Projects & Support Services Directorate Monthly CAPEX Report July 2018 1 Contents 1. Executive Summary .............................................................................................................................. 3 1.1. Monthly Expenditure ................................................................................................................... 3 1.2. Rollover Project Implementation Statistics ............................................................................... 3 1.3. 2018 New Projects Implementation Statistics .......................................................................... 4 1.4. 2018 Projects likely to Roll Over ................................................................................................ 5 1.5. Action Items for the Month of August ..................................................................................... 6 2. Implementation Status of the Projects ............................................................................................... 7 3. Review of Planned and Actual Expenditure on Projects ..............................................................22 3.1 Projects Underspent to Date as per plan .................................................................................22 3.2 Projects Overspent to Date by Projections.............................................................................23 2 1. Executive Summary This report highlights the CAPEX performance for the month of July. It also addresses the status of the 2018 CAPEX programme to date 1.1. Monthly Expenditure Monthly total CAPEX for the month of July was as follows Category Amount ($) Investment Projects Commercial Projects Operational CAPEX 44,011 35,604 2,748,344 Total 2,827,959 1.2. Rollover Project Implementation Statistics The table below summarises the completion status of the rollover projects by department. Annual Totals Department Civil Electrical Maintenance Projects – Business Expansion Power Plants Protection Metering System Maintenance System Performance Transport IT Telecoms Finance Cyber Security No. of Rollovers 6 2 3 6 6 2 14 2 2 3 9 1 1 57 No. Completed 3 1 1 3 2 2 5 1 2 2 4 0 1 27 Balance 3 1 2 3 4 0 9 1 0 1 5 1 0 30 Two projects were completed during the month of July bringing the total number of rollovers completed to date to 27. During the meetings with the implementing departments, the CAPEX team reminded the teams of the importance of completing all projects within the agreed times. All departments were further requested to provide updated plans to show when they intend to close off these projects Section 2 gives status details of rollover projects implementation arranged by department 3 1.3. 2018 New Projects Implementation Statistics The table below summarises the status of the 60 projects. Department No of Projects Civil Electrical Maintenance Projects – Business Expansion Power Plants Protection Metering System Maintenance System Performance Transport IT Telecoms Cyber Security HR SHEQR Totals 7 1 2 12 5 3 13 1 1 4 5 4 1 1 60 Specifications Enquiry Technical Evaluation Tender Adjudication Order/ Contract Preps. 2 Ordered/ Contract Signed WIP 5 1 1 1 1 3 7 4 2 7 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 2 1 3 1 1 1 1 1 1 5 5 10 27 11 The pie chart below depicts the implementation status of the 2018 projects, as per table above. Of the 60 projects, 63% are committed. 20% are not yet passed Tender Adjudication and these are a) Projects at Specification Stage The Dola Hill 11kV Board: The finalisation of specifications and ordering of the equipment awaits the finalisation of the commercial agreements for connection points between CEC and ZESCO b) Projects at Enquiry Stage Replacement of the Repair Bay 380V Board; Only one bid was received the first time the enquiries were run. A second enquiry has been run and will close on 10th August Project Status Specifications 2% Enquiry 2% WIP 18% Technical Evaluation 8% Tender Adjudication 8% Order/ Contract Preps. 17% Ordered/ Contract Signed 45% c) Projects at Technical Evaluation Dangote Project: Project Contracts/documents are being finalised. Validation and Evaluation of contractors offers has been finalised awaiting management approvals Workshop Cropping Machine; The first enquires received a poor response. The second was successful. Technical Evaluations are ongoing up to 7th August Frontier Tap Changer Replacement; A review of the work scope is ongoing. The supplier has been invited for site data confirmation. CEC’s proposed scope of works was considered 4 inadequate by the suppliers who proposed changing the whole tap changers as opposed to CEC’s scope of changing only the drive shafts Maposa Server Room (Disaster Recovery Site); Technical adjudication was due in March. The team has been advised to immediately complete this process before the budgeting process commences Vehicle Tracking System; The team has proposed to undertake some trials using open source software and off the shelf trackers, this with the aim of coming up with an inhouse vehicle tracking system. What was obtaining on the market was systems that come with some sort of continuous subscriptions, the feature the team do not want d) Projects at Tender Adjudication Upgrade of Transformer Protection to Include AVRs; The scope of works has been reduced to fit the amounts that are obtainable on the market. A Variation Order has been raised. Once approved, the project needs to be taken back to the Tender Committee for Adjudication Strategic Spares for Substations & Lines; The project must be re-adjudicated to address issues that were raised by CEC management concerning the earlier award Transmission Line Surge Arrestors; a decision has now been made to consider procuring conventional Surge Arrestors. CEC had earlier started working with a supplier to design tailor made Arrestors. This had led to putting off the process of conventional arrestors IT Network Extension; the process delayed at Specifications Stage. There were manufacturing and supply issues with a Switch that CEC required. The process only progressed after the issue was resolved Business Process Automation; the process was affected by the departure of two key staff from the department. As a result, the project is four months off the plan Two projects have so far been cancelled - Wide Area Monitoring Systems; the budget was far much less than what the suppliers bid - Chisenga Substation 11kV Breakers Retrofit; the breakers were retrofitted by NFCA, CEC’s customer Status details of the 2018 projects are included in Section 2, where they are arranged per department 1.4. 