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SCHEDULE"A"

CONTRACT NO.

Title

16.

Appoint COMPANY REPRESENTATNE

A-19

15.6

Provide Bench Marks and Survey Points

A-19

Changes

A-20

CHANGE ORDER

A-20

16.2

Basis for Determining Compensation for Changes

A-20

16.3

CHANGE ORDER Signature

A-21

16.4

No Compensation for performing Changes without a CHANGE

ORDER

A-21

16.5

Changes Required by Poor Design and Specifications

A-21

Failure by CONTRACTOR and COMPANY to Agree on a Change

A-21

Failure by CONTRACTOR & COMPANY to Agree on

Compensation for Change

A-21

Changes In Saudi Laws of Income Tax and Custom Duties

16.8
Completion and Acceptance

A-22
A-22

"16.6
16.7

17.1
17.2

Substantial Breach of CONTRACT

Design Completion

A-22

17.3

Technical Completion of the PROJECT PORTIONS

A-22

17.3.1

Power Plant Units

A-22

17.3.2

Non-Power Plant Facilities

A-23

A-22

17.4

Notice of Technical Completion and Corrective WORK

A-23

17.5
17.6

CONTRACTOR's Failure to Perform Corrective WORK

A-25

CONTRACTOR shall perform start-up and trial operation of

Power Plant Units

A-25

17.7

17.8

17.9

Preliminary Acceptance of the PROJECT PORTIONS

A-25

17.7.1

Power Plant Units

A-25

17.7.2

Non-Power Plant Facilities

A-25

17.7.3

Preliminary Acceptance Date

A-26

Final Acceptance of the PROJECT PORTIONS and the WORK

A-26

17.8.1

Final Acceptance of the Power Plant Units

A-26

17.8.2
17.8.3

Final Acceptance of the Non-Power Plant Facilities

A-26

Final Acceptance of the WORK

A-27

Adjustment to Final Acceptance Date

Readiness for Commercial Operation of Power Plant Unit

Running the Unit(s) after Readiness for Commercial
Operation
Warranties and Remedy Of Defects
17.10
17.11

18.

Page

15.5

16.1

17.

30621090/00

A-27
A-27
A-28
A-28

18.1

Warranty Coverage

A-28

18.2

Warranty Duration

A-29

18.2.1

For Power Plant Units

18.2.2

For Non-Power Plant Facilities

A-29
A-31
A-32

18.3

Other Special Warranty Items

18.4

Submission of Warranty Certificates

A-33

18.5

Rights and Remedies Provided by Law

A-33

18.6

Repair Latent Defects

A-33

TC-4
Construction of Qurayyah Open Cycle Power Plant- Schedule A

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CONTRACT NO.

SCHEDULE "A"

17.7.3

30621090/00

Preliminary Acceptance Date

The date on which all of the conditions in Paragraphs 17.7.1 and

17.7.2 of this Schedule "A" have been fulfilled shall be deemed as
"Preliminary Acceptance Date", even if the Preliminary Acceptance
Certificate is issued at a later date. Within two (2) weeks after the
Preliminary Acceptance Date, COMPANY shall issue the Preliminary
Acceptance Certificate to CONTRACTOR. However, Preliminary
Acceptance Certificate can be issued with minor punch list items
which do not hinder safe and reliable operation of the PROJECT as
determined by the COMPANY.
17.8 Final Acceptance of the PROJECT PORTIONS and the WORK
17.8.1

Final Acceptance of the Power Plant Units

Final Acceptance of each Power Plant Unit (Power Plant Unit Final
Acceptance) shall be achieved when:

17.8.2

17.8.1.1

Technical Completion for the Power Plant Unit has been

achieved, and

17.8.1.2

Preliminary Acceptance for the Power Plant Unit has been

achieved, and the CONTRACTOR has completed all the
remaining punch list items, and

17.8.1.3

The Performance Testing is complete, and

17.8.1.4

All defects found during the warranty period have been

repaired, replaced or as otherwise have been taken care
of to the satisfaction of COMPANY, and

17.8.1.5

All final "as-built" drawings and the Operation and

Maintenance Manuals for the Power Plant Unit have been
received by COMPANY, and

17.8.1.6

In the case of Power Plant Unit No. 01, the COMPANY

personnel have completed training on operation and
maintenance of the PROJECT as described in the Scope of
Work and Technical Specifications, PTS No. 06EG902.

Final Acceptance of the Non-Power Plant Facilities

Final Acceptance of each Non-Power Plant Facility (Non-Power Plant

Facility Final Acceptance) shall be achieved when:
17 .8.2.1

Technical Completion for the Non-Power Plant Facility has

been achieved, and

17.8.2.2

Preliminary Acceptance for the Non-Power Plant Facility

has been achieved, and the CONTRACTOR has completed
all the remaining punch list items, and

17.8.2.3

All defects found during the warranty period have been

repaired, replaced or as otherwise have been taken care
of to the satisfaction of COMPANY, and

A-26

Construction of Qurayyah Open Cycle Power Plant- Schedule A

!i!-I.;1J453t ~.:.~1 :a.S"_;..it,tl

Saudi Electricity Company

SCHEDULE "A"

17.11

CONTRACT NO.

30621090/00

Running the Unit(s) after Readiness for Commercial Operation

If COMPANY, after the "Readiness for Commercial Operation" of any Power

Plant Unit(s), runs the Power Plant Unit(s) for "Commercial Use" prior to or
during carrying out the Performance Test or Reliability Run, the following
conditions shall govern:
17.11.1

COMPANY shall issue the Preliminary Acceptance Certificate (PAC) for

this particular Power Plant Unit(s) after successful operation for a
period of fourteen (14) days from the "Readiness of Commercial
Operation" Date.

