Project Implementation Plan

Chapter 8
Project Implementation Plan

Preparatory Study on Gas Fired Power Plant Development in Southern Mozambique Final Report
Chapter 8 Project Implementation Plan
8.1 Implementation Schedule in ODA Scheme
This Project will be funded by a Japanese ODA loan, and EDM expects the early implementation of
the Project due to high demand for electricity in Maputo.
In consideration of the above, the Project implementation schedule including Project preparation
activities is proposed as shown in Figure 8.1-1, and the schedule of each phase of the Project is
explained in this chapter.
8.1.1 Project Preparation
(1) Environmental Impact Assessment (“EIA”)

As mentioned in Chapter 11, EDM is responsible for the EIA process and the Ministerio para
Coordenacao de Accao Ambienal (“MICOA”, in English – Ministry of Coordination of Environmental
Affairs) has classified this Project as Category A, which requires a full EIA process. According to
recent experiences in Mozambique, it usually takes more than a year to complete the full EIA process.
Therefore, the EIA process is a critical task to commence the project.
(2) Selection of Consultant

After the execution of the loan agreement, EDM will select a consultant. Eight months are needed for
the selection of a consultant in consideration of the necessary processes such as preparation of the
terms of reference (“TOR”), tender, evaluation and contract.
8.1.2 Selection of EPC Contractor

As mentioned in Chapter 8.3.4, an EPC contract will be adopted for this Project. EDM and the
consultant will select a contractor by international competitive bidding. Fifteen months are needed for
the selection of the contractor in consideration of the necessary processes such as detail design,
preparation of tender documents, prequalification (“PQ”), tender, evaluation, negotiation and contract.
8.1.3 Construction
As shown in Figure 8.1-1, the construction of combined cycle power plant will be completed in 30
months through the process of the following activities, and will be ready for the commercial operation.
 Detail design of the plant and manufacturing & assembling of the equipment
 Transportation of the materials and equipment
 Civil and building works (equipment foundations, buildings and external works)
 Installation of the equipment and commissioning of the plant
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Project Implementation Schedule

2012 2013 2014 2015 2016 2017 2018
09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - M01 M02 M03 M04 M05 M06 M07 M08 M09 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 M25 M26 M27 M28 M29 M30 - - - - - - -
■
Preparatory Study
■
Fact Finding Mission --> Appraisal
■
Government to Government process --> E/N & L/A
■ Selection of Consultant : 8M
Selection of Consultant
Pledge
・
Tender Document Preparation
・
PQ & Tender
・
Evaluation, negotiation and contract
■ Detail Design & Selection of Contractor : 15M
Detail Design & Selection of Contractor
・
Detail Design
・
Tender Document Preparation
・
PQ & Tender
・
Evaluation, negotiation and contract
■ Construction Period : 30M
Construction
・
NTP
Detail Design, Manufacturing & Assembling
・
Transportation
・ Commercial Operation
Civil Works
・
Installation & Commissioning
■
EIA process by EDM
(Source: JICA Study Team)
Figure 8.1-1 Project Implementation Schedule
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8.2 Construction, Procurement and Transportation
8.2.1 Present State of Site

Figure 8.2-1 is the overhead view of the CTM Maputo site showing the present state of the site and its
surroundings.
Figure 8.2-1 Overhead View of CTM Maputo Site
(1) Site Preparation

As mentioned in Chapter 3, no land preparation or resettlement are required at the CTM Maputo site.
(2) Infrastructure for Construction

Since the construction site is located at an existing power plant site, there will be no problems in
arranging infrastructure required for construction such as water supply, power supply and access road.
(3) Construction Area

As mentioned in Chapter 6.4.3, the new power plant layout is proposed to be in the west corner of the
CTM Maputo site (see solid yellow border of Figure 8.2-1).
Existing fuel tanks that are no longer used (see dashed yellow border of Figure 8.2-1) should be
removed prior to the start of construction. This removal work is considered as land preparation work
and would not be covered by the ODA loan.
(4) Temporary Yard

EDM has confirmed that the following area owned by EDM (see red border of Figure 8.2-1) can be
used as a temporary yard during construction.
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 Vacant land at north side of construction area

 Vacant land on both sides of the access road from EN2 to CTM Maputo site
The total area of the above is approximately 30,000 m2 and is quite sufficient for the laydown area,
stockyard and other necessary temporary facilities.
(5) Gas Station

The north corner of CTM Maputo site (see blue border of Figure 8.2-1) is reserved for a new gas
station required for natural gas supply to the power plant.
8.2.2 Transportation of Heavy Equipment
The CTM Maputo site faces the river mouth to Maputo Bay, however, the shore in front of the site is a
tidal flat with mangroves so there is no possibility of direct unloading from the river.
Therefore, heavy equipment for the Project, such as the main transformer and GT, which weigh
approximately 100 tons, should be unloaded at Port Maputo and transported by road to the site.
(1) Unloading at Port Maputo

Port Maputo is currently operated and controlled by Maputo Port Development Company (“MPDC”)
with the concession given by the Mozambique government up to 2033. According to an interview with
MPDC, berth No. 15 is designed for heavy cargo with a connecting road, and it is most suitable for
unloading heavy equipment for this Project. Table 8.2-1 provides a list of berths at Port Maputo.
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Table 8.2-1 List of Berths at Port Maputo
(Source: MPDC)
There is no lifting equipment for 100-ton class cargo at Port Maputo, therefore, heavy equipment
should be transported by a heavy-lift ship.
(2) Inland Transportation
(a) Weight and Size Limit

The weight and size of vehicles on roads are limited by Decree No. 14/2008 and the limits for trailers
are as follows:
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 Weight: Total weight should not exceed the following limits

3 axles: 25 tons
4 axles: 34 tons
5 axles: 42 tons
6 axles: 48 tons
7 axles or more: 56 tons
 Size: Maximum length: 22 m

Maximum height from the ground: 4.3 m
The weight and size of heavy equipment, such as the main transformer and GT, exceed the above
limits. In such a case, the transportation method (e.g., using multi-axle trailers designed for
super-heavy cargo) based on a road survey should be proposed to National Roads Administration
(“ANE”) for their approval.
It should be noted that the special multi-axle trailer necessary for the transportation of super-heavy
equipment is not available in Mozambique, and needs to be arranged from South Africa.
(b)Route of Inland Transportation

As shown in Figure 8.2-2, the route of inland transportation from Port Maputo to CTM Maputo site
will be as follows:
Berth No.15  Road in Port Maputo  EN1  Crossover-1 above railway  EN2
 Crossover-2 above railway  CTM Maputo site
Figure 8.2-2 Transportation Route from Port Maputo to CTM Maputo Site
8-6
This route, including two crossovers (see Figure 8.2-3 and Figure 8.2-4), is on major trunk roads with
heavy daily traffic. Therefore, it is considered that the heaviest equipment, such as the main
transformer and GT, can be transported by special multi-axle trailer designed for super-heavy cargo.
Figure 8.2-3 Crossover-1
Figure 8.2-4 Crossover-2
As mentioned in the next section, there is a plan to construct the Maputo Ring Road parallel to EN2. If
the construction of Maputo Ring Road is completed before the construction of the new power plant,
the transportation route will be changed.
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8.2.3 Maputo Ring Road Project

During the first survey in Maputo, it was learned that there is a project called the “Maputo Ring Road"
that includes the construction of a new road parallel to the existing EN2, and it may interfere with a
part of the CTM Maputo site.
Thus, the JICA Study Team (with EDM) visited Maputo Sul, a governmental body specially organized
to control the Maputo Ring Road project, and studied the outline of the project and the possibility of
interference with the CTM Maputo site.
Figure 8.2-5 is the general view of the Maputo Ring Road project including Section 6, which seems to
interfere with the CTM Maputo site.
(Source: Maputo Sul)
Figure 8.2-5 General View of Maputo Ring Road Plan
Figure 8.2-6 shows the route of Section 6 assumed by the JICA Study Team based on information
from Maputo Sul and satellite images. Section 6 is the construction of a new 5.5-km long
four-lane road parallel to EN2 between the roundabout in Maputo city and the tollgate at Matola.
The CTM Maputo site is located around the midpoint of Section 6.
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Figure 8.2-6 Assumption of the Route of Section 6 and the Location of CTM Maputo Site
According to Maputo Sul, the route of Section 6 is not yet finalized in detail and the negotiations with
land owners will start soon.
Figure 8.2-7 shows how Section 6 of Maputo Ring Road may interfere with the CTM Maputo site.
Figure 8.2-7 Assumed Route of Section 6 and Interference with the CTM Maputo Site
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There is a possibility that Section 6 may interfere with:
 The north corner of the CTM Maputo site currently reserved for the future gas station to supply
natural gas to the new power plant
 The existing water pump station considered as the tie-in point for water supply to the new power
plant
Under these circumstances, the progress of the Maputo Ring Road project should be carefully
monitored for the construction of the new power plant.
8.2.4 Other Issues for Construction Planning
(1) Special Methods of Construction

Since the A.C.C. system is adopted for the ST condenser cooling, a water intake structure in the front
river that needs marine construction technology is no longer required. There are no other special items
that need special methods of construction in this Project.
(2) Connection with Power Transmission Line

The power generated by the new power plant will be transmitted through the existing sub-station and
transmission tower in the CTM Maputo site. Therefore, there are no special issues to be considered for
construction planning.
(3) Climatic Conditions

According to interviews with construction companies based in Maputo city, construction activities are
not greatly affected by rainfall and cyclones in the rainy season (i.e. December to March), and there is
no remarkable difference in productivity at the site between rainy and dry seasons.
(4) Long Holidays

Construction sites in Mozambique are normally closed during Christmas and New Year’s holidays
(mid/December to early/January), and special care is needed for procurement of imported materials in
this period because most materials are imported from South Africa, and businesses are also closed
during this time.
8.3 Points of Concern for Project Implementation
8.3.1 Procurement in Mozambique
Methods and procedures of the procurement for public works in Mozambique are stipulated by Decree
No.15/2010. However, it stipulates that this decree is not applicable to projects funded by other
countries or multilateral financing organizations.
According to the interviews with construction companies based in Maputo and from EDM, the
projects funded by such overseas assistance, the International Federation of Consulting Engineers
(“FIDIC”) standards and/or World Bank’s guidelines are normally used for the procurement of
consultants and contractors.
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8.3.2 Tendering Method and Contract Conditions
As mentioned above, FIDIC standards are largely used for the procurement of consultants and
contractors. Therefore, the following JICA standard documents, also based on FIDIC standards, will
be used for the procurement of a consultant and contractor for this Project.
 For the procurement of consultant:
Standard Request for Proposals under Japanese ODA Loans
- Selection of Consultants (October 2012)
 For the procurement of contractor:
Standard Bidding Documents under Japanese ODA Loans
- Procurement of Plant Design, Supply and Installation (February 2013)
 Guidelines
 Guidelines for The Employment of Consultants under Japanese ODA Loans (April 2012)
 Guidelines for Procurement under Japanese ODA Loans (April 2012)
8.3.3 Selection of a Consultant
According to the JICA guidelines, the consultant will be selected by the QCBS (Quality and Cost Based
Selection) method through the process of the following activities:
(a) Preparation of a short list of consultants
(b) Preparation of the Request for Proposal
(c) Invitation to submit proposals
(d) Evaluation of proposals
(e) Negotiation and conclusion of a contract
These activities for the selection of consultant may commence after the Japanese government pledges an
ODA loan to this Project.
8.3.4 Selection of an EPC Contractor
(1) Package for Tender

An EPC contract is usually adopted for power plant construction projects because the detail design of
the plant is highly dependent on the composition and specifications of equipment supplied by the
contractor. Thus, an EPC contract will be adopted for this Project.
(2) PQ and Tender

The EPC contractor will be selected by International Competitive Bidding (“ICB”) as stipulated in
JICA guidelines.
In consideration of the necessity for advanced technologies in wide-ranged and extensive management
ability for the construction of the power plant as well as the scale of the Project, the following
conditions shall be specified in the PQ documents:
(a) Experience of and past performance on similar projects
(b) Capabilities in engineering, procurement and construction of combined cycle power plant
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(c) Financial position

In addition, since the specifications of which EPC contractor will propose in the tender differ in
capacity and thermal efficiency, the evaluation in price will be made based on kWh generation cost in
the same manner with the general ICB.
8.4 Management at Construction Stage
The management of the construction work consists of quality control, process control and safety
control. In order to carry out these three control items, it is necessary to establish an organization
within EDM that will supervise the power plant construction work.
8.4.1 Project Implementation Organization

This section mentions an implementation organization which will implement the CTM Maputo CCGT
project. It is recommendable that a Project Implementation Unit (“PIU”) will be established to manage
and implement the CTM Maputo CCGT project. And personnel and staff belonging to PIU will be
transferred to CCGT or to the O&M Department of EDM.
(1) Organization of EDM
1) Establishment of PIU
EDM has proposed the organization as shown below, to install a PIU directly under the CEO. PIU will
play the central role of implementation of this project.
Power Generation, transmission &

Market Operation
Generation
AP-Central
Transmission
Market
Operation
CTM CCGT PIU
Figure 8.4-1 PIU in EDM
8-12
2) Organization of PIU
PIU will consist of a Project Manager, Deputy Project Manager and two sections of an Engineering/
Construction Group and Commissioning Group, and a Consultant as an adviser. The Engineering/
Construction Group will conduct quality control and process management of detailed design and
construction of the CCGT to be conducted by contractors with the assistance of consultants. Through
operating the business, it will perform technology acquisition-related maintenance on the combined
cycle power plant. Commissioning Group equipment by itself, it is implemented in conjunction with
overall plant commissioning contractor of it would acquire of operating instructions with the operation
of the combined cycle power plant by itself
It is important to establish an organization which is small and can take quick and flexible action with
certain responsibility given to the Project Manager of PIU (e.g., Project Manager has the right to
purchase goods under USD 1 Million). Consultants to be hired as engineers, can play a critical role in
technically supporting the entire organization of PIU.
(a) Organization of PIU
Project Manager
Consultant
Deputy Project Manager
Engineering/Construction Commissioning Group

Group
Group Manager Group Manager
- Gas Turbine Engineer - Gas Turbine Engineer
- Steam Turbine Engineer - Steam Turbine Engineer
- HRSG Engineer - HRSG Engineer
- Electrical Engineer - Electrical Engineer
- I&C Engineer - I&C Engineer
- BOP Engineer - BOP Engineer
- Civil Engineer - Supporting Staffs
- Supporting Staffs
Figure 8.4-2 Organization of PIU
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(b) Role of PIU and Engagement Period
Table 8.4-1 Role of PIU and Engagement Period
Engineering Construction Commissioning Position after