2018 Projects likely to Roll Over The following projects have been identified as candidates for rollovers - Dangote Project: Implementation Contracts are yet to be finalised for this project BECOS 32 Replacement: The contract is being prepared by CEC. The supplier has indicated that the project will be completed in 2019 5 - - Transmission Line Surge Arresters: The project is at Tender Adjudication Stage. If a consideration of time to be taken in designing and installation of surge arresters, the project will roll over into 2019. Upgrade Transformers Protection Panels to Include AVR (at Kankoyo): The award has not yet been made for this project. The lead time is 4 months. The time required to install these units is also 4 months. The full extent to which the projects will roll over (both monetary and implementation) is yet to be established. During the meetings with the departments in July-August, all the teams have been requested to revise their plans, working together with procurement so that all projects with the potential to roll over are identified and remedial plans devised to minimise the quantum of rollovers 1.5. Action Items for the Month of August The main action item for August is the updating of implementation plans. The CAPEX Team will work with the implementing departments and supply chain department to ensure that the plans address the following a) Rollovers are completed to avoid rolling them over b) Potential rollovers from the 2018 projects are identified and remedial actions formulated to prevent them from rolling over and/or minimise the amounts rolling over 6 2. Implementation Status of the Projects This section discusses in detail the following - The status of the rollovers - The status of the new 2018 projects The projects are arranged per department i) Projects Directorate a. Civil Department Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date ($) Projected Rollover? Comments PEP16-078 Fire Blast Wall Extension at CSS Aaron Botha 38,000 18,666 No PEP17-043 Ravens Country Club improvement Works Aaron Botha 113,130 209,313 No PEP17-083 Rehabilitation of Broadway Lodge Aaron Botha 80,001 72,041 Yes Two out of three Walls have been completed so far. Outages on the Transformers continue to remain the main challenge on this project. Works on the third wall were planned for completion in July but this could not be realised. Plans are currently underway for the August completion (outage permitting). The first project completion was scheduled for December last year. Works related to the Golf Course, Gym, Swimming Pool and Landscaping have been completed. The shell for the shower and change rooms has been completed. Outstanding are the internal touch-ups and plumbing works. All these outstanding works are planned for August completion. Considering the original scope of works, this project has been completed save for the additional Shower and Change Rooms. If approved by management, the change rooms shall be transferred to a new project, yet to be approved. The project was scheduled for completion in December 2017 but will now close in August Works have been completed and handed over to the end user PEP17-085 Ravens Clubhouse Modifications and Repairs Aaron Botha 200,780 108,350 Yes PEP17-097 CSS - Maposa Wayleave Road Construction and repairs Aaron Botha 648,515 524,237 Yes PEP17-017 Frontier Wayleave Road Construction Aaron Botha 876,145 355,450 Yes 7 90% of the works were projected to be completed in December. Therefore 20% of the project budget was planned to be rolled over. This was however not attained due to the rains. The project continues in 2018. Main construction works have been completed. Tilling, Ceiling Board, plumbing and electrical works are in progress. Works were scheduled for completion at the end of Qtr. 2. This has not been achieved and the project is to be completed in August. Project has been completed. Work is in Progress at 99%. Major works, which were suspended in December due to rains commenced on 19 April. All the major works have been completed, save for minor touch-ups and closing works. Project to be completed in August 2018 Projects Code Description Responsible Head/Chief Aaron Botha PEP Budget ($) 900,000.00 Spent to Date ($) 8,627 Status Comment PEP18-045 Maposa Refinery Wayleave Road Works in progress Mindola - Chibuluma Wayleave road rehabilitation Aaron Botha 437,084.55 12,758 Works in progress PEP18-065 Rehabilitation of Michelo - Karavia Wayleave road Aaron Botha 781,883.42 15,782 Works in progress PEP18-068 Construction of Fire blast walls in Substations Sub Stations Planned Maintenance Works2018 Water reticulation improvement in Substations Luano - Bancroft Wayleave road (Lot 1) Aaron Botha 100,007.74 3,880 Aaron Botha 300,000.00 8,690 Contract Preparations Contract preparations Aaron Botha 69,973.63 7,302 Works in progress Aaron Botha 554,773.63 8,708 Works in progress The contractor has mobilised to site and works have commenced. So far 3.46 km of the wayleave has been graded. The project works are scheduled for December completion but discussions with the contractor to have the works completed by October month end have progressed well. Challenges faced on the project so far are the employment and transportation issues for the Senior Responsible Person to supervise the works. These have been resolved The contractor has mobilised to site and works have commenced. The project works are scheduled for completion by October month end. Challenges faced on the project so far are the employment and transportation issues for the Senior Responsible Person to supervise the works. These have been resolved The contractor has mobilised to site and works have commenced. First level grading from Michelo to the DRC border has already been undertaken. The project works are scheduled for completion by October month end. Challenges faced on the project so far are the employment and transportation issues for the Senior Responsible Person to supervise the works. These have been resolved Tender award for these works was made in the June Tender Committee sittings. Contracts have not yet been finalised. Further delays will lead into these works rolling over into 2019 Tender award for seven contractors was made in the June Tender Committee sittings. Contracts