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Procedure Distribution

Title: PROCEDURE FOR HV SELF-BUILD PROJECTS

Unique Identifier: 240-43874056

Area of Applicability: Engineering

Documentation Type: Procedure

Revision: 1

Total Pages 45

Next Review Date: November 2013

Disclosure Classification: CONTROLLED DISCLOSURE

Compiled by Supported by

. Mansoor Barday

Network Asset Creation VC Manager – Western

pp Prince Moyo

General Manager - Power Delivery Engineering

Date: 15 December 2011 Date: 15 December 2011

Authorised by

Rob Stephen

Wires Business Committee chairman

Date: 15 December 2011

TITLE: PROCEDURE FOR HV SELF-BUILD PROJECTS Unique Identifier: 240-43874056 Revision: 1 Page: 2 of 45


When downloaded from the IARC WEB, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorised version on the WEB.

Contents

Page

Foreword ........................................................................................................................................................ 3

Policy statement ............................................................................................................................................ 3

1 Scope .................................................................................................................................................. 5

2 Supporting clauses .............................................................................................................................. 7

2.1 Applicability .................................................................................................................................. 7

2.2 Normative/Informative references ............................................................................................... 7

2.3 Definitions .................................................................................................................................... 7

2.4 Abbreviations ............................................................................................................................... 8

2.5 Implementation roles and responsibilities ................................................................................... 9

2.6 Implementation date .................................................................................................................... 9

3 Requirements .................................................................................................................................... 10

3.1 Application for the self-build option:........................................................................................... 10

3.2 Linkage of contracting parties with quotation and environmental process ................................ 10

3.3 Description of Customer's and Eskom's responsibilities (contestable and monopoly activities):12

3.4 Pricing of contestable and monopoly works .............................................................................. 13

3.5 Eskom holding points for self-build projects .............................................................................. 14

3.6 HV self-build process stakeholders ........................................................................................... 14

3.7 Summary of Customer's and Eskom's responsibilities .............................................................. 15

3.8 Capitalisation of assets .............................................................................................................. 16

3.9 HV self-build project risks and risk mitigation ............................................................................ 17

4 Authorisation...................................................................................................................................... 20

5 Revision history ................................................................................................................................. 20

6 Development team ............................................................................................................................ 20

Annexure A – Listing of the Eskom conditions and requirements for self-build projects ............................ 21

Annexure B – Checklist of Eskom Holding Points ....................................................................................... 22

Annexure C – Applicable standards and specifications .............................................................................. 26

Annexure D – Distribution Technology Internet Access Form .................................................................... 27

Annexure E – Details of Customer's and Eskom's responsibilities during HV self-build projects ............... 30




Foreword

Distribution has permitted Customers to “self-build” MV networks for some years, on condition that they follow the Eskom Self-build Process for MV Networks.

The HV Networks Self-build Procedure has been developed to allow Customers who frequently request this option from Eskom, to do the self-building of networks for reasons of cost or time, or both cost and time. This request is based on the Customer’s perception that Eskom’s quoted prices are high and/or the project will take too long. Eskom will take over and energise these networks (built by the Customer at the Customer’s cost) once the networks have been built, tested and commissioned to Eskom’s requirements.

This right is captured in the Distribution Network Code, stated in (7.3 (4)):

“Customers will be allowed to choose a contractor other than the Distributor, provided that an agreement is reached between the Distributor and the Customer prior to the project being undertaken detailing the conditions. These conditions will set out the following:

(a) The assets the Customer is allowed to work on or not.

(b) The terms and conditions for the approval of the network design.

(c) The terms and condition for the inspection and the work done prior to any agreement to take over and/or commission the supply.

(d) The charges to be raised by the Distributor for monopoly related services.

Accordingly, Customers should have the conditional right to build dedicated connection assets.

Policy statement

Eskom will allow Customers to exercise the self-build option, subject to the following conditions :

- The Customer should request the self-build option in writing.

- Eskom approval is obtained beforehand and Eskom and the Customer sign a contract detailing the conditions on which the self-build option will be exercised.

- The Customer shall appoint an Eskom-accredited Consultant(s).

- New material to be purchased from suppliers must be in line with Eskom’s specifications as listed in Eskom’s buyer’s guide.

- Construction will be allowed only on dedicated connection assets. No work will be allowed on any upstream/shared or existing assets.

- The self-build option is strictly only for the point-to-point Customer to Eskom connection (no other Customers may be connected at that time).

- The Customer shall appoint and manage contractors that are accredited by Eskom in respect of Power and Control Plant construction.

- The connection works must be built according to the Eskom Standards and Eskom will not be obliged under any circumstances to take over and energise any asset that is not built according to the Eskom Standards.

- Eskom will accept no liability for costs or deemed energy payments as a result of late connection due to a refusal to take over assets that have not been built in accordance with the latest revision of Eskom Procedure 240-43874056 and to the Eskom Standards.

- For reasons of public safety and system reliability, Eskom will only take ownership and energise all self-built assets once they have been fully constructed and tested.




- The Customer will be liable for latent defects, as per the HV Self-build Contract signed by both parties.

- The Customer shall pay all costs incurred by Eskom in relation to all monopoly works (see the specified list in section 3).

- The Customer is also responsible for all other post-authorisation studies, appointments and legal aspects emanating from the Environmental Authorisation.

- The Customer will be accountable for the acquisition of the servitudes and sites. These servitudes and sites must be registered in Eskom’s name at the time of commissioning.

- The Customer has to ensure that the benefits of all guarantees and warrantees are transferred to Eskom on the commissioning of assets.

- Where the Customer has been allowed to exercise the self-build option, but has failed to construct the asset in accordance with the required Eskom Standards and specifications, Eskom will not be obligated to take ownership of the asset or to energise it. In this instance, the Customer will retain ownership and manage the asset itself until such time as the Customer has brought the asset in line with the required standards and specifications. This is also applicable to those assets which have been designed and constructed and which have been operated and maintained by the Customer. Should the Customer fail to meet this requirement, Eskom can provide to the Customer a new quotation to complete the project and take over the assets.

- Projects released for the upgrading or strengthening of shared Eskom assets to support Customer applications will be managed and executed by Eskom.

- The integration of the projects for the upgrading or strengthening of shared Eskom assets and the Customer’s self-build project will be managed and co-ordinated by the Eskom Project Manager.

As a principle, all Customer project applications will follow the Direct Customer process where Eskom will project manage, engineer, procure, construction manage and commission the asset. Customers do however have the right to exercise the self-build option on written application. Projects following the self-build route will be managed and executed in line with Eskom’s requirements.

This HV self-build procedure applies only to Distribution HV connection works. If there are Transmission works, such assets will be constructed by Transmission in accordance with the Grid Code requirements.




1 Scope

Eskom follows the following standardised Project Life Cycle Model shown in Figure 1.

Figure 1: Eskom Project Life Cycle Model (PLCM)

The main deliverables for Direct Customer projects during the different phases are shown in Figure 2 :

Figure 2: Main deliverables for Direct Customer pro jects during PLCM




The self-build option will be available for HV connection works.

A self-build project is one where the Customer undertakes to complete all the aspects required, including the following:

1. Route/Site selection and acquisition.

2. All Environmental Authorisations and any other legal requirements.

3. Concept design.

4. Final design package.

5. Acquisition of all project material.

6. Appointment and management of the Construction contractor.

7. Appointment and management of the Control Plant contractor, including testing and commissioning activities.

8. Stakeholder management and co-ordination to support and comply with the Eskom asset creation requirements.

Eskom will undertake the following:

a) Accepting the Route/Site selection and acquisition.

b) Verifying whether the Concept and Final Designs comply with Eskom’s requirements.

c) Performing quality control assurance during construction.

d) Leading the testing and commissioning of constructed assets.

e) Operating and maintenance of constructed assets up to the point of the Customer’s meter.

f) Monitoring compliance by all relevant stakeholder to this Procedure

This procedure describes the following:

· The conditions under which the self-build option will be allowed.

· Outlining the activities that the Customer manages (contestable works) and the activities that

Eskom manages (monopoly works) on HV self-build projects.

· Providing for the manner of dealing with connection charges and the pricing aspects.

· Outlining the Eskom holding points in the HV self-build process before further work can commence.

· Outlining the stakeholders in the HV self-build project process.

· Defining the responsibilities of the contracting party (Customer) and its subcontractors.

· Defining the responsibilities of departments internal to Eskom which are involved in the HV self-

build project process.




2 Supporting clauses

2.1 Applicability

This procedure shall apply throughout Eskom Distribution and entities in which Eskom has a controlling interest in the region.

2.2 Normative/Informative references

Parties using this procedure shall apply the most recent edition of the documents listed in the following paragraphs.