17.11.2 In case there is a shut down due to failure which is attributed to

CONTRACTOR during the fourteen (14) days period of Commercial
Use mentioned in Paragraph 17.11.1 above, the date of the issuance
of Preliminary Acceptance Certificate shall be postponed by the
number of days the Power Plant Unit remains shutdown for repair.
17.11.3 If the Performance Test could not be performed within the first 600
operating hours after the Readiness for Commercial Operation Date,
for reasons attributed to COMPANY only, then the degradation curve
shall be applied based on the actual fired hours achieved at the time
of the test exceeding 600 hours as per Paragraph 8.4.3 of Schedule
"C" of the PURCHASE CONTRACT. The Reliability Test run for the
particular Power Plant Unit(s) shall be carried out after the Power
Plant Unit(s) is no longer used for Commercial operation.
17.11.4 Warranty period shall commence in accordance with Paragraph 18 of
Schedule "A" unless the Power Plant Unit(s) is used for Commercial
Operation, in which case the warranty period shall commence from
the "Readiness for Commercial Operation" date of the Power Plant
Unit.
18.

Warranties and Remedy of Defects

The SELLER's warranties and remedy of defects for the EQUIPMENT it shall provide and
which CONTRACTOR shall install, test and commission under this CONTRACT are set
forth in the PURCHASE CONTRACT. This Paragraph 18 of Schedule "A" describes the
CONTRACTOR's warranty obligations with respect to the materials and equipment it
shall provide and the WORK it shall perform under this CONTRACT.
18.1

Warrantv Coverage

CONTRACTOR warrants:
18.1.1

that it shall perform the WORK in a competent, diligent and

workmanlike manner; and in accordance with prudent industry
practices, CONTRACT specifications, and SELLER's officially provided
manuals, guidance and acceptance criteria;

18.1.2

that the PROJECT shall be engineered and designed in accordance

with good quality, efficiency, design and engineering practices as
agreed in the specifications; shall meet the design criteria described
in the Scope of Work and Technical Specifications, PTS No. 06EG902
and any additional design criteria agreed to by COMPANY; and as
engineered and designed, shall be fit for the purposes intended;

18.1.3

that the materials for the PROJECT shall be merchantable, fit for the
purposes of generating electric power when operated in
A-28

Construction of Qurayyah Open Cycle Power Plant- Schedule A

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Saudi Electricity Company

CONTRACT NO.

SCHEDULE "A"

30621090/00

accordance with CONTRACTOR's and manufacturer's specific

operating instructions, free of defects in design, material or
workmanship, and conform to the standards and specifications
contained or referred to in the Scope of Work and Technical
Specifications, PTS No. 06EG902 and any additional standards and
specificatioQs contained or referred to in Schedule "B"; and

18.2

18.1.4

that the fabrication of all parts, systems and units of the PROJECT
shall be free of defects in workmanship and in accordance with the
designs, drawings, and specifications prepared by CONTRACTOR and
with good and efficient fabrication and craft practices, and

18.1.5

that all materials and equipment provided by CONTRACTOR under

this CONTRACT are compatible with the International Standards, and
that test certificates are provided where requested by the
Specifications.

Warranty Duration

18.2.1

For Power Plant Units

18.2.1.1

The warranties described in Paragraph 18.1 of this

Schedule "A" shall become effective for each Power Plant
Unit upon the issuance of Preliminary Acceptance
Certificate by COMPANY for that Power Plant Unit
indicating that the Power Plant Unit has complied with the
commissioning and performance acceptance test and is
taken over by the COMPANY for Commercial Use.

18.2.1.2

As soon as the warranty period starts, CONTRACTOR shall

establish special coordination and liaison with the
COMPANY's operators and maintenance crew on matters
of operation and maintenance.

18.2.1.3

CONTRACTOR agrees that the warranties shall survive

acceptance of any payment for equipment and any other
parts of the Power Plant Units, whether any defect shall
be patent or latent, for twelve-thousand (12,000)
operating service hours or twenty-four (24) Gregorian
months excluding time out of service for modification,
design, erection or breakdown problems, whichever shall
occur first, after issuance of Preliminary Acceptance
Certificate and for a similar period with equipment
repaired or replaced pursuant to the provisions of
Paragraph 18.2.1.6 below.
However, these warranties shall expire in any case after
the lapse of forty-eight ( 48) Gregorian months from the
date of issuance of the applicable Preliminary Acceptance
Certificate.

18.2.1.4

The CONTRACTOR's entire obligation with respect to

these warranties shall be to "repair', i.e. to remove, to
repair and reinstall, or to "replace", i.e. to remove and to
reinstall with new element, any part/system of the
equipment which, under the specified use and proper
maintenance by COMPANY, proved defective during the
warranty period, provided COMPANY gives CONTRACTOR

A-29

Construction of Qurayyab Open Cycle Power Plant - Schedule A

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SCHEDULE"A"

CONTRACT NO.

30621090/00

prompt written notice and satisfactory proof of such

defect.
18.2.1.5

If any equipment part or system is proved upon

examination to be defective, COMPANY and CONTRACfOR
will mutually agree that CONTRACfOR shall either repair
such defective part or system or replace it and in such
case CONTRACTOR shall bear all of the repair and
replacement costs including shipping, packing and
handling costs up to WORK SITE.

18.2.1.6

The same warranties shall cover any part or system of

the Power Plant Unit that shall be replaced or repaired by
the CONTRACfOR under the above conditions and shall
be in effect for a period of twelve-thousand (12,000)
operating hours or twenty-four (24) calendar months
whichever occurs first, except as otherwise specified,
effective as from the day when said replaced or repaired
parts or systems are reinstalled.

If the said replaced or repaired part or system fails to

meet the warranty period for a second time,
CONTRACfOR shall either modify the said part or system
or replace the part/system with a new one, free of any
charge to COMPANY. However, the total warranty period
shall in no case extend beyond forty-eight ( 48) Gregorian
months from the date of Preliminary Acceptance of the
Power Plant Unit.

..