Phase
Phase Phase Phase commissioning
Project Manager Superintendent of Maputo
(P/M) CCGT
Deputy-superintendent of
Deputy P/M
the power plant
Group Manager All personnel’s will

Engineering/Construction Group
shift to O&M sections

Gas Turbine
in CCGT.
Engineer Capacity building will
Steam Turbine be carried out to
Engineer assign the main post
HRSG Engineer (Head of department
or chief of section) Or
Electrical Engineer
EDM will employ the
I&C Engineer personnel who has a
capability to achieve
BOP Engineer the works
Civil Engineer
Group Manager
Commissioning Group
Gas Turbine
Engineer
Steam Turbine All personnel’s will
Engineer shift to operation
sections in CCGT
HRSG Engineer
after CCGT taking
Electrical Engineer over.
I&C Engineer
BOP Engineer
[EDM permanent
10 17 16
personnel]
8.4.2 Construction management

To carry out the quality, process and safety controls in the construction work, ordinarily there would
be a review of the details of each control method with regard to the project implementation procedure
(PIP) with the contractor and later agreed to by EDM, the consultant and the contractor, who will
implement each control item in the phases of detailed design, construction work and commissioning.
Management of quality control differs among the phases of engineering, construction and
commissioning.
(1) Quality control

In the engineering phase, to ensure that the design by the contractor satisfies the order requirements,
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EDM will check and approve the contents of the contractor’s design with support provided by the
consultant. If the contractor’s design is unsatisfactory, EDM will give the contractor a written request
of correction. A witnessed inspection will be carried out with regard to the major equipment before
being shipped from the factory to ensure that the required performances are satisfied.
During the construction work, EDM will determine important check items with the contractor, and
give confirmation in the process of work and approvals when necessary. If any defects are found,
EDM will give the contractor a written request of correction.
In the commissioning phase, the contractor will first be asked to submit commissioning instructions
for each device and each facility. After checking and approving them, EDM will carry out unit
commissioning of each device and each facility to ensure that they can perform as designed. If any
defects are found, EDM will give the contractor a written request of correction.
In the comprehensive plant commissioning phase, the output, efficiency and operational performance
in the commissioning specifications should be confirmed to be those which are required by the plant.
Any defects in the design, construction and commissioning phases must be listed and monitored in
order to eliminate them.
(2) Process control

Before starting construction, EDM will have the contractor submit an entire construction schedule and
validate the construction process with support provided by the consultant.
In the construction phase, EDM will hold meetings with the contractor to regularly check the process,
i.e., monthly, weekly and daily. By doing so, EDM can monitor the progress of the construction and, if
finding any delays, carry out reviews with the contractor for countermeasures to be taken and have the
contractor take those measures. In addition, EDM will have the contractor submit a progress report
every month to understand the progress in construction and any issues with regard to such items as
civil engineering, architecture, machinery, and electric power.
(3) Safety control

Having the contractor submit a safety plan prior to construction, EDM will evaluate and approve the
validity of items including contractor’s safety procedures, safety measures, and organization for
communication in the case of an accident. If further measures are necessary, EDM will ask the
contractor to take them.
Through regular and irregular on-site inspections, EDM will check whether the contractor is carrying
out the safety controls in the construction as provided in the safety plan. Upon finding any
unsatisfactory items, EDM will have the contractor correct them and ensure on-site safety by carrying
out the safety plan-do-check-act (“PDCA”) cycle all the time.
8.5 Management at O&M Stage

In this chapter, in order to achieve “highly-reliable power supply,” we will make proposals for the
operation and maintenance (“O&M”) management towards the realization of O&M by actively using
total quality management (“TQM”) and the promotion of management optimization.
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8.5.1 Current State of EDM Capability
(1) Current state analysis

The organization structure of the current EDM is shown in the following figure. The EDM owns 3
thermal power stations. At the CTM site, there are four engineers who work full time, consisting of 1
Electrical Engineer, 2 Mechanical Engineers and 1 Operator. The CTM Maputo Power Plant currently
has three GTs installed. GT #1 is currently out of order. Using gas oil as fuel, GTs #2 and #3 are
operable but hardly in service due to expensive fuel. As for GT #3, for example, although
approximately twenty years have passed since the commencement of commercial operations, during
the primary survey it was clearly stated that it had run for a total of only 404.5 hours only. It still did
not even reach the minimum operation hours recommended by the GT manufacturer at which
maintenance work should be necessary. Therefore, it appears that there was no inspection of the
combustor and inspection/replacement of the high-temperature components.
It appears that the GTs were operated regularly, once every several months, just to check whether or
not the GTs could still be run. As described above, it is assumed that the periodic inspection and
maintenance for GTs were not carried out well.
Therefore, in consideration that there is no experience of O&M for the combined cycle generation unit,
prior to the introduction of capacity building, an O&M is to be established from the start.
Board
BoardofofDirector
Director
Generation,
Generation,Transmission
Transmission&&Market
MarketOperator
Operator
Generation
GenerationDirectorate
Directorate
(Director)
(Director)
Projects
ProjectsDept
Dept(DEP) Administration
(DEP) Administration&&
Logistics
LogisticsDept
Dept(DALO)
(DALO)
Technical
TechnicalSupport
SupportDept
Dept(DAT)
(DAT)
Operational
OperationalSupervision
SupervisionDept
Dept(DSO)
(DSO)
Workshop
WorkshopSupport
Supporttotothe
thePower
PowerPlants
Plants &&
Emergency Gen/sets (OMP)
Emergency Gen/sets (OMP)
Center
CenterGeneration
GenerationDivision
Division
(DPC)
(DPC)
Corumana
CorumanaHydro
Hydro Maputo
MaputoBackup
Backup Temane
Temane Lichinga
Lichinga&& Beira
BeiraBackup
Backup Mavuzi
Mavuzi&&
Power
PowerPlant
Plant Gas
GasTurbine
Turbine Thermal
Thermal Cuamba
CuambaMini-
Mini-
Mini- Gas
GasTurbine
Turbine Chicamba
ChicambaHydro
Hydro
Power
PowerPlant
Plant Power
PowerPlant
Plant Hydro
HydroPower
Power Power
PowerPlant
Plant Power
PowerPlants
Plants
(CTM)
(CTM) Plants
Plants
(Source: EDM, 2012)
Figure 8.5-1 Organization of O&M Management Flow
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(2) Importance of capacity building for O&M

Since this project will be the first experience of CCPP introduction in Mozambique, the capacity building
for O&M is the top priority of tasks in order to operate and maintain the constructed structures. As an
illustration, one example of capacity building by utilizing an Operator Training Simulator (“OTS”) is
shown as follows:
 Operator’s skill up and stable and efficient plant operation
In relation to a set of models that replicates the field equipment (GT, Turbine, HRSG, etc.)
and a faithful replica of the complete CCPP, the plant control system can be tested on the
simulator before it is installed in the real plant. This results in any errors in the Distributed
Control System (“DCS”) logic being discovered on the OTS and not the plant, thereby
minimising any possible risks to the plant. The Operators can achieve confidence and gain
appropriate skill levels in a safe and efficient manner through training.
 Smooth commissioning and flexibility with modifications
Also the customers’ control Engineers can become very familiar with the DCS via the OTS so
that when the control system is transferred to the physical plant, the Engineers will have been
working with it on the OTS for a number of months. When the plant is commissioned, these
Engineers will have been trained to the maximum level possible on the OTS.
When the plant is operating and the Engineers start to make modifications to the control
system, these modifications can be tested and fine-tuned on the OTS, and when the Engineers
are happy with their modifications, the controls can be copied from the OTS and installed in
the plant with the confidence that any bugs, etc., have been sorted out.
8.5.2 Reinforcement of Organization Management
(1) Segregation of Duties between Head Office and Power Station

The segregation of duties between head office (“HQ”) and the power station (“PS”) is as follows. The
function of the HQ is divided into general business management function, sectoral business
management function and general staff function. That of PS is divided into general staff function and
operation team whose members perform actual operation of the PS. General, long-term and systematic
planning is developed at HQ level, while basic policy and plan of the department are developed by the
management department of the PS. The data at the PS unit/ on site level is collected, monitored at the
PS level, and it is fed back to the business management function at the HQ level.
Table 8.5-1 Functions between HQ and PS

Organization
Category Work
level
Management for the corporation
(1) Setting management targets,
Top management
(2) Long term planning
(3) Coordination and controls
HQ level (4) Analyzing operating conditions
(1) Operating mismanagement function
Each department -Section-wise policy, planning, target, and monitoring
-General staffing: PS administrative works
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Organization
Category Work
level
General General staffing: PS administrative works, data collecting, analysis
administration and
PS level technical
Unit and on site Actual work on site
Organization Operation Maintenance

level Management Management
Operating Operating
management management
HQ level
Operat Mainte
ion nance
Operating MGT Operating MGT
P/S , Support , Support
Manag Manag
General
ement ement
administrative
and technical
Dept. level Data Data
Plant MGT Plant MGT
(Operating data) (Mainte. Data)
P/S
Unit level
Unit Abnormal alarm detected Inspection,

monitor, control Accident repairs
P/S
On site level Operating monitoring Daily maintenance(routing checks)
(operator, sensor, camera) Periodical inspection (open)
Figure 8.5-2 Organization of O&M Management Flow
8.5.3 Reinforcement of Cause Analysis Capability
(1) Selection of Maintenance Management Method
1) Improvement of maintenance management level (necessity of shift from Level 1 to Level 3)

Maintenance management is divided into three types, with different characteristics as shown below.
In many PSs, the condition of Level 1 is that in which the equipment is operated until it breaks. In the
case of Japan, periodic legal inspections have been established by the regulatory authorities, and
time-based maintenance (“TBM”) which is Level 2 was mainly used. However, regulatory authorities
in Japan have studied the maintenance activities of electric power suppliers with the result of
conditions shifting to the maintenance method Level 3 in which condition based maintenance
(“CBM”) is used with TBM (the interval of periodic inspections is extended while maintaining current
safety). Therefore, it is desirable that in order to strengthen both organizational power and technical
capabilities to have flexible maintenance management, both TBM and CBM should be used together,
like in Japan.
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In the case of shifting maintenance management methods from Level 1 to Level 3, it is necessary to
acquire the ability to judge situations accurately and ensure the reliability and safety of the facilities.
The following are definitely required.
 Comparison between operating state standards and reference standards (temperature, pressure,
current, vibration)
 Periodic diagnoses of leaks, abnormal sounds, corrosion, deformation, discoloration,

expansion and others problems observed by the five senses of the persons on patrol (i.e., sight,
smell, hearing, touch, taste)
 Quantitative diagnostic technology in overhaul during periodic checks and maintenance
 Liquid penetrant test (detection limit – surface flaw of approximately 20μ)
 Magnetic particle test (detection limit – depth of approximately 0.5mm)
 Ultrasonic test (detection of inside flaws in thick member – 0.2mm – 0.3mm)
In Japan, for engineers of nondestructive tests, a national examination system is implemented for each
inspection method and only qualified persons are engaged in such inspections.
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Level Conceptual figure
Break Down Maintenance (BDM)
Maintenance Cost
Level 1
Reliability
Necessary Reliability
Operation Time
Time Based Maintenance (TBM)

Inspection Interval
Maintenance Cost
Level 2
Reliability
Necessary
Reliability
Operation Time
Condition Based Maintenance (CBM)
Maintenance Cost
Level 3
Reliability
Necessary Reliability
Operation Time
Figure 8.5-3 Conceptual Figure of Maintenance Management (By Level)
(2) Proposal of Concrete Management Method
1) Standard Management Flow Based on PDCA

PDCA (plan–do–check–act) is an iterative four-step management method used in business for the
control and continuous improvement of processes and products. By repeating the four stages of the
PDCA plan (planning)–do (run)–check (evaluation)–act (improvement), this will lead to continuously
improving the business. After completing each step, the last step of the four steps is intended to lead to
the next PDCA cycle , to improve the cycle in each lap, thereby continuously improving operations.
 Plan (plan): To create a business plan and forecast based on previous experience
 Do (implement and run): To do work according to plan
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 Check (inspection and evaluation): To check whether the implementation of the work is
according to plan
 Act (improvement treatment): To correct actions by examining whether or not the

implementation part is according to plan.
The management flows of operation and maintenance based on PDCA are shown below.
Repair Inspection
Stop Initial test Acceptance Start
operation run operation
Check inspection
Inspection
Abnormal Treatment
Data analysis
Efficient
operation
Monitoring
Inspection
operation
Repair Abnormal
Treatment condition
Inspection
Trouble analysis patrol

Figure 8.5-4 Standard Management Flow Based on PDCA
(a) Monitoring and Checking during Operation
It is important to always monitor temperature, pressure, flow rate, water level and the level of oil, etc.,
of various parts and check that they are within the predetermined reference standards in the operation
of the PS. Also, it is necessary to strictly check that the following operations are within the
predetermined reference standards (steam conditions, burn conditions, etc.): realization of equipment
functions, holding of heat efficiency, reduction of equipment wear, and reduction of creep and fatigue
degradation in high temperature members.
All data relating to the actual performance of electricity generation and heat efficiency must be
inputted into the process computer for the management of operation, data of actual performance of
electricity generation and that of heat efficiency for management must be created, trend management
of conditions of various parts must be conducted, in addition to finding any abnormal conditions in the
early stages. Concurrently, daily inspection tours must be conducted in order to find any abnormal
conditions, such as slight differences of vibration, noise, odor and color which are difficult to be
measured, and any tiny quantities of oil and/ or water leakages (exudations), in the early stages.
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(b) Prevention of trouble

If any abnormal conditions are found, the data must be analyzed in order to determine the cause. If the
need arises, the operations must be urgently and temporarily stopped, and necessary inspections and
diagnosis must be conducted. Based on the results of such inspections, the problems must be evaluated
and any countermeasures determined.
(c) Repair, inspection and maintenance

Before conducting periodic inspections, in addition to undertaking periodic work, all work to be
conducted at the time of shutdown must be clarified, including the repair of abnormal parts which
have been found during the operation, a detailed work plan created, and in advance obtain any
necessary parts, if required.
As for any abnormalities which are found during inspections, basically they should be repaired during
the periodic inspections. Any difficulties regarding the abnormalities must be evaluated, and the lead
times in preparing parts and any countermeasures (emergency measures, permanent measures) to be
taken should be determined. For any small-scale abnormalities which are carried over to the next
periodic inspection and any temporarily repaired abnormalities, countermeasures, such as setting of
special measuring equipment, must be taken in order to monitor the status of the progress of any
abnormalities.
The contents of inspections, measurement results and other data must be recorded in the
predetermined format, with trend management conducted at each inspection, and all data to be used in
the remaining life assessment.
2) Maintenance Management
(a) Daily maintenance
The most important part in the maintenance management of equipment of the PS is to perform careful
daily maintenance. In Heinrich’s Principle shown below, it is said that 29 disasters with light injury
will occur when there are 300 events where sudden fear is felt (bud of the disaster) behind the
occurrence of one serious injury. This is an experimental rule in work accidents, but it can also apply
to daily maintenance.
(1)
Severe
Troubles
(29)
Un-Repaired
Minor Trouble & Disaster
(300)
Un-Repaired Minor Fault
Figure 8.5-5 Heinrichs Principle Disaster Pyramid

