electrical equipment.

- Complete DC UPS system including battery chargers and batteries for supplying and

commanding the electrical switchgears and etc. which are proposed in Sub-Article





3.12 rectifier and batteries in Annex III to Employer’s Requirements, Engineering

Standard, Electrical.

- Color CCTV system.

- Complete AC UPS system including batteries, battery chargers and inverters for control

and monitoring system.

- All required mobile equipment for handling of pellets and lump ore inside battery limit.

- Air conditioning, heating and ventilation equipment and duct work for control rooms, low

and high voltage switchgear rooms, office building, etc.

- All equipment and facilities for detection and fire fighting system for all buildings including

control room, administration and warehouse. Transfer of fire alarms to fire alarm panel

located in M.H.P. control room and provisions for sending signals to main fire fighting

station is in the scope of Work. Fire fighting water network is out of scope of Contractor but

buildings internal pipelines and other facilities are included in the scope of supply.

- An advanced control system (PLC) including all required hardware and software components

to operate raw material handling equipment from local panels and control room.

- All field instrumentation and measuring equipment including all necessary accessories.

- All I&C cables including control and network cables and all control panels including PLC,

remote I/O, local and remote panels and control and computer desks.

- All in plant sampling equipment (if required).

- All necessary lifts, hoists and cranes.

- The lift shall be size for normal maintenance work

- First fill of oils and greases

- Capital and two years operating spare parts of the plant, and commissioning spares.

- All special tools and tackles for erection of the plant

- All foundation bolts, anchor bolts, base-plates, washers, nuts and all necessary material

under and with foundations such as tubes, casing, etc.

- All necessary steel structure, bins, hoppers.

- All required structural steel building including cladding, roofing, ventilators and down

pipes. (considered part of civil construction works)

- All required supporting steel structure for equipment (belt conveyors, transfer towers, etc.),

cabling, piping, valves, etc. and also structure items like passages, gang ways, handrails, etc.





- All special tools for day to day maintenance of the plant.

- All civil materials including architectural items such as windows, doors, sanitary

equipment, etc. (considered part of civil construction works)

- All required painting material.

- All required buildings including control room, switch gear room, shower and locker and

office building. (considered part of civil construction works)

- Steel Structure, plate work, mechanical, electrical, instrumentation and control system of

cooling tower, clarifier, bins, tanks (only civil work of cooling tower, clarifier and

foundation of bins and tanks is considered part of civil contraction works)

- All equipment, machinery, steel structures, piping, pipe racks, cabling, instruments and

controls, alarms, measuring system, interlocking necessary for the safe and satisfactory

testing, setting to work, operation and maintenance of the plant and to make the plant

complete in all respects shall be supplied whether mentioned or specified in this

Employer’s Requirements or other Contract Documents or not, free of charge to The

Employer, except as detailed in Clause 3 of this Employer’s Requirements.

In addition to indicated items as part of civil contraction works, other item which consists of the

bellow mentioned activities and items are considered part of civil contraction works:

Excavation and earthwork

Formwork

Back filling

Landscaping, paving and green area

Concrete work

Grouting

Reinforcement of concert work

Underground network (excluding piping material, valves, and instruments)

Civil portion of utility and electrical channels and tunnels

All civil works activities bellow zero level of plant

Anchor box

Primary earthing (excluding earthing conductor and bar supply and erection)

Soil and sub-soil investigation





Soil establishment

Pilling, foundation

Insulation for civil works

Embedded parts in concrete and soil

Drainage system

Fencing (if any)

Any other items not expressly mentioned part of civil construction works shall only be

considered part of civil construction works upon approval of the Employer and/or Employer’s

Representative.

2.3 Design

2.3.1 Objective

The Contractor shall perform the design and engineering of the Works with the objective of

producing an efficiently operable Plant capable of meeting all guarantees and warranties stated in

the Contract. Furthermore the Contractor shall produce, obtain from third parties and/or make

available to the Employer all documents relevant to the Works and all technical documentation

required. The engineering of the Works shall fully cover conceptual design, basic design and

detailed design, supply of Plant and Materials, erection and construction, pre-commissioning and

commissioning, operation and maintenance for the Plant.

2.3.1.1. All engineering and design works shall be carried out both procedure-wise and quality-

wise compatible with the best internationally available standards. The Contractor shall

provide all necessary design criteria for approval.

2.3.1.2. The Contractor shall during the engineering phase, do its utmost to select uniform

equipment to minimize spares.

2.3.1.3. The Contractor shall base its engineering and design on the information provided in

article 9 of this Employer’s Requirements [Design Data]. The Contractor may suggest

amendment to design data which shall have to be approved by the Employer before

adoption by the Contractor.

2.3.1.4. The Contractor shall provide full access for the Employer to all drawings, specifications,

calculations, standards, codes, vendor data and any documents relevant to the Works.





2.3.1.5. The Contractor shall produce all original technical documentation in the name of the

Employer. The original of all such documents provided by the Contractor shall be the

property of the Employer and shall be handed ever to the Employer.

2.3.1.6. All weights and measures shall be given in the SI system of measurement. All written

Materials, software documentation and text on drawings shall be in English.

2.3.1.7. Manufacturer’s drawings and technical documentation shall be submitted for review and

approval by the Employer.

2.3.1.8. Contractor shall review all information and documents provided by the Employer to

better acquaint itself with the prevailing conditions and existing situation. It will

however be Contractor's full responsibility to utilize, amend, modify and/or adopt such

information and documents in order to meet the conditions and obligations set out in the

Contract. Any and all modifications and/or amendments shall be approved by the

Employer.

2.3.1.9. All engineering to be performed by the Contractor shall be tailor-made for this Contract.

Engineering based on rule of thumb or past experience alone without carrying out of the

calculations and simulations is not acceptable.

2.3.2 Basic and Detailed Design

Basic and detailed design of the Works shall include, but not be limited to, the following:

(All Contractor’s Documents related to items marked with sign ( ) shall be subject to approval

by the Employer. Contractor’s Documents related to all other items shall be submitted to the

Employer for information.)

2.3.2.1 General

Prepare plot plan and general arrangement drawings showing location of all equipment and

extent and type of structures; ( )

prepare all calculations, computer runs, etc; ( )

Prepare detailed and scaled layout of equipment; ( )

Prepare list of utilized raw materials, chemicals, and additives for production, test and

running of each unit in the Plant;





Provide quantity of lubricants, coolants and chemicals required for start-up, specifying

consumption per month of operation of each item;

Prepare detailed list of upper and lower production/capacity limits of each unit in the

Plant;( )

Prepare detailed list of capital, commissioning and two years operating spare parts of the

Plant; ( )

Prepare detailed list of consumables for commissioning, start-up and one (1) year of normal

operation and maintenance of the Plant; ( )

Prepare spare part interchangeability record list for the Plant;

Prepare loading data for transportation of equipment and vessels, structures, etc. in regard to

transportation limitation and regulations in Islamic Republic of Iran;

Prepare final equipment data sheets; ( )

Provide all necessary installation specification and details for mechanical erection of the

Plant; ( )

Prepare material summery sheets and material quantity take-off for each work discipline,

per drawing, per unit and per Plant;

Review and coordinate all manufacturers’ drawings for compliance with requirements and

standards of design, prior to start of manufacture;

Prepare regular inspection report on manufacture of all equipment and materials of the

Plant.

2.3.2.2 Process

Perform calculations and/or simulations and prepare final overall block flow diagram for the

Plant; ( )

Prepare process flow diagrams for each unit and perform detailed mass and energy balances

for each diagram. These diagrams shall clearly mark all streams and their numbers, plus the

characteristics of the fluids for each stream; ( )

Prepare fully developed Piping and Instrument Diagrams (P&ID) completely mechanized

indicating all line sizes and numbers, control elements and equipment characteristics and

instrument numbers; ( )





Prepare final process descriptions for each unit outlining all important process variables and

process conditions; ( )

Prepare and fix design criteria for the Plant; ( )

Prepare the control philosophy for each flow diagram and the overall unit and the Plant; ( )

Perform detailed calculations, verification study and analysis on detailed sizing for

equipment carried-out by vendors; ( )

Perform calculations and/or simulations on mass transfer and storage systems such as

conveyors, bins and bunkers, where applicable; ( )

Perform calculations and/or simulations and determine the minimum, normal and maximum

capacities for each unit and the Plant as a whole; ( )

Prepare pre-commissioning, commissioning and start-up procedures for all units and the

Plant;

Define the sparing policy on critical equipment, whether in the form of installed or capital

spares; ( )

Prepare tables for consumption of utilities and chemicals for each unit and the Plant.

Establish environmental protection parameters and criteria, perform simulations and ensure

that Plant meets environmental protection standards; ( )

Establish laboratory testing and sampling criteria and quality control procedures and prepare

list of laboratory equipment and apparatus; ( )

Prepare fully detailed equipment list for all units and the Plant; ( )

Prepare hydro test P& ID’s for all units as applicable.

2.3.2.3 Instrumentation

The Contractor’s services shall comprise the delivery of technical documentation for

instrumentation and control system necessary for installation, pre-commissioning,

commissioning, operation and maintenance as specified hereinafter but not limited thereto.

Instrumentation design criteria; ( )

Control and operational requirements; ( )

Instrument list; ( )

Instrumentation P&I diagrams; ( )





Composite instrument manuals (description of control system and instrumentations,

interlocking systems and control rooms);

System control diagrams complete with all instrumentation hardware, ranges, controller

setting, etc; ( )

Alarm list and trip settings with instruments ranges;

Technical specifications for all instruments and valves;

Complete technical data sheets for all instruments, valves and equipment; ( )

Flow elements, control valves and safety relief valves calculation sheets; ( )

Loop diagrams for electric and pneumatic analogue systems (if any) and logic functions; ( )

Layouts for control and rack rooms and any other auxiliary rooms; ( )

Equipment layouts and component lists; ( )

Instrument panel layouts, cutout and construction drawings;

Instrument location layouts for all field instruments and junction boxes with exact location

and elevation for tapping points, instrument locations, cable routes and termination points;

Outline drawings and wiring and tubing information for junction boxes;

Cable tray and cable trunking requirements;

Arrangement of pneumatic (if any) and electric signal lines; ( )

Trenches and trunking for instrument cables (if any);

Layout for electrical supply cables;

Annunciator system diagrams.