In order to assure and give maximum obtainable

availability of the Power Plant Units and to speed up the
permanent repair on any defective part/system,
CONTRACfOR shall keep the defective part/system
temporarily repaired and available for Commercial Use of
COMPANY until a permanent remedy is made.
For the permanent remedy of the problem, CONTRACfOR
shall arrange immediate services of the specialist
engineers and required material.
18.2.1.7

If the defect is determined to be due to improper design

or manufacture and it can be reasonably determined that
such a defect exists in other elements of the equipment,
CONTRACTOR shall replace or modify such elements as
mutually agreed, even if such elements have not yet
failed. CONTRACfOR shall bear all costs associated with
such repair or replacement.

18.2.1.8

CONTRACfOR disclaims any responsibility and liabifity for

defects or deficiencies during the warranty period for the
relevant Power Plant Unit, which are due to faulty
operation and maintenance, as well as major repair
works carried through by the COMPANY not in accordance
with the operation and maintenance manual and
recommendations or any recognized method.

18.2.1.9

During the Commercial Use in which the Power Plant

Units have been operating, from Preliminary Acceptance
Date up to the end of Warranty Period for the relevant
Power Plant Unit, the warranty engineer shall also be

A-30
Construction of Qurayyah Open Cycle Power Plant- Schedule A
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Saudi Electricity Company

SCHEDULE "A"

CONTRACT NO.

30621090/00

responsible for supervision of any routine inspection,

trouble shooting, scheduled maintenance, overhauls
(minor and major) which has been recommended by any
of the equipment manufacturers which will be carried out
by COMPANY personnel. CONTRACTOR acknowledges that
a warranty engineer shall be provided by both the
CONTRACTOR for the complete WORK and by the SELLER
for the EQUIPMENT supplied under the PURCHASE
CONTRACT. The warranty engineers shall be available
during the Warranty Period to provide advice and counsel
only and not to supervise or manage the work of Other
Contractors.

18.2.1.10 To meet spare parts requirements during the Warranty

Period, CONTRACTOR shall be fully responsible and shall
not depend on COMPANY's stock in any way.
CONTRACTOR shall make the spare part(s) required to
return the Power Plant Unit/equipment to service
available at the WORK SITE within a reasonable period of
time dependent on the circumstance of the repair or
replacement required.
18.2.1.11

18.2.2

During the Warranty Period, CONTRACTOR shall provide

all and any consumable material and parts related its to
warrantv obligations such as but not limited to all fuel
filters, air intake filters, lubricants, insulation oils, C0 2 ,
halon, foam concentrate water and sewage treatment
chemicals, laboratory chemicals, etc.... all in addition to
first fills but excluding fuel and fuel additives.

For Non-Power Plant Facilities

18.2.2.1

The warranties described in Paragraph 18.1 of this

Schedule "A" shall become effective for each Non-Power
Plant Facility upon the issuance of Preliminary Acceptance
Certificate by COMPANY for that Non-Power Plant Facility
indicating that it has complied with the CONTRACT
requirements and is taken over by the COMPANY for
occupancy or use or operation.

18.2.2.2

CONTRACTOR agrees that the warranties shafl survive

acceptance of any payment for equipment and any other
parts of the Non-Power Plant Facilities1 whether any
defect shall be patent or latent1 for twelve (12) Gregorian
months after Issuance of Preliminary Acceptance
Certificate and for a similar period with the
equipment/material/structure
repaired
or replaced
pursuant to the provisions of Paragraph 18.2.2.5 below.
However, these warranties shall expire in any case after
the lapse of twenty-four (24) Gregorian months from the
date of issuance of the applicable Preliminary Acceptance
Certificate; except for the silencing equipment and
building roofs as described in Paragraph 18.3 of this
Schedule "A".

18.2.2.3

The CONTRACTOR's entire obligation wlth respect to

these warranties shall be to "repair'. i.e. to remove, to
repair and reinstall, or to "replace", i.e. to remove and to
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Construction of Qurayyah Open Cycle Power Plant- Schedule A

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Saudi Electricity Company

SCHEDULE "A"

CONTRACT NO.

30621090/00

reinstall with new element, any part/system of the NonPower Plant Facility which, under the specified use and
proper maintenance by COMPANY, proved defective
during the warranty period, provided COMPANY gives
CONTRACTOR prompt written notice and satisfactory
proof of such defect.

18.2.2.4

If any part or system of the Non-Power Plant Facility is

proved upon examination to be defective, COMPANY and
CONTRACTOR will mutually agree that CONTRACTOR
shall either repair such defective part or system or
replace it and in such case CONTRACTOR shall bear all of
the repair and replacement costs including shipping,
packing and handling costs up to WORK SITE.

18.2.2.5

The same warranties shall cover any part or system of

the Power Plant Unit that shall be replaced or repaired by
CONTRACTOR under the above conditions and shall be in
effect for a period of twelve (12) Gregorian months,
effective as from the day when said replaced or repaired
parts or systems are reinstalled.

:.::
,.

If the said replaced or repaired part or system fails to

meet the warranty period for a second time,
CONTRACTOR shall either modify the said part/system or
replace the part/system with a new one, free of any
charge to COMPANY. However, the.total warranty period
shall in no case extend beyond twenty-four (24)
Gregorian months from the date of Preliminary
Acceptance of the Non-Power Plant Facility.

18.3

18.2.2.6

If the defect is determined to be due to improper design

or manufacture and it can be reasonably determined that
such a defect exists in other elements of the equipment,
CONTRACTOR shall replace or modify such elements as
mutually agreed, even if such elements have not yet
failed. CONTRACTOR shall bear all costs associated with
such repair or replacement.

18.2.2.7

CONTRACTOR disclaims any responsibility and liability for

defects or deficiencies during the warranty period for the
relevant Non-Power Plant Facility, which are due to faulty
operation and maintenance, as well as major repair
works carried through by the COMPANY not in accordance
with the operation and maintenance manual and
recommendations or any recognized method.

18.2.2.8

During the Warranty Period, CONTRACTOR shall provide

all and any consumable material and parts related to its
warrantv obligations.