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The base of daily maintenance is to discover any small problems in the early stages and take
preventative measures. Small problems hide in various places over a widespread area. The detection of
any abnormalities (vibration, noise, bad smells, oil leakages, etc.), changes of operation status
standards, should be frequently noted in daily inspection tours. Daily visual checks are important. The
technique of discovering problems is based on guesswork, hunches and long experience, and it is a
technique developed on site through on the job training by building up cooperation between
experienced and young staff.
Also, in daily maintenance, it is important to check monitoring instruments, as there is no point in
conducting daily maintenance if monitoring instruments do not function normally. Therefore, it is
necessary to correctly calibrate monitoring instruments in the early stages.
(b) Periodical inspections

Periodic inspections are mainly divided into simple inspections and full-scale inspections. Both should
be conducted at optimum times in view of the time (total operation time x number of starts) and the
condition of the plant.
Inspection is required for all parts whose materials deteriorate due to creep thermal fatigue damage,
cracks and fissures, such as hot parts of GTs, and inlets of main steam/ reheated steam of STs, etc. As
for other parts, there are many target parts spread widely which are large in number; so selected parts
should be inspected based on the problem of cost and time. The priority order and a development chart
of the inspection of selected parts should be created based on the operation status standards, heat
efficiency and the data of the first inspection. It is important not to leave any uninspected parts.
In particular, for setting the schedules of periodic inspections and maintenance, consideration should
be given to the actual performance of other IPP plants, ensuring safety on site (minimization of
vertical work, open inspection and maintenance place and work environment), the operation rate of
overhead cranes, etc., and the promotion of the streaming of work and shortening of processes as the
object in which parallel decomposition can be conducted. Also, it is important to boost the morale of
workers and make them compete against each other in striving for improvements of quality control by
adopting a system of bonuses and financial incentives if the construction period can be shortened.
In addition, at planned stoppages, it is important to conduct visual inspections of the PS, such as
checks of the remaining work of daily repairs planned to be conducted during the stoppages, the
condition of parts which were repaired temporarily in the previous periodic inspection and
maintenance work, and parts which were left unprepared however changes had been observed, and
reflect the repair time to the next stoppage plan, or future stoppage plans.
(c) Monitoring of Accidents

In the case of any sudden accidents (during operation and inspections), a site investigation must be
conducted and the situation understood. In addition, based on the database, such as past operation
records and the record of the previous periodic inspection, the true cause of the accident must be
understood.
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As for problematic parts which are found during the periodic inspections, if repair materials cannot be
prepared, then emergency measures must be taken. For these emergency measures, if the part
reliability until the next periodic inspection and maintenance cannot be secured, then permanent
measures must be taken using the next planned stoppage. On the other hand, if the problematic parts
where the emergency measures were taken were used until the next periodic inspection and
maintenance work, the relevant parts must be checked at the planned stoppage, and the investigation
continued to check the trend data of any changes.
(d) Maintenance plan

In consideration of the time needed to change consumable parts, deteriorated parts, and hot parts of
GTs where the equivalent operation hours (“EOH”) recommended by manufacturers are used as a
guide, EDM will establish medium- and long-term repair plans. To that end, the type of maintenance,
stoppage times and number of stoppage days should be included. The actual time and number of
stoppage days should be decided in coordination with the central power feeding center in
consideration of the power demand/ supply situation, but basically it is important to keep the
predetermined schedule of the medium- and long-term repair plans from the viewpoints of maintaining
the reliability of equipment and efficient maintenance management. If there are any postponements of
repairs from the predetermined medium- and long-term repair plans, due to any increases of parts
deterioration, expansion of the inspection range, expansion of repair range and parts where unexpected
problems are found, this may require additional orders of spare parts and urgent change of parts, which
may lead to increasing the construction period and the expense of huge additional costs.
(e) Budgeting of maintenance

When the medium- and long-term repair plans are created, approximate construction costs should be
calculated based on the exchange parts in each unit, parts which are GT hot parts and are reused in
repairs after removing, the cost of construction which is planned in the periodic inspections such as the
replacement of equipment, etc. (purchase cost of equipment + transportation cost + installation cost).
However, there is always a risk that securing workers may become impossible due to price changes
and the prolongation of the construction period, so it is necessary have discussions between the
workers involved (e.g., staff on duty of the PS, repair department, budget department, construction
company) one year before the planned periodic inspection of the relevant unit and establish a detailed
implementation plan. Meetings of the last double check should be held three months before the
inspection. In addition, there should be additional inspections and investigations of any parts where
problems occurred after the creation of the plan.
(Note: In general, contracts of Long Term Service Agreements (“LTSA”) and Long Term Parts
Management (“LTPM”) should be concluded with equipment manufacturers. These contracts include
that equipment manufacturers shall provide spares and consumable parts over a long period of time,
e.g., GT hot parts, and a large contract deposit is paid for long-term collateral. Under these contract
conditions, it may be difficult for GT engineers and repair technicians to gain experience.)
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3) Operation management
The base of operation management is to strictly keep the reference standard operation. If any operation
status standards deviate from reference standards, engineers of the electricity generation group and
repair staff shall investigate the cause and take reform measures.
(a) Standard process

The base for operation management for the reference standard automatic operation is by process
computer. During automatic operation, security devices are maintained and protection circuits are
normal. The unit trip is the last measure to protect the equipment and the trip circuit should not be
removed.
If any inspections of the circuit are required when the unit output is constant, then the inspection range,
the personnel to conduct the inspection and the manual trip must be determined. If output changes
with a big change possibly affecting other equipment, an operating procedure must be created, with
the division of roles and deployment of staff determined and then launched.
(b) Management of security devices and protection circuits

For security devices and protection circuits, the base is the sequence of the completion of test
operations (manufacturers submit applications which are then approved by the PS). For any parts in
which the alarm device is frequently activated, they should be checked immediately, and if there are
any abnormalities then appropriate reform measures should be taken. However, if the sequence is
changed or the set standard of each alarm is changed, top-level technical staff of PS shall have
discussions and determine the range, and any changes must be approved by PS. In this case, it is
important to immediately change the original sequence drawings and the lists of set standards, and
inform operation staff on duty and staff in charge of repairs of such changes.
(c) Fuel management

It is important that executives of the PS attend the orifice test at the setting of the gas receiving flow
meter (determined by the gas supplier) and examine the data. In addition, both the PS and gas supplier
should decide beforehand the time interval and test method of checking for any changes regarding the
gas. Gas composition is the main element of the gas which affects heat efficiency. To observe any
changes of gas composition due to any changes of the gas supplier (e.g., gas is mined well) etc., the
gas chromatography at the outlet side of the flow meter should be set, with continuous checking of gas
composition.
(d) Efficiency management

Data required for heat efficiency management should be sent from the process computer to the
computer for operation history management, and necessary LAN should be established so that heat
efficiency can be controlled at the heat efficiency management workstation. Heat efficiency
management, such as the individual operation of GTs, combined cycle operation and heat balance
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checks, is assisted by the data from the documentation functions of the heat efficiency workstation,
such as daily, monthly, quarterly and yearly reports.
(e) Management of water and lubricating oil which are used in the PS
To operate the PS stably, a large amount of water, lubricating oil, hydrogen gas and nitrogen gas will
be used daily. In order to establish a medium- and long-term consumption plan, the amount, etc., of
each of the following must be estimated: annual consumption of pure water, rate of HRSG makeup
water, product name and amount of injected agent in HRSG feed water, resin amount for the
manufacturing equipment of pure water, product name and amount of injected agent in HRSG boiler
water, amount of cooling water of accessories, amount of GT/ST lubricating oil, amount of other
lubricating oil for accessories, exchange amount of fire extinguisher agents, amount of hydrogen gas
for cooling the electric generator/nitrogen gas for substitution, consumption of hydrogen gas during
normal operation, and exchange amount of hydrogen gas in periodic inspections and maintenance.
(f) Coordination with Central Load Dispatch Center

PS operation shall basically follow the instructions of the central load dispatching center (“CLDC”).
However, in the case of problems, etc., urgent decisions on whether or not to stop operation of the PS
shall be made by the PS. Substation facilities within the PS premises shall also be used to transmit the
generated power. Considering the above, the following points need to be discussed with CLDC and
agreement must be reached in advance:
 Power output instruction procedures
 Types of information to be reported
 Power measurement methods
 Responsibility demarcation points for PS facilities
 Modes of discussion on regular inspection timing
4) Cause Analysis of Unscheduled Outage Trouble

Unplanned stoppage trouble occurs due to some sort of cause. It is important to definitely conduct
cause analysis and take measures to remove the actual cause in order to avoid any re-occurrence of the
trouble. Therefore, if any unplanned stoppage trouble occurs, even if it is only small-scale, it is
important to definitely draft trouble documentation and accumulate the information as a database.
(a) Reference datasheet
As a reference, the following table shows the datasheet for analyzing unscheduled outages.
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Table 8.5-2 Datasheet for Analyzing Unscheduled Outages
Item Reference Data

1. Timing At start, at stop, during operation (within 3 months after OH, three
months passed)
2. Alarm which was generated Trip alarm, serious trouble
3. Problem Leak, break, breakage, damage, smoke, vibration, operation trouble,

actuation trouble, malfunction, False feeling, removal of parts,
ignition, deterioration
4. Direct cause Improper design, improper quality control, improper skill, improper
operation, inspection interval, lack of critical analysis
5. Indirect cause Improper operating instructions, insufficient manual, insufficient

check sheet, newly experienced event
6. Reason why timely response Outside patrol range, outside of r inspection and maintenance range,
was impossible impossible detection due to structural problems, impossible detection
with five senses, actuation trouble of security device, delay of
emergency stoppage operation
7. Preventive measures of Emergency measures, permanent measures (repair equipment,
reoccurrence reexamination of structure, reexamination of manual)
*If several items are applicable, list all of them.

Table 8.5-3 Analysis Sheet of Unplanned Stoppage Trouble: Preventive Measures of

Reoccurrence
# Date Time Unit Operation (1) (2) (3) (4) (5) (6) (7) Time of
No Load Trips Alarm Problem Direct Indirect Reason why Preventive recovery
MW which was cause cause timely measures of work
generated response re-occurrenc
was e
impossible
8.5.4 Reinforcement of Maintenance Implementation System

For the future implementation of O&M of the PS, it is recommended that EDM form relations with
manufacturers, which have detailed know-how of technology, and that there be an optimal
implementation system inside EDM.
(1) Evaluation of example case

Independent power Producer (“IPP”) case
In the case of Major Overhaul (“MOH”), in the periodic inspections and maintenance of GT, ST,
generators and HRSG equipment, EDM requests the original manufacturer to dispatch instructors and
examiners.
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(2) Maintenance of combined cycle

The combined cycle consists of a GT which is operated with high-temperature combustion gas, HRSG,
ST and a generator. From the viewpoint of the interval of periodic tests, the main part of the cycle is
the GT, so it is practical to conduct the periodic tests of the HRSG, ST and generator when the GT is
inspected.
In addition, there may be severe cracks, corrosion, oxidation, deformation and detachment of coating
in the hot parts of the GT, such as the combustor, stationary blade, moving blade and impeller blade
(shroud segment), etc. Therefore, the aging deterioration level is not estimated based on the total
operation hours and number of start/stops which are adopted in the ST, but the time of periodic tests is
estimated based on the equivalent operation hours (“EOH”). Based on EOH, deformation and
high-temperature creep fatigue life in the time of start/stops, the number of load rejections, the number
of trips, etc., are estimated and safety levels can be confirmed. Every GT manufacturer adopts this
method.
In general, LTSAs are concluded between plant operators and suppliers.
The following schedule pattern has been developed: Minor inspections are repeated after every 8,000
hours of EOH after the commission date, the major inspection is conducted after 25,000 hours of EOH
from the commission date, minor inspections repeated after every 8,000 hours thereafter, and an
overhaul of the hot gas component is conducted after 50,000 hours of operation from the commission
date.
The contract period of LTSA is 6 years (approximately 50,000 hours of operation) because the cycle
in which the parts that are removed and repaired in each minor inspection and the high-temperature
parts that are replaced in the major inspection (after 25,000 hours operation) are replaced and reused in
the overhaul of the hot gas component (after 50,000 hours operation). During the contract period of
LTSA, the manufacturer supplies GT high-temperature parts and dispatches instructors for the
disassembly, assembly and test operations to the site. In this case, the workers of the power plant
conduct the maintenance operations under the supervision of the instructors from the manufacturer
onsite.
After the LTSA expires, in general, under an LTPM agreement, the unit-price contract of
high-temperature parts is concluded. For the repairs of GT after the 7th year from commissioning, if
the workers of the power plant have gained experienced in the disassembly, assembly and test
operations for 50,000 hours from the commission date and GT maintenance skills have been
confirmed by EDM, then following the expiration of the LTSA, GT maintenance and quality are
ensured by purchasing and stocking spare parts under an LTPM. Following this, if there is a request by
the PS for the dispatch of an instructor from the manufacturer, the LTSA can be reviewed to include
the dispatch of specified instructors.
(3) Direction of the Maintenance Implementation System in EDM

EDM has the management vision of “continuous development”, and tries to develop human resources
based on a long-term perspective. The direction of the maintenance implementation system in EDM is
shown below.
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Table 8.5-4 Direction of Maintenance Implementation System

Early Period (For 6 years after
Middle Period (7th to 12th Year) Long Period (After 13th Year)
Commissioning)
Engineers of Engineers of
manufacturer manufacturer
Collection of Instruction Instruction

information
EDM EDM EDM

Maintenance Staff Maintenance Staff Maintenance Staff
LTSA contract (6 years) will be Periodic checks will be mainly Maintenance staff of EDM will
concluded and the periodic checks conducted by the maintenance staff conduct all periodic checks.
during this period will mainly be of EDM. When necessary, the The maintenance department of
conducted by the engineers from dispatch of engineers from the EDM is developed to SBU and
the manufacturer. The manufacturer can be requested for periodic checks of other companies
maintenance staff of EDM will guidance. can be accepted and conducted, if
try to improve their technical possible, using the acquired
capabilities by collecting technical ability.
information.