2.2.1 Normative

1. Distribution Network Code V5-1 – September 2007

2. Environmental Impact Assessment Regulations, 2010

3. Expropriation Act

4. Eskom Consideration and Compensation Standard (EST 32-844)

5. National Environmental Management Act, 1998 (Act No. 107 of 1998)

6. Pricing for the Recovery of Capital Costs Policy: 32-17

7. Pricing for the Recovery of Capital Costs Manual: 32-18

8. Cost estimate pro forma letter

9. Budget quotation pro forma letter

10. Self-build connection agreement (to be developed)

11. WGL001 Outage Planning Guideline

12. CIP Policy Rev 4-1 aligned – 31 Mar 11 Final – ESKSCSPVBBC2

13. HV Self-build Project (Year End 2012) – 322-27 – V1

2.2.2 Informative

1. MV Self-build Policy 34-1796

2. MV Self-build Procedure 34-1795

3. Core Business Developer Projects Policy 34-201

4. Core Business Developer Projects Standard 34-147

2.3 Definitions

a. Concept design : as per Table 3 in Annexure E

b. Connection assets or connection works: means the work which shall be carried out by Eskom and the Customer to connect the Customer’s asset to the Eskom electricity network.

c. Connection charges: mean the charges recouped or to be recouped by Eskom from the Customer for the cost of construction of the works and connecting the connection works to the Distribution System, which shall be either (a) a Distribution and/or Transmission Standard Connection Charge if




the connection is a Standard Connection or (b) a Distribution and/or Transmission Premium Connection Charge, if the connection is a Premium Connection.

d. Connection Charge Guarantee: means a guarantee from the Customer to cover the risk of non-payment where a schedule for the payment of connection charges has been agreed to between Eskom and the Customer.

e. Connection works: means the works required to be constructed to connect the Customer’s plant to the Eskom Distribution System.

f. Contracting party : the contracting parties shall be Eskom and the Customer.

g. Contractor : means an Eskom-accredited contractor undertaking contestable construction works.

h. Control Plant: means all Plant which is normally operated at voltages of less than 1 000 volts. It refers to all the equipment associated with and encompassing the activities of the Protection, Telecommunications, DC Supplies, Measurements and Control resources.

i. Customer: means generators and/or load applicants that will be connected to the Eskom network.

j. Dedicated connection assets: mean that portion of the network which is dedicated to a specific Customer; Customer-dedicated assets are assets created for the sole use of a Customer to meet the Customer’s technical specifications, and are unlikely to be shared in the distributor’s planning horizon by any other end-use Customer.

k. Environmental Impact Assessment (EIA): means the process of examining the environmental effects of a development. It is normally a detailed study or a specialist study of significant issues that have been identified. After following the process, an environmental authorisation might be granted.

l. Eskom Standards: the term “standard” means all related policies, procedures, work instructions and standards in Eskom.

m. Final design package: means the Eskom approved/accepted technical document detailing the design in line with the Eskom Standards and specifications in accordance with which the asset is to be constructed.

n. Handover : means a point where all contestable network construction is complete, ownership of all such network has been transferred to Eskom and the Contractor’s permission to work on them has been removed.

o. HV (High Voltage): means networks with nominal voltage from 44 kV to 132 kV.

p. Monopoly works: means those works which are Eskom’s responsibility that are required to ensure a standard of work that meets quality of supply, reliability and safety standards.

q. Point of supply: a point of supply or POS is a physical point on the electrical network from which electricity is delivered to a Customer.

r. Point to point: means the electrical infrastructure directly from the existing Eskom network to the Customer’s self-build asset, where no other Eskom customers or electrical infrastructure can be affected.

s. Route plan: means a plan detailing the geographic path along which the asset will be constructed.

t. Schedule of owners: means a listing of the names, addresses and contact numbers of all landowners along the route of the new to-be-constructed asset.

u. Self-build Connection Agreement: means the contract concluded between Eskom and the Customer defining, inter alia, the terms, rights and obligations of these parties, and specifically including the conditions under which the self-build option requested by the Customer will be allowed and exercised.

v. Technical Evaluation Forum: means a forum which looks at various project solution proposals and which recommends the best technical option to meet the Customer’s demand and ensure that designs are executed in line with the Eskom Standards and specifications.

2.4 Abbreviations




BOM Bill of Materials

CBEAPSA Certification Board for Environmental Assessment Practitioners South Africa

COW Clerk of Works

CRA Concept Release Approval

CRM Customer Relationship Management

DEA&DP Department of Environmental Affairs and Development Planning

DEA Department of Environmental Affairs DRA Definition Release Approval DWA Department of Water Affairs

EA Environmental Authorisation

ECSA Engineering Council of South Africa

ED Electricity Delivery

EIA Environmental Impact Assessment EMP Environmental Management Plan

ENS Electrical Network Schematic

ERA Execution Release Approval

FDD Final Design Document

FRA Finalisation Release Approval

HWC Heritage Western Cape

HV High Voltage

IPP Independent Power Producer

LUPO Land Use Planning Ordinance

MTO Mountain to Forest

MV Medium Voltage

PCC Point of Common Coupling

QOS Quality of Supply

SACNASP South African Council for Natural Scientific Professions

SAHRA South African Heritage Resources Agency

SNC Shared Network Cost

TEF Technical Evaluation Forum

WBS Work Breakdown Structure

2.5 Implementation roles and responsibilities

The implementation responsibilities are outlined in Section 3 and the details in Annexure E of this document with the assistance of the Grid Access Unit and the regional Network Asset Creation managers.

Where a specific position and departmental names are mentioned, it should be realised that these reflect Eskom Distribution’s current organisational design names. Future position name changes may apply. This procedure should then be revised and updated.

2.6 Implementation date

The implementation date will be the date when this document is approved.




3 Requirements

Customers are entitled to build dedicated connection assets. This conditional right is captured in the Distribution Network Code and is an increasing need raised by Customers.

There may be various reasons why the Customer would opt to do this, e.g. the Customer is in a more advantageous position than Eskom to build or extend a network at a lower capital cost or within a shorter time. It is accepted that the Customer has the right to do this.

3.1 Application for the self-build option

The Customer will apply to construct a negotiated portion of the Contestable Connection Works as a self-build option in order to provide a connection to the Grid for the purposes of an electricity supply (load customer) or to export electricity (as a generator), or both. The application for the self-build option will be managed in accordance with the Eskom Project Life Cycle Model via the Direct Customer Process.

The Customer will have the opportunity to be quoted the self-build option in two ways:

1. At the time of the Customer’s application, the Customer can indicate a preference for the self-build option which will then be provided for in the scope of the cost estimate letter; or

2. After the cost estimate letter has been provided by Eskom, the Customer can also at this time indicate that it would like to construct a portion (Contestable Works) of the connection works.

If option 2 is exercised, the Customer should note that it will be re-quoted a new scope of work, cost and project schedule estimate (self-build quotation) to reflect only Eskom’s monopoly portion.

The Customer’s request to exercise the self-build option has to be in writing (in both instances).

If, at the time of budget quotation, the Customer decides on the self-build option, all negotiations with Eskom will have to start afresh.

3.2 Linkage of contracting parties with quotation a nd environmental process

The touch points from a Customer’s perspective in relationship with Eskom’s project life cycle are indicated in Figure 3.




Figure 3: Touch points between different Parties du ring PLCM




3.3 Description of Customer’s and Eskom’s responsib ilities (contestable and monopoly activities)

3.3.1 Contestable works (Customer’s responsibilitie s)

The following activities are considered contestable works and will be managed by the Customer during

a self-build project (subject to oversight by Eskom) and apply only to the dedicated connection assets:

· Network Planning Report and/or Business Case Report, motivating the need for an asset to be created, in consultation with Eskom.

· Route and site selection.

· Route and site acquisition.

· Environmental Impact Assessment.

· All other assessments required, applications, permits and statutory approvals.

· Land rights – Deed of Grant or Deed of Transfer for HV lines and substations: only land rights registered against the title deed of a property will be accepted. Wayleaves are required for any MV overhead lines in an HV self-build project and servitudes for any MV underground cables.

· The statutory approvals and licenses required.

· Environmental approvals.

· Concept design.

· Detailed design.

· Equipment/material purchasing.

· Construction.

· Works and assets that are required by Eskom for system protection, communication and metering.

· Pre-commissioning tests.

3.3.2 Monopoly Works (Eskom’s responsibilities)

The following activities are considered monopoly works and will be carried out by Eskom:

· Network Planning shall influence and approve the preferred network concept solutions and decisions.

· The determination of the point of connection and the connection method (Network Planning Solution) subject to the Customer providing a Network Planning Report.

· All work related to upstream/shared or existing assets and any associated upstream system reinforcements.

· Works and assets that cannot be safely and efficiently separated from the existing live system.

· Work and assets inside live stations.

· Network operational control.

· The outlining specifications and requirements relating to sites, routes and wayleaves/servitudes.

· The outlining/referencing standards to be used for High Voltage lines and substations.

· The outlining of all consultants, suppliers and contractors for all HV lines and substations in accordance with the Eskom’s buyer’s guide.




· The verification of compliance with Eskom Standards for the concept and detailed design of dedicated connection assets.

· Quality assurance and monitoring of the construction works in line with Eskom’s construction holding points and the Eskom Standards.

· Leading Customer’s Control Plant contractors during the inspection, testing and commissioning of the newly constructed asset with final sign-off and acceptance as objective.