Single line diagrams for instrument electricity supply; ( )

Instruments grounding diagrams; ( )

Instrument cable lists;

Typical installation drawings; ( )

Specifications for instrumentation installation;

Shutdown and sequence logic circuits diagrams & system description;

Coordination of equipment manufacturer’s drawings, diagrams and data with project

drawings;

Project bill of material and material take-off sheets;

Concept of:





o Digital (on-off) control systems (PLC’s interlocks or DCS's interlocks) ; ( )

o Plant safety systems (alarms, emergency shut-down systems) ; ( )

Detail a specification for computer systems (i.e. dedicated computers, PLC’s, etc.) such as:

o Computer control (scope and function) ; ( )

o General description and requirement for computer hardware and software;

o Software documents; ( )

All interface works in connection with various units;

Detailed information required specifically for DCSs and PLCs, such as:

o Memory organization with maximum number of registers, timers, counters and other

features; ( )

o Detailed description of I/O addressing scheme, physical arrangement of plants in racks,

terminal and cable connection arrangement on plants and restrictions if any on I/O

configuration; ( )

o Cable types and installation requirements for I/O bus; ( )

o Data highway and program bus; ( )

o Description of documentation package;

o Equipment manual and programming manual;

o Detailed description of serial “data highway” communication protocol and interface

plants; ( )


Plant. ( )

2.3.2.4 Electrical

The Contractor’s services shall comprise the delivery of technical documentation for the detailed

design and requirements of manufacturing, installation, pre-commissioning, commissioning,

operation and maintenance as specified hereinafter but not limited thereto:

Prepare all electrical technical specification for related systems; ( )

Prepare and finalize the electrical load list and identify type of load (main or stand-by) and

their supply (normal or emergency);

Finalize the design of the electrical distribution system and the single line diagram; ( )





Perform computational analysis and studies; ( )

Prepare detailed single line diagram(s), inclusive of all necessary protections, interlocks,

metering, instrumentation and alarms; ( )

Finalize power supply requirements and specify power demand load lists of electrical

switchgears and distribution boards and rating of electrical equipment such as switchgears,

transformers, UPS systems, etc. and also electrical load balance calculations; ( )

Prepare list of electrical consumers requiring emergency power, the duration within which

critical equipment should be started after power failure, total emergency power required; ( )

Prepare earthing and lightning protection system including basic and detailed design

drawings and documents layout; ( )

Lighting system and socket outlet drawings; ( )

Prepare basic and detailed design drawings of AC and DC uninterrupted power supply

systems; ( )

Typical installation details of all electrical equipment and accessories; ( )

Basic and detailed design drawings of intercommunication and fire alarm system consisting

of:

o Preparation of block diagrams; ( )

o Preparation of layouts; ( )

o Preparation of installation details; ( )

o Preparation of wiring diagrams;

o Preparation of cables routing;

Preparation of control and interlock schemes for motor control circuit; ( )

Preparation of schematic and wiring diagrams;

Prepare interconnection and terminal connection wiring diagrams;

Prepare final technical data sheets for all electrical equipment; ( )

Prepare equipment layout drawings for all electrical substation buildings, indicating plan,

location and elevations of switchgears, transformers, bus ducts, neutral earthing resistors,

AC UPS, DC system(s), battery racks, control panels, auxiliary distribution boards, etc; ( )





Develop underground and aboveground layouts and sections of control and power cables for

inside and outside of buildings (inclusive of process areas, electrical rooms, control rooms,

rack rooms, cable rooms, outdoor area and etc.) with indication of all user; ( )

Develop underground and aboveground layouts and sections of instrument cables for inside

and outside of buildings (inclusive of process areas, electrical rooms, control rooms, rack

rooms, cable rooms, etc.) with indication of all users; ( )

Prepare layouts of cable trays/ladders and trenches inside and outside of buildings (inclusive

of process areas, electrical rooms, control rooms, rack rooms, cable rooms, outdoor area,

etc.) with sections and elevations and with specific installation details; ( )

Perform cable sizing calculations; ( )

Prepare cable schedules;

Perform checks for underground drawings of piping and civil and all other installations

where underground electrical cable is to be laid;

Prepare relay coordination curves and settings for selective tripping and perform necessary

calculations; ( )

Prepare drawings showing layout of electrical heat tracing of pipes, vessels, tanks and other

equipment (if applicable);

Prepare detail installation drawings for all electrical items including heat tracing

systems;( )

Prepare material summary sheets and bulk material take-off sheets for all electrical

commodities;

Prepare drawings and Employer’s Representativeing information sufficiently detailed to

allow the Employer to design the incoming electrical power system; ( )

Prepare specifications for installation, inspection and test procedures for all electrical items


Plant; ( )

Prepare hazardous area classification layouts for hazard areas if necessary; ( )

Specification, drawings, catalogues and all documents related to emergency diesel

generators. ( )





2.3.2.5 Civil, Structural and Architectural Design

basic design drawings; ( )

loading data (including forces and moments, in which all dynamic forces shall be converted

by the Contractor to their equivalent static forces); ( )

detailed design drawing (including bar bending schedules); ( )

calculation booklets; ( )

shop drawings

In design of civil works and structural items all Iranian design codes shall be followed.

In case there are items which are not covered by Iranian design codes American codes shall be

prevail.

2.3.2.6 Machinery

Prepare general arrangement drawings of tanks, pressure vessels, and the like and perform

sizing and thickness calculations; ( )

Prepare detailed work shop drawings of tanks, vessels, and the like. For pressure containing

equipment maximum allowable working pressure, hydrostatic test pressure, stress relieving

procedure shall be indicated on the drawings; ( )

Prepare assembly, sub-assembly, and detailed cross-sectional drawings of all equipment

showing part numbers and materials; ( )

All principal dimensions, overall clearances, the method of operations, the relationship of

parts and critical assembly dimensions of the equipment, including the number and location

of welds subject to radiographic or ultrasonic tests, design and operating conditions, etc; ( )

Prepare necessary specifications and instructions, Employer’s Representativeing

information, bill of material, construction and erection drawing for all equipment being

supplied. These specifications and instructions will also include the general procedure for

the final alignment of the equipment and sequence of erection of various components;

Prepare detailed workshop drawings of the spare parts subject to the provisions of the

General Conditions of the Contract;

Obtain from the vendor and provide all vendor detailed design drawings;

prepare detail design drawing and specification of all mobile equipment; ( )





prepare detailed drawing and specification of all required cranes and hoists; ( )

prepare the activity networks for erection of major equipment at Site;

Prepare equipment spare parts interchangeability records;


Plant. ( )

2.3.2.7 Piping

Prepare and finalize mechanical and material specification for all classes of piping; ( )

Prepare piping construction specification (fabrication, welding, welders’ qualification and

records, installation & erection, testing, inspection, etc.);

Prepare line designation tables (piping line list);

Finalize plot plans; ( )

Prepare foundation location plans; ( )

Prepare area key plans;

Prepare final piping and equipment arrangement; ( )

Design piping systems and prepare all necessary arrangement and detail drawings; ( )

Prepare piping erection drawings and details of tie-in points;

Prepare piping isometric drawings with suitable marking for prefabrication of piping spools

(for all pipes 2 and larger) ; ( )

Prepare details of piping and supports;

Perform piping flexibility analysis and calculations for all lines of 2 inches and larger; ( )

Prepare piping material take-off including bill of material for each isometric drawing;

Prepare shop fabrication drawings for all platforms, ladders, stairs;


Plant; ( )

Prepare drawings of equipment and terminal points of various units; ( )

Prepare drawings of equipment arrangement;

Prepare single line diagram of structures including major equipment and loading data; ( )

Prepare technical specification for protective coating and painting for all classes;

Prepare bill of material for protective coating and painting of piping and equipment.





2.3.2.8 HVAC and Plumbing System

Prepare basic design data; ( )

Prepare basic design drawing; ( )

Prepare detailed design drawing; ( )

Prepare specification of HVAC equipment; ( )

Prepare specification of HVAC control systems; ( )

Prepare plumbing system detailed design drawings;

Prepare detailed list of capital, commissioning and two years spare part of HVAC and

plumbing system.

2.3.2.9 Fire Detection, Alarm and Fighting System

Prepare a fire risk study for all areas of the Plant including process areas, control rooms,

electrical rooms, cable tunnels, etc; ( )

Prepare basic design drawings and report for fire detection and fighting systems suggested

for the Plant; ( )

After approval of basic design drawings and specifications of fire detection and fighting

system, the Contractor shall prepare detailed design drawings of the system. Step by step

erection procedures of the system shall be provided.

2.4 Drawings and Technical Information

2.4.1. All items indicated under Sub-Clause 2.3 [Design] of this Employer’s Requirements are

intended to define the minimum requirements for the Contractor’s Documents to be

prepared and issued for the Employer’s information and review.

2.4.2. The items indicated in this Employer’s Requirements shall not be deemed to be exhaustive

and any documents required within the frame of the Contract or necessary for the

execution of the Works shall be prepared by or caused to be prepared by the Contractor

and be made available for the Employer’s information, review and approval if so

requested by the Employer.

2.4.3. The Contractor shall provide within the scope of work free of charge two copies of

drawings, documents and data stored on Compact Disk (in the file formats required by the





Employer) and six prints of all drawings, documents and technical information called for

in this Employer’s Requirements and other Contract Documents. The size of drawings

shall be 594mm 840mm or 297mm 420mm. For other sizes the Employer has to be

asked for approval.

Metric system shall be used for design and detailing the machinery and equipment. All

drawings, technical information, manuals, correspondence and any other data sheets and

information provided by the Contractor shall include the equipment item number. This

equipment item number shall be used throughout the duration of the Contract and shall be

the same for control, requisition, purchasing, fabrication, sub-contracting, shipment, etc.

All drawings and technical information provided by the Contractor shall become the

property of the Employer and will be used in any manner desired by the Employer for the

repair, maintenance and operation of the Plant, future expansion or revamp of the Plant, as

well as for the fabrication and procurement of the spare parts as and when required,

subject to provision of the Employer’s Requirements. All drawings and technical

information shall be in English language.