Although it is inevitable that instructors and inspectors from the manufacturer will be asked to conduct
periodic checks in the early period (first and second checks), however the maintenance staff should
take part in the checks, etc., and should try to acquire technological experience. The aim should be to
establish a system in which periodic checks can be implemented by only the staff of EDM at the
earliest possible stage. Technical capability should be improved to the level where periodic checks of
other power plants can be undertaken by acquiring technical experience with the aim to receive
requests from other power plants. The direction to be taken is the development of the maintenance
department of EDM to SBU and the implementation of construction management by a group of
professional engineers and technicians, and in this way the maintenance and improvement of
equipment quality, elimination of injury and accidents and high levels of personal safety can be
expected.
(4) Future Technological Levels Required in the Maintenance Department and How to Acquire
Technology
To implement periodic checks using only PS staff, it is necessary to train technicians to have the same
levels of technical knowledge as technical instructors, special inspectors (e.g., nondestructive test,
remaining life assessment, etc.) and specialist labor (e.g., special processing and welding, low-alloy
steel – Steel Use Stainless (“SUS”) dissimilar metal joint welding, welding of large diameter pipes,
annealing operation of welding area, etc.). The methods to acquire these technologies are as follows.
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(a) General information

Basic technical skills should be gained mainly by the staff of the maintenance department who were
trained in the assembly and test operation during the construction work, and who have accompanied
the manufacturer’s instructors during the LTSA period, learning the skills of disassembly, assembly
and adjustment.
The set protocols are as follows: Document the source of acquired technology in the manufacturer’s
instruction book and add photographs if needed to clarify operational methods. At the same time, draft
a memo about the technical information acquired onsite, and add it to the manual as needed to
complement the manual. At the completion of the periodic checks and maintenance, check equipment,
contents of checks, used equipment, check results data, make judgments (good or bad) based on the
data, find any differences between planned man-hours and real man-hours and others factors that
should be written in the construction report without any omissions. In addition, draft a report which
includes the issues that should be reflected in the next periodic check (number of days of operation,
used equipment, used measuring instruments and results of the introduced nondestructive test),
including maintenance and parts that should be rechecked as soon as possible from the areas from the
most recent periodic check. A system should be established by digitizing the report so that it can be
searched at anytime by PS workers.
(b) Disassembly and assembly of GTs and STs

During the periodic checks conducted in the early period by the manufacturer’s engineers, take videos
and photographs of the operation of the disassembly and assembly of GTs and STs, collect necessary
information and create a manual of disassembly and assembly procedures. In addition, another method
of receiving training of disassembly and assembly of GTs and STs is at the training center of the
manufacturer.
(c) Nondestructive test

For nondestructive tests, it is possible to gain engineer’s knowledge in a short period by purchasing
the inspection equipment and receiving training from foreign experts. During construction work, there
are many checks using inspection equipment at the welding site, and thereby many chances to acquire
knowledge and expertise. Another effective method for staff to acquire knowledge is by appointing
staff who will be in charge of the inspection department in the future, and sending them to the site of
the nondestructive tests.
For Ultrasonic Testing (“UT”) inspections, besides using simple measuring instruments in which the
measured results are displayed digitally, such as instruments for measuring the wall thickness of boiler
tubes, angle beam techniques, use of plural sensing terminals in which inside flaws of materials can be
evaluated, radiograph examinations, etc., are adopted. Currently, there are no experts in the country
that can use this technology, and the country is completely dependent on overseas experts in relation
to this technology. As a method used to judge the life of equipment, the photomicrography of metal
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structures is also necessary technology to gain. A long- term vision is required for the future about
how much diagnosis technology used in electric power facilities in the country will be developed.
(d) Specialist labor

It is not easy to train specialist labor such as special in-house welders. As a temporary measure,
workers who have the qualifications and skills of specialist labor (e.g., special processing and welding,
low-alloy steel – SUS dissimilar metal joint welding, welding of large diameter pipes, and annealing
operations of welding areas, etc.) shall be contracted. If the maintenance department plans to develop
to SBU with periodic checks of other companies to be undertaken, it is necessary to train engineers in
EDM.
(5) Maintenance Methods in the Middle Period

To aim at effective maintenance management, daily maintenance (e.g., small-scale maintenance
conducted during operation, e.g., tightening of leaks of valve glands, tightening of flange leaks,
refilling lubricants, calibration of instruments, replacement of automatic control cards, etc.), and
urgent responses are required to ensure the reliability of the electric power facilities, and the daily
maintenance department of the power station should be able to adapt quickly.
Three months prior to the periodic check, the maintenance department should hold a joint conference
with the operation department and the daily maintenance department. The maintenance department
should explain the contents of the next periodic check and maintenance construction, obtaining
agreement from the operation department and the daily maintenance department. Total agreement
should be reflected in the program for the next periodic check and maintenance construction. Then, to
avoid any oversights in the contents of construction, e.g., about areas whose standards of operating
state deviates from the planned standards and frequent alarms, etc., the staff in charge of each field
should report the current situation. In particular, all three departments should confirm the current
situation of the following: untreated lapses of daily maintenance which were issued by the operation
department of the PS, standards which are close to the limit standards judging from the operating state
standards, e.g., vibration standards of rotating equipment, points where the metal temperatures of hot
areas are close to the warning standards, and systems in which differential pressures between the front
pressure gauges and the rear ones are large, etc.
One month prior to the periodic check, the three departments should hold another conference to
conduct the final confirmation on whether there are any additional checks and maintenance required.
The maintenance department should recheck ordered spare articles, parts which should be newly
ordered, consumable supplies (e.g., general purpose articles such as gasket packing, sheet packing,
valve gland packing, packing of pump shaft seal parts, etc., and special components) and confirm
whether or not there are any omissions.
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Furthermore, the status of the drafting and procedures of the construction schedule, worker
deployment schedule, number of outsourced workers for each job, equipment for construction,
nondestructive tests, equipment for special welding, etc., for each part, GT, ST, HRSG, generator and
Instrumentation & Control (“I&C”) should all be confirmed.
8.5.5 Reinforcement of Long-term Human Capital Development
(1) Development of Staff during the Construction Period

Before launching the construction work, the O&M leaders should be selected and trained on the side
of the construction work. In that case, it is assumed that the terms of reference (“TOR”) for
employment in the loan consultant business, should include on the job training (“OJT”) for human
resources development. During the construction work, the structure of the equipment of the PS cannot
be checked and only during the operation of the PS can it be learnt in detail. And, moreover, how to
install equipment can be checked.
The O&M leaders shall collect data at each stage, such as the assembly of equipment, opening
measuring methods in assembling and acceptable standards, sequence check before the single test after
assembly, general security test, load test, etc., and take digital photographs of the areas of which they
are in charge. The O&M leaders shall attach such photographs to the manufacturer’s instruction books
in order to visualize each stage. These instruction books are to be used for the training of O&M staff at
the PS and OJT material of junior staff. The documentation and data from the period of the
construction work should be stored on an OA server (such data and documentation should also be
received in electronic form).
The contract system with the manufacturers has not been decided yet. Even if the full-turnkey system
will be adopted, the PS shall prepare an electric generation preparation group, subject to manufacturer
start-up, and receive OJT of practical operation. In particular, the sequence test shall provide the
chance to check the circuit and functions, and not only the members of the electric generation
preparation group but also those of the electricity group and I&C group in the repair department shall
attend such sequence test.
In the unit testing of accessories, after conducting the inching test under the condition where coupling
is separated, the unit testing after direct coupling shall be conducted. The record shall be stored on the
OA server because the centering record in coupling shall become the pace of subsequent maintenance.
To promote automation, in many systems motor valves shall be used, and the records of setting
positions of torque switch and limit switch shall be stored. It is necessary to accurately take over the
know-how of the manufacturer because the full closed position in cold is different from that in warm.
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The staff of the PS should attend all of the following: burning adjustment, start/ stop test, runback test,
load control test, load rejection test, general test of the system, AC/ DC power-off test, and other tests
which shall be conducted in the stage of the HRSG water pressure test and load test after unit testing
of accessories. All data, drawings and other documentation relating to test plans, preparation measures
for tests, command structures of tests, responsible persons for stopping of tests and the operation of
fuel shutoff valve switches, shall be stored and used as reference in the security tests after subsequent
MOH.
(2) Training System

The contents of training shall diff according to the academic background and experience of staff
entering the company. For EDM staff, the following training items are required.
(a) Items for all new employees, mid-career workers and experienced persons
 Positioning and responsibility as a power company
 Operation principles of a power company
 System and basic knowledge of equipment of the PS (as all specifications of the plant are
different, experienced persons should attend the training)
 Safety precautions of the PS
(b) Concrete training for new employees and mid-career workers
 Training of operation duties (College graduates: 1-3 weeks, Other staff: 3-5 weeks, Clerical
staff:1 week)
 Operation duties and transfer duties in shift work, implementation of patrols (staff in charge of
training - executive class of operation duties who are not included in the operation duty shifts
the staff in charge of actual operations - OJT of staff on duty)
 Maintenance training (College graduates: 1-3 weeks, Other staff: 3-5 weeks)
 General maintenance (1 week)
 Training in each specialized field (3 weeks: New employees and mid-career workers shall be
divided according to the department from which they graduated, such as machinery,
electricity, and instrumentation, etc. In this training, OJT shall be conducted, and the drawings
of manufacturers, instruction manuals and relevant manuals shall be used as text)
 During the training, OJT of equipment check patrols, repair technology and skills in the field
of repair construction, handling of measuring instruments, and management of data, etc., shall
be conducted.
(c) Training of O&M staff during construction work

As described in the preceding section, training of O&M staff during the construction work period can
be established by deploying potential leaders who will become the key personnel of the operation
department and maintenance department of the PS, after starting the operation of the PS, in order to
learn required special technology. After launching of the operation, these staff will become the key
instructors of the operation department and maintenance department of the PS, and shall teach
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subordinates in OJT. Moreover, to improve the level of staff that shall play a central role, internships
in relevant facilities inside and outside the company shall be carefully planned.
(d) Adoption of recognition system

It is optimal to set certain levels of acquiring technology to be linked to the wage standards. Measures
should also be taken to avoid the loss of skilled staff who have acquired the required skills to IPP,
whose wage standards are higher, by establishing a system in which staff who acquire the same level
of skills as the technical instructors from manufacturers are given titles, like “Meister” in Germany,
and an appropriate wage.
8.5.6 Reinforcement of Environment Management Planning and Monitoring
(1) Plant Level
1) Organizational framework
In parallel to the management level, a position of deputy director in charge of environment, safety, and
quality control should be introduced within the organizational framework on the plant level, to
actually collect and coordinate information in this area that exists in the organization.
2) Management structure
The aforementioned position is critical in playing an important role in gathering and analyzing
environmental data through day-to-day operations, such as setting goals of the PS and assessing and
reviewing performances. The position of deputy director will have complete responsibility in the
immediate provision of information to the director and executive officers of the PS as well as to the
Chief Officer in Charge of Environment at HQ.
Director, Maputo Power Station
Labor & Personnel Group Deputy Director (supporting

Director)
Accounting/Finance Group (Corporate strategy/information)
Deputy Director (supporting
Power Generation & Management Group Director)
(Environment, safety, and quality
Power Maintenance Group
control)
Vertical organization Lateral organization
Figure 8.5-6 Environmental Management Systems (Plant Level)
8-34
3) Support measures
(a) Corporate ethics
The position of Chief Officer in Charge of Environment has acute responsibility in instilling corporate
ethics in all employees through organizing training on the proper treatment and submission of all
information in the correct manner, including environmental data, so that falsification of data does not
occur within the PS’s operation.
(b) Management of environmental monitoring

The important points in controlling information are summarized below:
 Operational administrative data on environmental preservation should be saved in the
database so that data can always be submitted to outside organizations immediately upon
request.
 In addition, measuring equipment for air quality conservation and water quality conservation
facilities should be placed under strict control, so that they operates properly offering
dependable management value.
 Related measuring equipment must be assessed every month at regular intervals and
accurate performance should be confirmed.
 With respect to noise levels on the perimeter of the PS, stationary measurement points
before operational start should be decided and noise levels during trial runs must be
measured at all points.
 Stationary measurements must be carried out after the full-scale periodic inspection of the
PS.
 Daily discharged water requires sample analysis per drain outlet once a month to ensure that
management standards are maintained.
 In regards to emergency drainage, acceptable discharge standards must be inspected at the
exit of drainage tanks before water discharge is commenced.
 The operational, measurement, and maintenance data of environmental facilities, as well as
repair data for related measuring equipment, should be stored in the operational data
processing computer system to record maintenance history.
(c) Preservation measures

The specific environmental preservation measures at the plant level are described below.
Table 8.5-5 Specific Environmental Preservation Measures
Issue Measure
Air quality Low NOx burning appliances shall be used to prevent nitrogen oxide (denitration
conservation equipment will not be installed).
8-35
Issue Measure
Environmental changes at points of water intake and discharge (basically, power

facilities will be designed so that environmental changes in the rivers at discharge points
shall not take place nor shall they occur regardless of the rainy and dry seasons)
Water quality Compliance with water quality laws and regulations with respect to regular and
conservation emergency water discharge when the PS is in operation (periodic water quality
inspections shall be implemented).
Prevention of leakage of lubricants and fuel oils from the premises (installation of a
shutoff valve at the very end of the drainage path).
Avoid installation of machinery and equipment which might be a main source of noise
Prevention of
and vibration at the perimeter of the PS (stationary noise measurements shall be
noise and vibration
implemented continuously). HRSG drum safety valves shall be equipped with silencers.
Harmonious
Scenic balance and greening (based on local opinions), regional scale activities by
coexistence with
volunteer fire fighters
local community
(2) Public Level
1) Implementation of active information disclosure

Because of the industry characteristics of constructing power facilities in the region and supplying
power to local residents, it is extremely important for the power industry to build a relationship of
mutual trust with the stakeholders (including shareholders, business partners, and local community,
etc.). In addition to implementing appropriate and responsible reporting to regulatory agencies, it is
essential to build a relationship of mutual trust with local communities through active information
disclosure of daily operations, environmental data, and immediate countermeasures against accidents
to the stakeholders, including the general public, in annual reports or via the website.
Report
Director, Maputo Power Station Regulatory authorities
Direct, coach, & advise
Disclosure of data
General public
Understanding,
safety, & trust
Implementation of appropriate reporting obligation to regulatory authorities and active disclosure
of information via the website
Figure 8.5-7 Environmental Management System (Public Level)
2) Harmonious coexistence with the local community