Other Special Warranty Items

18.3.1 Not Used
18.3.2 All building roofs shall have guarantee against water leakage for ten
(10) years after the Preliminary Acceptance of each building.
18.3.2 Notwithstanding Paragraph 17.8.2 of this Schedule "A", COMPANY
shall issue the applicable Final Acceptance Certificate after one (1)

A-32

Construction of Qurayyah Open Cycle Power Plant- Schedule A

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SCHEDULE "A"

CONTRACT NO.

30621090/00

Gregorian year from Preliminary Acceptance Date of the Non-Power

Plant Facility If there are no warranty defects but in no case beyond
two (2) Gregorian years from the date of issuance of the applicable
Preliminary Acceptance Certificate.
18.4

Submission of Warranty Certificate

All warranties obtained by CONTRACTOR for materials or equipment
purchased by CONTRACTOR for installation in the PROJECT shall be deemed
to be for the benefit of COMPANY and shall on Preliminary Acceptance of the
PROJECT be made available to COMPANY.

18.5

Rights & Remedies Provided by law

The rights and remedies of COMPANY provided by this CONTRACT are in
addition to any other rights and remedies provided by law or in Sharia or
otherwise.

18.6

Repair Latent Defects

CONTRACTOR is obliged at any given time to repair Latent Defects for a

period of three (3) Gregorian years from the expiry date of the Warranty
Period of the respective Power Plant Unit and Non-Power Plant Facility. Latent
Defects means a substantial defect in the equipment/WORK that materially
affects the operation/ use or performance of the equipment/WORK, or any
part thereof, which appears after expiry of the Warranty Period and would not
have been disclosed by normal inspection procedures by COMPANY and was
caused by or arises from the CONTRACTOR's Gross Negligence.
19.

Subcontracts
19.1

COMPANY Authorization and Subcontracting Plan

Any subcontract for the performance of any portion of the WORK shall be
procured only after CONTRACTOR has received written authorization from
COMPANY to subcontract that portion of the WORK. If not already
accomplished prior to the effective date of the CONTRACT, then promptly
thereafter, CONTRACTOR shaH submit to COMPANY REPRESENTATIVE for
COMPANY's approval, the CONTRACTOR's subcontracting plan. This
subcontracting plan shall specifically identify those portions of the WORK that
CONTRACTOR proposes to subcontract. In procuring subcontracts/
CONTRACTOR shall select SUBCONTRACTOR solely on the basis of financial and
technical considerations.
This Paragraph shall be limited to major subcontracts and SUBCONTRACTORS
included in CONTRACTOR's list of major subcontractors which shall be deemed
approved by the COMPANY with the effectiveness of the CONTRACT.
19.2

Subcontracting Notice to COMPANY

19.2.1

After receiving COMPANY's written authorization that a portion of the

WORK may be subcontracted/ CONTRACTOR shall, before procuring
any subcontract, submit a notification to COMPANY containing the
following information (This Paragraph shall only apply to major
equipment and such SUBCONTRACTORS who are present on site.):
a]

If the proposed SUBCONTRACTOR is a sole proprietorship or

partnership1 the name and address of the proprietor or each
member of the partnership, as the case may be.

A-33
Construction of Qurayyah Open Cycle Power Plant- Schedule A

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CONTRACT NO.

SCHEDULE "A"
20.9

30621090/00

Consequential Damages
CONTRACTOR, its agents and SUBCONTRACTORS, shall not be liable in any
event to COMPANY nor shall COMPANY be liable to CONTRACTOR, Its agents
and SUBCONTRACTORS, for any indirect, special, consequential losses or
damages including, but not limited to, loss of profit or products, whether such
liability is based, or claimed to be based upon any breach of either party's
obligations under the CONTRACT, or whether such liability is based, or claimed
to be based, upon any negligent act or omission of a party, its personnel,
agents, appointed representatives or SUBCONTRACTOR.

20.10

Maxjmum liability
Except as provided in Paragraph 20.7 and notwithstanding anything contained
elsewhere in this CONTRACT to the contrary, the total liability of CONTRACTOR
and his SUBCONTRACTORS to COMPANY under this CONTRACT shall not
exceed the amount of the CONTRACT Price set forth in Paragraph 1.1 of
Schedule "C" as may be modified from time to time. All liabilities under this
CONTRACT shall terminate four (4) years from Final Acceptance of the WORK
except for the warranty liabilities contained in Paragraphs 18.3 and 18.6 of
Schedule "A".

21.

Insurance
21.1

Carrv and Maintain Insurance at all Times

CONTRACTOR shall, at its own expense, carry and maintain in force at all times
the following insurance policies:
21.1.1

Comprehensive General Liability Insurance CCGLl

a)

Coverage
Comprehensive General Uability Insurance coverage with limits
of no less than twenty million Saudi Riyals (SR 20,000,000)
per occurrence for bodily injury, death or property damage
during the performance of the WORK. CONTRACTOR represents
and warrants that the aforesaid insurance covers, without
limitation, loss of, or damage to COMPANY's other property for
which CONTRACTOR is responsible pursuant to Paragraph 20.5 of
this Schedule "A".

b)

Term
CONTRACTOR shall carry and maintain this insurance in full force
at all times from the effective date of the CONTRACT through the
Preliminary Acceptance of all the PROJECT PORTIONS and
thereafter during the Warranty Period, and until CONTRACTOR has
fully demobilized from the WORK SITE.

c)

Designation of SELLER and

Insured in CGL

COMPANY as Additional

Comprehensive General Uability Insurance shall designate

SELLER and COMPANY as additional insured as regards SELLER's
and COMPANY's liabilities for WORK performed by CONTRACTOR
pursuant to the CONTRACT.

A-37
Construction of Qurayyah Open Cycle Power Plant- Schedule A

,;.1.;1~ ~.!1~1 :as~t

Saudi Electricity Company

CONTRACT NO.