· Maintenance of assets transferred to Eskom’s ownership.

3.4 Pricing of contestable and monopoly works

3.4.1 Costs payable

The Customer will be required to pay the costs associated with providing the connection works, as follows:

· All costs associated with the monopoly works shall be payable upfront. These will be provided through the quotation process (i.e. cost estimate and budget quotation) and will be based on estimated costs. A final reconciliation of costs will be done upon the completion of the project and this will be based on the actual costs incurred. Any shortfall will be payable by the customer and any over-charging by Eskom will be refunded to the Customer.

· The customer may be liable for upstream and Premium Connection Costs, which will be subject to the standard quotation terms and conditions regarding accuracy, scope and connection time-lines. The Customer must take into account the timelines for the Eskom work.

3.4.2 Connection charges

The Customer will be required to pay a Connection Charge that shall comprise the cost of the monopoly works, plus the allocated share of upstream works less the capital allowance (if applicable), calculated on the basis of Eskom’s Recovery of Capital Policy.

· The Eskom costs associated with the connection works will be charged to the Customer as a connection charge, determined as per the Recovery of Capital Policy.

· The connection charge(s) will be based on the actual costs of the monopoly work to be performed, plus an allocated share of upstream costs.

- The upstream costs shall comprise any work or capacity allocated to the Customer on assets other than the dedicated assets. This cost may be recovered based on a pro rata share of actual costs or a shared network cost (SNC).

- Any costs arising from work required on the Eskom Transmission grid as a result of the connection of the Customer will be passed through as a connection charge to the Customer.

- If the Customer’s connection necessitates additional investment that exceeds that of a standard technical nature, then a premium connection charge will be payable.

· If a capital allowance is applicable (currently only for loads), the connection charges shall be reduced by the capital allowance. However, the capital allowance shall only be applied to the portion of upstream costs allocated and if there is a residual, this shall only be taken into account once Eskom has taken over the self-build asset and a final reconciliation of costs is provided.

· The connection charges excluding the capital allowance will be required to be paid at the time of accepting the budget quotation, unless a written and signed payment schedule has been agreed with




Eskom on the basis that Eskom will agree to a payment schedule where the construction of the Eskom monopoly works extends over a long period of time and where long lead-time material must be ordered. Where long lead-time material is required or if construction will be done over an extended period of time, the Customer will be obliged to pay the connection charge for the cost of the long lead-time material and/or the next phase of construction before Eskom will proceed with the monopoly works to prevent Eskom from incurring any liability for any cost. Should a payment schedule option with Eskom be required, the Customer may be required to provide an acceptable connection charge guarantee at the time of accepting the budget quotation.

· If there is a residual capital allowance, this will be refunded once Eskom has taken over the assets and there has been a final reconciliation of costs.

· The Engineering Council of South Africa (ECSA) fee scale shall apply to both parties to determine the actual resource costs.

3.4.3 Sharing

Sharing will be applicable to dedicated assets and will be raised as per the Recovery of Capital Policy.

3.5 Eskom holding points for self-build projects

Note that Eskom’s ownership and responsibilities only start at the handover of the asset. Prior checkpoints are intended to ensure legality and adherence to the Eskom Standards and specifications during project execution to allow for smooth and legal handover. The project is at no point considered an Eskom project, and Eskom does not become liable or responsible until handover, when testing and energising have been completed.

The detailed conditions and requirements under which Eskom allows the self-build option are listed in Annexure A.

The detailed checklist of the Eskom holding points appears in Annexure B.

3.6 HV self-build process stakeholders

The following parties are stakeholders in the HV self-build process:

The Customer and its subcontractors appointed by the Customer:

- Engineering surveyor and / or geographic information consultant

- Environmental Consultant and related specialists

- Negotiators or land acquisition consultants

- Design engineer consultant

- Construct contractor(s)

- Others as may be required by a contracting party

Eskom Holdings SOC Limited will involve the relevant departments, although not limited to, such as:

- Network Planning

- Customer Services

� Electricity Pricing




� IPP grid access unit

� Customer Executive

- Land Development

- Project Engineering

- Technology and Quality

- Project Management

- Electricity Delivery

- Field Services

- Network Plant

3.7 Summary of Customer’s and Eskom’s responsibilit ies

The responsibilities of the Customer and Eskom as outlined in Annexure E can be summarised as shown in Table .

Table : Summary of Customer’s and Eskom’s responsib ilities

ESKOM’S RESPONSIBILITIES CUSTOMER’S RESPONSIBILITIE S

Customer Services

- Serve as interface between Eskom and the Customer

- During later project phases where Project Management takes over, assist with serving as interface between Eskom and the Customer.

- Ensure that the Project Manager appointed on the Customer's side is integrated in the Eskom Project Management Team

- Manage the quotation and acceptance of the quotation process

- Manage the physical approval of all relevant (self-build, POS, etc.) contracts with the Customer

- Authorise Customer payments so that projects may proceed.

- Obtain CRA approval.

- Reconcile actual project costs versus Customer contribution during project close-out.

Provide all applicable documentation when requesting the self-build option.

The Customer accepts the quotations.

The Customer signs the contract and adheres to the conditions.

Network Planning

- Obtains high-level technical requirements from Customer and analyses the network to determine what solutions can be accommodated.

Provides the required load and network planning proposal.

Land Development

- Performs all the necessary survey checks and approval checks as received from the Customer’s appointed surveyor and ensures all the necessary system updates are carried out.

Customer appoints an engineering surveyor (Eskom approved)

Customer appoints a land surveyor (Eskom approved)

Customer appoints an environmental consultant (Eskom approved).

Project Engineering

- Provides Eskom costing for quotations.

- Convenes TEF for approval of the concept design

Customer appoints its own design engineer (Eskom approved) who will ensure that the design receives Eskom TEF approval and final design package acceptance.




ESKOM’S RESPONSIBILITIES CUSTOMER’S RESPONSIBILITIE S

- Prepares DRA and obtains DRA approval.

- Makes the final design document available to Project Management.

Project Management

- Prepares and obtains ERA approval.

- Appoints a dedicated COW whose primary role will be to ensure the construction contractor has constructed in line with the approved Eskom Standards, through the introduction of pre-agreed construction hold points with Customers Clerk of Works and Construction Contractor

- Verifies that the materials used during construction conform to Eskom’s specifications and are procured from an Eskom-approved supplier.

- Confirms the use of Eskom-approved contractors.

- Takes over the asset from the Customer after completion of testing and commissioning.

- Requests the necessary outages.

- Collates all guarantees and warrantees in respect of the equipment.

Customer appoints its own construction contractor (Eskom approved).

Customer appoints its own Clerk of Works so as to ensure quality workmanship on all construction work being executed.

Customer procures own material (from Eskom-approved suppliers).

Customer provides the listing of all guarantees and warrantees in respect of the equipment, and cedes them to Eskom

Electricity Delivery

- Lead a Customer’s control plant contractor during the testing and commissioning of the asset.

Customer appoints its own design engineer (Eskom approved) who will ensure that the design receives Eskom TEF approval.

Customer appoints its own construction contractor (Eskom approved) for the control plant execution.

Field Services

- Assist with the outage arrangements.

- Inspect asset to confirm the operating diagrams and As-Built spatial data and network elements.

Network Plant

- Takes over the asset to be maintained.

- Updates the maintenance systems with the plant data.

- Prepares the planned maintenance schedule for the plant that was taken over.

3.8 Capitalisation of assets

3.8.1 Project approval by the Investment Committee

Investment approval – the project will follow the normal process for investment approval as for any other capital project. The release of funds by the Investment Committee will be subject to the Delegation of Authority limits for the specific Investment Committee. Documentation and presentations to Investment Committees will state the value of monopoly works as well as the estimated value of the contestable work to be undertaken by the client.




Asset class identification – a requirement is that all asset classes must be identified that will be impacted by the network and will be created by the intended investment. This information must be communicated to Finance at the time of the self-build agreement with the Customer.

3.8.2 Monopoly works

Cash upfront payment – the Customer will be expected to pay an upfront amount based on the cost estimates in the budget quotation presented at the DRA stage of the project. The amount payable will be based on an 85% confidence level quotation for the monopoly work to be done by Eskom on the project.

Project cost management – the project will be managed on the basis of PLCM principles, providing for contingency fund allowances for the work done by Eskom, agreed start and end dates and the addition of Interest during construction if it is a qualifying asset in terms of the 9-month rule.

Project costing – WBS structures should be set up to facilitate the allocation of budget and costing of actual expenditure to separate the cost of monopoly works on Land and Rights and the creation of plant assets per asset class.

Cash upfront refunds – the standard calculation of refund to/claim from the customer will apply at the end of the project at FRA stage. The cash upfront balance will be recognised as revenue income after FRA approval.

FRA stage – the project will be at FRA stage after handover to and acceptance of the plant by Eskom.