In regards to the site location for the PS, it is recommended to adopt the basic policies for
environmental preservation by participating in community support building by constructing a popular
8-36
PS, making the PS open to the public, i.e., construction of a usable PS, and harmonizing with the local
community with an expansive PS, and implement these policies in all areas of construction and
operation.
In the construction of PSs, it is essential to preserve and create the natural environment by conserving
the existing green spaces as much as possible and by planting trees onsite to coexist with the local
community. The specific measures to achieve these goals are:
 Build a popular PS: By planting many trees onsite and aiming at developing a PS with a lot
of greenery to contribute to the expansion of building a healthy and productive environment for
the community as a whole, in cooperation with local residents.
 Build a usable PS: By creating green spaces, water features and opening a part of the
premises as a community park, aimed at developing the PS to be used by the local community.
 Build a PS with an open atmosphere: Through making the inside of the PS open to the
general public on a regular basis, therefore constructing a PS with an open atmosphere.
 In terms of coexistence with the local community, the promotion of positive employment
from the local community for logistic works positions such as drivers, cleaners, and cooks, etc.,
is highly recommended.
8-37
Chapter 9
Project Cost
Preparatory Study on Gas-Fired Power Plant Development in Southern Mozambique Final Report
Chapter 9 Project Cost
9.1 Project Cost Estimate
The Project cost is composed of the following items:
 Eligible portion for ODA loan

 Construction cost of new power plant (EPC cost)
 Project management cost (cost for consulting service)
 Cost of LTSA, training and spare parts
 Interest during construction
 Non-eligible portion for ODA loan

 Site preparation cost (removal of existing fuel tanks)
 EDM’s administration cost
 VAT, withholding tax and custom duties
According to the above composition, the total Project cost is estimated based on the
Project implementation schedule mentioned in Chapter 8.1.
Table 9.1-1 is the summary sheet of the total Project cost estimate.
As mentioned in other chapters of this report, the following items are considered as “not
required for the Project,” and are not included in the estimate:
 Landfilling at site against storm surges
 Marine construction of intake and discharge structures for cooling system
 Additional works for transformation and transmission system
The following rates are adopted in this estimate based on the survey results and recent
project data in Mozambique:
 Price escalation Foreign portion: 2.1%
Local portion: 4.6%
 Physical contingency: 5.0%
 Interest during construction: 0.01%
 Commitment charge: 0% (exempted)
 VAT: Conditions of VAT on this project will be finalized in the process of
forthcoming consultations between Mozambique government and EDM. In
this estimate, it is assumed that VAT (17%) would be imposed on 25% of
EPC cost and the cost for removal of existing fuel tanks.
 Customs duty: It was confirmed by EDM that customs duties will be exempted for
this project.
9-1
 Withholding tax: It was confirmed by EDM that withholding tax (20%) will be
imposed on consultant service fees except for their expenses.
 Administration cost: 0.5% of the Project cost (confirmed by EDM)
The exchange rates used in this estimate are as follows:

 1 USD = 91.04 JPY
 1 MZN = 2.985 JPY
Table 9.1-1 Project Cost Estimate
Base Case
CCGT in Single Phase
No. Item
Total Foreign Local
[1,000 US$]
JICA Finance Portion
A. Power Plant Construction and Associated Works (EPC Cost) 124,171 90,220 33,951
A1. Power Block F 80% / L 20% 98,874 80,228 18,646
A2. B.O.P. F 80% / L 20% 4,698 3,812 886
A3. Civil & Erection F 30% / L 70% 20,598 6,179 14,419
B. LTSA, Training and Spare Parts 18,403 18,403

B1. 6-year LTSA Cost for Gas Turbine 13,040 13,040
B2. Training 1,098 1,098
B3. Spare Parts 4,265 4,265
C. Consulting Service 14,344 11,659 2,685
D. Contingency 26,242 17,467 8,775

D1. Price Contingency on A, B & C F 2.1% / L 4.6% 17,520 10,907 6,612
D2. Physical Contingency on A, B, C & D1 5.0% 8,722 6,559 2,162
E. Interest During Construction 0.01% 145 145

F. Commitment Charge (exempted) 0.0%
Total of JICA Finance Portion (A~F) 183,305 137,894 45,410
Non Eligible Portion

G. Land Preparation 833 833
G1. Removal of Existing Fuel Tanks 725 725
G2. Price Contingency 4.6% 68 68
G3. Physical Contingency 5.0% 40 40
H. Administration Cost 0.50% 920 920

* 0.5% of A~D & G
I. Custom Duties, VAT and Withholding Tax 9,734 9,734

I1. VAT on 25% of A, B, D & G (except contingency of C) 17.0% 7,125 7,125
I2. Custom Duties on Foreign Portion of A, B, D & G (exempted) 0.0% 0 0
I3. Withholding Tax on Consulting service fee except for expenses 20.0% 2,609 2,609
Total of Non Eligible Portion (G~I) 11,487 11,487
Grand Total (A~I) 194,791 137,894 56,897
9-2
9.2 EPC Cost
9.2.1 Basis of EPC Cost Estimate
EPC cost is estimated using the software from the U.S., State of the Art Power Plant (“SOAPP”)
under the sponsorship of the Electric Power Research Institute (“EPRi”) that was made for the
conceptual design, costing and project financial analysis based on the latest database of
international equipment prices and construction prices in the U.S.
9.2.2 Adjustment of Local Portion of EPC Cost
As mentioned above, the EPC cost is estimated based on the construction prices in the U.S.
Therefore, the local portion of EPC cost should be adjusted based on the construction price
difference between the U.S. and Mozambique.
According to interviews with construction companies based in Maputo, the construction prices
in Mozambique are much higher than those in South Africa due to the following reasons:
 Dependence on Imported Materials

Production of cement in Mozambique is recently increasing and ready-mixed concrete is
locally available especially in Maputo city. However, other major materials for
construction such as reinforcement bars, structural steel, finishing materials, mechanical
and electrical equipment and temporary machinery and equipment are imported from South
Africa and other countries.
 Dependence on Foreign Companies

Since there are very few major domestic construction companies, large-scale construction
works are mostly carried out by foreign construction companies from South Africa,
Portugal, Brazil, etc. Furthermore, South African skilled workers are largely employed due
to the lack of local skilled workers.
 Low Productivity
Productivity of construction work is low in Mozambique due to the lack of local skilled
workers and the poor work ethics of some workers.
In consideration of the above situation, the local portion of EPC cost will be adjusted by
comparing the construction prices of the U.S., South Africa and Mozambique.
Table 9.2-1 shows the building cost rate comparison in African countries, and it corroborates the
fact that the construction costs in Mozambique are much higher than those in South Africa.
Civil work for power plants, which is one part of the local portion of EPC cost, is composed of
more structural work and fewer finishing work, and this table shows that the South African
9-3
building cost for factories and car parks that should have similar composition of structural and
finishing work is about 70% of the Mozambican cost.
Table 9.2-1 Africa Building Cost Rate Comparison
(Source: Africa Property and Construction Handbook 2011 by Davis Langdon)
Table 9.2-2 and Table 9.2-3 show building costs per square meter in South Africa and the U.S.
They show that building costs in South Africa are generally lower than those in the U.S., and the
building costs for factories and car parks in South Africa is about 70% of those in the U.S.
9-4
Table 9.2-2 Building Costs per square meter in South Africa
(Source: International Construction Cost Survey 2012 by Turner & Townsend)
9-5
Table 9.2-3 Building Cost per square meter in the U.S.
(Source: International Construction Cost Survey 2012 by Turner & Townsend)
In consideration of the above, it is assumed that,

Mozambican Construction Cost (“C.C”) x 70 ≒ South African C.C ≒ U.S. C.C. x 70%
∴Mozambican C.C ≒ U.S. C.C.
Therefore, the local portion of EPC cost estimated based on the construction prices in the U.S.
need not be adjusted for the Project in Mozambique.
9-6
9.3 Validity of the Project Cost

9.3.1 Price Trends of Combined Cycle Power Facilities
Since a GT, which is the main equipment of this project, is produced by using rare metals such
as nickel, chrome, and cobalt as its main materials, the production costs of GT have
substantially increased due to the price rise of these rare metals and other steel materials. In
addition, demand for the high-efficiency CCGT was at a level higher than supply because of
ballooning energy prices, which was one of the causes that is pushing up the price of the CCGT.
This price hike continued until the financial crisis triggered by the Lehman Brothers bankruptcy
in 2008. After that, however, the price of GTs fell. Nevertheless, it has been moderately
increasing as demand for power is increasing in emerging and developing nations, and the
CCGT price has also been going up in concert with the GT price.
The following chart illustrates the movements of the combined cycle power facility price. The
price sharply rose from 2004 to about 1.66 times over the next 3 years or an annual rate of about
18%. It fell once in 2009 after the economic crisis in 2008 and has been gradually increasing
ever since.
160
150
140
2005
130 2006 2007 2008 2009 2010 2011 2012
118 135 137 119 119 134
Change
120
110
100
90
80
1998 2000 2002 2004 2006 2008 2010 2012 2014
Year
(Source: Gas Turbine World 2012 GTW Handbook)
Figure 9.3-1 Price Trends of Combined Cycle Power Facilities
In this survey, it is estimated that the environment surrounding the CCGT market may change
according to the world situation, however the CCGT price has regained its stability.
9-7
9.3.2 Appropriateness of Project Cost

To ascertain the appropriateness of the power plant construction cost of this project, the working
budget of project A (total output: 80 MW, 2 blocks of multi-shaft 1-on-1 CCGT), which was
supplied with a yen loan in 2005 and was in a scale equivalent to this project, and the contracted
amount of EPC construction, were compared for this study. Project A was to add two blocks of
multi-shaft 1-on-1CCGT, which employed a CCGT (H25) of Hitachi, Ltd. Hitachi tendered for
this project in 2008 and concluded an EPC construction contract in November 2011.
According to the GTW Handbook, the higher the capacity of the CCGT, the lower the
construction price per kW. However, the construction cost per kW of Project A (USD
1,250/kW) was about the same as other large-scale CCGTs. On the other hand, the estimated
construction cost per kW of this Project is calculated at USD 1,129/kW (≒124.171 million
US$ ÷ 110MW). This value is within the range of the project cost of Project A as well as other
CCGT projects, and it is considered that the cost estimate of this Project is appropriate.
Further, the proportion of equipment free on board (“FOB”) price in the EPC cost is estimated
as below, and this proportion is considered as appropriate according to the previous experiences
of the JICA Study Team.
Equipment FOB Price Other Costs

Foreign Portion of Power Block(A1) & BOP(A2)
such as
Erection and Civil Works
US$ 764/kW
68% 32%
EPC Cost = 124million US$ (US$ 1129/kW)
Figure 9.3-2 Proportion of Equipment FOB Price in EPC Cost
9-8
Table 9.3-1 List of Contracted Amount of EPC Construction
Nominal Rating Number Month/Year Contract Price

Plant Name Location Owner EPC Contractor Type of GT Configuration Price per kW Remarks
(MW) of Unit of News (Estimated Cost)
Sigapore Jurong Siemens-Samsung Re-gasified LNG
GMR Energy 800 SGT5-4000F 1- on - 1 2 Sept-Oct/2011 1,000 MMUS$ 1,250 US$
Island Consortium plant
Moxie Liberty Bradford County
Moxie Energy 700 1 Sept-Oct/2011 800 MMUS$ 1,143 US$
Generation Plant Pennsylvania
Moxie Patriot Lycoming County
Moxie Energy 700 1 Sept-Oct/2011 800 MMUS$ 1,143 US$
Generation Plant Pennsylvania
Florida Municipal
Intercession City power and Evaporative cooler
Cane Island Unit 4 300 PG7241FA 1- on - 1 1 Sept-Oct/2011 479 MMUS$ 1,597 US$
Florida Kissimmee Utility SCR
Authority
Buckingham Coutry Dominion Virginia Duct fired HRSG
Bear Garden CCS 580 7FA 2 - on - 1 1 Sept-Oct/2011 619 MMUS$ 1,067 US$
Virginia Power ST 220MW
Cairo Electricity
Cairo Egypt Ansald Energia 600 AE94.2 Simple cycle 4 May-June/2011 245 MMEuro 408 €
Production
L.V. Sutton Energy Wilmington, North
Progress Energy 620 1 May-June/2011 600 MMUS$ 968 US$
Complex Carolina
Hyundai Heavy
Central Iraq Iraq Electricity 500 Simple cycle May-June/2012 158.9 MMUS$ 318 US$
Industry
GS Electric and
Dangjin, South Korea 410 SGT6-8000H 1 - on - 1 1 May-June/2013 420 MMUS$ 1,024 US$
Power Services
Keramasan Thermal
Keramasan Indonesia PLN Marubeni 80 H-25 1- on - 1 2 Nov. /2011 100 MMUS$ 1,250 US$
Power Station
9-9
9.4 Engineering Services
After the signing of the engineering service contract with EDM, the consultant will carry out the
following work in coordination with EDM.
 Selection of EPC Contractor
 Supervision of EPC Contractor’s activities such as design, manufacturing, transportation,
installation, construction, commissioning and testing
 Supervision during Defect Liability Period (“DLP”)
The following experts are needed to execute the work mentioned above.
9.4.1 Foreign Consultant

1. Project Manager
2. Plant Design Engineer
3. Mechanical Engineer (Gas Turbine)
4. Mechanical Engineer (Steam Turbine)
5. Mechanical Engineer (HRSG)
6. Mechanical Engineer (BOP)
7. Electrical Engineer
8. I & C Engineer
9. Civil Engineer
10. Contract Engineer
11. Environmental Engineer
12. HIV/AIDS Consultant
9.4.2 Local Consultant

1. Deputy Project Manager
2. Plant Design Engineer
3. Mechanical Engineer (Gas Turbine)
4. Mechanical Engineer (Steam Turbine)
5. Mechanical Engineer (HRSG)
7. Electrical Engineer
8. I & C Engineer
9. Civil Engineer
10. Environmental Engineer
Terms of Reference for Engineering Consultancy Services and Project Management
9-10
Cost (PMC) are attached in Appendix.
9.5 Operation and Maintenance Costs
9.5.1 Operation and Maintenance