SCHEDULE "A"

30621090/00

Such policy shall contain a cross-liability clause so that SELLER,

COMPANY and CONTRACTOR are regarded as third parties to
each other.
21.1.2

CONTRACTOR's All Risk Insurance

a)

Coverage
CONTRACTOR's All Risk Insurance (CAR) coverage for the entire
PROJECT. The sum insured per occurrence shall be no less than
the total CONTRACT Price or replacement cost of the PROJECT
and the cost of removing debris following an insured loss.

b)

CAR - Policy to be extended to cover In-Land Transit with a

sub-limit of estimated value of items carried at any one time.

c)

Term
CONTRACTOR shall carry and maintain this. insurance in full force
at all times from the effective date of the CONTRACT through the
Preliminary Acceptance of all the PROJECT PORTIONS and
thereafter during the Warranty Period, and until CONTRACTOR has
fully demobilized from the WORK SITE.

d)

Designation of SELLER and

Insured in CAR

COMPANY

as Additional

CONTRACTOR's All Risk Insurance shall designate SELLER and

COMPANY as additional insured as regards SELLER's and
COMPANY's liabilities for WORK performed by CONTRACTOR
pursuant to the CONTRACT.
Such policy shall contain a cross-liability clause so that SELLER,
COMPANY and CONTRACTOR are regarded as third parties to
each other.
21.1.3

Professionallndemnitv Insurance
CONTRACTOR shall effect and maintain [a single project] Professional
Indemnity insurance from the effective date of this CONTRACT until the
date three (3) years from Final Acceptance of the WORK in the names
of the CONTRACTOR, its SUBCONTRACTORS and consultants to
indemnify them in respect of their legal liability for claims made against
them during the period of insurance for any negligent act, error or
omission by the CONTRACTOR, its SUBCONTRACTORS and consultants
in the conduct and execution of their professional activities and duties
relating the design and/or supervision of installation and/or testing and
commissioning of the WORK. This insurance shall be in the amount of
SR: 2,000,000 in respect of each claim and SR: 20,000,000 in the
aggregate for all claims during the period of insurance, and shall be
subject to worldwide jurisdiction. The deductible shall not exceed SR:
25,000 in respect of each claim or such other amount, which the
COMPANY, acting reasonably, may approve in writing.

21.1.4

Completed Operations Third Party Liability Insurance

CONTRACTOR shall effect and maintain in the joint names of the
COMPANY, the CONTRACTOR, its SUBCONTRACTORS, and S!-!Ch other
persons or parties as the COMPANY may choose Completed

A-38
Construction of Qurayyah Open Cycle Power Plant- Schedule A

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SCHEDULE "A"

CONTRACT NO.

30621090/00

final certificates from the Directorate of Zakah and Income Tax as well as the
General Organization of Social Insurance (GOSI) which confirm that all
applicable Zakah and CONTRACTOR income tax obligations have been paid by
CONTRACTOR through the previous Hijra year period.
These certificates shalt be delivered to:
The Manager
Controller's Department
Eastern Operating Area
Saudi Electricity Company
Room 2-215E, SEC-EOA Headquarters
P. 0. Box 5190, Dammam 31422
Kingdom of Saudi Arabia

31.

Taxes

31.1

Payment of Taxes

CONTRACTOR, or CONTRACTOR's personnel, shall pay all taxes, penalties,

customs duties, fees, levies, assessments and charges required or levied by
the Government of the Kingdom of Saudi Arabia and the government of any
country, or any political subdivision thereof, arising out of or relating to the
performance of the WORK, without claim for reimbursement from COMPANY.
31.2

Withholding Tax

Pursuant to pertinent provisions of the Income Tax Law of the Kingdom of

Saudi Arabia issued under Royal Decree No. M/1 dated 15/1/1425, an income
tax will be deducted if the CONTRACTOR is considered as a Non-Resident in the
Kingdom of Saudi Arabia (as defined in Article 3 of the Income Tax Law), in
accordance with Paragraph 4.11 of Schedule "C" of this CONTRACT.
32.

Bank Guarantee

32.1

Amount and Validity

Jo.z:?;r

CON?;CTOR has presente,d Bank Guarantee #

, dated /.:1 " 2t:X~7
~.!i!#e .s-~
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issue by ~as.F~'ank, for
"
Saudi Riyals, representing five
percent "'(5%) of the CONTRACT Price, as guarantee for CONTRACTOR's
performance of the WORK. CONTRACTOR undertakes to keep the bank
guarantee valid throughout the CONTRACT Term and for twenty-four (24)
Gregorian months following the actual Preliminary Acceptance of all PROJECT
PORTIONS. Upon written request of the CONTRACTOR, the value of the Bank
Guarantee may be reduced at the end of the Warranty Period of relevant
PROJECT PORTION(S) by an amount equal to five percent (5%) of the
CONTRACT PRICE of the relevant PROJECT PORTION{S) or to an amount
judged by COMPANY to be adequate to cover the value of any uncompleted
portion of the WORK or the corrected/rectified WORK as mentioned in
Paragraphs 18.2 and 18.6 of this Schedule "A".
32.2

Extension of Bank Guarantee

In the event that the CONTRACTOR's Bank Guarantee needs to be extended,

as a result of delayed Preliminary Acceptance due to any reason whatsoever,
CONTRACTOR shall, no later than seven (7) days after the actual Preliminary

A-49
Construction of Qurayyah Open Cycle Power Plant- Schedule A

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Saudi Electricity Company

SCHEDULE"A"

CONTRACT NO.

30621090/00

Acceptance, submit to COMPANY an extension of the Bank Guarantee covering

the entire warranty period.
32.3

Failure by CONTRACTOR to Extend its Bank Guarantee

Should CONTRACTOR fail to extend the validity of its Bank Guarant~e as

required, COMPANY shall draw down the full amount of the Bank Guarantee.
The CONTRACTOR shall be provided in any event, thirty (30) calendar days
advance written notice during which time the CONTRACTOR must commence to
cure the default to avoid the COMPANY drawing down on the Bank Guarantee.
After expiration of the warranty period specified in Paragraph 18, Schedule "A"
of the CONTRACT and if the COMPANY has drawn down the Bank Guarantee,
then COMPANY shall refund to CONTRACTOR that amount of the Bank
Guarantee which was drawn down, less that amount which COMPANY, in its full
and absolute discretion, deems necessary to retain In order to meet the
CONTRACTOR's warranty obligations.