3.8.3 Contestable works

The Customer has to provide Eskom with a full cost reconciliation report in respect of the self-build project.

a. Land and rights

The funding and transacting of lands and rights will form part of contestable works. To enable Eskom to record the acquisition costs of land and rights as an Eskom asset, it will be required that the asset is to be added as an in-house acquisition at the cost incurred by the Customer The inclusion of the asset at the determined value on Eskom’s asset account will require the creation of an Equity Reserve in the balance sheet of the Operating Unit that will manage the asset in future.

b. Plant assets

A similar process as that for land and rights will apply to adding any plant assets created by an external party and handed over to Eskom as part of a self-build agreement. As is the case for land and rights, it will be required that the asset is to be added as an in-house acquisition at the cost incurred by the Customer. Plant assets will be added to the Eskom asset base per asset class, based on the plant handed over to Eskom. The asset will be included at the determined value on Eskom’s asset account in accordance with the Accounting Opinion “HV Self-Build Project (2012 Year End) UI 322-27 REV V1”.

The costs for the mandatory works accumulated on the WBS structure created for this purpose can now be transferred to commercial operation per asset class.

The standard process for closing the project on SAP will apply.

3.9 HV self-build project risks and risk mitigation

There are a number of risks and concerns associated with the allowance of self-build projects. These are listed in Table 2. The applicable risk mitigation for each is also listed.

Table 2: Risk and risk mitigation list




Risk Risk mitigation

1. Use of non-standard designs – leads to operating errors

Enforce design acceptance holding points as indicated in this HV Self-build Procedure.

Risk mitigated by complying with this procedure.

2. Use of non-standard materials – leads to additional stock holding and operating errors.



3. Non-standard / different maintenance requirements.



4. Different wiring or schematic philosophies.



5. Different earthing and / or safety philosophies.



6. Paying excessive compensation for servitudes

Consideration payable for any land rights acquired must be based on the principles set out in the Expropriation Act and must furthermore be in accordance with the Eskom Consideration and Compensation Standard (EST 32-844). Any additional payments or “sweeteners” paid to landowners must be done through separate agreement and may not be reflected in the Deed of Servitude as part of the price.

7. Not consulting all the stakeholders during design and execution.

Enforce Project Management principles as accepted and applied in the Project Management Department and described in the HV Self-build Procedure.

8. Missing hold points and expecting takeover at the end of construction.

Enforce Project Management principles as accepted and applied in the Project Management Department and described in the HV Self-build Procedure.

9. Need to correct and equip consultants and contractors continuously during the project life cycle.

· Enforce design acceptance holding points as indicated in the HV Self-build Procedure.

· Eskom Project Engineering’s responsibilities are clearly defined in the HV Self-build Procedure.

· Eskom should make an urgent plan to equip more consultants to be familiar with Eskom Distribution’s standard designs and procedures. Group Capital Project Management Office Skills Supply Management should follow this up urgently to increase the pool of accredited consultants available for self-build projects and the normal Eskom build programme.

10. Confusion over responsibilities. The HV Self-build Procedure should allocate clear responsibilities to Eskom and the Customer.

11. Use of out-dated standards. Enforce design acceptance holding points as indicated in the HV Self-build Procedure.

Eskom Project Engineering should ensure the Customer is informed of the latest Eskom Standards.

12. Poor workmanship. Enforce quality inspection holding points during construction as




Risk Risk mitigation

described in the HV Self-build Procedure.

13. Customer negotiates with supplier to procure Eskom-dedicated material (jumps the queue) at the expense of Eskom’s projects.

Group Commercial should strictly manage Eskom material orders with suppliers in line with the terms and conditions of the Supplier Contract and enforce penalties where applicable.




4 Authorisation

This document has been seen and accepted by:

Name Designation

Danie Conradie Senior Manager Engineering

Shirley Salvoldi Corporate Specialist Retail Pricing

Pieter Underhay Executive Manager E P M O

Koos Schoeman Distribution Capital Accounting Manager

Wolfgang Bohmer Grid Access Unit

Barbara van Geems Chairperson Distribution National Land Development

Anton Kotzé Regional Asset Creation Manager – Mpumalanga Operating Unit (acting)

Luke Walker Distribution Capital Programme

Johan Scholtz Technology Division – Industry Association Resource Centre

Maryeen Maynard Contracts Management Manager – Southern

This procedure shall apply throughout Eskom Distribution and entities in which Eskom has a controlling interest in the region.

5 Revision history

Date Rev. Compiled By

Clause Remarks

2Sep’11 Draft M Nel/M Barday

Document Generate draft document

17Nov’11 1 M Barday Document Update document with comments for approval

6 Development team

The following people were involved in the development of the physical documenting and the consolidation of all stakeholder input and updates:

Mansoor Barday Network Asset Creation Manager – Western

Leonora Rabie Senior Business Analyst – Asset Creation




Annexure A – Listing of Eskom’s conditions and requ irements for self-build projects

1. Customers confirm in writing their request for the self-build option.

2. Customers accept and pay Eskom’s cost estimate/re-quoted cost estimate.

3. Customer concludes a contract with Eskom, detailing the conditions under which the self-build option will be undertaken.

4. Customer appoints only Eskom-approved consultants to manage and prepare the concept design as well as the final designs.

5. Only consultant-approved designs will be accepted by Eskom for further consideration and verification purposes.

6. Customer appoints only Eskom-approved engineering surveyors/land surveyors to handle all surveying functions and obtain other approvals.

7. Customer appoints only government-approved environmental consultants to handle all environmental functions and obtain other approvals.

8. Customer appoints only Eskom-approved construction contractors (power and control plant contractors) to manage and execute the construction works as per the detailed project scope of works as outlined in the final design package.

9. Customer has to ensure that only Eskom-approved suppliers are used to source the items of material and equipment needed for the execution of self-build projects.

10. Customer has to use only new material for the self-build asset creation project. No reconditioned or pre-used material or equipment will be allowed.

11. Customer has to apply the Eskom Standards and specifications to the designs and construction.

In order to ensure adherence to Eskom requirements 4, 6 and 7, the Customer has to obtain written acceptance from the various Eskom functional departments for the use of these contractors prior to contracting. This will serve as a compliance check.

In order to ensure adherence to requirement 8, the Customer will have to obtain written acceptance from Eskom Project Management for the use of these contractors prior to contracting.

In order to ensure adherence to requirement 9, the Customer has to ensure that the contractor provides Eskom’s Clerk of Works with a detailed listing of all material items and equipment purchases as well as the source from which these items and equipment have been purchased.

All of the above documents must be contained in the Eskom Project Manager’s project file.

To adhere to requirement 11: the responsible project engineer or specialist from Technology and Quality must be consulted to obtain a copy of the national or regional preferred standards and drawings. The applicable Eskom Standards and specifications appear in Annexure C.

To gain access to the Eskom external site, Annexure D has to be completed.




Annexure B – Checklist of Eskom’s holding points

Approval points as for normal Direct Customer projects will apply, and they are not listed.

The following additional holding points during the project life cycle will apply specifically to HV self-build projects:

The Eskom Project Manager will be responsible for physically gathering written proof of these holding points, and will ensure they are adhered to and file them in the correct project file. Note: the project should not proceed if these requirements are not met.

Description of phase and activity Responsible

Pre-project planning

1. Proof of the written request from the Customer to execute the project by using the self-build option.

Customer Executive

2. Written confirmation from Customer Executive that all Eskom’s

requirements for self-build projects have been provided to the

Customer (see Annexure A for a full listing of the Eskom

requirements).

Customer Executive

3. Confirmation of proposed technical solution. Eskom Senior Planning Engineer

4. Confirmation of Customer’s acceptance and payment of the cost

estimate

Customer Executive

Confirmation of all four of the above conditions wi ll result in CRA approval.

Concept phase

5. Acceptance by Eskom Land Development of the route and/or site

selection as indicated by the Customer. Eskom Lands & Rights Officer

6. Confirmation from Eskom that EIA, EMP and any other

approvals/permit conditions undertaken by the Customer have been

reviewed prior to submission to the authorities.

Eskom Environmental Officer

&

Eskom Lands & Rights Officer

7. Copy of written acceptance from various Eskom functional

departments of the Customer-appointed consultants to manage and Eskom Project Engineer





prepare the concept design as well as the final designs. Ensure that

the copy of written acceptance to the Customer is filed as well.

(See Condition 4 in Annexure A).

8. Copy to the Customer of Eskom’s written acceptance of the

Customer-appointed engineering surveyors/land surveyors to handle

all surveying functions and other approvals.

(See Condition 6 in Annexure A.)

Eskom Lands & Rights Officer

9. Copy to the Customer of Eskom’s written acceptance of the

Customer-appointed environmental consultants to handle all

environmental functions and other approvals.



10. Confirmation that the Customer’s concept design has been

accepted/approved by TEF. Eskom Project Engineer

Confirmation of all above conditions will result in DRA approval.

Definition phase

11. Confirmation that the Customer’s Final Design Package is accepted /

approved.

Eskom Senior Project

Engineer

12. Copy to the Customer of Eskom Project Management’s written

acceptance of the Customer-appointed construction contractors

(power and control plant contractors).