Drawings and information supplied for erection shall be sufficiently detailed such that an

Iranian contractor can carry out the erection without any further information.

All drawings and documents prepared as per Sub-Clause 2.3 of this Employer’s

Requirements shall be provided in the number and form stated hereinabove.

2.4.4. Six sets of operation and maintenance manuals six months before commencement of

commissioning of the Plant shall be provided. Further six sets of operating and

maintenance manuals including modifications and test data incorporated and recorded

during commissioning shall be provided not later than two months after the Plant first

goes into operation.

Operation and maintenance manuals shall contain all detailed descriptions and information

required to enable the Employer to assemble, test, start-up, maintain, repair, dismantle, re-

assemble and adjust all and every parts of the Plant, such as:

Detailed description of the testing and start-up procedure for each Plant and

equipment item

Detailed functional description of the Plant and equipment and the recommended

mode of operation





All normal sequential steps in the operating procedure must be identified and

sufficient explanation given such that operating and maintenance training can be

undertaken before testing and start-up commences.

Sketches of control panels, simple control diagrams, typical pressures, loads, speeds

and other operating data should be included in this description.

Identification of abnormal operating conditions accompanied by recommended listing

of corrective actions to be taken.

Diagrams, sketches and explanations of abnormal function of electrical,

instrumentation and control, lubrication systems, hydraulic and pneumatic systems

together with a systemized fault-finding and fault-correcting procedure for each

system.

Step by step procedure for dismantling and re-assembly of all equipment and

recommendation as to the methods for avoiding damage in handling.

Recommended procedure for removal of the parts where shrink fits are employed.

Full and detailed information regarding clearances and tolerances required for

satisfactory operation of the equipment.

Procedure for the replacement of the wearing parts and lubrication recommendations

regarding the type and properties of the lubricants and frequency of their use

Specification of system software

Manual of programming language

All maintenance and operations necessary to keep the Plant in good operational

condition, and shall include detailed schedules showing the frequency with which all

maintenance operations shall be carried out.

2.4.5. At the end of the erection the Contractor shall assemble and forward to the Employer as-

built detailed drawings prepared by them for the Works and all the standard drawings of

the Contractor applicable to the Works as well as all drawings prepared and furnished by

Subcontractors on all mechanical, electrical and processing units. Two copies stored on

CD, and six prints of these Drawings shall be provided.

2.4.6. In addition to above any other information, Drawings or calculations that the Employer or

Employer may require shall be submitted upon request.





2.4.7. The Contractor shall indicate in detail the latest date from the Effective Date of the

Contract that the above drawings and technical information will be supplied to the

Employer.

2.4.8. The Contractor shall provide the network sufficiently detailed (CPM or equivalent

technique) for monitoring the whole project including civil and erection activities within

four weeks after effectiveness of the Contract.

2.4.9. At that time the Employer and the Contractor shall discuss and agree upon the submitted

network diagram, subdivision of activities (tasks), and the content of the progress report,

to be provided by the Contractor.

2.4.10. Then the Contractor shall provide the finalized detailed network diagram (CPM or

equivalent technique) for all the activities related to his responsibilities in this Contract

eight weeks after effectiveness of the Contract.

2.4.11. He shall furthermore submit the necessary information together with computer system

input data in his scope of responsibilities in order to enable the Employer to update and

process the whole network. Any revision affecting the milestones defined in the detailed

network shall receive the written approval of the Employer, which shall not be

unreasonably withheld.

2.4.12. The software package together with user manual of the Contractor’s system shall be

submitted to the Employer after signature of the Contract.

2.5 Packing and Consignment

All Materials, equipment and machinery shall be carefully packed for sea and long land

transportation and extended storage at Site of at least 24 months under hot summer conditions

and cold conditions during winter. Packing, marking and forwarding shall be according to Annex

VII, Employer’s Representative standards, Packing, Marking and Forwarding.

Any packing not complying with the packing, marking and forwarding Standard shall be

rejected. The Contractor should also observe all the shipping instructions of the Employer as

described and specified in any Contract Document.

2.6 Transport and Delivery

The Contractor shall provide for transport and DDU Site delivery (as per INCOTERMS 2000) of

Foreign Supply and DDP Site delivery (as per INCOTERMS 2000) of Local Supply.





2.7 Tests on Completion

The Contractor shall perform the tests on completion according to the Contract at presence of the

Employer.

2.8 Civil Works Construction and Erection

The Contractor shall carry out all civil construction works required for the Works. Whenever in

Contract Documents civil construction works is referred to it includes also architectural works

and sanitary services works. It also includes all demolishing work required for civil work,

architectural works and sanitary services works. Site preparation including soil and sub-soil

investigation, detailed topography, grading and fencing if required shall be in Contractor’s

obligation. Construction of roads inside battery limits shall be in the scope of obligations of the

Contractor. Provision of temporary electrical power distribution, water distribution and gas

distribution for construction period shall be in the Contractor’s scope of obligation. Construction

of storage facilities for storing Materials, machineries and equipment during construction shall

be in the scope of obligation of the Contractor. All buildings utility systems such as lighting and

socket outlets, telephone, domestic hot and cold water supply, sanitary sewage system,

ventilation and air conditioning system are also considered part of civil construction works.

Industrial ventilation and air conditioning system and hot and cold water systems are part of

supply of Plant. Supply of all required Materials, equipment, etc for civil works shall be in the

Contractor's scope of supply. Provision of construction equipment such as cranes, batching plant,

trucks, loaders, compressors, welding machines, formwork, etc. shall be in scope of obligation of

the Contractor, but it shall belong to the Contractor and will be removed from the Site at the end

of construction phase with the approval of the Employer.

The Contractor shall carry-out all erection works required for the Works. Whenever in Contract

Documents erection works is referred to it includes also all dismantling works required in the

Plant. In addition it includes also tests on completion as defined in clause 2.7. Final painting of

erected equipment shall also be part of erection and in the scope of obligation of the Contractor.

2.9 Training

The Contractor shall train the Employer’s operation and maintenance personnel as specified in

Clause 10 hereto.





The training will be conducted in such a way that the trainees would be able to handle and

operate the plant in the most appropriate way.

2.10 Taxation

The Contractor shall pay any taxes, duties and charges to be paid by the Contractor as defined in

Sub-Clause 1.2.2 of the Particular Conditions.

2.11. Quality Control, Inspection and Testing

The Contractor shall carry out all tests mentioned in this Employer’s Requirements,

specifications and as directed by the Employer, whether mentioned in this Employer’s

Requirements and other Contract Documents or not, to ensure that all Materials, equipment,

machineries and other prefabricated components of the Works are manufactured, fabricated and

assembled in accordance with the drawings, specifications, and international standards, codes

and sound Employer’s Representative practice.

The Contractor and his Subcontractors shall provide free of charge for the Employer adequate

office space, secretarial assistance and telecommunication services during the execution of the

inspection activities.

During the erection, cold test run and commissioning of the Plant the Employer shall have free

access at any time to the Plant to check the progress of the Works and also he shall have

complete access to all inspection and test reports, records and data.

The documents required for the approval of the Materials, machineries and equipment, as set out

in the Contract, must be delivered to the Employer in four complete sets and in such time, as to

enable the Employer to perform the necessary review and checking. All Materials, instruments

and equipment for the tests shall be provided by the Contractor to the approval of the Employer.

If special tests are to be performed in the presence of the Employer, a set of approved working

drawings showing all modifications, as well as the necessary testing apparatus shall be prepared

and made available by the Contractor.

Special tests which can not be performed at the Contractor’s premises or with the equipment at

the Contractor’s laboratories shall be performed by qualified independent international

institutions approved by the Employer.

The Contractor shall retain responsibility for the quality control, inspection and testing activities





carried out in the manufacturing works of Subcontractors.

If any equipment or a part of it shows defects of whatsoever nature that requires repairs, the

Contractor shall not proceed to make such repair without the prior approval of the Employer. In

all such cases a technical report on the repairs which need to be executed must be prepared by

the Contractor and submitted to the Employer. All defective areas shall be non-destructively

tested before and after repair.

The documents necessary for final inspection and release for packing shall be prepared as set out

in the Contract and shall be delivered to the Employer together with the pertinent technical

specifications. These documents will include but not limited to the following:

Reports on tests performed.

Casting certificates.

Pressure testing certificate

Certificates of the pertinent testing laboratories or institutional inspection authorities.

Results of any non-destructive tests, together with the pertinent sketches and descriptions.

Reports on welder’s qualifications.

Specifications of welding electrodes and methods used.

Assembly drawings of the machinery and equipment.

Detailed workshop drawings of the spare parts.

Catalogues.

Erection Specifications and information.

Maintenance and operating manuals of Subcontractors checked by the Contractor.

The inspections, tests, witnessing, verifications, acceptances, clearances, etc., carried out or

issued by the Employer shall neither relieve the Contractor of its responsibilities regarding

failures and defects, nor will it affect the guarantee assumed in the Contract.

This refers also to Contractor’s responsibility in connection with proper, effective and sound sea

worthy packing.

2.12. Technical Services

The technical services to be performed shall include the followings:

construction management





supervision of civil construction works and erection works;

start-up, Commissioning and performance guarantee tests;

training

2.13 Long Term Spare Parts Supply

Contractor shall have the obligation to supply required spare parts for the Plant for at least 15

years after issuance of Performance Certificate. The price of spare parts for first 3 years after 1

year of issuance of Performance Certificate shall be as per price list of spare parts to be supplied

under the Contract.

Price of spare parts for the remaining period of 11 years shall be reasonable and can be

concluded from Contract spare parts price list, inflation rates applicable and also considering the

progress made in manufacturing processes leading to reduction in price.





3. THE EMPLOYER’S OBLIGATIONS

3.1. GENERAL

The Employer shall provide the items listed hereunder, but the Contractor shall supply

such information as is required to enable the Employer to provide such items as and when

required:

3.1.1. Provision of required utilities and services during construction such as electricity,

water and temporary sewer facilities (if required) up to battery limit. (Inside

battery limit is in the scope of obligation of Contractor). However the Employer

can not guarantee un-interruptible availability of such services. Provision of

temporary water storage tank is in the Contractor scope of works.