33.

Validitv of Commercial Registration

CONTRACTOR shall ensure that Its Commercial Registration (CR) or License is valid
throughout the entire duration of the CONTRACT and any extension(s) thereof. In the
event that its CR or License expires during the duration of the CONTRACT and any
extenslon(s) thereof, CONTRACTOR shafl submit to COMPANY a copy of its application
form or proof for renewal prior to the expiration of its CR or License and shall submit
its new or renewed CR or License within forty-five (45) days after the expiration of its
previous CR or License. Failure by CONTRACTOR to submit such document may cause
COMPANY to withhold its invoices until its new or renewed CR or License is submitted
to COMPANY.
34.

CONTBACT language

This Schedule "A" has not been translated into Arabic.

agree to be bound by the English text.
35.

CONTRACTOR and COMPANY

General Provisions

The CONTRACT supersedes all previous agreements, correspondence and

understandings between the parties concerning the WORK, and constitutes their entire
agreement concerning the WORK to be performed hereunder. No promise, agreement,
representation or modification to the CONTRACT shall be of any force or effect
between the parties, unless set forth or provided for in the CONTRACT, a CHANGE
ORDER or an AMENDMENT.

36.

Packing and Deliverv

Afl equipment must be packed in accordance with COMPANY general packing

specification No. IO No. 0011 (6/82) which by this reference is made part of this
CONTRACT. All shipments and deliveries shall be in strict accordance with the
requirements of the CONTRACT.
37.

Protection Against Infringement

CONTRACTOR warrants that the WORK does not infringe any patent rights, copyrights,
trademarks, or trade secrets owned or controlled by any Third Party, either in the
country of manufacture or use. CONTRACTOR agrees to defend, indemnify and hold
COMPANY harmless against any and all liability, loss or expense arising out of patent,
copyright, trademark infringement or trade secret misappropriation claim relating to
the WORK.

A-50
Construction of Qurayyah Open Cycle Power Plant- Schedule A

_________ I

2.

PLANT DESIGN CRITERIA

2.1

General

This Specification calls for the erection of gas turbine power plant and associated
equipment and the design and supply of supporting services which shall initially be installed in open
cycle configuration with the intention to convert to combined cycle at a later date. The design shall be
modern, well proven, safe, economically attractive both in capital cost and running cost and offering a
high availability with low forced outage rate. The plant shall be fully automated and require minimum
operator intervention for normal operation. Contractor B shall comply with the Specification unless
compliance would for any reason put at risk safety, reliability and economy due to deviation from
standard practice of Contractor B. However, the intent of the Specification shall always be complied
with.
Any deviations from the Specification shall be clearly identified in Schedule FF, which shall
be completed and returned as part of the Tender.
Any new and additional equipment supplied under this Contract shall be designed and
selected to ensure high reliability and availability of the complete plant with low forced outage rates and
minimal maintenance over the lifetime of the power station, which shall be defined as 40 years.
An appropriate level of redundancy shall be included in each new system; the Works shall
be designed so that no single auxiliary plant failure shall result in the total loss of the unit generating
capability. In this context, it is required that with agreed exceptions, all unit auxiliaries will be provided
with at least one installed spare (N+1). For the station auxiliaries, no single equipment failure shall
result in any loss of station generating capability.
Prototype plant will not be acceptable, and plant that is offered with limited operating
experience must be fully supported by manufacturers warranties and indemnities.

2.2

Unit rating

The gas turbine units, rated at the site ambient condition given in Schedule AA, shall meet
the nominal power requirement range of 1900 MW 80 MW open cycle and shall be installed to
provide 500 MW available generation by 1 June 2008 and further 350/400 MW available by 1 August
2008, and with a further 1016 MW, 40 MW open cycle plant to be available for generation by 1 June
2009. The CIF delivery dates for the gas turbine units, generator transformers, unit transformers and
IPBs shall be as stated in Schedule BB.
The gas turbine generators shall be suitable for outdoor installation and conversion to
combined cycle operation 3+1 configuration at a later date.
The guarantee and warranty for the gas turbines and associated equipment shall be the
responsibility of the gas turbine generator supplier Contractor A without exception. The guarantee and
warranty for any new and additional equipment supplied under this Contract shall be the responsibility
of Contractor B and in the event that any other requirements of this Specification are in conflict with
Contractor Bs ability to meet the performance requirements contained in Schedule CC1, such
exceptions shall be identified. It is the intent that the gas turbine supplier supplies his standard
modular gas turbine design to the maximum extent possible.

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4.9

Spare parts

Contractor B shall provide with his tender, for the equipment in Contract B, a complete
priced list of spare parts, in Schedule HH. The list shall be developed on an estimated usage basis and
supporting data from existing plants shall be provided to substantiate the spares holding and usage
proposed.
The priced list of spares shall include a recommended stockholding to cover all initial
inventory, planned maintenance and strategic reserves up to and including the first 2 years of operation
from plant takeover.
Contractor B shall provide all the commissioning consumables and spares up to take over
of the works.

4.10

Special tools and lifting devices

Contractor B shall supply, for the equipment in Contract B, a complete set of any special
tools and other equipment necessary for the dismantling, work storage, re-erection and adjustment of
any part of the plant. Tools shall be provided in new condition, adequately labelled to their use and
contained in stout and suitable padlocked boxes.
Any special lifting devices/slings required shall be provided and clearly marked by
embossed labels which show safe working loads. Test Certificates shall be provided where applicable.
Suitable lifting equipment shall be provided to facilitate removal and maintenance of plant
and equipment. Lifting devices shall be designed in accordance with the latest editions of the relevant
ISO standard or equivalent. All electrical and mechanical functions shall be tested before despatch
from the manufacturers works. Operational and overload tests shall be carried out on site.
Suitable lay down areas and methods of retrieving the equipment should be included to
support the integrated approach to the crane facilities.