Eskom Project Manager

Confirmation of above condition will result in ERA approval.

Execution Phase 1 (prior to commencement of constru ction)

13. Review by Eskom of the approval / permit conditions prior to and

during the construction phase – checking that all legal requirements

to commence construction have been adhered to, which may include

all or some of the following but are not limited to:

⋅ Landowners’ contracts / registration in Deeds Office

⋅ Environmental Authorisations – DEA

⋅ DEA&DP (Province)

⋅ Local and Provincial Authorities

Eskom Land & Rights Officer &






⋅ SAHRA and any provincial Heritage Authorities such as

HWC

⋅ Telkom, Neotel

⋅ Roads – national (SANRAL), provincial and local road

agencies

⋅ DWA

⋅ Transnet

⋅ Other approvals / permits as may be required by legislation

such as water use licences, tree-cutting permits, borrow

pits, etc.

14. Confirmation that the project kick-off meeting has taken place and all

Eskom pre-construction requirements have been adhered to Eskom Project Manager

Confirmation of all the above requirements will all ow the Customer’s contractor to commence

construction. Where the contractor has commenced wo rk without satisfying the above

requirements, all such work shall be undertaken at the Customer’s risk and expense, should the

contractor fail to meet Eskom’s requirements.

Execution Phase 2 (during construction)

15. Verification that all the material purchases listed in the Final Design

Package were procured from Eskom-approved suppliers. Eskom Clerk of Works

16. Adherence to outlined Eskom Quality Control hold points during

construction. Eskom Clerk of Works

17. After completion of construction BUT prior to commencement of

testing and commissioning. (Verification activity – As-Built drawings

and all equipment data sheets submitted.)

Eskom Clerk of Works

18. Ensure that supply agreement has been signed by both parties before

energising. Customer Executive

Confirmation of all the above requirements will res ult HOA approval.

Finalisation Phase

19. All Quality Control check sheets as per the Final Design Package and

all handover documents duly completed and signed by all parties. Eskom Clerk of Works

20. All warranties and guarantees in respect of all items purchased by the

Customer are handed over to Eskom. Eskom Project Manager





21. Compliance with EMP. Eskom Clerk of Works

Confirmation of all the above requirements will res ult in FRA approval.




Annexure C – Applicable standards and specification s

HV Lines

http://tescod.eskom.co.za/prt06HV/dsprt06_Std.htm

http://tescod.eskom.co.za/prt06HV/dsprt06_spec.htm

Lines

http://tescod.eskom.co.za/prt04MV/dsprt04_Std.htm (Go to DST_34-1195)

Substation

http://tescod.eskom.co.za/prt07subs/part7_stds.htm (Quality checking included here)

http://tescod.eskom.co.za/prt07subs/part7_specs.htm

These sites can be accessed via the external site http://bits.eskom.co.za/.

A Customer has to register to gain access to this external site. The details in Annexure D will have to be completed.




Annexure D – Distribution Technology Internet Acces s Form Corporate Service: Divisional Technology – IARC FAX: 086 662 6387 DISTRIBUTION TECHNOLOGY INTERNET ACCESS USE OF ESKOM STANDARDS AND SPECIFICATIONS

ACCEPT CONDITIONS Signed at _____________________________ on this _______ day of ______________________ 20____ ______________________________________ _________________________________________ (Signature) (Print Name) (on behalf of company)

Company Name




Corporate Service: Divisional Technology – IARC

ERIC Building Avonside Road (Off Lower Germiston Road) Rosherville - Cleveland Johannesburg South Africa

Private Bag 40175 Cleveland 2022

FAX: 086 662 6387

I will require the following details :

Subscription: Renewal _________ New __________

Company – VAT No: (e.g.: 4999999999)

________________________________________

Company Name: __________________________________________

Person’s Name: __________________________________________

Postal Address: __________________________________________

Role with Eskom (consultant, contractor, etc.):

____________________________________

Office Phone: __________________________________________

Office Fax: __________________________________________

Cell phone: __________________________________________

e-mail: __________________________________________




DISTRIBUTION TECHNOLOGY INTERNET ACCESS

Details for subscribing

Subscription fee – R980 (VAT included) per annum per site (Office complex).

Subscription period: 12 months.

Bank: FNB JHB Corporate.

Description: Eskom Head Office (Cheques made out to: Eskom Holdings PTY (Ltd.))

Account No: 50610025211

Branch code: 255005

Deposit slip to be faxed to me at 086 662 6387.

The Eskom Internet address is http://www.eskom.co.za. Try this address first to see whether you can access this open site. Then try the DT secure Internet address at http://bits.eskom.co.za

HOWEVER to access the secure site you will first need to be registered by DT. Your user ID and password will be e-mailed to you once your deposit slip has been received.

Yours sincerely

Johan Scholtz Design & Customer Support Manager

To whom it may concern Date: 23 November 2010 Enquiries: Brenda Morrison 011 629 5266 brenda.morrison @eskom.co.za




Annexure E – Details of Customer’s and Eskom’s resp onsibilities during HV self-build projects

1 Contracting party’s (Customer’s) responsibilities

The contracting party (Customer in most cases) must ensure the following:

1. The completion of the Eskom application form, detailing the requirements.

2. The appointment of design engineers who will be responsible for the design and the presentation of

the concept and detailed design documents. These designers must be Eskom-approved

consultants, as they will be responsible for design and construction management. To protect

Eskom’s interests in an HV self-build scheme agreement, the design to be used must be approved

by the Technical Evaluation Forum prior to the commencement of any construction work. This is

intended to ensure that the network is constructed to Eskom’s standards and specifications so that

they can be maintained satisfactorily by Eskom after construction.

3. The appointment of an engineering surveyor/land surveyor who must finalise the route and obtain

all the necessary approvals subject to Eskom’s requirements as stipulated in the following

subsections. The surveyor must be registered with Plato.

4. The appointment of a negotiator or negotiation consultant to assist with the route acquisition

process.

5. The appointment of a land surveyor who is responsible for the cadastral/registration survey.

6. The appointment of an environmental consultant to conduct the environmental process. This

consultant must be certified / registered with SACNASP or CBEAPSA for conducting EIAs.

7. The appointment of relevant Town and Regional Planners for relevant municipal approvals.

8. The appointment of the contractor that will do the construction. The construction contractor must

be an Eskom-approved/accredited contractor. Such a contractor will therefore be well versed and

knowledgeable in the construction of Distribution assets.

9. The preparation of a tax invoice for submission to Eskom in order to effect any capital allowance

payment (if applicable).

10. The development of Health & Safety specifications and the approval of the contractor’s Health &

Safety Plan.

11. Prepare the power and control plant for testing and commissioning.

12. Assist Eskom with the testing and commissioning activities.

13. Timely completion of the project – Eskom absolves itself from any liability for the late delivery of any

assets being constructed by the Customer.

14. The Customer must provide a one–year warranty against poor workmanship to Eskom.

The responsibilities of the resources as appointed by the Customer are as follows:




1.1 Customer appointed: survey, land acquisition an d environmental responsibilities

The Customer must appoint the following parties for land development activities:

· An Eskom-approved surveyor who is responsible for lands and rights, the engineering survey

and geographic mapping and obtaining of statutory approvals.

· An Eskom-approved negotiator to assist with the neg otiations associated with the

acquisition of a servitude.

· An Eskom-approved environmental consultant who is responsible for obtaining environmental

authorisations.

· A professional land surveyor who is responsible for the cadastral survey.

· A conveyancer from the Eskom-approved panel who is responsible for the registration of

servitudes or the transfer of land.

The responsibilities related to each of these environmental activities will be further described in the

following subsections.

1.1.1 Lands and rights (Customer appointed):

a) Route selection

b) Approval of route by Eskom Land Development and Senior Project Engineer.

c) Ensuring that the route plan adheres to the Eskom Standards.

· The route plan must include the final route and substation site, as well as any switching station

site if required, all access roads, all road / rail crossings with the kilometre reading, cadastral

boundaries and property descriptions, a co-ordinated list of all the bend points on the route and

affected servitudes.

Note: the access road, from the main tar road up to the Eskom yard, has to be approved by

Eskom Distribution’s Project Engineering Office. This access road to the site must be suitable

for a “sedan two-wheel drive vehicle”, and must be wide enough and have the correct carrying

capacity to accommodate construction vehicles/low-bed trucks (including those used for

transporting transformers). The access road must also be surveyed as a servitude and

registered in the Deeds Office as an access road in favour of Eskom, and the cost of this

registration is for the Customer's account.

· The route must follow the shortest possible distance and use minimal bends to minimise cost

and be done under the guidance of the Eskom Standards.

· The route has to take into account that dams and wetlands must be avoided where possible

and feasible

· The EIA has to include the soil resistivity tests for part of the substation and switching site

selection process as well as the proposed bend points to ensure the site’s suitability

· Eskom must approve any changes required to the 11-kV and 22-kV network to accommodate

the HV line or substation.




d) All statutory approvals and licences must be obtained that are required for the complete life cycle of

the asset. Specific caution should be taken where limited approval is granted, such as instances

where Eskom could be liable for relocation costs at any stage.

e) Obtaining the schedule of owners

· This list must include the property description, registered owner, contact person, postal

address, telephone/fax number and special requests/conditions.