A combined cycle consists of a GT operating with high-temperature combustion gas, HRSG,
and a ST power generator, and the GT is essential from the viewpoint of regular inspection
intervals;, i.e., when the GT is inspected, regular inspections for the ST power generator and
HRSG are realistically combined together. In addition, since cracks, corrosion, oxidation,
deformation, or coating exfoliation of high-temperature parts (e.g., combustor, stationary blade,
dynamic blade, blade ring (shroud segment)) for the GT can be severe, the EOH is used to
recommend inspection times (total number of operation hours and total number of stops (which
are used by the ST) are not used to presume the aged deterioration level). Costs used for
operation and maintenance considered for this project are as follows:
 LTSA: Expense and assumption before operation start of each period (included in loan)
 Maintenance fixed cost (e.g., labor costs and regular inspection costs)
 Fluctuating maintenance costs (e.g., oils and fats, chemicals)
 Training costs
 Spare costs
9.5.2 Examination of LTSA

The main facilities of CCGT are the GT, HRSG, and ST. In general, the failure ratio of the GT
is the highest and maintenance levels of the GT have a great influence on the operation ratio of
the entire plant.
The high-temperature parts of the GT, such as the combustor and turbine blades, operate while
being exposed to high-temperature gas of 1,000 degrees or more. Therefore, deterioration and
damage of the GT are more severe than the blades of the ST, i.e., inspection, repair, and
replacement are required at short intervals. Therefore, the expected life of these
high-temperature parts is set by manufacturers for each type. Normally, inspection, repair, and
replacement are required at proper maintenance intervals until the life expectancy is reached.
Three types of inspections for the GT are generally done at the equivalent operating hour as
shown in Table 9.5-2.
Table 9.5-1 Inspection Interval by Type (Example)
Type of Inspection Inspection Interval/ EOH

Combustor Inspection 8,000 hr
Turbine Inspection 16,000 hr
Major Inspection 48,000 hr
9-11
Since the high-temperature parts are a superalloy using nickel and cobalt as the base, special
technology, such as welding and coating, and special facilities are required to repair these parts.
Therefore, most users request the GT manufacturer or other repair company to repair them.
(1) Characteristics of GT long-term maintenance contract

Since high-temperature parts require regular inspections, repairs, and replacements at relatively
short intervals as described above, GE and other GT manufacturers have contracts (i.e., LTSAs)
which supply such regular inspections, repairs and replacements in a lump for a certain period,
which has become mainstream. Since the contract period up to a major inspection is generally
considered to be one cycle, contracts for 6 or 12 years are common.
The table below summarizes the characteristics of LTSAs. For technical characteristics, a user
understands operation time, number of starts/ stops, and number of emergency stops and
manages the necessary range and times for inspections, repairs, and replacements of
high-temperature parts, and under the LTSA the supplier is allowed to do so. In addition, since
the remote monitoring system is planned to be introduced to realize the services, the operation
status of the PS can be monitored in real time at the supplier’s remote monitoring center.
Therefore, a combination of dispatching the stationed engineer and using the remote monitoring
system allows any trouble to be monitored and countermeasures to be taken rapidly, i.e.,
contributing to improvement of the operation ratio. Therefore, under the LTSA the supplier
optionally executes the business concerning monitoring and maintenance of the GT operation
status, therefore the operation ratio can be additionally ensured.
Another large characteristic is the package price for inspections, repairs, and replacements of
the high-temperature parts. Under the LTSA the package price is equal to or less than the total
costs when a user individually executes inspections, repairs, and replacements, and it is
therefore attractive when additional services are considered. In addition, since the cost of the
LTSA is decided at the time of the contract, users can avoid unexpected risks for repairs and
replacements of high-temperature parts.
In addition, if a user individually repairs or replaces high-temperature parts, over the years there
is great fluctuation of the costs regarding whether or not a large amount of high-temperature
parts should be replaced (e.g., approximately USD 1 million for one LM6000GT), i.e.,
management of a small-scaled company such as IPP would be greatly affected. In contrast, an
LTSA allows the cost payments to be leveled because of paying a set price each month,
therefore management can be stabilized.
9-12
Table 9.5-2 Characteristics of LTSAs
LTSA Individual Order

Management of
inspections, repairs,
Package management by supplier Management by user
replacements for
high-temperature parts
Remote monitoring by supplier
Operation status
Contributing to improved Monitoring only by user
monitoring for GTs
operation ratio
Stationed engineer Yes No
Ensured operation
Yes (option) No
ratio
Package price and payment of a Payment of price corresponding
set price each month to repairs and replacements for
Payment of The same level or less than total each inspection
inspections, repairs, price of individual ordering User is charged for unexpected
replacement costs for Supplier is charged for unexpected repairs and replacements
high-temperature parts repairs and replacements
(excluding the case of user
responsibility)
(2) Introduction of an LTSA into this Project

CTM Maputo CCGT will be the first CCGT using GT in Mozambique. Therefore, an LTSA is
considered to be a necessary service for CCGT stable operation in technical support. In addition,
an LTSA is economically advantageous compared to individual orders and therefore
management can be stabilized by leveling cost payments, greatly contributing to ensuring stable
profit of EDM.
As described above, since an LTSA would greatly contribute to the stabilization of the PS
operation and company management, it is a welcomed process from the viewpoint of fund
supply. Therefore, this investigation recommends that an LTSA to be a target of this project.
9-13
Chapter 10
Financial and Economic Analyses

Chapter 10 Financial and Economic Analyses
10.1 Effectiveness of the Project

Recent discoveries of gas and coal in the central and northern areas have significantly increased
the level of economic activity in the country. In particular, the capital city of Maputo, where the
Project is located, has been economically booming because it is the major gateway of foreign
investments to the country. As a result, the power demand of the Southern System, where
Maputo is situated, has been increasing considerably. There are ceaseless requests for new
connections by both businesses and households. Power demand of the Southern System
dominates two-thirds of the country and there are a number of proposals for both industrial and
housing developments outside Maputo, the implementation of which are subject to the
availability of power for new connections. Therefore, sustainable power supply is the key to the
sustainable economic growth of Mozambique.
As mentioned in Chapter 2.3, power supply in the Southern System is in a critical state and will
remain insufficient until the completion of the STE project that will connect the Southern
System and Mid/Northern System. The project is scheduled to begin operation in the early
2020s; however, it might be delayed because the scale of the project is very large and multiple
stakeholders are involved. Therefore, this new power plant Project located in the CTM site to be
implemented within several years will be quite effective in overcoming this critical situation.
On the other hand, according to the master plan for power source development, EDM has
another scenario for purchasing power from Aggreko to reduce the gaps in power supply.
In the case of “Without the Project,” it is assumed that EDM needs an alternative power supply
as follows:
 From SASOL/EDM and Gigawatt for base and middle load
 From Aggreko for peak and middle load
All these capacities are based on gas engines because no water is available at Ressano Garcia.
Aggreko uses mobile-type gas engines that are known to be expensive. Thus, they will be
merely a temporary solution. Any further shortage of power supply will need to be met by
purchase from ESKOM of the South African Power Pool (SAPP), which is already a current
practice. Conversely, the Project, which is based on CCGT, is expected to supply power at a
much lower cost than the other alternatives.
The Project also has a few advantages derived from its location. Firstly, it is located at an old
power plant site; therefore, no major additional cost will be basically required for the
10-1
transmission system. Secondly, because it is located just outside of Maputo, the demand center
of the Southern System, the transmission loss of the Project is projected to be much lower than
that of other existing and planned power sources. The Project is desirable in terms of lowering
the overall transmission loss and increasing the system stability. Thirdly, in the case of “With
the Project,” investment in a part of the transmission system around Maputo could be postponed
by at least one year.
In consideration of the above, the effectiveness of the Project is to be as follows:

 Contribution to the sustainable economic growth
 Lower power generation cost
 More power supply due to less transmission loss
 Saving by postponement of investment to transmission system
10.2 Financial Situation of EDM

We examine and analyze the financial soundness of EDM on the basis of their financial
statements. As indicated in Table 10.2-1, sales of EDM have doubled from 3.2 billion MZN in
2006 to 6.4 billion MZN in 2010. Accordingly, the balance sheet had rapidly expanded.
Table 10.2-1 Financial Statements and Indicators

(Unit: 1,000 MZN)
Profit & Loss
2010 2009 2008 2007 2006
Sales 6,414,321 5,295,179 4,596,005 3,933,644 3,228,556
Profit before Tax 105,924 72,829 27,776 139,970 -34,714
Net Profit -64,156 13,762 27,776 4,388 -70,182
Balance Sheet
Total Fixed Assets 18,834,825 15,183,370 13,034,113 11,352,355 9,479,121
Equity 7,457,035 7,257,328 5,830,847 4,401,194 4,393,897
Capital Employed 16,364,841 14,007,460 10,747,539 9,205,345 8,274,968
Financial Indicators
Profitability Ratios 2010 2009 2008 2007 2006
Pre-tax Profit Margin (%) 1.65% 1.38% 0.60% 3.56% -1.08%
Return on Sales (%) -1.00% 0.26% 0.60% 0.11% -2.17%
Return on Total Assets (%) -0.86% 0.19% 0.48% 0.10% -1.60%
Return on Capital (%) -1.04% 0.24% 0.92% 0.15% -2.33%
Return on Investment (%) 2.38% 0.34% 1.47% 1.24% 1.55%
Liquidity Ratios
Quick Ratio (Acid Test) (%) 120% 166% 105% 93% 110%
Current Ratio (%) 140% 196% 127% 116% 135%
Return on Equity (%) 1.40% -4.00%
Collection Rate (%) 97% 97% 96% 95% 95%
(Source JICA Study Team)
10-2
10.2.1 Profitability
The pre-tax profit margins were negative in 2006. After that, they showed a slightly positive
percentage during the period from 2007 to 2010. The ratios of return on assets and return on
capital during the period from 2006 to 2010 were negative or close to zero in value. Hence, it
can be said that the profitability of EMD is not high. The profitability is expected to improve by
a review and increase in electricity sales price or a reduction in operation cost in the future.
10.2.2 Debt Service Capacity

The quick ratio during the period of 2006 to 2010 except for 2007 had basically surpassed 100%.
In this instance, EDM is capable of securing the funds on hand, even if EDM services all the
current liability by utilizing quick assets. Accordingly, the debt service capacity for the
short-term of EDM is not significantly worrying. The collection rates of receivables have been
improved and such rates in 2009 and 2010 reached 97%. As a payment method, a prepaid
system has been introduced. Consumers choosing the prepaid system account for 81% (2011) of
the total number of consumers. The difficulty in financial situation of EDM is that the debt
payable on the borrowed capital is rapidly expanding, while there are almost no profits. Given
that this situation will continue in the future, it is a possibility that EDM’s financial situation
and the debt service capacity will deteriorate. EDM has carried out a study to revise and
possibly raise current electricity prices. The profitability is expected to improve through this
review and an increase in electricity sales price or the reduction in operation cost in the future.
10.3 Financial Analysis of the Project

In this section, we project the cash flow and examine the financial viability of the Project.
10.3.1 Key Assumptions Used for Financial Analysis

Key assumptions employed in the financial assessment of the Project are as follows:
(1) Major Economic Indices

Mozambique has achieved remarkable growth in its economy over the last decade at an average
annual rate of 7.2 percent. The economy is expected to grow steadily at 7.5 percent and 7.9
percent in 2012 and 2013 respectively due to continuous inflows of foreign direct investment as
well as strong growth of the agriculture sector and infrastructure investment 1.
Since December 2010, the inflation rate measured by the consumer price index steadily
declined from over 16 percent to less than 2 percent in May 2012, as exhibited in Table 10.3-1.
1
2012 African Economic Outlook, available at
http://www.africaneconomicoutlook.org/en/countries/southern-africa/mozambique/
10-3
Table 10.3-1 Changes in Consumer-Price Inflation (%)

Moving
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
average
2009 6.53 4.36 5.15 4.38 3.05 2.65 2.42 1.12 1.37 1.43 2.55 4.22 3.27
2010 5.06 6.84 7.13 9.09 12.70 14.51 16.11 17.07 16.80 15.52 15.06 16.62 12.71
2011 16.51 16.00 14.73 13.04 11.36 9.28 7.67 7.86 7.80 8.34 7.74 5.46 10.48
2012 4.26 2.48 2.71 2.54 1.62 1.63 1.47 1.07 1.23 na na na 3.31
(Source: Central Bank of Mozambique)
Note: na: not available.
As Table 10.3-2 indicates, the exchange rate between the Mozambican Metrical and US dollar
is relatively stable, while the Metrical has lost its value against the US dollar by 18 percent in
the last six years or 2.8 percent per annum.
Table 10.3-2 Changes in the Average Annual Exchange Rate between Metical and USD
Year 2006 2007 2008 2009 2010 2011 2012

Metical/USD 24.99 25.56 24.17 26.71 32.98 29.06 29.50
Note: The figure for 2012 is the rate as of 3 November 2012.
(Source: Central Bank of Mozambique (except 2012))
In our analysis, we assume the following inflation and exchange rates, which will be applied to
the-end-of-2012-price base costs of the Project:
 Price escalation for the foreign currency components: 2.1 percent per annum
 Price escalation for the domestic currency components: 4.6 percent per annum
 Exchange rate: 30.5 MTn (constant until and during the initial investment period)
(2) Project Configuration

Under the Project, the country’s first combined cycle gas turbine (CCGT) power station will be
built and operated. The Project will be implemented, installing two gas turbine units and one
steam turbine unit. The total installed generation capacity will be in the range of 70 MW to 110
MW.
In this feasibility study, we assume that the total installed generation capacity will be 110 MW
(40 MW x 2 & 30 MW x 1). These three units will become fully operational in June 2018.
(3) Initial Investment Costs

As described earlier in this report, the total base cost of the Project (in 2012 year-end prices) is
estimated at approximately US$ 159 million. With physical and price contingencies, VAT and
withholding tax, the total initial investment cost (excluding IDC) is estimated at approximately
US$ 194 million. The Project is expected to be exempted from import duties. Table 10.3-5
shows the estimate of initial investment costs. The disbursement schedule of the EPC cost
10-4
(excluding O&M training, initial stock of spare parts and LTSA (long-term service agreement))
is assumed as follows:
Table 10.3-3 Cost among the Years of Construction

st nd
1 year of 2 year of 3rd year of 4th year of
construction construction construction construction
3% 36% 48% 13%
Table 10.3-4 Cost among Foreign and Local Currency Components:
Foreign currency components Local currency components

Power block 80% 20%
Balance of plant 80% 20%
Civil and erection 30% 70%
Table 10.3-5 Initial Investment Costs

Base Case Base Case
CCGT in Single Phase CCGT in Single Phase
No. Item
Total Foreign Local Total Foreign Local
[1,000 US$] [MJPY] [MMZN]
JICA Finance Portion
A. Power Plant Construction and Associated Works (EPC Cost) 124,171 90,220 33,951 11,305 8,214 3,091 1,035
A1. Power Block F 80% / L 20% 98,874 80,228 18,646 9,002 7,304 1,698 569
A2. B.O.P. F 80% / L 20% 4,698 3,812 886 428 347 81 27
A3. Civil & Erection F 30% / L 70% 20,598 6,179 14,419 1,875 563 1,313 440
B. LTSA, Training and Spare Parts 18,403 18,403 1,675 1,675