4.11

Warranty engineer

A warranty engineer shall be located on site for a period of one (1) year following the date
of Takeover to cover the equipment in Contract B. The warranty engineer shall have not less than eight
years experience of power plants similar to the Facility and shall act proactively to ensure the best
performance and availability of the plant is achieved. A CV for the proposed engineer shall be
submitted for approval prior to him taking up the appointment.
The Contract shall include for all travelling, accommodation and subsistence costs of the
engineer and for his replacement by a similarly experienced engineer during periods of leave or longterm sickness. The replacement engineer shall be to approval. Such approval shall not be
unreasonably withheld.
The warranty engineer shall be available on site between 0800 1700 hours Saturday to
Thursday, and available for callout duty outside of these hours.

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The warranty engineering shall be responsible for the following throughout the warranty
period:
i.

Ensuring that the O&M operator is operating and maintaining the entire plant in
accordance with the manufacturers instructions, and notifying the Owner (SEC)
and the O&M operator of any shortcomings.

ii.

Providing technical advice and support to the O&M operator.

iii.

Monitoring the performance and availability of the plant.

iv.

Assisting with troubleshooting.

v.

Acting as liaison with Contractor Bs head office for the clearance of any defects
existing on Takeover or occurring during the warranty period, to ensure that they
are cleared promptly.

The Owner (SEC) will monitor the performance of the warranty engineer. Should his
performance be unsatisfactory, Contractor B shall provide a replacement engineer to the satisfaction of
the Owner (SEC).

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s.

Assorted glass T and Y pieces.

t.

Separating funnels.

u. Volumetric flasks.
v.

Reagent bottle.

w. Funnels.

6.4.8.5

x.

Gas sample tubes.

y.

Dissolved oxygen sample tubes.

Reagents

A complete listing of all reagents required for the analytical equipment, reagents for manual
analysis, standard reference solutions, and others required for a complete functioning laboratory shall
be provided for Owner (SEC) review. The reagents shall be of the required purity for the instruments
and as required by ASTM test methods. The listing shall include the reagent name, and quantity
recommended. Sufficient reagents shall be furnished for 2 years of operation after the warranty period.
Contractor B shall advise the Owner (SEC) of reagents with shelf lives shorter than the warranty period
plus 2 year period.

6.4.8.6

Ancillary equipment

The following ancillary equipment represents the minimum to be furnished. Ancillary

equipment needed to provide a complete and functioning laboratory shall be furnished. A complete
listing of this equipment shall be provided for Owner (SEC) review and acceptance. The listing shall
provide a brief description, type, size, model number and quantity of each item:
a)

Analytical balance

b)

Electronic balance

c)

Calibration masses

d)

Westfall type specific gravity balance

e)

Camels hair balance brushes

f)

Balance desiccators

g)

Centrifuge, oil

h)

Muffle furnace

i)

Gas pressure regulator for oxygen cylinders

j)

Three-beam balance

k)

Portable sample cooler

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6.4.8.8

Accessories and spare parts

Equipment furnished shall be provided with all required accessories and spare parts
sufficient for 2 years of operation after the warranty period.

6.4.9

Waste water systems

A site effluent disposal system for 15 gas turbine open cycle configuration is required to
ensure that all potentially contaminated wastes generated by the construction, operation and
maintenance of the power station shall be controlled in accordance with World Bank guidelines and
local legislation. This layout and arrangement of the waste water system shall take into account the
requirement to extend the system for combined cycle conversion.
Effluent from the drains of the laboratory, battery room, plant and chemical dosing drains
shall also be suitably treated.
Surface water with the potential of oil contamination shall be directed to an oil/water
separator prior to discharge. All waste oil shall be collected for off-site disposal.
Gas turbine compressor wash effluent shall be segregated and stored at a suitable location
for off-site disposal.
Sampling and instrumentation shall be included in the final discharge to ensure compliance
with the requirements of relevant legislation. As a minimum, this shall include equipment to measure
flow, temperature and pH. Provision to take a manual sample shall be provided. Discharge of
wastewater outside agreed limits shall be prevented by the control system.
For Qurayyah OCGT plant no discharge sewer is available, the final effluent disposal shall
be routed to an evaporation pond. Two 100 per cent evaporation ponds shall be provided for the
OCGT plant installation and the proposed site layout should take into account the requirement to
construction additional evaporation pond(s) for the combined cycle plant conversion. Details of the
proposed discharge system shall be provided within the Tender.
For further details of the site waste water systems, refer to Section 9 of this Specification.

6.4.9.1

Packaged sewage treatment plant

A packaged sewage treatment plant shall be provided to cater for the total foul water
treatment requirements of the station, with adequate margins, under all conditions of operation. The
plant shall be complete with sanitary drainage piping, manholes and grease traps required for
conveying sewage, comminutor and bar screen, pre-engineered activated sludge modules, chlorination
equipment, treated sewage holding facility, treated sewage transfer pump sets, interconnecting piping
valves and supports, associated instruments and controls, associated electrical work, associated civil
work and all tanks shall be fitted with access ladders, platforms, vents and access ports. Level and
contents gauges shall be located for operational convenience.
The plant shall be capable of treating 300 litres per day of raw sewage per person during
normal operation together with a provision for peak demand at 2.5 times normal operational flow.

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8.