3.1.2. Provision of access roads to and from the Site.

3.1.3. Provision of water, electricity and natural gas, up to the battery limit, as defined in

clause 4 of this Employer’s Requirements (Battery Limits).

3.2. Payment of custom duties of Foreign Supply shall be made by the Employer but follow-

up and all other activities in this respect are in the scope of the Contractor.

3.3. Any Plant operation personnel.

3.4. Commissioning and performance tests under the supervision and the responsibility of the

Contractor, by the Employer’s Personnel trained by the Contractor.

3.5. The Employer shall obtain import licenses for importing the Plant to Iran.





4. BATTERY LIMITS

The interface points between Contractor's scope of obligation and the Employer scope of

obligation are as follows:

4.1. NATURAL GAS

The natural gas shall be supplied at absolute pressure of 21 bar. The Contractor's scope

of work shall start at the incoming flange of the take over point at the battery limit. All

interconnecting pipe work inside the plant including secondary reducing station will be

in the Contractor's scope of obligation.

4.2. WATER

4.2.1. Industrial water

Industrial water which is physically treated water will be delivered at relevant

T.O.P at pressure 2-3 bar G in the plant battery limit. Any further treatment of water

e.g. softening, R.O, demineralization, etc, in order to achieve a suitable analysis and

PH shall be in the scope of works of the Contractor. The exact delivery point will

be determined by the Employer according to the future design of the whole water

distribution system of the steel making complex.

All necessary water treatment units and interconnecting pipe work in the plant shall

be in the Contractor's scope of supply.

4.2.2. Fire Fighting Water

Fire fighting water will be delivered in nearest branch of main ring to buildings.

4.3. COMPRESSED AIR (FOR SERVICES & INSTRUMENTATION)

Required compressed air both plant air and instrument air shall be provided by the

Contractor. No compressed air will be provided by the Employer at battery limit.

4.4. INERT GAS

Inert gas shall be produced from flue gas of reformer combustion chamber in DRP or

by inert gas generator system during startup or emergency periods.





4.5. OXIDE PELLETS

Oxide pellets and lump ore shall be delivered by trucks up to the truck unloading

station by the Employer.

4.6. METALIZED PELLETS

The Contractor limit of supply will terminate at the discharge of silos screen station. It

is worth to say that discharge fine conveyors from screen station to the fine bin, fine bin

and fine bin discharge conveyors to the cold briquetting plant shall be in the scope of

Work of the Contractor.

4.7. PROCESS EFFLUENT

The Contractor's scope of supply shall include the collection of the liquid process

effluents as dewatered sludge at a single point at the battery limit for disposal by the

Employer.

4.8. SANITARY AND INDUSTRIAL WASTE WATER

Collection of sanitary and industrial waste water inside the battery limit up to the

relevant T.O.P in plant battery limit shall be in the scope of Contractor’s obligations.

Take over point will be fixed by Employer depending on general design of sanitary and

industrial waste water of steel making Plant and the Contractor shall be bound to

deliver the waste at take over point so defined.

4.9. ELECTRIC POWER

Incoming of 33kV switchgears in DRP substation will be battery limit of electrical

equipment installation.

For earthing system, battery limit ends to shortest point of the Employer plant earthing

network (if available).





4.10. OXIDE COATING MATERIAL

Contractor shall provide all required facilities for receiving of oxide coating material at

a point located at plant boundary limit to be fixed after finalizing oxide coating material

selection together with the Employer.

4.11. SURFACE WATER

The surface water of Plant shall be collected by the Contractor and shall be connected

at one point to general surface water collection network of the Employer. The

connection point will be fixed by Employer and the Contractor shall be bound to follow

the Employer requirements.

4.12. DR BOUNDARY AND MHP BOUNDARY

Approximate distance between DR boundary and MHP boundary for proposal

preparation shall be 150 meters.





5. COMPLETION OF ERECTION

5.1. GENERAL

For the purposes of the Contract the erection shall be deemed to be completed after the

following inspections and tests have been carried out by Contractor at presence of the

Employer’s Representative.

5.1.1. Visual Inspection

Each and every Plant item shall be visually inspected to insure that they are

complete and all equipment incorporated into them conforms to the Specifications

and is ready for no-load testing.

5.1.2. No-Load Tests

Each and every Plant item shall be no-load tested with a view to checking that:

5.1.2.1. All cleaning operations have been performed.

5.1.2.2. All operations of filling of lubricants have been performed.

5.1.2.3. All motors and related shafts are running at the design speed and have a

correct direction of rotation and all movement mechanisms are functioning

correctly.

5.1.2.4. All auxiliary electrical and related services are operating under no-load

conditions;

5.1.2.5. All fluid networks filled with water or other fluids under the standard

overpressure specified in the specification are correctly installed and

without leakage.

5.1.2.6. All other no-load tests necessary to ensure safe and satisfactory setting to

work of the Plant are performed.

5.1.3. NO-LOAD TESTS IN SEQUENCE

Each and every Plant item shall be no-load tested to check that:

5.1.3.1. All instruments, sequences, interlocks, control systems, automation systems

and safety devices are properly connected and operating within the limits

imposed by the characteristics of the equipment and installation.





5.1.3.2. All mechanical parts are operating and running at the design speed without

overheating.

5.1.3.3. All other required no-load tests in sequence are performed.

5.2. After the successful completion of the no-load tests of the Plant or any portion thereof,

the representatives of Employer’s Representative and of the Contractor shall sign a

protocol. This protocol shall confirm that erection of Plant or portion thereof is

completed and Plant or portion thereof is therefore prepared for commissioning.

This protocol shall state all detailed work still to be done, which however will not

influence the start of commissioning. It will also state who is to carry out these works

and at what time they are to be effected.





6. COMMISSIONING

6.1. COMMISSIONING PERIOD

Commissioning period of the Plant according to the Time Schedule (hereinafter called

commissioning period) shall mean the period calculated from the date of the relevant

protocol of completion of erection as under Sub-Clause 5.2 herewith, or from any other

date agreed upon in Writing by the Parties hereto as under Sub-Clause 6.2 hereunder, and

during which related setting to work (including load runs) and performance tests shall take

place under the responsibility of the Contractor as specified in this Contract.

6.2. COMMENCEMENT OF THE COMMISIONING PERIOD

As soon as the relevant completion of erection under Sub-Clause 5.2 herewith has taken

place for the Plant the Contractor shall notify to the Employer in Writing of:

- The date after which the Contractor shall be ready to commence the supervision of

commissioning and load runs of the Plant; and

- Its time schedule.

Such date proposed by the Contractor shall not be later than 30 (thirty) days following the

completion of erection unless so approved in Writing by the Employer

6.3. CONTRACTOR FAILS TO START COMMISSIONING

If the Contractor shall fail to start the commissioning according to Sub-Clause 6.2 hereof,

without having given any reasonable justification to the Employer, the Employer shall be

entitled to proceed in the absence of the Contractor and the commissioning shall be deemed

to have been made in the presence of the Contractor.





7. PERFORMANCE GUARANTEES

7.1. DIRECT REDUCTION PLANT PERFORMANCE GUARANTEE TEST

7.1.1. General

Tests shall be carried out following commencement of commissioning of the plant,

as per Clause 6.2, hereof to demonstrate that the performance of the plant is in

accordance with the “Specification and Data Sheets”. The Contractor shall perform

such tests to demonstrate that the operation is of the standard guaranteed and

according to Clause 7.1.2 hereof. The guaranteed performance with regard to

production includes also the consumption of electric energy, gas and water.

Separate test shall be carried out on cold briquetting plant.

The tests shall be based on reference oxide pellets, water, electricity and natural gas

as specified in Clause 9-Design Data of this Employer’s Requirements. However,

the plant shall operate on oxide pellets produced from indigenous ore and some

imported pellets.

The Contractor guarantees that hourly production and metallization which shall be

obtained from the furnace using these oxide pellets shall be very much comparable

to the results obtained by using reference oxide pellets.

Direct reduction plant performance guarantee test shall be done without using of

oxide pellet coating system. Design, supply, erection and start up of coating system

is in the Contractor’s scope of work but the Employer will use of it in operation

stage for increasing the production as and when deemed necessary.

The Contractor shall, in particular, demonstrate:

7.1.2. Performance Data for DR plant

7.1.2.1. Average Hourly Production Rate

Average output of metallized pellets at the discharge conveyor of the plant

during test period shall be at least 100 tonnes/h of +5 mm sponge iron

with average metallization not less than 92% when using reference oxide

pellets as described above.

(sponge iron with metallization less than 90 percent shall not be

considered in the production rate calculation).





7.1.2.2. Metallization

The metallization of the product shall, on an average, be at least 92%

during the test period.

Metallization shall be expressed as

(%)100total

oxidetotal

Fe

FeFe

or

(%)100total

met

Fe

Fe

7.1.2.3. Carbon Content

The average carbon content of the product during the test period shall be

preset around 1.5%. The standard deviation of the carbon content shall not

be greater than 0.25% over the period of the test.

7.1.2.4. Natural Gas Consumption

The average natural gas consumption during the test period based on the

gas analysis as specified in Clause 9-design data of this Employer’s

Requirements, shall not exceed …… Gcal per tonne of product (+5mm

sponge iron) for reference oxide pellets as per Clause 9- Design Data.

7.1.2.5. Water Consumption

The average industrial water consumption during the test period shall not

exceed …… m3/ tonne of product (+5mm sponge iron) for DR Plant.

7.1.2.6. Electrical Energy consumption

The average electrical energy consumption during the test period shall not

exceed ……. kWh/tonne of product (+5mm sponge iron) for the DR plant

including the material handling system starting with day bin discharge

feeder and ending with storage bin discharge feeders and all auxiliary

systems such as water treatment, circulation and cooling, inert gas

generation and distribution system, compressed air generation and

distribution and in brief all electrical power consuming items of the DR

plant shall be considered in above consumption.