have not yet been finalised. Further delays will lead into these works rolling over into 2019. The eighth contractor was disqualified and the Award for this portion of the works is yet to be made The first phase of the works (rehabilitation of plumbing systems) have been completed. The second and final phase of bore hole drilling will follow around September; to allow the water table to go down further The contractor has mobilised to site and works have commenced. The project works are scheduled for completion by October month end. Challenges faced on the project so far are the employment and transportation issues for the Senior Responsible Person to supervise the works. These have been resolved PEP18-055 PEP18-072 PEP18-073 PEP18-074 b. Electrical Maintenance Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Projected Rollover? Comments PEP17-008 Purchase & Installation of Air Conditioning Units Aaron Botha 29,966 24,645 No Project completed in January PEP17-050 220/66kV Substation Solar Lighting Aaron Botha 64,342 29,855 Yes Units delivered in January 2018. Poles have been fabricated. Installation has not yet commenced. Project is envisaged to be completed in September due to civil works that will only commence after completion of works at Raven Country Club in August 8 2018 Projects Code Description PEP18-094 Procure & Replace Repair Bay 380 Volts Board Responsible Head/Chief Aaron Botha PEP Budget ($) 59,182.96 Spent to Date ($) 8,812 Actual Status Enquiry Actual Status Second round of enquiries have been sent. Tender was re-floated to get better response from vendors. Bidding will close on 10th August 2018. c. Business Expansion Projects Rollovers Project Code Project Description Responsible Head/ Chief Aaron Botha PEP Budget (US$) 759,560 Spent to Date (US$) 479,279 Projected Rollover? Yes PEP17-020 Dola Hill Upgrade Phase II PEP17-103 Dola Hill Upgrade Phase 1B Aaron Botha 249,370 37,061 Yes PEP17-031 1 MW Solar Park Aaron Botha 1,520,000 1,644,217 Yes Spent to Date ($) 108,793 Actual Status Technical Evaluation Comments Civil works for the extension of Substation HT yard, construction of boundary wall, casting of the 2nd transformer, oil containment tank and HV equipment plinths was completed in March 2018. Extension of the control building and construction of guard hut are in progress at roofing and internal fixtures respectively. Most of the bay equipment, primary and secondary have been received and delivered to site for installation. Delivery of the 30MVA transformer to site awaits payments to RDA for transportation of the 70ton crane for offloading. Replacement 66kV CVTs units damaged during shipping and road transport have been received under insurance claim by the supplier. Equipment erection/installation commenced on 8th June while commissioning of the bay is expected to be completed by 30th September 2018 All procurements have been completed except for Surge Arresters and NEC to replace those that had been taken from Luanshya Munic. Order for Surge Arresters has been placed while procurement of the NEC is in progress. Project was earmarked for Qtr. 1 completion but will now close in Qtr. 3, together with PEP17-020 The works have been completed. 2018 Projects Code Description CFP17-003 Dangote Grid Connection Project Responsible Head/Chief Aaron Botha PEP Budget ($) 4,000,000 Actual Status 9 ESIA activities are now at PAP’s compensation agreement stage. Having completed the evaluations and meetings to discuss the rates, ESIA Consultant (CBU) is drafting compensation agreements for all PAPs (on titled and traditional land, respectively) Public Disclosure earmarked for mid-August all things moving on as planned. Evaluation of Validated Bids now completed; Evaluation Team will submit report to Management in the week beginning 30th July 2018. Once Management gives oversight, the EPC Contract Negotiations will proceed and expected to be completed by the third week of August 2018 Code Description Responsible Head/Chief PEP Budget ($) Spent to Date ($) Actual Status Actual Status PEP18-082 Dola Hill 11kV CEC Incomer breakers Aaron Botha 94,250 6,407 Specifications Signing of the Power Purchase/Supply and Wheeling Agreement (PPSWA) between CEC and DIZL – August 2018 Procurement of new 10 Panel 11kV Switchboard awaits vetting by the Attorney General’s Office of commercial and cost sharing agreement for the interface points with ZESCO. Equipment procurement, erection/Installation and commissioning is now expected to be completed in quarter two (Q2) of 2019 since the agreement was not fully signed by 30th June 2018 due to long lead time. ii) Operations Directorate a. Power Plants and Mechanical Systems Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Projected Rollover? Comments PEP17-037 Procurement of Air Intake Silencers for Bancroft GTA 1. Christopher Nthala 72,714 260,493 No PEP17-025 CSS Control Room GTA Monitoring Workstation Christopher Nthala 51,822 39,402 No Silencers have been delivered. Installation could not be done in the month of June due to outage challenges. Installation and commissioning is now planned for last week of August into September 2018. Due to a defect on Bancroft GTA No.2, works on GTA No.1 will be done after the exhaust silencer has been installed on GTA No.2 Project to be completed within Qtr. 3. Project has been completed. PEP17-022 Upgrade Luano GTAs Foam Fire Protection System Christopher Nthala 100,044 34,516 Yes PEP17-024 Kankoyo GTA Continuous Emissions Monitoring System Christopher Nthala 61,023 70,563 Yes Fire detection works have been completed and new control panels have been installed. Refurbishment of Foam generators has been completed while that for water pump motors is in progress. 3” valves have been delivered. Procurements process for the Motor Control Circuit is in progress. A vendor has been identified and is being engaged with a view of having a new MCC manufactured. The Project was planned for completion in Qtr. 2 but will now be completed in Qtr. 4. Project has been completed. PEP17-027 Procurement of Two Labyrinth Seals Procurement of Silenced Compressor Christopher Nthala Christopher Nthala 102,745 16,108 No Seals have been delivered. Installation to be done in Qtr. 3. 