B1. 6-year LTSA Cost for Gas Turbine 13,040 13,040 1,187 1,187
B2. Training 1,098 1,098 100 100
B3. Spare Parts 4,265 4,265 388 388
C. Consulting Service 14,344 11,659 2,685 1,306 1,061 244 82
D. Contingency 26,242 17,467 8,775 2,389 1,590 799 268

D1. Price Contingency on A, B & C F 2.1% / L 4.6% 17,520 10,907 6,612 1,595 993 602 202
D2. Physical Contingency on A, B, C & D1 5.0% 8,722 6,559 2,162 794 597 197 66
E. Interest During Construction 0.01% 145 145 13 13

F. Commitment Charge (exempted) 0.0%
Total of JICA Finance Portion (A~F) 183,305 137,894 45,410 16,688 12,554 4,134 1,385
Non Eligible Portion

G. Land Preparation 833 833 76 76 25
G1. Removal of Existing Fuel Tanks 725 725 66 66 22
G2. Price Contingency 4.6% 68 68 6 6 2
G3. Physical Contingency 5.0% 40 40 4 4 1
H. Administration Cost 0.50% 920 920 84 84 28

* 0.5% of A~D & G
I. Custom Duties, VAT and Withholding Tax 9,734 9,734 886 886 297
I1. VAT on 25% of A, B, D & G (except contingency of C) 17.0% 7,125 7,125 649 649 217
I2. Custom Duties on Foreign Portion of A, B, D & G (exempted) 0.0% 0 0 0 0 0
I3. Withholding Tax on Consulting service fee except for expenses 20.0% 2,609 2,609 237 237 80
Total of Non Eligible Portion (G~I) 11,487 11,487 1,046 1,046 350
Grand Total (A~I) 194,791 137,894 56,897 17,734 12,554 5,180 1,735
10-5
(4) Financing
It is assumed that 10 percent of the total initial investment cost including IDC will be financed
with equity from EDM and the remaining 90 percent, with a yen-denominated soft loan2 from
JICA with the conditions given below:
(a) Yen-denominated soft loan
 Interest rate: 0.01 percent per annum
 Repayment period: 40 years including 10-year grace period
(The grace period starts in the year of the first disbursement of the loan.)
(b) Loan to EDM from a local commercial bank
 Interest rate: 12 percent per annum
 Repayment period: 9 years
(5) Electricity Price

(a) Average sales price
The average sales price of electricity increased from 2.44 MTn/kWh in 2009 to 2.76
MTn/kWh in 2011. However, because of high inflation rates during the same period, the real
sales price of electricity in fact decreased. As the inflationary pressure decreases, the price of
electricity, which incidentally has become increasingly lower than that in South Africa for the
last few years, could be raised more than currently planned. Table 10.3-6 exhibits recent and
planned average sales prices in MTn and USD. In our study, we assume that 3.30 MTn/kWh
or 11.8 US cents/kWh for the projected price for 2014 is assumed for the entire duration of the
Project.
Table 10.3-6 Average Electricity Sales Price Analysis

Year 2009 2010 2011 2012 2013 2014
1. Average sales price (MTn/kWh) 2.44 2.53 2.76 2.84 3.11 3.30
2. Change from previous year
0.09 0.23 0.08 0.27 0.19
(MTn)
3. Change in percentage 3.7% 9.1% 2.9% 9.5% 6.1%
4. Inflation 3.3% 12.7% 10.5% 3.3% 4.6% 4.6%
5. Real change -9.0% -1.4% -0.4% 4.9% 1.5%
6. USD exchange rate (MTn) 26.71 32.98 29.06 29.50 27.90 27.90
7. Average Sales Price (USD/kWh) 0.077 0.095 0.096 0.111 0.118
(Source: Average sales prices are from EDM. The inflation and exchange rates for 2013 and 2014 are discussed
earlier in this section.)
(b) Income from electricity generation
2
The exchange rate between yen and USD assumed is 91.04 JPY/USD.
10-6
It is assumed that the above-mentioned sales price is composed of the costs for electricity
generation, transmission and distribution, consumers’ related costs and margins. Therefore, the
income of the Project is basically a value multiplying the volume of electricity supplying to
grids by the following unit value.
The unit of income from generation = (average sales price) – (long-run marginal cost of the
costs for electricity generation, transmission and distribution and consumers’ related costs) –
(margin).
A total of the long-run marginal cost including the costs for electricity generation, transmission
and distribution, consumers’ related costs and margin is assumed at 20 percent of the average
sales price in this study. Hence, it is assumed that the income price from electricity generation
is 2.64 MTn/kWh or 9.44 USc/kWh.
(6) O&M Costs

Operating expenditures include the cost of fuels (gas), operation and maintenance costs and
insurance. The following assumptions are used:
(a) Cost of fuels (gas): 5.60 USD/GJ at the Project site (This price has been agreed on between
EDM and ENH, the integrated gas supplier of the country.
(b) Annual O&M costs of the power plant: (USD thousand) are as follows:
Table 10.3-7 Annual O&M Costs

(Unit: 1,000 USD)
Year 2018 2019 2020 2021 2022 2023 2024-
O & M cost 2,406 4,126 4,126 4,126 4,126 4,126 5,031
(c) Insurance: one percent of the total capital cost of the power plant per annum.
(d) Interest paid on loan: As discussed earlier in this section.
(7) Others
Other key assumptions used in our analysis are as follows:
(a) Depreciation: 20-year straight line
(b) Corporate income tax: 32 percent
Property taxes or working capital requirements are not considered in projecting the cash
outflow stream. Potential revenues other than sales revenue, such as interest earnings, are not
taken into account either, since they will be comparatively small.
Table 10.3-8 and Table 10.3-9 exhibit the financing plan and the before-debt-service cash flow
projection of the Project.
10-7
Table 10.3-8 Disbursement of Investment Costs and Flow of Financial Resources

USD Thousand (MZN Thousand)
Project year 1 2 3 4 5 6
Item Calendar year 2014 2015 2016 2017 2018 2019
F/C L/C Total F/C L/C Total F/C L/C Total F/C L/C Total F/C L/C Total F/C L/C Total
1 Total initial investment
(1) Initial investment costs excluding IDC 1,370 549 1,919 6,378 3,790 10,168 38,220 18,543 56,763 55,234 26,096 77,558 20,284 8,195 27,014 2,999 339 3,158
(2) Interest on foreign loan accrued 0 0 0 1 0 1 4 0 4 10 0 10 14 0 14 16 0 16
(3) Interest on domestic loan accrued 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
IDC total (Items (2) and (3)) 0 0 0 1 0 1 4 0 4 10 0 10 14 0 14 16 0 16
Total (Items (1) to (3)) 1,370 549 1,919 6,379 3,790 10,168 38,224 18,543 56,767 55,244 26,096 77,567 20,298 8,195 27,029 3,015 339 3,174
(41,783) (16,744) (58,528) (194,552) (115,586) (310,138) (1,165,835) (565,547) (1,731,382) (1,684,934) (795,930) (2,365,805) (619,099) (249,941) (824,380) (91,949) (10,343) (96,805)
2 Total finance required 1,370 549 1,919 6,379 3,790 10,168 38,224 18,543 56,767 55,244 26,096 77,567 20,298 8,195 27,029 3,015 339 3,174
(Financial resources)
3 Foreign bank loan 1,727 0 1,727 9,151 0 9,151 51,087 0 51,087 69,802 0 69,802 24,313 0 24,313 2,842 0 2,842
(52,672) (0) (52,672) (279,107) (0) (279,107) (1,558,144) (0) (1,558,144) (2,128,959) (0) (2,128,959) (741,547) (0) (741,547) (86,692) (0) (86,692)
Cumulative 1,727 0 1,727 10,878 0 10,878 61,965 0 61,965 131,767 0 131,767 156,080 0 156,080 158,922 0 158,922
(52,672) (0) (52,672) (331,780) (0) (331,780) (1,889,923) (0) (1,889,923) (4,018,882) (0) (4,018,882) (4,760,429) (0) (4,760,429) (4,847,121) (0) (4,847,121)
4 Domestic bank loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
Cumulative 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
5 EDM equity 192 192 1,017 1,017 5,680 5,680 7,765 7,765 2,716 2,716 332 332
(0) (5,855) (5,855) (0) (31,031) (31,031) (0) (173,238) (173,238) (0) (236,846) (236,846) (0) (82,833) (82,833) (0) (10,113) (10,113)
Cumulative
(0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
6 Total finance 1,727 0 1,727 9,151 0 9,151 51,087 0 51,087 69,802 0 69,802 24,313 0 24,313 2,842 0 2,842
(52,672) (0) (52,672) (279,107) (0) (279,107) (1,558,144) (0) (1,558,144) (2,128,959) (0) (2,128,959) (741,547) (0) (741,547) (86,692) (0) (86,692)
Cumulative 1,727 0 1,727 10,878 0 10,878 61,965 0 61,965 131,767 0 131,767 156,080 0 156,080 158,922 0 158,922
(52,672) (0) (52,672) (331,780) (0) (331,780) (1,889,923) (0) (1,889,923) (4,018,882) (0) (4,018,882) (4,760,429) (0) (4,760,429) (4,847,121) (0) (4,847,121)
Project year 7 8 9 10 11
Item Calendar year 2020 2021 2022 2023 2024 Total
F/C L/C Total F/C L/C Total F/C L/C Total F/C L/C Total F/C L/C Total F/C L/C Total
1 Total initial investment
(1) Initial investment costs excluding IDC 2,634 14 2,648 2,702 14 2,715 2,756 14 2,770 2,822 14 2,835 1,168 0 1,168 136,567 57,566 194,133
(2) Interest on foreign loan accrued 16 0 16 16 0 16 16 0 16 17 0 17 17 0 17 127 0 127
(3) Interest on domestic loan accrued 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
IDC total (Items (2) and (3)) 16 0 16 16 0 16 16 0 16 17 0 17 17 0 17 127 0 127
Total (Items (1) to (3)) 2,650 14 2,664 2,718 14 2,732 2,773 14 2,786 2,838 14 2,852 1,185 0 1,185 136,693 57,566 194,260
(80,822) (421) (81,243) (82,893) (421) (83,314) (84,564) (421) (84,984) (86,567) (421) (86,988) (36,148) (0) (36,148) (4,169,147) (1,755,774) (5,924,921)
2 Total finance required 2,650 14 2,664 2,718 14 2,732 2,773 14 2,786 2,838 14 2,852 1,185 0 1,185 136,693 57,566 194,260
0 0 0
(Financial resources) 0 0 0
3 Foreign bank loan 2,383 0 2,383 2,444 0 2,444 2,493 0 2,493 2,552 0 2,552 1,051 0 1,051 169,845 0 169,845
(72,679) (0) (72,679) (74,536) (0) (74,536) (76,033) (0) (76,033) (77,830) (0) (77,830) (32,069) (0) (32,069) (5,180,267) (0) (5,180,267)
Cumulative 161,305 0 161,305 163,749 0 163,749 166,242 0 166,242 168,793 0 168,793 169,845 0 169,845
(4,919,800) (0) (4,919,800) (4,994,336) (0) (4,994,336) (5,070,369) (0) (5,070,369) (5,148,199) (0) (5,148,199) (5,180,267) (0) (5,180,267)
4 Domestic bank loan 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
Cumulative 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
5 EDM equity 281 281 288 288 293 293 300 300 134 134 0 18,998 18,998
(0) (8,564) (8,564) (0) (8,777) (8,777) (0) (8,951) (8,951) (0) (9,159) (9,159) (0) (4,080) (4,080) (0) (579,448) (579,448)
Cumulative
(0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0)
6 Total finance 2,383 0 2,383 2,444 0 2,444 2,493 0 2,493 2,552 0 2,552 1,051 0 1,051 169,845 0 169,845
(72,679) (0) (72,679) (74,536) (0) (74,536) (76,033) (0) (76,033) (77,830) (0) (77,830) (32,069) (0) (32,069) (5,180,267) (0) (5,180,267)
Cumulative 161,305 0 161,305 163,749 0 163,749 166,242 0 166,242 168,793 0 168,793 169,845 0 169,845
(4,919,800) (0) (4,919,800) (4,994,336) (0) (4,994,336) (5,070,369) (0) (5,070,369) (5,148,199) (0) (5,148,199) (5,180,267) (0) (5,180,267)
10-8
Table 10.3-9 Projected Cash Flow before Debt Service (operation period) 2018-2042
US Thousand
Operation year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Item Calendar year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total
1 Operational parameters
1 Capacity (MW) 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110
1 Electricity generation (GWh) 376 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 18,414
1 Electricity supply (GWh) 368 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 18,046
1 Technical loss 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7%
2 Non-technical loss 8% 8% 8% 8% 7% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
2 Electricity sale (GWh) 315 630 630 630 637 637 637 637 644 644 644 644 644 644 644 644 644 644 644 644 644 644 644 644 644 15,700
2 Average sales price (USD/kWh) 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118 0.118
2 Average wholesale price (USD/kWh) 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094
2 Sales revenue 29,745 59,491 59,491 59,491 60,137 60,137 60,137 60,137 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 1,482,093
3 Operating cost 20,177 39,667 39,667 39,667 39,667 39,667 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 989,388
1 O&M 2,406 4,126 4,126 4,126 4,126 4,126 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 118,625
2 Fuel 16,800 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 823,200
3 Insurance for Economic Analysis 925 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 1,849 45,304
3 Insurance 971 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 47,563
4 Net operating income (Item 2 - 3) 9,569 19,823 19,823 19,823 20,470 20,470 19,565 19,565 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 492,706
10-9
10.3.2 The Unit Cost of Generation of Electricity

In this section, the unit cost of generation of electricity (hereinafter called “generation cost”) at
the bus bar of the power station for the Project is calculated in order to compare it with relevant
figures of alternative projects that have different technologies and to examine the Project
viability.
(1) Calculation of Generation Cost

The generation cost shall be calculated by using the method presented by the International
Energy Agency (IEA), called the Levelized Cost of Electricity (LCOE). The LCOE is derived
from the following formula.
LCOE 
 NPV (Cost)
 NPV ( Electricit y)
The details on∑NPV (Cost) and ∑NPV (Electricity) are as follows:
 ∑NPV (Cost): Sum of discounted3 future cost (construction cost, O&M cost and fuel cost)
 ∑NPV (Electricity): Sum of discounted future electricity to be produced at sending-out
The corporate income tax (32%) is considered in this analysis from the viewpoint of EMD.
(2) Generation Cost