7.1.2.7. Performance data for cold briquetting plant

7.1.2.7.1. Average Hourly Production Rate.

Average output of briquettes at the discharge of the briquettes stock pile

conveyor of the cold briquetting plant during test period shall be at least

12 t/h briquettes only the briquettes with crushing strength minimum 400

kg/piece will be accepted.

7.1.2.7.2. Electrical energy consumption

The average electrical energy consumption during the test period shall not

exceed ……. kWh/tonnes of briquettes.

7.1.3. Conditions for Performance Tests

7.1.3.1. The plant shall be erected by the Contractor and plant shall be

commissioned under supervision of the Contractor’s supervision

personnel.

7.1.3.2. The Contractor shall envisage adequate provisions for measurement of

various parameters required for such tests during development of P&I

diagrams and detailed engineering and shall supply all such items

required.

7.1.3.3. The Contractor shall prepare the detailed procedures for performance

guarantee tests and shall submit them for Employer’s Representative’s

review, comment and approval at least four months prior to scheduled date

for commencement of performance guarantee tests.

7.1.3.4. The plant shall be operated, maintained and tested according to the

instructions given by the Contractor to the Employer personnel in

sufficient number having sufficient skill and familiarity to operate and

maintain the plant. The Employer personnel trained by Contractor are

considered to be sufficient in number and have sufficient skill and

familiarity to operate and maintain the plant. All parts of the plant subject

to normal wear and tear must be checked by both parties and, if necessary,

replaced at the Employer’s cost, prior to commencement of Performance

Tests.





7.1.3.5. The Employer shall furnish in due time and in quantity and in quality

defined in contract the raw materials, fluids, and services which are

stipulated in the Contract as the Employer’s obligation. However the

Contractor shall prepare and submit to the Employer at least six months in

advance the list and quantity of raw materials, chemicals, lubricating oil,

grease and other materials which may be necessary during the tests.

7.1.3.6. The Employer shall provide all necessary test equipment and shall make

available, the necessary laboratory facilities and staff to run the analysis

required.

All measuring instruments and devices shall be calibrated and shall

guarantee reproducible results. The Contractor and Employer’s

Representative shall jointly witness their calibration for measurement of

performance parameters such as capacities and consumptions.

7.1.3.7. Commissioning spare parts supplied by Contractor (which are part of

Contractor’s obligation) shall be available for use by Contractor during

commissioning period of the plant. But Contractor shall replace them at

the earliest opportunity free of charge to the Employer

7.1.3.8. If any tests are interrupted due to reasons attributable to the the Employer

then plant and equipment shall be started again as soon as possible and

when reaching the normal operating conditions, the tests shall continue.

The duration of the tests shall be extended by duration of such

interruptions and the tests shall be deemed to have been performed

continuously.

7.1.3.9. In the event of plant stoppages during the test period, the Employer shall

support Contractor expediently in remedying the cause of stoppage.

7.1.4. Performance Test

Contractor and the Employer shall agree on the timing of the tests in accordance

with the provision of clause 6.2 of Employer’s Requirements.

The tests shall take place after adequate initial time (approx. three days) of

continuous operation under Contractor’s supervision.





7.1.4.1. Test Period

The performance test shall last for a period of ten consecutive days=240 hours

for DR plant to prove that performance data stipulated herein can be reached

simultaneously.

The performance test shall last for a period of two(2) consecutive shifts=16

hours, for cold briquetting plant.

7.1.4.2. Repetitions of Performance Test

7.1.4.2.1. If after two repetitions a successful performance test cannot be

achieved for reasons attributable to the Contractor, the Contractor

shall carry out at his expense such modifications and/or

improvements to the plant as shall be deemed necessary to pass the

Performance Test. The Employer shall grant the time and

opportunity for such modifications stipulated in the Contract. Which

however shall not exceed three months from the start of

commissioning period.

7.1.4.2.2. Should during the test periods a period of reduced performance occur

for reasons not attributable to the Contractor, such as reduced

availability of natural gas or electrical power the period shall be

extended by the duration of any such occurrence, i.e. from the

beginning of such occurrence until normal production has again been

achieved. The production during these periods or reduced

performance shall not be considered part of the test.

If more than two such occurrences happen or any of such

occurrences have a duration of more than five days, the test shall be

repeated.

7.1.5. Test Procedures for DR plant

The detailed test procedures shall be agreed between the parties before start of

commissioning in accordance with the following:





7.1.5.1. Gas Consumption

The average gas consumption will be determined during test by means of

standardized orifice plate mounted in gas supply line of the direct reduction

plant. A tolerance of ± 2% shall be accepted on the gas consumption measuring

and indicating instrument. Determination of the gas consumption shall be done

in connection with a preset value of the carbon content of 1.5% of the

metallized product. Heat consumption shall be calculated by using the net

calorific value of gas. The hourly readings of the gas consumption shall be

recorded.

7.1.5.2. Electric Energy Consumption

The average electric energy consumption shall be determined by means of kWh

measuring devices installed in the main incoming feeder cubicle of the plant. A

measuring tolerance of ± 1.5% of the nominal rating of the kWh measuring

device shall be accepted. The hourly readings of the electric energy

consumption shall be recorded.

7.1.5.3. Average Hourly Production

The average hourly production shall be determined by means of belt scale

mounted on furnace discharge conveyor located beneath the discharge device of

the reduction furnace. Fines content of the product shall be determined by

screening approximately 1 t sample which shall be directed to the remet chute

from the furnace discharge conveyor every 1 h. The screening shall take place

immediately at the remet chute by appropriate screen. A measuring tolerance of

± 1% of the nominal rating of the scale shall be accepted. Calibrating of the belt

scale has to be performed once a shift, hourly readings of the totalizer of the

scale and fines contents shall be recorded.

For the purpose of calculating consumption figures and for determining

metallization and carbon content, only+5mm fraction of produced sponge iron

shall be used.





7.1.5.4. Sampling

For the purpose of establishing the performance of the plant with regard to Sub-

Clause (7.1.2.2) Metallization and (7.1.2.3) Carbon content sampling shall be

conducted as follows:

Samples of approx. 48 kg shall be collected from the discharge end of the

furnace discharge conveyor every one hour by the automatic sampler.

This sample shall be crushed and reduced in stages to an approx. 1 kg sample,

entirely representative to the primary sample by the sampler.

The 1 kg sample shall be ground in a ball mill for three minutes, then further

tapered to approx. 100 gr. This reduced sample quantity shall be ground in a

ball mill for 3 to 5 minutes, and, if necessary, finally by hand to less than 0. 2

mm.

7.1.5.5. Chemical Analyses

The material finer than 0.2 mm which shall be prepared in accordance to item

7.1.4.4 hereof, shall be used for the analysis:

- Determination of Fe content shall be done titrimetrically using K2Cr2O7.

- Determination of Femet shall be done by the bromine methanol process

according to the instructions of the “Handbuch für das

Eisenhüttenlaboratorium”,Vol.5.

- Dtermination of the carbon content shall be done calorimetrically.

Chemical analysis shall be conducted by the Employer and Contractor shall

be bound by the results. However, the Contractor may elect at his own cost

an independent analyst acceptable to the Employer in order to get a

confirmation of results of the Employer’s test. Such results of the

independent analyst shall be accepted by the parties.

7.1.6. Test procedures for cold briquetting palnt

7.1.6.1. Average Hourly Production Rate

The average hourly production rate shall be determined by means of integrated





belt scale mounted on briquette collecting conveyor.

A measuring tolerance of 1% of the nominal rating of the scale shall be

accepted. Calibrating of the scale has to be performed prior and after the

performance test. Hourly readings of the totalizer of the scale shall be recorded.

7.1.6.2. Electric Energy Consumption


measuring devices installed in the main incoming feeder cubicle of the cold

briquetting plant. A measuring tolerance of 1.5% of the nominal rating of the

kWh measuring device shall be accepted. The hourly readings of the electric

energy consumption shall be recorded.

7.2. RAW MATERIAL HANDLING PLANT PERFORMANCE GUARANTEE TEST

7.2.1. General

Tests shall be carried out following commencement of commissioning of the

material handling plant, as per Clause 6.2, hereof to demonstrate that the

performance of the plant is in accordance with the “Annex I to Employer’s

Requirements; Specification and Data Sheets”. The Contractor shall perform such

tests to demonstrate that the operation is of the standard guaranteed and according

to Clause 7.2.2 hereof. The guaranteed performance with regard to production

includes also the consumption of electrical energy.

The tests shall be based on normal oxide pellets and lump ore that usually used in

iron making plant. However, the plant shall operate on oxide pellets produced from

indigenous ore and some imported pellets.

The Contractor shall, in particular, demonstrate:

7.2.2. Performance Data for Raw Material Handling Plant

7.2.2.1. Average Hourly Handling Rate

Average hourly handling rate of complete raw material handling plant

shall be minimum 600 tonnes/h raw material (pellet or lump ore).





7.2.2.2. Hydraulic Truck unloader capacity.

Hydraulic truck unloader shall unload min 6 truck per hour.

The test shall be performed in two(2) consecutive days.

7.2.2.3. Average Hourly stacking and reclaiming Rate of combined stacker

reclaimer.

Average hourly stacking rate shall be minimum 1500 tonnes/h and

average hourly reclaiming rate shall be minimum 600 tonnes/h, when

using raw material pellet or lump ore.

The combined stacker reclaimer shall be tested in two(2) consecutive days

for stacking and two(2) consecutive day for reclaiming, at preset

guaranteed rate.

7.2.2.4. Electrical energy consumption the average electrical energy consumption

during the test period of complete raw material handling plant (ending to

oxide bin of DR plant) shall not exceed …….. kWh/tonne of handled raw

material.

7.2.3. Conditions for Performance Tests

7.2.3.1. The raw material handling plant shall be erected by the Contractor and

plant shall be commissioned under supervision of the Contractor’s

supervision personnel.

7.2.3.2. The Contractor shall envisage adequate provisions for measurement of

various parameters required for such tests during development of P&I

diagrams and detailed engineering and shall supply all such items

required.

7.2.3.3. The Contractor shall prepare the detailed procedures for performance

guarantee tests and shall submit them for Employer’s Representative’s

review, comment and approval at least four months prior to scheduled

date for commencement of performance guarantee tests.