26,532 10,142 No Project has been completed. PEP17-122 10 2018 Projects Code Description PEP18-002 Procurement of two Avon Starter Motors Luano GTA 2 Exciter Upgrade PEP18-004 PEP18-005 PEP18-018 PEP18-027 PEP18-028 PEP18-030 PEP18-048 PEP18-050 PEP18-058 PEP18-076 PEP18-079 Responsible Head/Chief Christopher Nthala PEP Budget ($) 130,202 Spent to Date ($) 992 Actual Status Comments Ordered Christopher Nthala 820,000 2,468 Ordered Replace Maclaren Motor Control Centre Procurement of Avon Engine Thermocouple Harness GTA Fuel Tank Level Gauging Procurement of Workshop Cropping Machine Procurement of Maclaren GTA Overhead Hoist Procurement of Bancroft GTA 2 Exhaust silencers Luano GTA 2 Clutch Assembly Replacement Christopher Nthala 336,352 970 Christopher Nthala 40,028 970 Order preparation. Ordered. Order was placed in May 2018. Delivery is expected in August and installation shall be done thereafter in Qtr.3. Contractor is scheduled to visit site to carry out a survey. Delivery of equipment is 15 weeks from the date of commencement of manufacturing. Advance payment guarantee has been received. Advance payment approval in progress. This project is likely to roll over into 2019. Tender has been awarded and order awaits approval after responses have been prepared to address queries that were raised by the CEO Order was placed in May. Delivery is expected in August. Project to be completed in Qtr. 3 of 2018 Christopher Nthala 42,900 7,836 Ordered. Order placed in June. Project to be completed in Qtr. 3. Christopher Nthala 82,137 1,255 Christopher Nthala 39,088 2,446 Technical evaluation. Ordered. There was a poor response to the first enquiries. Tender was re-floated. Technical evaluation in progress up to 7th August Order was placed in June. Expected delivery is October. Christopher Nthala 125,850 131,125 Christopher Nthala 399,182 1,076 Works in Progress Ordered Emission Monitoring Systems for LGTA stacks CO2 fire protection system for Library Annex CO2 Fire Protection-GTA Fuel Transfer Pump Houses Christopher Nthala 150,438 199 Ordered. Christopher Nthala 30,082 1,577 Christopher Nthala 45,466 18,766 Order preparation. Order preparation. Installation works to be done in August as a way of taking advantage of defect repairs on the GTAs. Project to close in September after works on GTA No 1 are completed. Order has been placed. Delivery was initially expected in January 2019 as Lead time is 10 Months. Discussions are advanced to shorten the delivery time to November. Variation of the Inlet duct for Kankoyo has been approved on this project. Order preparation for the inlet duct is in progress. Order was placed in June. Awaiting submission of advance payment guarantee from supplier to initiate payments. Tender has been awarded. Awaiting approval of orders after preparation of responses to the queries raised by the CEO. Project to be completed in Qtr.4. Tender has been awarded. Order approval awaits the response to queries that the CEO raised in relation to the tender award. Local Works at Maclaren have advanced. Kankoyo GTA Fuel transfer pump house shall also be done locally after completion of Maclaren works. Project Materials have been delivered. Maclaren and Kankoyo works to be completed in Qtr.3. b. Protection Rollovers Project Code Project Description Responsible Head/ Chief P003/14 Automatic Voltage Regulators Christopher Nthala PEP Budget (US$) 540,000 Spent to Date (US$) Projected Rollover? Comments 398,686 No. Work is still in progress. All circuits have been tested. Replacement encoders have been delivered. The earlier ones procured had higher impedance and therefore could not work well. Contractor is to remobilise in August and works to be completed in August. 11 Project Code Project Description Responsible Head/ Chief PEP16-029 Replace 220kV Bus Zone Electrical Mechanical Relays PEP16-107 PEP17-061 PEP17-092 PEP17-060 Spent to Date (US$) Projected Rollover? Comments Christopher Nthala PEP Budget (US$) 375,000 178,794 No Mindola Remote Ends Protection Upgrade Replace 220kV Line Electromechanical Relays Procurement of AVRs For Mufulira, Chisenga & Stadium Substations Christopher Nthala 300,001 402,403 Yes Project is at 98% complete. Outstanding issues include Goose messaging to the Kansuswa 220V line and the Bus Zone Wiring into the Bus zone the circuit breaker close command for the Maposa 1/Frontier Tee 220kV line These works shall be completed during the month of August to close the project Completed. Christopher Nthala 183,687 200,207 No Completed Christopher Nthala 499,316 502,361 Yes FATS done. Panels have been delivered and Tests to be done in August. Process of engaging additional labour is in progress. With labour being available and outages permitting, project is expected to be completed in October 2018. Replace System Battery Chargers Christopher Nthala 142,697 125,321 Yes Installation works are in progress. 16 out of 19 chargers have been installed. Project delayed after control cables for the project were depleted. Project is now scheduled for completion in Qtr. 3. 2018 Projects Code Description PEP18-052 Procurement of Control Room Frequency Meter Replace 66kV Line Protection (Dola Hill-Skyways, Ndola Ref-Maposa No. 2). Upgrade Of 14 Protection Numerical Relays PEP18-054 PEP18-064 Responsible Head/Chief Christopher Nthala Christopher Nthala PEP Budget ($) 23,009 Spent to Date ($) 141 Actual Status Ordered. Comments 330,265 2,992 Ordered. Order has been placed. Expecting delivery November 2018. Project is likely to rollover into 2019. Christopher Nthala 301,569 1,683 Ordered Order has been placed. Delivery expected August 2018. Project to close in Qtr.3. PEP18-075 Upgrade Tx’s Protection Panels to Include AVR (at Kankoyo) Christopher Nthala 334,181 2,202 Tender Committee PEP18-083 Wide Area Monitoring Systems; Michelo & Luano Substations Replace System Battery Chargers (6 units). Christopher Nthala 99,944 8,239 Cancelled Two variation order have now been approved on this project. The first involved the change of the original scope to include wired panels. The second involved the increase in the budget by $100,000 after the cancellation of PEP18-083 (Wide Area Monitoring System). Orders have been placed and last delivery is expected in November Project will rollover into 2019. Bids received were above budget. Project scope has been reduced by one panel. Procurement have engaged vendors on prices with respect to the reduction in scope and corresponding Variation Order has been raised. Once the Variation is approved, the project will need to be resubmitted to the Tender Committee for Award. Delivery period for the equipment from date of order is 4 Months. Project