INSTRUMENTATION AND CONTROL

8.1

Introduction

This Section describes the technical requirements for the supply and installation of
instrumentation and control (I&C) for the open cycle power plant. All I&C equipment necessary to allow
the safe and efficient operation of the power plant shall be supplied, installed, commissioned and
tested.
Gas turbine generators (GTGs) and ancillary equipment, a hydrogen plant and ancillary
equipment and a CEMS system together with all associated I&C equipment and systems will be
supplied under a separate contact by Contractor A. Contractor B will be responsible for interfacing to
and/or integrating these I&C systems into the DCS and other control/monitoring systems being supplied
to provide an integrated system for the control and monitoring of the power plant.
The DCS will provide control, monitoring, alarming, trending, logging, archiving and data
acquisition and storage for the gas turbines and associated equipment for each combined cycle block.
A consistent control, instrumentation and data acquisition philosophy shall be applied
throughout the power plant. The objective shall be to standardize all equipment, wherever possible,
throughout the power plant in order to rationalize operation, maintenance and reduce spare parts. In
general, all equipment shall be of modern compact design, incorporating proven technology and
supplied from one composite range as marketed by a reputable international manufacturer. The DCS
Vendor shall be from a short list of reputed manufacturers approved by SEC.
The hardware and software for DCS shall be the latest available at the time of system
installation. The latest system software version shall be made available for all units prior to the
completion of warranty period so as to have an identical and latest software version for all systems of
the plant.
Contractor B shall be responsible for liaising with Contractor A and Owner (SEC) to obtain
all data and information necessary to allow for the design, build and commission of his I&C systems,
DCS and interfaces required to connect to Contractor As equipment and SEC existing equipment.

8.2

Scope of supply

The extent of supply described shall be the minimum necessary to achieve the required
objectives and shall consist of, as a minimum, the following:
a.

Complete control, protection and monitoring systems for the plant being provided
including the fuel systems, gas detection, fire detection, common services and
auxiliary equipment.

b.

Interfaces to and integration into the DCS and other control and monitoring systems
of equipment provided by Contractor A.

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h. Packing for shipment including check for completeness of shipment, handling

requirements, and case markings and identification.
Contractor B shall keep the Engineer/Owner (SEC) informed in advance of the time of
starting and of the progress of the work in its various stages so that arrangements can be made for
inspection and for test. Contractor B shall plan the performance of inspection and tests so as to avoid
the delaying of the work.
All of the required inspections and tests shall be made at Contractor B's expense.
Contractor B shall include for all travel and accommodation costs incurred by the Owner (SEC) in
attending inspection visits and including the cost of all samples used. Contractor B shall be responsible
for any additional costs incurred by the Engineer/Owner (SEC) arising from the postponement, reinspection or additional inspections or visits attributable to Contractor B, subcontractors or suppliers
performance as deemed necessary by the Engineer/Owner (SEC). Contractor B shall also provide,
without charge, all reasonable facilities and assistance for the safety and convenience of the
Engineer/Owner (SEC) in the performance of his duties.
If the plant or any portion thereof fails under test to give the required performance, such
further tests which are considered necessary by the Engineer/Owner (SEC) shall be carried out by
Contractor B and the whole cost of the repeated tests shall be borne by Contractor B. This also applies
to tests carried out at subcontractors works.

10.6

Non-conformances

Non-conformances identified by the Engineer/Owner (SEC) shall be notified to Contractor B

by issue of the Engineers Non-Conformance Report. Contractor B shall receive and action all nonconformance reports and re-inspection shall not be notified until the completed non-conformance
report, together with any applicable re-work or concession application, have been accepted by the
Engineer/Owner (SEC)
Where applicable, rejection of materials, equipment and/or components will be made as
promptly as practicable following any inspection or test involvement by the Engineer/Owner (SEC)
Failure to inspect and or reject materials, equipment and/or components shall neither relieve
Contractor B from responsibility for such items which may not be in accordance with the specified
requirements, nor impose liability for them on the Engineer/Owner (SEC)
Contractor B and subcontractors quality assurance programme shall identify and isolate
raw materials and components not conforming to the Design Book. All such items shall be reported to
the Owner (SEC) via a non-conformance report.
Approval of a concession application is the prerogative of the Engineer/Owner (SEC) and
approval of a particular case shall not set precedent.
The Engineer/Owner (SEC) shall have complete authority to accept or reject any
equipment or part thereof considered unsatisfactory and/or not in accordance with the contract
requirements.

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The witness of any inspection and tests by the Engineer/Owner (SEC) of any components
or lots thereof does not relieve Contractor B of any responsibility whatever regarding defects or other
failures which may be found before the end of the warranty period.

10.7

Quality control records, certificates and certificates of conformance

At the end of each visit to a manufacturer to carry out quality control activity, the Engineers
Representative will complete a Quality Control Record and hand one copy to a responsible
representative of the Manufacturer.
The Quality Control Record (QCR) will identify the item inspected, the stage of
manufacture, and the nature of the QC carried out, and will list all points which require remedial action
by the manufacturer, before the subject item can be released.
When each item of equipment is ready for despatch from the place of manufacture and the
Engineer/Owner (SEC) has verified compliance with specified requirements up to that point, a Quality
Control Certificate will be issued to Contractor B.
The Quality Control Certificate (QCC) will identify the item to which it applies and will
release that item from the Engineers control only. The QCC does not constitute any form of
acceptance of the item by either the Engineer or the Owner (SEC).
Contractor B shall provide a Certificate of Conformance confirming compliance with the
Contract requirements and as detailed in the manufacturing record data book.
Sets of all test records, test certificates and performance curves, whether or not they have
been witnessed by the Engineer, shall be supplied for all tests carried out in accordance with the
provisions of this Contract.
Sets of all test certificates shall be endorsed with sufficient information to identify the
material or equipment to which the certificates refer, and shall carry in the top right hand corner the
following reference:
Owners name
Project title
Engineers reference number.
All test documentation shall be in the English language.
No materials or equipment shall be shipped to the site until all tests, analysis and
inspections have been made and Contractor B's Certificate of Conformance has been reviewed and
released by the Engineer/Owner (SEC) or unless otherwise agreed by the Engineer/Owner (SEC)

10.8

Specific tests and inspections

Refer to Schedule GG for details of specific tests and inspections.

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