7.2.3.4. The plant shall be operated, maintained and tested according to the

instructions given by the Contractor to the Employer personnel in

sufficient number having sufficient skill and familiarity to operate and





maintain the plant. The Employer personnel trained by Contractor are

considered to be sufficient in number and have sufficient skill and

familiarity to operate and maintain the plant. All parts of the plant subject

to normal wear and tear must be checked by both parties and, if necessary,

replaced at the Employer’s cost, prior to commencement of Performance

Tests.

7.2.3.5. The Employer shall furnish in due time and in quantity and in quality

defined in contract the raw materials, electrical energy, and services which

are stipulated in the Contract as the Employer’s obligation. However the

Contractor shall prepare and submit to the Employer at least six months in

advance the list and quantity of raw materials, lubricating oil, grease and

other materials which may be necessary during the tests.

7.2.3.6. All measuring instruments and devices shall be calibrated and shall

guarantee reproducible results. The Contractor and Employer’s

Representative shall jointly witness their calibration for measurement of

performance parameters such as capacities and consumptions.

7.2.3.7. Commissioning spare parts supplied by Contractor (which are part of

Contractor’s obligation) shall be available for use by Contractor during

commissioning period of the plant. But Contractor shall replace them at

the earliest opportunity free of charge to the Employer

7.2.3.8. If any tests are interrupted due to reasons attributable to the the Employer

then plant and equipment shall be started again as soon as possible and

when reaching the normal operating conditions, the tests shall continue.

The duration of the tests shall be extended by duration of such

interruptions and the tests shall be deemed to have been performed

continuously.

7.2.3.9. In the event of plant stoppages during the test period, the Employer shall

support Contractor expediently in remedying the cause of stoppage.

7.2.4. Performance Test

Contractor and the Employer shall agree on the timing of the tests in accordance





with the provision of clause 6.2 of Particular Conditions of Contract.

The tests shall take place after adequate initial time (approx. three days) of

continuous operation under Contractor’s supervision.

7.2.4.1. Test Period

The Performance Test shall last for a period of six consecutive hours to prove

that average hourly handling rate performance data stipulated herein can be

reached simultaneously.

7.2.4.2. Repetitions of Performance Test

7.2.4.2.1. If after two repetitions a successful performance test cannot be

achieved for reasons attributable to the Contractor, the Contractor

shall carry out at his expense such modifications and/or

improvements to the plant as shall be deemed necessary to pass the

Performance Test. The Employer shall grant the time and

opportunity for such modifications stipulated in the Contract. Which

however shall not exceed three months from the start of

commissioning period.

7.2.4.2.2. Should during the test periods a period of reduced performance occur

for reasons not attributable to the Contractor, such as reduced

availability of electrical power, the period shall be extended by the

duration of any such occurrence, i.e. from the beginning of such

occurrence until normal handling rate has again been achieved. The

material handling during these periods or reduced performance shall

not be considered part of the test.

If more than two such occurrences happen or any of such

occurrences have a duration of more than five hours, the test shall be

repeated.





7.2.5. Test Procedures

The detailed test procedures shall be agreed between the parties before start of

commissioning in accordance with the following:

7.2.5.1. Average Hourly Transporting rate

The average hourly transporting rate shall be determined by means of belt scale

mounted on discharge conveyors (day bin charging conveyor). A measuring

tolerance of 1% of the nominal rating of the scale shall be accepted.

Calibrating of the belt scale has to be performed once a shift, hourly readings of

the totalizer of the scale shall be recorded.

7.2.5.2. Electric energy consumption


measuring devices installed in the main incoming feeder cubicle of the plant. A

measuring tolerance of 1.5 % of the nominal rating of the kWh measuring

device shall be accepted.

The hourly readings of the electric energy consumptions shall be recorded.





8. Non Attainment of the Guaranteed Figures

8.1. Should for any reason not attributable to the Employer, after the first performance test

and repeated attempts and any other effort and endeavor that the Contractor shall have

made within three months after start of commissioning period, if any performance test

can not be passed successfully then provisions of Clause 8.2 shall apply.

8.2. Penalties

8.2.1. Penalties for the direct reduction plant

8.2.1.1. Average hourly production rate

The Contractor shall pay to the Employer a compensation of one and half (1.5)

percent of the Contract Price of direct reduction plant for each complete percent

that actual hourly production rate falls short of guaranteed hourly production rate.

If actual average hourly production rate falls below ninety five (95) percent of

guaranteed hourly production rate of the plant, then if any proposal of

compensation made by Contractor proves not acceptable to the the Employer, the

Employer shall have the right to invoke breach of the Contract.

8.2.1.2. Metallization

The Contractor shall pay to the Employer a compensation of two (2) percent of

Contract Price of the direct reduction plant for each complete percent the average

metallization at preset carbon content and guaranteed average hourly production

rate falls below ninety two (92) percent. If the average metallization at preset

carbon content and guaranteed production rate, falls below ninety(90) percent,

then if any proposal of compensation made by Contractor proves not acceptable

to the the Employer, the Employer shall have the right to invoke breach of the

Contract.

8.2.1.3. Natural Gas

The Contractor shall pay to the Employer a compensation of point twenty

five(0.25) percent of the Contract Price of direct reduction plant for each

complete percent the natural gas consumption exceeds one hundred two (102)





percent of guaranteed natural gas consumption. If natural gas consumption

exceeds one hundred twelve (112) percent of guaranteed natural gas consumption,

then if any proposal of compensation made by Contractor proves not acceptable

to the the Employer, the Employer shall have the right to invoke breach of

Contract.

8.2.1.4. Electrical Energy

The Contractor shall pay to the Employer a compensation of point twenty five

(0.25) percent of the Contract Price of direct reduction plant for each complete

percent the electrical energy consumption exceeds one hundred two (102) percent

of guaranteed electrical energy consumption. If electrical energy consumption

exceeds one hundred twelve (112) percent of guaranteed electrical energy

consumption, then if any proposal of compensation made by Contractor proves

not acceptable to the the Employer, the Employer shall have the right to invoke

breach of Contract.

8.2.1.5. Water Consumption

The Contractor shall pay to the Employer a compensation of point twenty five

(0.25) percent of the Contract Price of direct reduction plant for each complete

percent the industrial water consumption exceeds one hundred two (102) percent

of guaranteed industrial water consumption. If industrial water consumption

exceeds one hundred twenty (120) percent of guaranteed industrial water

consumption, then if any proposal of compensation made by Contractor proves

not acceptable to the Employer, the Employer shall have the right to invoke

breach of Contract.

8.2.1.6. Penalties for cold briquetting plant

8.2.1.6.1. Average Hourly Production Rate

The contactor shall pay to the Employer a compensation of two(2)

percent of the Contract Price of cold briquetting plant for each complete





percent that actual hourly production rate falls short of guaranteed

hourly production rate.

If actual average hourly production rate falls below ninety (90) percent

of guaranteed hourly production rate of the plant, then if any proposal of

compensation made by the Contractor proves not acceptable to the

Employer, the Employer shall have the right to invoke breach of the

Contract.

8.2.1.6.2. Electrical Energy

The Contactor shall pay to the Employer a compensation of half(0.5)

percent of the Contact Price of cold briquetting plant for each complete

percent the electrical energy consumption exceeds on hundred two(102)

percent of guaranteed electrical energy consumption. If electrical energy

consumption exceeds one hundred twelve(112) percent of guaranteed

electrical energy consumption, then if any proposal of compensation made

by Contractor proves not acceptable to the the Employer , the Employer

shall have the right to invoke breach of Contact.

8.2.1.7. Maximum amount payable by Contractor under Sub-Clause 8.2.1 shall not

exceed 10 percent of Contract Price related to direct reduction plant.

If the amount to be recovered from the Contractor under Sub-Clause 8.2.1

exceeds 10 percent of Contract Price of direct reduction plant, then if any

proposal of compensation made by Contractor not acceptable to the

Employer, the Employer shall have the right to invoke breach of Contract.

8.2.2. Penalties for raw material handling plant

8.2.2.1. Average hourly handling rate

The Contractor shall pay to the Employer a compensation of two(2) percent of

the Contract Price of complete raw material handling plant for each complete

percent that actual hourly handling rate falls short of guaranteed hourly

handling rate. If actual average hourly handling rate falls below ninety(90)





percent of guaranteed hourly handling rate of the plant, then if any proposal of

compensation made by Contractor Proves not acceptable to the Employer , the

Employer shall have the right to invoke breach of the Contract.

8.2.2.2. Average hourly stacking and reclaiming rate of combined stacker reclaimer

The Contractor shall pay to the Employer a compensation of two(2) percent of

the price of complete material handling plant for each complete percent that

actual hourly stacking or reclaiming rate of combined stacker reclaimer falls

short of guaranteed hourly stacking or reclaiming rate of combined stacker

reclaimer. If actual average hourly stacking or reclaiming rate of combined

stacker reclaimer falls below ninety (90) percent of guaranteed hourly stacking

and reclaiming rate of combined stacker reclaimer, then if any proposal of

compensation made by Contractor proves not acceptable to the Employer, the

Employer shall have the right to invoke to breach of the Contract.

8.2.2.3. Electrical Energy

The Contractor shall pay to the Employer a compensation of point twenty

five(0.25) percent of the Contract Price of raw material handling plant for each

complete percent the electrical energy consumption exceeds one hundred

two(102) percent of guaranteed electrical energy consumption. If electrical

energy consumption exceeds one hundred twelve(112) percent of guaranteed

electrical energy consumption, then if any proposal of compensation made by

contactor proves not acceptable to the Employer, the Employer shall have the

right to invoke breach of the contract.

8.2.2.4. Maximum amount payable by Contactor under Sub-Clause 8.2.2 shall not

exceed 10 percent of Contract Price related to complete raw material handling

plant.

If the amount to be recovered from the contractor under Sub-Clause 8.2.2

exceeds 10 percent of Contract Price of raw material handling plant, then if any





proposal of compensation made by Contractor not acceptable to the Employer,

the Employer shall have the right to invoke breach of Contract.