is likely to rollover into 2019 Project has been Cancelled. Christopher Nthala 84,851 3,737 Ordered The Order has been placed. Expecting delivery in November. PEP18-092 12 c. Metering. Rollovers Project Code Project Description Responsible Head/ Chief PEP Budget (US$) Spent to Date (US$) Projected Rollover? Comments PEP17-078 Procure Reference Standard Christopher Nthala 29,565 63,216 No The standard has been delivered. Training has also been concluded. The project is therefore closed PEP17-082 Procure Voltage Selector Relays Christopher Nthala $24,668 23,680 No Project has been completed. Four relays have been installed and the other four to be kept as spares 2018 Projects Code Description PEP18-034 Procurement of Tariff Energy Meters and Panels Procurement of Power Quality Meters ERB Requirement Procurement of Programable Transducers PEP18-039 PEP18-041 Responsible Head/Chief Christopher Nthala PEP Budget ($) 367,682 Spent to Date ($) Comments 499 Actual Status Ordered. Christopher Nthala 418,090 463,214 Installation Meters have been delivered. Configuration and installation is in progress. 42 out of 50 Meters have been installed. Project to close in Qtr. 3. Christopher Nthala 38,038 641 Ordered. Enquiries were resent. Bids opened on 11th May 2018. Tender has been awarded and order placed. Delivery is expected at the end of September 2018 Project to be completed in Qtr.4. Order has been placed though delayed by two Months. Delivery of equipment is expected in September 2018. d. System Maintenance Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments P033/12 220kV SF6 Type Circuit Breakers Triple pole Christopher Nthala 274,000 215,210 No Completed P004/14 220kV circuit breaker replacement Christopher Nthala 204,000 190,140 No The breaker is at Maposa substation. Works have failed to be implemented due to outage challenges. Decision has been made to classify this breaker as a strategic spare and have it transferred to Capital Stores. With this decision, this project is therefore closed 13 Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP16-022 66/11 20MVA Power Transformer Replacement (3off) Christopher Nthala 1,350,000 1,236,572 No Two Transformers have been installed. The last unit has been delivered to Luanshya Munic. Installation is in progress and was planned for completion in April. Project couldn’t be completed in May 2018 because of works on the 11kV Board by ZESCO. Project works have advanced. Commissioning tests are planned for August. PEP16-040 Diesel Generator And 380V Board Christopher Nthala 200,000 174,4400 No PEP16-061 Transmission line Height Improvement Christopher Nthala 40,000 50,159 Yes PEP17-040 Procure Substation Strategic Spares Procure 3X20MVA Transformers Christopher Nthala 399,273 234,236 Yes Both the Gen. Set and Board have been installed. There are however some modifications that need to be undertaken to make operation of the breakers on the 380V board safer. A Variation Order has been approved. Procurement process of retractable Circuit Breakers is in progress. The transferring of circuits onto the new board is currently in progress and shall be completed in August 7 poles have been delivered. 2 were supposed to be installed in November and the remaining 5 kept as strategic spares. Challenges with the work schedule and equipment availability (due to defects and maintenance works on the system) have hampered progress on this project. Weather constraints equally contributed to the delay. Project completion target date has been Qtr. 2. However, the unavailability of the 70 Ton crane has negatively affected the project. The 2 poles (One on BancroftLuano #2 and the other on Maposa-Ndola Ref. #1) shall be installed in August. Completed. Christopher Nthala 1,347,531 1,290,563 Yes Procure HV Diagnostic Instruments Bus Section Isolator Procurement Procure& Install Transmission Line Surge Arrestors Christopher Nthala 144,867 162,518 Yes Christopher Nthala 20,000 - No Christopher Nthala 69,998 37,999 Yes Power Cable Replacement Replace PASSMOO Unit – Luano TX6 Diesel Generator Replacement – Luano 66kV SF6 Breakers with Current Transformers Christopher Nthala 99,816 126,895 Yes Christopher Nthala 104,931 74,840 Yes Christopher Nthala 120,000 159,534 Yes Christopher Nthala 298,192 224,553 Yes PEP17-044 PEP17-086 PEP17-109 PEP17-006 PEP17-014 PEP17-005 PEP17-046 PEP17-047 14 FATS were conducted in January 2018 and the transformers have been delivered. Installations planned for Qtr. 2 of 2018. Units shall be installed at Dola Hill, Avenue and Mill Substations. Challenges in lifting equipment have delayed the project. Installations are now planned for September – October period. Completed. Project is linked to Mindola Expansion Project (MEP). The order has been placed and Unit has been dispatched. Delivery was expected in April, but Unit is yet to be received. Project completion shall be firmed up once unit delivery has been made Installation of 66kV Surge Arresters has been completed. Five (5) sets of 220kV Surge Arresters to be installed on the DRC Interconnector and One (1) set to be installed on the Frontier Line. Works on the 2nd DRC Interconnector shall be done along with those to be carried out by AEE Power (under warranty). Outages still pose a challenge for works on CSS-Frontier-Maposa Line. Work is in progress and currently at 70%. Department has decided to take the remaining cables to Depot Road to replace those gutted by the recent fire. Project will now be completed Qtr. 3. Breaker has been delivered to site. Civil works in progress. CB, Isolator and CTS Plinths have been constructed. However, period taken by Civil works was longer than planned for. Installation works could not be executed as planned due to outage challenges. Project will now close in August Project has been completed. There are however some works that CEC must attend to, namely the normalisation of circuits and all functions on Transformers 5 out of 6 Breakers have been installed. The final Breaker will be installed along with one new transformer to be installed at Avenue Substation in the September – October period. 