· All communication with property owners must be recorded and listed per property owner.

f) Schedule of mineral rights holders – the Mineral and Petroleum Resources Development Act, 2002.

The Customer has to give Eskom all the details surrounding mineral rights and mineral rights

holders. The Customer has to negotiate and supply land rights to Eskom that are void of the cost

risk for the relocation of services at any stage. These conditions have to be contained in the notarial

deed of servitude.

g) Consideration and compensation for land rights – the consideration payable for the land rights

acquired must be based on the principles set out in the Expropriation Act and must furthermore be

in accordance with the Eskom Consideration and Compensation Standard (EST 32-844). Any

additional payments or “sweeteners” paid to landowners must be made through separate

agreement and may not be reflected in the Deed of Servitude as part of the price.

h) The option has to be included in the agreement to register the servitude/s in favour of Eskom with

Eskom servitude conditions of access, construction and maintenance at the time of registration and

the option to cede to Eskom with Eskom’s servitude conditions of maintenance.

i) Exercise options / transfer of ownership to Eskom

· Ensure that the Eskom ceding clause and Eskom conditions are included – see note below.

· It must be noted that the Customer is liable for all costs, damages and rework should any land

parcel be missed in the process of obtaining rights for Eskom.

· The registration process in general terms must occur for the route and in general or specific

terms for the substation, and within 6 months of construction the route must be defined in

specific terms in the Deeds Office.

· Note: although it is a fairly simple notarial process to cede a servitude from one entity to

another entity, one item which should be considered is the fact the Eskom is exempt from some

of the Regulations of Act 70 of 1970, section 6 (1) (a) and 6(1)(aA). This in effect means that

Eskom need not acquire approval from the Minister of Agriculture for the registration of a

servitude exceeding a width of 15 metres or an area exceeding 225 square metres, if a private

person acquires a servitude in a right which exceeds the width and area mentioned. Therefore

a site exceeding 15 m x 15 m or a line servitude required for an area wider than 7,5 m on either

side of the centre line, does require Ministerial approval. Therefore there is not much which

they could do as far as HV sites and HV line servitudes are concerned. They will need

Ministerial approval for most servitudes. Accordingly, it could be in the interests of all

concerned that the servitude should include the option of being registered on behalf of Eskom

from the outset as obtaining approval from the Minister could take an extremely long time.




1.1.2 Environmental process responsibilities (Custo mer-appointed)

A procedurally sound environmental impact assessment must be conducted for the HV power line and

substation, which must comply with the requirements of the National Environmental Management Act, 1998

(Act No. 107 of 1998), as amended, and the Environmental Impact Assessment Regulations, 2010,

addressing the project as a whole and meeting all relevant legal and procedural requirements.

a) Submit the Basic Assessment Report/ Environmental Impact Assessment Report to the relevant

competent environmental authority for authorisation.

b) Consult Eskom (Land Development) as an interested and affected party during the BAR/ EIA phase.

c) Forward the original submission, Environmental Authorisation (EA), Construction Environmental

Management Plan (EMP), Maintenance EMP and Decommissioning EMP to Eskom.

• Eskom has to be consulted regarding the Maintenance and Decommissioning EMP prior to

their submission to DEA prior to initial submission or to finalisation after EA.

d) Eskom can request all other correspondence concerning the project.

e) A list of all interested and affected parties (electronic format) should be made available to Eskom on

completion of the project.

f) All legal conditions, including EA conditions and conditions contained in the approvals granted by the

relevant authorities (DEA, SAHRA (HWC), local and provincial authorities, DWA, etc.) must be

adhered to.

g) All environmental legal liabilities and claims arising from the activities of the Customer and any of the

Customer’s subcontractors shall be for the Customer’s expense.

h) The Customer must request the competent authority to issue two separate Environmental

Authorisations: (i) EA issued to the Customer for the construction phase and (ii) EA issued to Eskom

for the maintenance, operation and decommissioning phases. (This was previously done by the

DEA&DP. This possibility is being investigated with the national DEA as the DEA had previously

supported this).

1.1.3 Engineering survey or design consultant where applicable (Customer-appointed)

a) Submits all records to Eskom including the following:

· Profiles, tower positions, line and pegging information in ASCII format and CAD diagrams.

· All field surveying and calculations necessary to complete the work.

· Any wayleave documentation that was required in any changes to 11-kV and 22-kV lines,

and all the survey work relating to such changes.

· Profiles and drawings (scale as per Eskom specifications) with the necessary topography

indicated (refer to the standard listed in Annexure C).

· All templated profiles have to be submitted in PLSCAD format for soft copy and as hard

copy.

· All co-ordinate data, including as-pegged data, setting out data, etc.




b) Civil engineering plans and designs that need approval at municipal level in terms of the municipal

building plan submissions have to be part of the responsibility of the Customer’s consultant.

c) Labelling of the line has to be done both in the field and on the poles, and this labelling must be

reflected on the plans.

d) No handover may take place until all statutory approvals and legal requirements for the project

have been obtained and checked by Eskom; and no construction may start until all the legal

requirements are met and have been checked by Eskom.

· Soft and hard copies of all statutory approvals have to be submitted.

· All hard copies of plans must have the approval stamp on them.

· Relevant approvals include but are not restricted to: the local authority, Telkom, Neotel,

Roads, Rail, Water Affairs, etc.

1.1.4 Cadastral / registration survey responsibilit ies (Customer-appointed)

a) Registration surveys shall be conducted for the subdivision of the substation site (either by

subdivision or registration of a servitude), all as per the Land Survey Act No. 8 of 1997.

· Registration surveys, including the approved diagrams, must be completed.

· Registration copies of approved diagrams from the Surveyor-General and title deeds for the

line and substation have to be delivered to Eskom Land Development by registered post or by

hand.

b) The language used in the diagrams and title deeds must be English or Afrikaans, as specified by

the individual landowners.

c) Eskom will require an abbreviated hard copy x 1 and a digital copy of the survey records – co-

ordinate list, working plan and report, together with a digital copy of each diagram for our GIS data

base. One photocopy each of statutory approvals and local authority endorsements required for

the registration process must accompany the hard copies of the survey record.

d) Insurance / Claim Event – contravention of any provision of the Land Survey Act 8/1997 in

connection with a cadastral survey – period following the completion of the whole of the services or

earlier termination: as specified in the Land Survey Act No. 8 of 1997.

1.1.5 Geographic mapping responsibilities (Customer -appointed)

a) The standards for the submission for any drawings or spatial data are listed under the Geographic

Mapping Standards in Annexure D, and must be adhered to.

b) Both the hard copy and electronic format must be provided for all submissions.

c) All co-ordinates have to be in WGS 84 and in the correct Lo.

d) The acceptable formats are CAD format i.e. Microstation to Autocad. Shape files will also be

required (.dwd, .dgn, shape formats). The conductor types, tower types and numbering of towers in

field are required too.




e) Route plans have to be at the largest sensible scale. 1:5 000, 1:10000 or 1:25 000 (maximum) or

whichever larger scale is suitable for the plans. Odd scales will not be accepted.

f) An aerial photography backdrop has to be provided if available.

g) Raster / topographic backdrop has to be provided, i.e. any additional information which assists with

the readability of the plans.

h) All templated profiles (design drawings) have to be submitted in PLSCAD (.bak) format as well as

three hard copy plans, of which at least one must be a Sepia copy signed off by the design

engineer.

i) Besides the design drawings, the As-Built drawings and GPS co-ordinates of all support structures

must be submitted once the project has been constructed.

j) The proposed schematic layout (single line diagram) has to be provided.

k) Commissioning dates or time lines should be supplied.

l) Assist with updating the electrical diagrams.

1.1.6 Conveyance responsibilities (Customer-appoint ed)

a) Only an Eskom-approved conveyancer will be accepted to handle conveyancing work.

b) It should be noted that no delegation of authority is possible for the assigning of Eskom’s rights to a

third party. Therefore all draft deeds must be submitted to Eskom for scrutiny and signing –in

general and in specific terms.

c) If the landowner specifies the requirement that his/her attorney is to be used, in such cases both

Eskom’s and the landowner’s attorneys will handle the conveyancing of that land parcel.

d) Registration in general terms, or in specific terms for the substation where the approved diagrams

are obtained from the Surveyor General’s office, has to begin as soon as possible and the deeds

transfer must be completed within 8 months of exercising the options (barring unforeseen

circumstances with landowners, which must be substantiated and documented).

e) All costs have to be borne by the Customer.

1.2 Design engineer consultant’s responsibilities ( Customer-appointed)

The design engineer consultant is responsible for the following:

· Presenting the concept design and execution plan at the Technical Evaluation Forum (TEF) as

arranged by the responsible Eskom project engineer. Should there be any action items following

the TEF meeting, the consultant shall be required to make the suggested changes and present the

project again. The concept design report must be made available two weeks prior to the TEF. An

outline of the required content of this report for substation and lines projects respectively is shown

in Table 3.