9. DESIGN DATA

The basic design data necessary for the design and engineering of Plant are given below. If any

additional information is required, such reasonable further technical information will be supplied

upon request.

9.1. PLANT LOCATION

The direct reduction and raw material handling site is located near the city of Baft, with

approximate co-ordinates of:

Latitude 29 17' North

Longitude 56 36' East

The region’s elevation is about 2250 meters above mean sea level (M.S.L.).

The nearest airport is Sirjan airport.

9.2. CLIMATIC CONDITIONS

The meteorological information of the Site is based on the data obtained from Baft

meteorological station, since 1996. The station elevation is 2280 meters above mean sea level

(M.S.L.).

Average maximum air temperature in the summer ranges within 29 to 33.5 . Observed

absolute maximum air temperature is equal to 36.5 and observed absolute minimum air

temperature is equal to minus 16 .

Prevailing wind directions are west and north east winds. The following wind velocities will be

considered for design purposes:

For the elevation of zero to 10 m: 125 km/h

For the elevation of 10 to 20 m: 148 km/h

Design Atmospheric pressure should be assumed as 0.77 bar.

Average annual amount of precipitation: 265 mm

Maximum annual amount of precipitation: 376 mm

In the autumn and spring precipitation falls in the form of convective showers, accompanied by

thunderstorms and lightning. Precipitation in any form is very rare within the summer, due to

extremely high water absorbing capacity of the environment.





The figures of relative humidity during winter and summer have been given in the following

pages.

9.3. SEISMIC CONDITIONS

For supplied plant and equipments, all calculations referring to seismic conditions shall be based

on third version of Iranian National Code number 2800. According to this code, design base

acceleration shall be considered 0.25 g.

9.4. SOIL CHARACTERISTICS

The Contractor shall perform soil investigation by itself.

9.5. INDUSTRIAL SEWAGE SPECIFICATIONS

Treatment plant is out of contractor's obligation but the exact industrial sewage specifications at

battery limits shall be specified by contractor in next stage.





-20.0

-15.0

-10.0

-5.0

0.0

5.019961997

19981999

20002001

20022003

20042005

YE

AR

TE M P E RATURE (DE C.,JAN.)

AV

E. M

in.(°C

) DE

CA

BS

. Min

.(°C) D

EC

AV

E. M

in.(°C

) JAN

AB

S. M

in.(°C

) JAN





25.0

27.0

29.0

31.0

33.0

35.0

37.0

39.01

996

1997

1998

1999

2000

200

120

02

200

320

04

2005

YE

AR

TEM PERATURE(JUNE,JULY)

AV

E. M

ax.(°C

) JUN

EA

BS

. Ma

x.(°C) JU

NE

AV

E. M

ax.(°C

) JUL

YA

BS

. Ma

x.(°C) JU

LY





35 40 45 50 55 60 65 70 75 80 8519961997

19981999

20002001

20022003

20042005

YE

AR

M E A N S O F R E L A T IV E H U M ID IT Y (D E C .,JA N .)

AT(03:00)DE

CAT(03:00)JAN





11

16

21

26

31

36

411

996

1997

1998

1999

2000

2001

2002

2003

2004

2005

YE

AR

MEANS OF RELATIVE HUMIDITY(JUNE,JULY)

AT

(15

:00

)JU

NE

AT

(15

:00

)JU

LY





9.6. WATER SPECIFICATIONS

The water shall be supplied to the Direct Reduction Plant at battery limits. Design of Plant shall

be based on the following water analysis.

9.6.1 Water Analysis

The Industrial water will be supplied from Baft river after physical treatment (if required). The

specification of the industrial water will be:

Parameter Unit Normal value

PH

Electrical Conductivity

-

s/Cm

9.99

957

Total Dissolved Solids mg/l 600

Total Suspended Solids ppm Max.50

Sodium Absorbtion Rate - 3.87

So4-- meq/l 3.8

Cl- meq/l 2.1

HCo3- meq/l 5.7

Co3- -

meq/l 0.4

Ca++

meq/l 3.2

Mg++

meq/l 3.5

Na+ meq/l 4.9

K+ meq/l 0.02

9.7. AIR POLLUTION

9.7.1. General

The following standards are applicable:

IEPO : Environmental Protection Agency of Iran

WHO : World Health Organization





APHA : American Public Health Association

In case of any contradiction, IEPO standard prevails.

At any point involving a discharge which may cause potential hazard as dust or fumes,

provisions shall be made to collect and remove such dust and fumes from the operating area and

to clean them before they are discharged into the atmosphere.

Following the recommendation issued by the “Environmental Protection Agency of IRAN “as

for as Miscellaneous Industries (applicable to the Plant) is concerned, the standards will limit the

emission into the atmosphere as hereinafter:

- Particulate matter, no more than 100 mg/Nm3 of exit gas at standard and dry

conditions.

- H2S, no more than 7.2 mg/Nm3 of exit gas at standard and dry conditions.

- So2, no more than 800ppm of exit gas at standard and dry conditions.

- Co no more than 350 mg/Nm3 of exit gas at standard and dry conditions.

- Fluorides (as F2), no more than 6.4 mg/Nm3 of exit gas at standard and dry

conditions.

- Non visibility, no more than 20%.

9.7.2. Air Quality

Ground level concentration is final result of the above said pollution on the surrounding country-

side.

Here enclosed table “1” is showing “air quality standards” which must be compared with ground

level concentration and the ground level concentration should not exceed limits mentioned in this

table.





Table 1

Ambient Air Standard

Pollutant Primary Secondary

Particulate matter

- Annual geometric mean

- Max.24-hr. conc. b

75

260

60

150

Sulfur oxides

- Annual arithmetic mean

- Max. 24-hr. conc. b


80 (0.03)

365 (0.14)

60 (0.02)

260 (0.1)

1,300 (0.5)

Carbon monoxide



10 (9)

40 (35) Same as Primary

Photochemical

Oxidants

- Max. 1- hr. conc. B 160 (0.08) Same as Primary

Hydrocarbons

- Max. 3-hr. (6-9 A.M.) conc.b 160 (0.24) Same as Primary

Nitrogen oxides

- Annual arithmetic mean 100 (0.05) Same as Primary

a: All measurements are expressed in g/m3 except for carbon monoxide, which is expressed

in mg/m3.

Equivalent measurements in ppm are given in parentheses for the gaseous pollutants.

b: Not to be exceeded more than once a year.

9.7.3. Stack Height

When discharging fumes into the atmosphere is involving inter particular matter or gaseous

pollutants passing through stacks, the height of these stacks shall be designed so that to

guarantee the maximum ground level concentration as mentioned in table 1.





9.8. SOUND POLLUTION

9.8.1. General

The best practicable working environment shall be achieved by selection of machinery and noise

reduction to acceptable limits.

When it is determined that the noise level of a machine exceeds the stated noise level, an

approved means of noise reduction shall be provided.

According to environment protection organization of Iran, in industrial area, sound level shall

not exceed from 75dB at 7AM to 10PM and 65dB at 10PM to 7AM.

9.8.2. Limited Noise Levels

Where persons are exposed to continuous noise generated by machinery for 8 hours in any one

day the sound level shall not exceed 85 dBA.

Where persons are exposed to noise generated by machinery for a period of less than 8 hours, or

where the sound level is fluctuating, an equivalent continuous sound level shall be calculated and

should not exceed 85 dBA.

The permissible noise level for duration 8 hour per day and shorter periods are shown on the

following table.

The sound level indicated in this table is on the basis of slow meter measurement.

Duration Per Day

Hr.

Sound Level dBA

(Slow)

8 85

6 92

4 95

3 97

2 100

1 ½ 102

1 105

½ 110

¼ or less 115

Noise in the following places shall not exceed 35 dBA:





Offices, rest rooms, computer rooms.


Laboratory, control rooms.


Electrical rooms, motor rooms, substations.

9.8.3. Method of Measurement

1- Noise levels shall be measured by a precision sound level meter approved by the

Employer of the self calibrating type.

2- The noise level of a machine shall be generally measured by the near field method.

3- The machine under test shall be installed on normal foundations in the Employer

premises and/or the Contractor’s works, where agreed, and operated under (a) full

load and (b) part load conditions. The noise level shall be measured in dBA or

octave bands at a minimum of 5 locations equispaced on a prescribed path, one

meter from the vertically projected plan of the machine at a height of 1.5 meters,

additional measurements shall be made at the location on the prescribed path

giving the highest sound level reading and at every location likely to be occupied

by an employee for a substantial part of the working day.

It is also desirable that the dimensions of the test area in the specified directions

shall be at least three times those of the equipment under test.

4- Before the machine is tested, the background noise levels must be determined

using the same sound level meter and filters and the same locations as the test.

If the reading of the background noise level is within 10 dB of the machine test

reading, the necessary corrections are to be applied.

5- The final noise levels in the working environment must be measured on site at

locations which employees will occupy.

6- The noise levels in the offices, control rooms and amenity areas will be measured

in the working environment at site at locations which employees will occupy.





9.9. INDURATED OXIDE PELLETS, LUMP ORE AND LIME SPECIFICATION

9.9.1. Reference Oxide Pellets

For the purposes of performance guarantee tests and guaranteed consumption figures, pellets

with following characteristics shall be used.

9.9.1.1. Chemical Analysis

Fe 67 PCT.MIN.

SiO2+AL2O3 2.2 PCT.MAX.

SiO2 1.7 PCT.MAX.

S 0.010 PCT.MAX.

P 0.04 PCT.MAX.

Cu 0.01 PCT.MAX.

TiO2 0.150 PCT.MAX.

Basicity 1.0 MAX.

(CaO+MgO/SiO2+A12O3)

Moisture 2 PCT.MAX.

9.9.1.2. Physical and Metallurgical Characteristics

9-16 MM 85 PCT.MIN.

-6.3 MM 1 PCT.MAX.

JIS TUMBLE INDEX

+6.3 mm 94 PCT.MIN.

-1 mm 3 PCT.MAX.

Porosity 20-30 PCT.

Bulk Density (KG/M3) 2000 MIN.

LINDER (760˚C)

Metallization 92 PCT.MIN.

Tumble Index 90 PCT.MIN.