2018 Projects Code Description Responsible Head/Chief Christopher Nthala PEP Budget ($) 352,112 Spent to Date ($) 5,121 Actual Status Comments PEP18-019 Strategic Spares for Substations and Trans. Lines Twelve (12) 66kV SF6 CBs with CTs Procure 5x 66/11kv 20MVA power Transformers Power Cable Replacement-11kV Three (03) 220 kV SF6 Circuit Breakers Procure 66 kV Transformer Bushings Retrofit 11 kV OCB Incomer PanelsChisenga Sub. Control Cable replacement in substations Procure Diagnostic Instruments Tender adjudication. Project to be re-adjudicated by Tender committee to address the queries raised by the CEO. Christopher Nthala 473,726 399,161 Ordered Christopher Nthala 2,060,637 562,923 Ordered Breakers have been dispatched and have already reached Tanzania. Installations to commence they are received but there is a likelihood of rolling over FATS are to be undertaken in August. Delivery of the transformers is anticipated in November Christopher Nthala 130,000 103,350 Ordered Delivery is expected in September to be followed by installations within this year. Christopher Nthala 245,301 7,169 Ordered Christopher Nthala 85,208 60,984 Ordered Christopher Nthala 98,997 1,461 Cancelled Christopher Nthala 81,613 87,652 Installations Delivery is expected in September. The department is yet to finalise the installation programme The Bushings have been dispatched and have already reached Tanzania. Installations will follow once these items arrive The breakers earmarked for this project were also part of the project by NFCA to retrofit their 11kV Board. NFCA has undertaken this project and is therefore closed from the CEC end Cables have been delivered and installations are currently underway on various circuits around the CEC network Christopher Nthala 140,110 10,805 Ordered Substation Battery Replacement Synchronous Machines AVR controls retrofit Frontier Transformer Tap Changer Replacement Christopher Nthala 73,506 69,393 Ordered Christopher Nthala 314,442 12,867 Christopher Nthala 99,927 2,617 Contract preparations Technical Evaluation PEP18-063 Guard wire Replacement Christopher Nthala 350,533 4,213 Works in progress PEP18-085 Transmission line Surge Arresters Christopher Nthala 70,009 3,419 Tender Adjudication PEP18-023 PEP18-024 PEP18-032 PEP18-036 PEP18-040 PEP18-042 PEP18-043 PEP18-053 PEP18-057 PEP18-059 PEP18-062 15 The Ground Fault Locator has been ordered whilst the order for the 66kV Cable Fault Locator has been cancelled as CEC already has enough of this type of instrument. Plans are underway to raise a Variation Order to order another instrument in the place of the Cable Fault Locator Delivery is expected in September and installation to follow in October Tender has been awarded. Variation has been approved. Order and Contract preparation is still in progress. CEC has invited the supplier to come and design a solution for the tap changers. The received bids in the tender contained the scope of changing the whole tap changers instead of just the drive shafts as requested by CEC.As a result the price bids were well above budget. A way forward will therefore be decided once the supplier visits site The contract has been signed and preparations to commence works advanced. The only outstanding issue is the procurement of clamps which was not part of the bidding process as quantities were not known at the time. CEC has commenced the process of this procurement. The project will be completed in November CEC has decided to procure the standard Surge Arresters after the process to procure custom made variants has taken long. Designs for custom made Luano- Bancroft Surge Arresters is in progress. CEC yet to submit data required for consideration in designs for Luano Kabundi Line. Procurement to proceed and procure conventional surge arresters while interaction with Japanese vendors continues with a view to supply tailor made ones. e. System Performance Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP16-096 Procurement of Oil Regenerating Plant Christopher Nthala 445,000 437,389 No The plant has been commissioned PEP17-068 Furan Content Analyser in Transformer Oil Christopher Nthala 100,000 89,517 No Equipment has been delivered but missing reagents and other accessories to enable commissioning. Reagents have now been received. Commissioning is in progress. Project to close in August. 2018 Projects Code Description PEP18-033 SF6 Gas Recovery Unit Responsible Head/Chief Christopher Nthala PEP Budget ($) 74,460.45 Spent to Date ($) 390 Actual Status Ordered Comments Enquires sent out on 7th March. One Bid was received on 3rd April. Tender has been awarded and order has been placed. Delivery is expected September f. Garage and Transport Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP17-004 Light Vehicle Replacement Project Christopher Nthala 380,000 467,588 No all vehicles have been delivered PEP17-023 Heavy Vehicle Replacement Project Christopher Nthala 530,000 781,471 No Project has been completed. Commissioning certificate to be issued after submission of labour hours. 16 2018 Projects Code Description PEP18-026 Vehicle Replacement 17 Units Responsible Head/Chief Christopher Nthala PEP Budget ($) 758,585.98 Spent to Date ($) - Actual Status Order preparation Comments 16 vehicles are being procured instead of 17. A variation has been approved to replace one vehicle with a trailer. Enquires sent out on 6th March and were received on 30th March. Tender has been awarded and orders for both the vehicles and trailer are yet to be made iii) Telecoms and IT a. IT Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP17-074 Tier 2 IT Data Centre IT Network Extension CCTV & Access Control Phase II Choolwe Nalubamba 50,079 65,805 No Project has been completed. Choolwe Nalubamba 55,852 61,853 No Choolwe Nalubamba 74,484 80,837 Yes Initial Supplier failed to deliver. Order placed on another supplier. Units have been received and installation is in progress. Project to be completed in August 2018. Installation has been completed. PM is preparing commissioning certificate. Responsible Head/Chief Choolwe Nalubamba Actual Status PEP17-036 PEP17-051 2018 Projects Code Description PEP18-016 IT Network Extension PEP18-080 CCTV & Access Control Choolwe Nalubamba PEP18-084 Maposa Server Room (Disaster Recovery Site) Choolwe Nalubamba Specifications finalisation was delayed due to challenges with the previous project (PEP17076) related to failure by suppliers to supply specialised IT Switches). Specifications have now been completed. Enquiries sent out on 3rd May and opened on 24th May. Project is due for Tender Adjudication. Project involves procurement and installation of CCTV in four Substations and installation of Access Control. Enquiries were sent out on 17th February and received on 6th April. Cameras have been received. Tender has been awarded (on 28th June 2018) and order for Access Control and installation works has been placed. Contract for installation works in being prepared. Technical evaluation is overdue and delayed. It should have been completed in March. Civil works have commenced at site. Project was planned for completion in Qtr. 3. This is unlikely should technical evaluation delay further. 