· Providing costing for the project.




Table 3: Concept design report requirements – HV su bstations and HV lines

Concept design for HV substation projects Concept design for HV lines projects

· Conducted assessments: o Environmental Impact o All national, applicable provincial and local bodies, including but not limited to the –

� DEA; � DEA&DP (Province); � SAHRA (South African Heritage Resources Agency); � Provincial Heritage – e.g. HWC (Western Cape); � DAFF (Department of Forestry and Fisheries); � MTO (Mountain to Ocean – Western Cape forestry) and others; � Provincial Parks, e.g. Cape Nature (Western Cape); � DWAF (Department of Water Affairs); � Local authorities; � Specialist studies as required by the DEA such as for avifauna; � Others as required.

o Soil resistivity o Other assessments as deemed fit / factors influencing the overall design.

· Bill of materials (highlight long lead time equipment)

· Conducted assessments: o Air-wave communications /

reception availability o Security o Pollution level

· Design philosophy covering the following:

o Station electric diagrams / operating diagrams

o Conceptual layout drawings o Earthing requirements o Surge / lightning protection o Equipment and conductor

ratings considering loading and future fault levels

· Other supporting documentation

· Design philosophy covering the following: o Executive summary o Scope o Power line route o Conductor and insulators o Wind loading used on structure

designs o Structure designs o Foundation designs o Earthing and shielding design o Measures to reduce environmental

impact o Other assessments as deemed fit /

factors influencing the overall design

· Structure drawings

· Foundation drawings

· Other supporting documentation

· Submitting the final design document (FDD) to Eskom Project Engineering for review. The following

must be submitted: 1 printed A4 FDD, 1 copy of all drawings printed to scale, CD containing

electronic copies of all documents in the original format, not in a *pdf format.

· Project Engineering only accepts the FDD, it does not approve it. The Eskom Project Engineer

merely accepts and confirms that the design has been done in line with the Eskom Standards as




listed in Annexure A. Eskom expects the FDD to be approved by the consultant’s professional

engineer , leaving the final professional responsibility for the design with the consultant. The

consultant will be liable for the soundness of the design for the entire lifetime of the designed asset.

After reviewing, if there are no changes to be made, the FDD will be made available by Eskom

Project Engineering to Eskom Project Management. Note that all drawings must be established by

using the Microstation Software package [*.dgn format].

· The required content of final design documents for HV substation and HV line projects respectively

is shown in Table 4.

Table 4: Final design document requirements – HV su bstations and HV lines

Final design for HV substation projects Final design for HV lines projects

· Project details

· Civil

· Architectural

· Power and control plant

o Bill of quantities

o Bill of materials

o All applicable design drawings

· Temporary arrangements

· MV Lines

· HV Cable

· Urban MV cable

· Quality assurance

o Substation quality-checking

document

o Environmental checklist

o SHE report

· Geotechnical investigation and

foundation information

Note: design drawings must include Long Sections, Contour plans, GPS co-ordinates, Oil management systems, drainage plans, engineering calculations and topographical plans.

⋅ Design philosophy

⋅ Templated profile

⋅ Staking table

⋅ Bill of materials and quantities

⋅ Structure drawings

⋅ Hardware assembly drawings

⋅ Stringing charts

⋅ Buy-out specifications

⋅ Buyer’s guide specifications

⋅ OPGW and fibre specifications

⋅ Health & Safety specification

⋅ Geotechnical investigation and foundation

Information

⋅ Project Form (DRA)

⋅ Project schedule

⋅ Contact persons

⋅ Standards

Note: design drawings must include Long Sections, GPS co-ordinates, engineering calculations and topographical plans.

Arranging to have the final constructed asset signed off by the consultant’s professional engineer before

handing it over to Eskom.

1.3 Contractor’s responsibilities (Customer-appoint ed)

· The contractor should not commence any construction work unless he/she is in possession of and

Eskom-approved final design document (FDD).




· The contractor must provide to the Eskom Clerk of Works a list of all material to be used and the

suppliers from which these materials have been procured.

· The contractor must provide to the Eskom Clerk of Works a detailed construction programme,

clearly indicating all quality control hold points as specified by Eskom.

· The contractor is responsible for safety checks and acceptance, and the development of a Health &

Safety Plan to be accepted by the Customer/consultant.

· The contractor is responsible for the installation of control plant panels with associated cabling and

the termination of the cables.

· Submission of as-built drawings after construction, which will contain at least but are not limited to

the following:

- Support structure labels numbers.

- Final co-ordinates of all support structures and in the case of a cable, the position of the cable at 10-m intervals.

- Structure types used.

- Cable or conductor type and size.

- Transformer specifications.

- Transformer label.

- Confirmation of feeder name, as well as the official “from” and “to” points.

- Final soil-type information and drawings of foundations.

- Any deviation from the design, together with associated distances (changes must be clearly indicated).

- Conductor attachment heights per structure.

- Clearances above crossings of services such as road, rail or telecommunication infrastructure.

- Points where gates have been installed.

- Confirmation of adherence to the special conditions of the statutory authorities and landowners.

- Certificate of Inspection from roads agencies.

- Indication of any damage to property and/or crops, with the extent of such damage.

- Any other information which is deemed necessary.

- Signature of responsible construction person.

All materials must be Eskom-approved products and must be procured by the Customer from an Eskom-

accredited supplier. The Customer is responsible for planning and securing the rest of the Customer’s

material. All material drawings and information (e.g. for steelwork support structures, clamps, insulators,

etc.) have be accessible via Eskom’s DT web (see Annexure C), including the list of approved products and

/ or suppliers.

As the responsibilities of the Customer have now been defined, the following section focuses on outlining

the responsibilities of different Eskom departments for HV self-build projects.




2 Eskom’s responsibilities (during self-build proje cts)

As the responsibilities of the Customer have now been defined, this section focuses on outlining the

responsibilities of different Eskom departments for HV self-build projects.

2.1 Customer Services’ responsibilities

Customer Services will serve as the interface between Eskom and the Customer until Project

Management takes over this role, after which they should assist. It is also Customer Services’

responsibility to make sure that the Project Manager appointed on the Customer's side is integrated in

the Eskom Project Management Team.

Customer Services’ responsibilities are described in detail in the Distribution Network Asset Creation

process and can be summarised as follows:

· When the Customer’s application has been received, ensure that it is registered in the CRM

system. Provide the relevant reference number to the Customer for use in future communication

and status queries.

· Arrange the project scope clarification meeting with the Customer. Invite all project stakeholders

and if necessary also the Project Manager.

· Initiate the cost estimation process in the pre-project planning phase. The Customer must receive a

cost estimate letter, detailing what works are contestable and what works will be a monopoly

service. This must include the relevant conditions and the charges payable. The target of 60 days

(2 months) is set in order to provide the cost estimate letter (to be in line with the load Customer

process).

· If the Customer accepts the conditions and fees as set out in the cost estimate and requests that

the project should proceed, ensure that the Customer pays the quotation fee as set out in the cost

estimate letter. Manage the original documentation and acceptance letters.

· Ensure that the project obtains the required concept release approval (CRA) from the delegated

manager(s) or investment committee.

· Be involved in the concept phase. The Technical Evaluation Forum should approve the concept

design on which costs will be based so that the Customer can be given a budget quotation.

· Serve as interface between the Customer and Eskom for any queries about the budget quotation

and conditions specified in the accompanying letter.

· Ensure that the necessary Customer acceptance and payments are received prior to releasing the

project to the definition phase.

· Be involved in the definition phase.

The final design package should be approved as the basis on which tenders will refine the project

costs. A final letter should be sent to the Customer indicating the refined conditions and final

payments, and may include a final quotation (or revised budget quotation) if costs fall beyond the




accuracy ranges of the budget quotation. Manage the original documentation and acceptance

letters.

· Manage the contracting process between Eskom and the Customer.

Ensure the management of the signing of all Eskom contracts as well as the self-build project

contract between Eskom and the Customer, setting out the terms and conditions.

· Assist as interface between Eskom Project Management and the Customer during the execution

phase.

· Attend all relevant project meetings

· Activate the Customer on the billing system after commissioning.

· During project finalisation, Customer Services will be responsible for reconciling the Customer’s

payments versus final project costs, according to the accepted quotations and contracts.

Note: the cost allocation (Eskom vs. Customer) will be in accordance with the approved principles for the

recovery of capital.

As the responsibilities of the Customer have now been defined, this section focuses on outlining the

responsibilities of different Eskom departments for HV self-build projects.

2.2 Network Planning’s responsibilities

Network Planning is responsible for the following:

· Obtain from the Customer its high-level requirements, expected reliability and future

requirements (load forecast and phasing plan).

· Details of technology of load/generation, and any special requirements e.g. starting large

motors.

· Discuss the network configuration with the Customer (including voltage levels, alternative

solutions).

· Determine ownership and boundaries.