(+6.3 MM)

Fragmentation 3 PCT.MAX.

(-3.3 MM)

Compression (kg/P) 50 MIN.

STATIC BED REDUCTION (815˚C)

Bulk Density (kg/M3) 1500 MIN.

Sulphur Liberation 30 PCT.MAX.

Clustering Tendency 0

9.9.2. - The Plant Will Operate With Gol gohar Mine Pellet As Specified Below:

A. Chemical analysis

Fe (total) 67.1 PCT MIN

SIO2+AL2O3 2.27 PCT MAX

Cao+Mgo 1.81 PCT MAX

S 0.008 PCT MAX

Feo 0.5 PCT MAX

LINDER (760°C)

Metallization 93 PCT MIN

B: Physical analysis

Pellet Size:

Of course DR plant shall be capable to use other indigenous or imported oxide pellets.

9.9.3- Lump ore Specification

8 -16 mm 95 PCT MIN

Tumble Index (T.I) 94 PCT MAX

Abrasion Index (A.I) 4.5 PCT MAX

Compression (kg/p) 270 MIN

+31.8mm Max. 5%

-6.3mm Max. 8% Size

-3.2mm Max. 2%





9.9.4- Lime Specification

Particle size 0-40 mm

Specific gravity 1.1

Moisture content 5%

Angle of repose 38o

9.10- NATURAL GAS SPECIFICATION

Gas Composition Percent

CH4 Methane 88.24

C2H6 Ethane 3.48

C3H8 Propane 1.33

I-C4H10 Iso Butane 0.29

N-C4H10 Normal Butane 0.41

I-C5H12 Iso Pentane 0.14

N-C5H12 Normal Pentane 0.10

C6+

Hexane 0.12

CO2 Carbon Dioxide 0.26

N2 Nitrogen 5.63

Total - 100

H2S Hydrogen Sulphur

(as PPm) 2.7

Net heat Value

Kcal/Nm3

8675.8

Specific Gravity 0.6272

Molecular Weight 18.17 gr/mol

Water Dewpoint -15°C

Hydtocarbon

Dewpoint-9°C

Impact index (%+6.3 mm) Min. 90%

Tumbler index (%+6.3 mm) Min. 90%





Normal deviation from above specification shall not relieve Contractor from any of his

obligations.

9.11- ELECTRICAL DESIGN DATA:

9.11.1- Voltage Levels Characteristics

The voltage levels standardized for the plant are the following:

- 33 kV, 50 Hz for incoming cables and switch gear

- 6.6 kV, 50 Hz for main users, plant distribution and MV motors (> 200kW)

- 400V, 50 Hz for low voltage distribution

- 400-230 V 50Hz for lighting distribution

- 110V, 50 Hz for auxiliary and control voltages

- 110V DC for auxiliary and control voltages

- 24V DC for signal lamps and PLC I/O

Voltage variation shall be considered as ±10%.

Power factor of the system shall be kept as 0.95 by power correction equipment provided by

Contractor. Flickers shall be kept below the standard limits as per international standards.

9.11.2- System Rating

- 33 kV System

- rated system voltage ………………………………………………33 kV

- Phase ………………………………………………………………3

- Frequency ………………………………………………………… 50 Hz

- Grounded by utility

- Basic insulation level (BIL) ……………………………………… 170 kV

- one second current rating ………………………………………...… 31.5 kA

- 6.6 kV System

- rated system voltage ………………………………………………6.6 kV

- Phase ………………………………………………………………3





- Frequency ………………………………………………………… 50 Hz

- Grounded neutral through resistor

- Basic insulation level (BIL) ……………………………………… 60 kV

- one second short current rating ……………………………………… 31.5 kA

- 400 V system

- Rated system voltage …………………………………………….. 400 V

- Phase ……………………………………………………………... 3

- Frequency …………………………………………………………50Hz

- Solidly grounded neutral

- Short circuit level at rated voltage ……………………………….. 50 kA





10. TRAINING

10.1 General Provision

The training program will be divided into three phases according to the geographical areas in

which they are carried out:

(1) First phase to be held in a similar plant in Iran after selection of the employees involved

in future operation and maintenance of Plant. In this first phase the key personnel who

will travel abroad for the second phase shall be selected by the Employer based on

competency of employees and will be given the basic preparation of the project.

(2) second phase which is held abroad in Contractor’s or Subcontractor’s offices, operating

steel complex which shall contains plant units of the size and complexity which shall be

provided under this Contract and in sub-suppliers plants as specific job training.

(3) third phase which is held in Baft together with the key personnel coming from the abroad

training in order to extend training to all the personnel to be involved in the operation and

maintenance of the Plant.

10.2 Training Program Implementation

The project approach shall be based on the principle of restricting the content of the training

program to only the subjects, techniques and skills that the employee will need to carry out his

own particular job.

Moreover, all the workers should be trained together with their foremen, supervisors and

managers. They should know each other, receive similar orientation and learn to work as a team.

The training program, therefore, shall include a large amount of joint training of people at

different levels. Additional skills and knowledge required by each person, depending on his level

of responsibility or authority, will be the object of specific training programs.

With this approach the foremen and supervisors will act as trainers, a function which they will

assume later, when the Plant will start to operate.

10.2.1 First Training Phase in a Similar Plant in Iran

This phase covers mainly the preparation necessary to assume the correct background

knowledge, essential to receive the proper industrial training. Therefore this preparation shall





include the detailed explanation of the technologies to be applied in the Plant, of the production

operating practices, of the production facilities and their operating methods.

This phase includes the preliminary training in English language for the key personnel selected

for the abroad training (second phase).

All the material necessary to develop this first training phase (reference texts, diagrams,

manuals, drawings, software, plant descriptions, etc.) shall be supplied by the Contractor in

English language. The Employer will be responsible for the translation.

The detailed settlement of the courses (number of training courses, methodology and contents for

each one, number of participants, instructions) will be carried out by the Employer’s training

manager with Contractor’s training manager and Contractor’s technical assistance and

supervision staff at Site.

10.2.2 Second Phase- Abroad (Outside Iran)

The second phase shall take place abroad, outside Iran, in Contractor’s or Subcontractor’s

offices, in operating plant or at machinery suppliers’ installations.

This phase is a specific training program on a job basis and shall be carried out to selected

people assigned to important technological and operational positions, including foremen and

operators.

Contractor’s or Subcontractor’s offices shall be used to provide for the involved key personnel

all the necessary knowledge about the original design, development of engineering,

specifications, procurement, pre-assembling and testing of machinery and equipment.

Civil works, building plans, mechanical, electrical, electromechanical and hydraulic

drawings/specifications shall be prepared in these offices and it is intended that selected

individuals (especially in maintenance area) should actually work alongside Contractor’s or

Subcontractor’s personnel participate in the development of the Project.

A successful steel complex shall be selected for the on the job training of engineers, foremen and

key operators and maintenance personnel for production planning quality control and

maintenance.

In the particular case of automation training, it shall be foreseen an introductory

theoretical/practical course for the automation personnel. Successively hardware and software

specific training shall be carried out by the involved sub-suppliers.





In this second phase of training, after introductory courses the involved maintenance people shall

follow the machinery shop assembling and testing in the sub-suppliers’ plants.

English language shall be used for all training activities and documents including verbal

instructions.

10.3 Duties of the Contractor

Duties of the Contractor shall include but not limited to the following:

(a) to prepare a detailed training program for all training phases proposed in the tender

documents which shall be approved by the Employer.

(b) to train Employer’s Personnel as indicated.

(c) to prepare the necessary training hand-outs for the training in order to ensure effective

training.

(d) the Contractor shall bear all expenses during the training abroad for:

(i) medical, accident and liability insurances.

(ii) safety clothing and equipment.

(iii) provision of all the documentation regarding the training subject.

(iv) the trainee’s stay abroad (accommodation including full board and lodging, local

transportation, flight tickets except Iran-first destination abroad and return), living

allowance.

10.4 Duties of the Employer

The Employer, subject to the provision of training service, shall:

(a) arrange all visa, entry and travel formalities with the assistance of the Contractor.

(b) pay for flight tickets Iran-first destination abroad and return.

(c) pay salaries, pocket money and personnel expenses.

(d) pay for interpreters (if required)

10.5 Control of learning progress

Control of the learning progress shall be carried out by the Contractor by means of some tests

(written and/or verbal) during the training in order to keep track of the general progress.





The Employer in order to control the effect of all the training phases shall carry out final

evaluation of training program.

10.6 Course Timetable

The course shall run 5 days per week, eight hours per day (excluding lunch time). Traveling

hours to or from the hosting plant shall not be considered working hours.

In case of specific needs or according to special requirements for practical training, part of the

courses can be held during night shifts in hosting plants.

10.7 General Rules

For the total training period of the Employer’s operating and maintenance personnel, the

Employer will designate a group leader with supervisory functions. The supervisory group leader

of the Employer and the Contractor instructors shall closely cooperate.

The Employer’s Personnel to be trained abroad shall observe working times, accident prevention

instructions and factory regulations in force at each individual plant.

During training, if the trainee’s skill-set, conduct or dedication to the program is not satisfactory,

the Contractor shall inform the Employer’s group leader. If both parties agree, the training of the

individual will be terminated.

All the medical and hospitalization expenses for Employer’s trainees for the whole training

period will be at the Employer’s charge, except for first aid, which shall be administered by the

hosting plants doctor.

Note: After receipt of information called for in the Employer’s Requirements, terms and

conditions of training shall be defined and agreed by parties before signature of Contract.

However the above general terms shall be applied.





11. MANUFACTURERS AND PLACE OF MANUFACTURE

Only manufacturers and place of manufacture from European countries, Japan and Canada

are acceptable in this Contract for Foreign Supply.

For approval of manufacturers not approved in the Contract or new manufacturers requested

by the Contractor, manufacture's documentation required by the Employer's Representative

shall be submitted and if required, visit to the manufacturing shop shall be arranged by the

Contractor.

ta-143-d00-g-td005_0_employer's requirements.pdf

Documents

supply of plant

adequate plant

capacity of handling

handling pellet

cold briquetting plant

nominal capacity

employers obligations

lump ore