17 Code Description PEP18-090 IT Network Upgrade Responsible Head/Chief Choolwe Nalubamba Actual Status Technical evaluations have been completed. For the first portion Tender has been awarded and orders have been placed. Last delivery is expected in September 2018. Project to be completed in Qtr.4. b. Telecoms Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP16-099 Transformer HV/LV CB Monitoring & Control Transformer HV/LV Circuit Breaker Monitoring and Control SDH Management &Test Equipment Choolwe Nalubamba 40,321 24,975 No A meeting was held to discuss implementation and coordination. Works shall now be managed by Project department. Installation works to begin in August. Project Manager shall advise on the timeline. Choolwe Nalubamba 40,000 22,784 No A meeting was held to discuss implementation and coordination. Works shall now be managed by Project department. Installation works to commence in August. PM to yet to draft timeline. Choolwe Nalubamba 50,368 57,473 Yes All equipment delivered. Project has been completed PEP17-087 SCADA Network Protocol Upgrade Choolwe Nalubamba 80,530 40,187 No Completed. PEP17-094 CSS/Luano ZESCO SCADA Signals Upgrade New Arthur Davis Stadium Screen Choolwe Nalubamba 80,332 95,558 No Project has been completed Choolwe Nalubamba 50,309 49,456 No PEP17-072 IST RTU Upgrade Choolwe Nalubamba 284,960 245,982 No PEP17-073 Transformer HV/LV CB Monitoring & Control SDH Network Upgrade FOX615 Choolwe Nalubamba 97,107 78,7112 Yes The screen has been delivered. Two completion deadlines (January and March) have been missed. Civil works have been completed. Fabrication of stand has been completed and erected. Contractor is on site to power the unit. Unit shall be commissioned after installation of earthing system by CEC. Project to be completed in August. Works at Turf have been completed. Panel has been mounted at Kabundi and works have advanced. Project could not be completed in Qtr. 2. due to challenges with man power and outages. Project completion has been rescheduled to Qtr. 3. A meeting was held to discuss implementation and coordination. Works shall now be managed by Project department. Works to commence in August after drafting of timeline. Choolwe Nalubamba 350,701 341,476 No PEP16-066 PEP17-057 PEP17-106 PEP17-071 18 Project has been completed 2018 Projects Code Description PEP18-006 Inverter at Maposa 1off & 3X Human Machine Interface SDH Network Upgrade & Engineering Tools BECOS 32 Replacement & GIS PEP18-007 PEP18-020 Responsible Head/Chief Choolwe Nalubamba PEP Budget ($) 165,301 Spent to Date ($) 45,474 Actual Status Ordered Comments Choolwe Nalubamba 358,496 8,752 Ordered. Choolwe Nalubamba 2,021,542 31,182 Contract Preparation Enquiries sent out on 17th February and bids received. Tender awarded, and order placed. Advance payment was delayed leading to an overall project delay of four months. Delivery is expected in November 2018. Enquires sent out on 13 February and Bids opened on 24th May 2018. Enquiry delays were due to a supplier error. Tender has been awarded. Order has been placed and contract is being drafted. Project will rollover into 2019. Enquiries sent out on 17th February and were to be received on 23rd March. Scope has been revised after vendor (ABB) offered to upgrade all stations (by exchanging old processors for new ones) at a value of $140,000. Initial scope was to upgrade 4 stations at a budget of $116,00. Tender has been awarded and order placed. First consignment delivery is expected in August 2018. Project to close in October 2018. Enquiries sent out on 25th January. Orders have been placed for material and majority have been received. Process of engaging contractor is in progress. Bids close on 10th August 2018. Contractor shall be selected via the Tender Committee. Installation works are expected to commence in September of 2018. Project to be completed in Qtr.4. PEP18-056 SCADA Network Upgrade and Protocol Upgrade Choolwe Nalubamba 116,580 4,183 Ordered. PEP18-097 Fibre Connectivity for Remote Energy Meters Choolwe Nalubamba 181,162 40,415 Works in progress Order for Inverter has been placed and delivery is expected in September. Order for HMI has been placed and deliver is expected in October. Project to be completed in Qtr. 4. c. Cyber Security Rollovers Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP17-117 Cyber Security Control Centre Operations Choolwe Nalubamba 98,065 87,785 No Project has been completed. 2018 Projects Code Description PEP18-008 Business Process Automation Responsible Head/Chief Choolwe Nalubamba Comments Enquiries sent out on 16th February. Orders have been placed. Software development was delayed due to the departure of key members on the project. Project timeline has shifted by two months. Project to be closed in Qtr.1 of 2019. 19 Code Description PEP18-035 Vehicle Tracking System PEP18-091 Cyber Security Operations Centre Phase II Network Isolation for Protection and Metering PEP18-022 Responsible Head/Chief Choolwe Nalubamba Choolwe Nalubamba Choolwe Nalubamba Comments Enquiries were sent on 24th March and closed on 20th April. Bids received didn’t meet specifications because all of them included a subscription portion as a continuous cost on the project. End user department has resolved to run a pilot project with open source software and off the shelf tracking devices. Software has been sourced and tracking devices will be received in August. Pilot project expected to be completed in October 2018 when a decision will be made on the way forward for the project Enquires sent out 15th February. Bids received 16th March. Technical evaluation has been completed. Tender has been awarded. Orders have been placed and last delivery is expected in August 2018. First enquiries closed on 20th February. Tender re-floated after refinement of specifications. Tender has been awarded. Order placing awaits approval by Management. iv) Finance Directorate Rollover Project Code Project Description Responsible Head/Chief PEP Budget (US$) Spent to Date (US$) Planned Rollover? Comments