· Specify the requirements for assets owned, operated and maintained by Eskom. Network

planning must inform the Customer that Eskom-owned plant under the self-build project has to

be done by Eskom-approved consultants, vendors and service providers, and only using

Eskom standard equipment (to be confirmed by Project Engineering).

· Interface with Land Development on the route selection and EIA input.

· Network Planning has to address the network performance, QOS (quality of supply) data and

studies with specialist assistance from Network Plant (e.g. harmonics, flicker, voltage dips,

motor-starting studies).

· Perform load flow simulation studies to ensure that the proposed network configuration caters

optimally for the Customer’s needs as well as meeting all upstream and adjacent network

requirements.

· Define the high-level scope of the self-build project, which shall include the following:

o Main power plant requirements.




o Demarcation between Customer’s responsibility and Eskom’s responsibility.

o Acceptable level of reliability. Network Planning will help obtain the network

performance and QOS data from the plant and share it with the Customer.

o Location of metering point and PCC.

o Customer’s expected completion date.

· Network Planning will provide the following information to enable adequate design:

o Network data (e.g. single line diagram and transformer/line modelling data).

o Fault levels (3-phase and single line-to-ground) of present and future network at

PCC.

· Where the project entails any generation, the following will also be specified by Network

Planning to supplement the grid codes and NRS 048:

o Power factor/ reactive power requirements.

o Voltage limits and voltage control requirements.

· Network Planning will provide final confirmation of connectability at the budget quote stage. At

this stage, any outstanding specialist connectability studies should be performed by the

appropriate specialists. These include QOS studies by QOS experts and power transfer

capability studies (P-V, P-Q and Q-V curves obtained from DigSilent) where the project entails

generation.

· Obtaining the necessary concept release approval (CRA) in order to make the necessary

budget available to the project.

· Network Planning will participate at TEF with the technical evaluation of self-build projects.

2.3 Land Development’s responsibilities

Eskom Land Development’s responsibilities are outlined in the following subsections in terms of

Lands and Rights, Environmental Approvals, Engineering Survey, Cadastral/Registration Survey,

Geographic Mapping and Conveyancing.

2.3.1 Lands and Rights’ responsibilities

· Checking of route as supplied by the Customer-appointed surveyor.

· Checking statutory / environmental and other approvals (e.g. Municipality, District Municipality,

LUPO, Roads, Telkom, Neotel, etc.) as supplied by the Customer.

· No construction may take place until all statutory approvals for the project have been obtained

and checked by Eskom for completeness and onerous conditions.

o Receiving the survey records (co-ordinate list, working plan and report).

o Receiving the Surveyor–General’s approved diagrams for substation and servitudes.

· Verification of correctness of cadastral surveys, in specific, framed SG diagrams. It is

suggested that these should be verified by Eskom prior to submitting them to the Surveyor-

General for approval.

· Scrutinising and signing documents for the registration of servitudes in favour of Eskom.




· Capturing information and updating LARGIS / TxIS.

2.3.2 Environmental process responsibilities

· Ensuring that EA and EMPs for construction, maintenance and decommission are in place, as

well as all related legal approvals / permits, such as HWC, Cape Nature, DWA, etc. Specific

care must be taken in terms of licences for water use, borrow pits, and tree-cutting and

herbicide permits.

· Checking that the maintenance and decommissioning requirements set out in the EMP are

feasible.

· Receiving the list of all interested and affected parties consulted by the Customer’s EIA

consultant.

2.3.3 Engineering survey responsibilities

· On completion of the services or part of services, the Eskom Survey Department will assess

the work for compliance with the Eskom Standards.

· Receive the HV Lines checklist.

· Checking the spanning sheets (together with Project Engineering) as supplied by the

Customer-appointed surveyor.

· Profiles and templates.

2.3.4 Geographic Mapping responsibilities

· Create the geographically referenced network elements in the Geographical Information

System (GIS) and ensure spatial reference with the correct connectivity.

· Publish the geographically referenced network design as schematic operating diagrams

(substation, feeder or network operating diagrams (SOD, FOD or NOD)).

· Assist with creating the spanning sheets, adding tops and bottoms.

2.4 Project Engineering responsibilities

The project engineer is responsible for the following:

· Ensuring that all the consultant designs are done according to Eskom's specifications and

standards.

· Utilising / ensuring the utilisation of the self-build specification document as a design guideline.

· Ensuring that the consultant enlists the acceptance of spanning sheets from Land Development

and Project Engineering prior to the meeting of the Technical Evaluation Forum (TEF).

· Ensuring that the consultant presents a concept design document (Volume 2) to the TEF.




· Receiving the costing of the TEF-approved design: This will be submitted by the consultant to

the Eskom-appointed project engineer in preparation for the design release approval (DRA) for

submission to the Investment Committee for approval.

· Checking that all changes to the concept design suggested at the TEF are made.

· Verifying that the final design document (Volume 3) for power and control plant as provided by

the consultant is in accordance with the Eskom specifications and compliance.

· Making the final design document available to Eskom Project Management.

· Obtaining the necessary design release approval (DRA) in order to make the necessary budget

available for the project.

· Testing and commissioning the asset.

· Commissioning all Eskom-owned equipment.

2.5 Technology and Quality responsibilities

Technology and Quality is responsible for providing a technical consultation function to the project, ensuring

that regional preferred standards are applied and advising on special design queries.

2.6 Project Management responsibilities

The Project Manager/Project Co-ordinator is responsible for the following:

· Obtaining the necessary execution release approval (ERA) in order to make the necessary

budget available for the project.

· Interfacing and procuring materials have to be purchased by Eskom.

· Appointing a dedicated Eskom Clerk of Works (COW) who will be responsible for all

inspections of the contestable works and who will perform quality inspections based on the

approved FDD.

· Taking over the asset from the contracting party after the completion of testing and

commissioning work.

· Attend all project meetings as requested by the Customer/consultant.

· Closing out the project and informing Customer Services of costs, for their further action.

· Obtaining the total project (asset) cost breakdown from the Customer and contractor, including

Eskom’s internal cost (material, labour, etc.)

· The project co-ordinator is seen as the interface between the Customer/consultant and Eskom

after concept release approval (CRA) has been granted. (Customer Service should assist

throughout the project lifecycle.)

· Obtaining the final release approval (FRA).

The Clerk of Works is responsible for the following:

· Being the dedicated Eskom representative on site, assigned to the project.




· Ensuring adherence to pre-defined quality control hold points in conjunction with the

consultant/contractor which failing such adherence will, unless signed off by the COW, result in

the COW placing construction on hold until signoff has been obtained.

· Where a contractor undertakes work which is not in line with the final design document (FDD),

the Clerk of Works will notify the Customer to this effect and will immediately withdraw from the

site until such time as the work is carried out in line with the approved FDD.

· Confirming that material was procured from Eskom-accredited suppliers.

· Confirming that only Eskom-specified material is used for the project.

· The COW will serve as the Eskom representative on site and as such will also attend all

meetings convened for the purpose of these projects.

· Confirming the as-built drawings before the Customer makes the final submission to Eskom.

2.7 Electricity Delivery responsibilities

ED (Electricity Delivery) is responsible for the following:

· Ensuring that all the consultant designs are done according to Eskom's specifications and

standards.

· Ensuring that the consultant presents a concept design document (Volume 2) to the TEF.

· Receiving the costing of the TEF approved design: This will be submitted by the consultant to

the Eskom-appointed project engineer in preparation for the design release approval (DRA) for

submission to the Investment Committee for approval.

· Electricity Delivery has to ensure that protection at existing substations is adequate. Any

changes required have to be defined at the concept design stage for any related costs to the

customer.

· Checking that all changes to the concept design that have been suggested at the TEF are

made.

· Verifying that the final design document (Volume 3) for power and control plant as provided by

the Consultant is in accordance with the Eskom specifications and compliance.

· Making the final design document available to Eskom Project Management.

· Obtaining the necessary design release approval (DRA) in order to make the necessary budget

available for the project.

· Eskom has to do the protection settings.

· Requiring that all relevant power system parameters are provided three months before

commissioning.

· Testing and commissioning of the asset.

· Commissioning all Eskom-owned equipment.

· Control plant drafting will be done/outsourced by Eskom, and the cost of this must be quoted to

the Customer.

2.8 Field services responsibilities




Field Services is responsible for the following:

· Assisting with outage requests. (Refer to WGL001 Outage Planning Guideline for further

details.)

· Electing an outage leader.

· Finalising the scope of work for the outage.

· Creating an outage schedule.

· Compiling the operating screed and outage manual for the outage.

· Flagging any risks which might become a problem during the outage, e.g. weather, material

availability, Customer notification or issues, resource availability, network integrity and safety.

· Postponing/cancelling an outage if necessary.

2.9 Network Plant responsibilities

Network Plant is responsible for the following:

· Taking over the asset from the contractor and the Eskom COW, operating it and maintaining

the asset into the future after having commissioned it.

· Capturing the plant data on the Eskom engineering systems.

· Supporting Network Planning with performance, providing the quality of supply (QOS) data and

studies (e.g. harmonics, flicker, voltage dips, motor-starting studies).

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