PEP17-102 Treasury System Mutale Mukuka 200,000 87,398 Yes Treasury and the budgeting parts of the project have been completed. Balance sheet and Cashflow models are yet to be completed. Project to be closed in August 2018. Spent to Date ($) 9,056 Actual Status WIP Comments v) HR Directorate 2018 Projects Code Description PEP18-081 Furniture procurement for Offices, S/S and Ravens Responsible Head/Chief John Simachembele PEP Budget ($) 60,000.00 20 Project control changed from Civil to HR. Normal furniture procurement is in progress as HR works out modalities for standardising furniture in the company. vi) SHEQ Department 2018 Projects Code Description PEP18-025 Construction of a Hazardous waste storage shed Responsible Head/Chief Caroline Sinkamba PEP Budget ($) 14,101.31 Spent to Date ($) 2,556 21 Actual Status ordered Comments Bill of quantities ready and Procurement is in progress. Works to be done along with those for a shelter to be constructed after request from stores. Works to commence in August after Civil Departments completes works at Ravens. 3. Review of Planned and Actual Expenditure on Projects The sections below highlights projects whose expenditure is either significantly higher or significantly lower than was projected 3.1 Projects Underspent to Date as per plan Projects with a significant impact on the cash flows are tabulated below. The projections made on these projects, as at July 2018 are significantly above the actual amounts. Code Project Actual Spend to Date ($) 108,793 Difference ($) Comments Dangote Project Projected to Spend to Date ($) 1,459,511 CFP17-003 (1,350,718) PEP18-020 BECOS 32 Replacement 808,617 31,182 (777,435) PEP18-026 Vehicle Replacement 758,586 PEP18-045 Maposa Refinery Wayleave Road Phase I Rehabilitation of Michelo Karavia Wayleave road Dola Hill Upgrade Phase II 540,000 8,627 (531,373) 430,036 15,782 (414,254) 711,114 333,387 (377,728) Mindola - Chibuluma Wayleave road rehabilitation Luano GTA 2 Exciter Upgrade Luano - Bancroft Wayleave road (Lot 1) Procurement of tariff Energy Meters and Panels Replace Maclaren Motor Control Centre SDH Network Upgrade & Engineering Tools 349,668 12,758 (336,910) 328,000 2,468 (325,532) 332,864 8,708 (324,157) 294,145 499 (293,646) 269,081 970 (268,112) 268,872 8,752 (260,120) PEP18-050 Luano GTA 2 Clutch Assembly Replacement 240,000 1,076 (238,924) PEP18-022 Network Isolation for Protection and Metering 216,289 8,326 (207,963) PEP18-064 Numerical Relays Upgrade 180,941 1,683 (179,259) Provisions were made in the plan to cater for cash flows for the Dangote Project. The substation and transmission line aspects of the project are yet to commence The project is running four months late, according to the plan. The advance and design payments should have been made by now. The first delay was as result of a misunderstanding by the suppliers’ agent during the enquiry stage. The award has now been approved and the second delay is with contract drafting. The initial draft contract was rejected by the legal team who are now working on a different form of contract Award has been made but orders have taken more than a month to be communicated to the supplier The works have finally commenced. The payment deficit will be reduced as the work progresses. Works to end in October The works have finally commenced. The payment deficit will be reduced as the work progresses. Works to end in October Completion of this project has delayed and has now been shifted to September. The works have finally commenced. The payment deficit will be reduced as the work progresses. Works to end in October Contractor has commenced design works. Equipment delivery is expected in 15 weeks’ time. The works have finally commenced. The payment deficit will be reduced as the work progresses. Works to end in October Order has now been placed and equipment is expected in September Order is yet to be placed. CEC management has raised queries to the Tender Award which the project team is addressing A delay in payments to the supplier on a different but related project resulted in the supplier suspending the works on this project. The account has now been opened and the advance payment has been processed Order has been made and the lead times into 2019. The supplier has now indicated that delivery is possible before the end of the year Project delayed due to insufficient specifications being used in the initial Tender enquiries. This was corrected in the second enquires. The order is awaiting management approval before being communicated to the supplier Order has been placed and delivery is expected in November PEP18-072 Sub Stations Planned Maintenance Works- 2018 Guard wire Replacement 180,000 8,690 (171,310) The contracts are yet to be finalised after Tender Award in June 175,000 4,213 (170,787) Cyber Security Operations Centre Phase II 200,000 29,812 (170,188) The contract has been finalised and works to commence. Completion is expected in November Orders have been placed and deliveries expected in September PEP18-065 PEP17-020 PEP18-055 PEP18-004 PEP18-074 PEP18-034 PEP18-005 PEP18-007 PEP18-063 PEP18-091 (758,586) 22 3.2 Projects Overspent to Date by Projections Projects with a significant impact on the cash flows are tabulated below. The projections made on these projects, as at July 2018 are significantly below the actual amounts. Code Project Projected to Spend to Date ($) 546,236 Actual Spend to Date ($) 1,318,186 Difference ($) Comments PEP17-031 1MW Solar Park 771,950 66kV SF6 Breakers With Current Transformers 59,600 202,395 142,795 PEP17-097 CSS - Maposa Wayleave Road Construction/repairs 162,129 287,871 125,743 PEP18-048 Bancroft GTA Exhaust silencers 12,642 131,125 118,483 No payments towards the main contract were made last year (65% was expected to be made). All payments for the main contract made this year. In addition, extra works done by other departments in support of the project continue to be posted to this project Rollover. The expected delivery was December 2017. The only amount rolled over was for installation costs. The breakers were only delivered in April and the full amount settled in the same month Rollover. Projection was that only 20% of the works would roll over. However, works were suspected in December due to the heavy rains before 80% of the works could be attained. Project ahead of schedule. The Silencers have been delivered to CEC and installation commencing in August PEP17-047 23