As shown in Table 10.3-10, the generation cost at the bus bar of the power station of the Project
is estimated at 8.84 USc/kWh.
(3) Evaluation of Calculation Result

This value, the abovementioned generation cost (8.84 USc/kWh) of the Project, is much lower
than the current purchase price from ESKOM on a spot basis during the on-peak hours (25～30
USc/kWh) and lower than the purchase price from Aggreko’s peaking power plant (9.0
USc/kWh). Thus, it can be said that if the Project is operated as a peaking power plant (although
the proposed plant is assumed to operate in base-load mode), it can generate electricity at a
competitive price in the market.
3
The discount rate is assumed to be 10%.
10-10
Table 10.3-10 Generation Cost

US Thousand
Operation year -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Item Calendar year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total
Discount factor for year 1.33 1.21 1.10 1.00 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47 0.42 0.39 0.35 0.32 0.29 0.26 0.24 0.22 0.20 0.18 0.16 0.15 0.14 0.12 0.11 0.10 0.09
1 Operational parameters
1 Capacity (MW) 0 0 0 0 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110
1 Electricity generation (GWh) 376 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 18,414
1 Electricity supply (GWh) 368 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 18,046
NPV of electricity produced 0 0 0 0 342 621 565 513 467 424 386 351 319 290 263 239 218 198 180 164 149 135 123 112 102 92 84 76 69
produced (GWh)
2 Cost 1,919 10,168 56,763 77,558 49,471 47,829 47,147 47,042 47,131 47,025 45,812 44,471 44,506 44,333 44,333 44,333 44,332 44,332 44,332 44,331 44,331 44,331 44,331 44,330 44,330 44,330 44,329 44,329 44,329
1 Investment cost 1,919 10,168 56,763 77,558 27,014 3,158 2,648 2,715 2,770 2,835 1,168 119,867
2 Operating cost 22,456 44,671 44,499 44,327 44,361 44,189 44,644 44,471 44,506 44,333 44,333 44,333 44,332 44,332 44,332 44,331 44,331 44,331 44,331 44,330 44,330 44,330 44,329 44,329 44,329 1,087,422
3 O&M 2,406 4,126 4,126 4,126 4,126 4,126 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 5,031 118,625
4 Fuel 16,800 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 33,600 823,200
5 Insurance 971 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 1,941 47,563
6 Income tax paid 0 2,977 3,059 3,140 3,428 3,509 3,295 3,376 3,664 3,745 3,745 3,745 3,746 3,746 3,746 3,746 3,746 3,746 3,746 3,747 3,747 3,747 3,747 3,747 3,747
7 Interest paid on debt 2,280 2,026 1,773 1,520 1,267 1,013 777 523 269 16 15 15 14 14 14 13 13 12 12 11 11 11 10 10 9
NPV of Cost 2,554 12,303 62,439 77,558 44,974 39,528 35,422 32,130 29,265 26,544 23,509 20,746 18,875 17,092 15,538 14,126 12,842 11,674 10,613 9,648 8,771 7,973 7,248 6,589 5,990 5,446 4,951 4,501 4,091
Unit gen. cost (LCOE) 8.84 USc/kWh

10-11
10.3.3 FIRR on the Total Investment Cost (Project FIRR)

To confirm the underlying financial viability or the true soundness of the Project, the financial
internal rate of return (FIRR) on the total investment cost was calculated. In this calculation, no
considerations were made regarding financing costs, whereas other assumptions stated above
were applied. The result of the calculation is as follows: (See also Table 10.3-11)
Project FIRR: 6.7 percent
The Project FIRR is at 6.7 percent, which exceeds 6.47 percent, the short-term cutoff rate of
national loan interest rates. Therefore the Project is regarded as financially viable.
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Table 10.3-11 Project FIRR (2014-2042)

USD Thousand
Project year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Calendar Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total
1 Cash inflow
Sales revenue 0 0 0 0 29,745 59,491 59,491 59,491 60,137 60,137 60,137 60,137 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 60,784 1,482,093
2 Cash outflow 1,919 10,168 56,763 77,558 47,536 46,451 45,941 46,009 46,270 46,336 45,284 44,116 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 44,323 1,267,832
(1) Capital paid-in 1,919 10,168 56,763 77,558 27,014 3,158 2,648 2,715 2,770 2,835 1,168 188,716
(2) Operation 0 0 0 0 20,177 39,667 39,667 39,667 39,667 39,667 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 40,572 989,388
(3) Net working capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(4) Interest paid on debt 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(5) Income (corporate) tax 0 0 0 0 344 3,626 3,626 3,626 3,833 3,833 3,543 3,543 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 89,728
(6) Loan repayments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Net cash flow (Item 1 - 2) -1,919 -10,168 -56,763 -77,558 -17,790 13,039 13,550 13,482 13,867 13,802 14,853 16,022 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 16,461 214,261
4 Cumulative net CF -1,919 -10,168 -58,682 -87,726 -76,472 -74,686 -62,922 -61,204 -49,055 -47,403 -34,202 -31,381 -17,740 -14,919 -1,279 1,542 15,182 18,003 31,644 34,465 48,105 50,926 64,567 67,388 81,028 83,849 97,490 100,310 113,951 178,692
5 Net present value -1,919 -9,550 -51,767 -72,685 -59,511 -54,589 -43,196 -39,463 -29,708 -26,962 -18,272 -15,746 -8,361 -6,604 -532 602 5,568 6,201 10,238 10,473 13,729 13,651 16,256 15,935 17,996 17,491 19,101 18,459 19,695 -253,467
discount factor 1 0.94 0.88 0.83 0.78 0.73 0.69 0.64 0.61 0.57 0.53 0.50 0.47 0.44 0.42 0.39 0.37 0.34 0.32 0.30 0.29 0.27 0.25 0.24 0.22 0.21 0.20 0.18 0.17
6 Cumulative NPV -1,919 -11,469 -63,235 -135,920 -195,431 -250,020 -293,216 -332,679 -362,386 -389,348 -407,620 -423,366 -431,726 -438,330 -438,862 -438,260 -432,692 -426,490 -416,253 -405,780 -392,051 -378,400 -362,144 -346,209 -328,212 -310,721 -291,621 -273,162 -253,467
7 FIRR on the Project 6.7%
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10.3.4 Financial Analysis on the Equity

Table 10.3-12 exhibits the cash flow for the financial planning, considering debt loans.
Calculations were made for the debt service coverage ratio (DSCR), which shows the sovereign
debt payment below.
DSCR: 4.6 (average), 2.2 (minimum) and 6.6 (maximum)
The DSCR is an important indicator of financial viability of a project not only for the project
owner, but also for a lending institution, as it indicates the project’s ability to pay its debt. The
ratio is normally required to be 1.3 to 1.5 at minimum. If the DSCR of the project is over 2.2, it
will meet this criterion and improve EDM’s overall DSCR. Hence, the Project is considered to
be a sound investment.
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Table 10.3-12 Cash Flow Table for Financial Planning (operation period) 2017-2042
USD Thousand
Operation year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Calendar year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total
1 Net cash flow from operation 9,569 19,823 19,823 19,823 20,470 20,470 19,565 19,565 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 20,212 492,706
2 Interest earned 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Working capital (net increase) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Interest paid on debt 2,280 2,026 1,773 1,520 1,267 1,013 777 523 269 16 15 15 14 14 14 13 13 12 12 11 11 11 10 10 9 11,649
Interest of foreing Loan 0 0 0 0 0 0 17 17 16 16 15 15 14 14 14 13 13 12 12 11 11 11 10 10 9 250
Interest of domestic Loan 2,280 2,026 1,773 1,520 1,267 1,013 760 507 253 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11,399
5 Net income before depreciation 7,289 17,797 18,050 18,303 19,203 19,457 18,788 19,042 19,942 20,196 20,196 20,197 20,197 20,198 20,198 20,198 20,199 20,199 20,200 20,200 20,201 20,201 20,201 20,202 20,202 481,057
6 Income tax paid 0 2,977 3,059 3,140 3,428 3,509 3,295 3,376 3,664 3,745 3,745 3,745 3,746 3,746 3,746 3,746 3,746 3,746 3,746 3,747 3,747 3,747 3,747 3,747 3,747 86,385
7 After-tax cash flow 7,289 14,819 14,992 15,164 15,776 15,948 15,493 15,666 16,278 16,451 16,451 16,451 16,452 16,452 16,452 16,452 16,453 16,453 16,453 16,454 16,454 16,454 16,454 16,455 16,455 394,671
8 Loan repayments 2,111 2,111 2,111 2,111 2,111 2,111 6,357 6,357 6,357 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 99,675
Foreign loan repayments 0 0 0 0 0 0 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 4,246 80,676
Foreign outstanding principal 169,845 169,845 169,845 169,845 169,845 169,845 165,599 161,353 157,106 152,860 148,614 144,368 140,122 135,876 131,630 127,384 123,138 118,891 114,645 110,399 106,153 101,907 97,661 93,415 89,169
Domestic loan repayments 2,111 2,111 2,111 2,111 2,111 2,111 2,111 2,111 2,111 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 18,998
Domestic outstanding principal 16,887 14,776 12,666 10,555 8,444 6,333 4,222 2,111 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 After-debt service cash flow 5,178 12,708 12,881 13,053 13,665 13,837 9,136 9,309 9,921 12,205 12,205 12,205 12,205 12,206 12,206 12,206 12,207 12,207 12,207 12,207 12,208 12,208 12,208 12,209 12,209 294,997
Cummulative 5,178 17,886 30,767 43,820 57,485 71,322 80,458 89,767 99,689 111,893 124,098 136,303 148,509 160,714 172,920 185,127 197,333 209,540 221,748 233,955 246,163 258,371 270,579 282,788 294,997
Ave.
10 Debt service coverage 2.2 4.8 5.1 5.5 6.1 6.6 2.7 2.8 3.1 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.6
(Items 5 + 4) / (items 4 + 8)
10-15
10.3.5 Sensitivity to FIRRs

The biggest risk involved in the Project in terms of financial viability is the future uncertainty of
the exchange rate between the local currency and the US dollar. If the former declines against
the latter, the US dollar-denominated revenue of the Project will decline. Since the electricity
tariff is denominated in the local currency and a drastic increase in the tariff will be politically
difficult, the currency exchange poses a risk. Our exchange forecast is 28.50 MTn/USD;
however, the rate was once down to 32.98 MTn/USD in 2010.
Other major risks are associated with the EPC cost and the gas price. The Project will be the
first combined cycle power project in the country and thus there are no comparable cost data
available. The gas price has been agreed between EDM and ENH; however, there still remains a
chance the agreement will be modified. We therefore performed a sensitivity analysis for the
following six scenarios:
(1) 10 percent lower exchange rate than assumed, i.e., 30.69 MTn/USD and thus 0.086
USD/kWh of the income price from electricity generation
(2) 15 percent lower exchange rate than assumed, i.e., 32.01 MTn/USD and thus 0.082
USD/kWh of the income price from electricity generation
(3) 10 percent higher EPC cost
(4) 20 percent higher EPC cost
(5) 10 percent higher gas price
(6) 20 percent higher gas price
The results of the above sensitivity test are summarized below:
Table 10.3-13 Results of Sensitivity Analysis on FIRR

Item Project FIRR
1 10% lower exchange rate 2.9%
2 15% lower exchange rate 0.8%
3 10% higher EPC cost 6.1%
4 20% higher EPC cost 5.6%
5 10% higher gas price 5.2%
6 20% higher gas price 3.5%
The above sensitivity analysis indicates that the Project FIRR in case of a 10% higher EPC cost,
a 20% higher EPC cost and 10% higher gas price shows over 5.2%, which is close to the cutoff
rate. When the exchange rate is 10% and 15% lower than the assumed rate, the Project FIRRs
show 2.9% and 0.8% respectively. Therefore, there are some cases in which the Project FIRRs
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are close to the cutoff rate, whereas the financial feasibility of the Project is deemed to be lower
in case of alteration of the exchange rate or gas price.
10.3.6 Conclusion on Financial Feasibility

The Project FIRR of the base case is at 6.7 percent, which exceeds 6.47 percent, the short-term
cutoff rate of national loan interest. Therefore, the Project is regarded as financially viable. The
DSCR of the Project is over 2.2 and exceeds the ratio normally required to be 1.3 to 1.5; so, the
Project is considered to be a sound investment. With regards to the sensitivity to FIRRs, there
are some cases in which the Project FIRRs are close to the cutoff rate, whereas the financial
feasibility of the Project is deemed to be lower in case of alteration of the exchange rate or gas
price. The main reason for this is that the current EDM electricity price is set quite low.
However, as mentioned before, EDM has carried out a study to revise and possibly raise the
current electricity price. It is expected that the Project FIRR will be higher and improved,
provided that the revision and increase of electricity price are carried out in the near future,
which would contribute to higher financial viability of the Project. To sum up, it is deemed that
the Project is financially feasible as long as there are no changes in the overall framework of the
Project.
10.4 Economic Analysis of the Project

The economic analysis of a project is concerned with all the costs and benefits incurred or
generated by the project to the society as a whole, while the financial analysis is concerned with
those to the project owner only. In order to assess the economic feasibility of the Project, i.e.,
whether or not the Project generates a sufficient net benefit to the country so that investment for
its implementation can be justified, we estimate what is called the economic internal rate of
return (EIRR) of the Project, as discussed below.
10.4.1 Key Assumptions Used for Economic Analysis

(1) Economic benefits
There are mainly two methods of evaluating the economic benefits. One method is used to
define, directly quantify in monetary terms and evaluate the benefits arising from the project,
which are compared against the economic cost of the project in obtaining the economic internal
rate of return. On the other hand, the other method is used when the measurement and
quantification of benefits are difficult, and the analysis assumes an alternative project that might
generate the same quality and amount of the benefit but could be constructed at the least cost
next to the project for appraisal. The economic analysis compares the cost of this least-cost
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alternative project against the project to quantify the saving of cost as the benefit of the project.
It is generally acknowledged that in cases where domestic total quantity of electricity supply
increases, the former method above is utilized for calculating economic benefit. Meanwhile, in
cases where domestic total quantity of electricity supply is stabilized or does not increase, the
latter method is utilized. In Mozambique, power supply is unable to keep up with the power
demand so it is necessary to create a new additional power source. The Project makes it possible
to supply additional power to the domestic market and increase the total domestic quantity of
electricity supply. Therefore, the income generated by the assumed average electricity sales
price of the project mentioned earlier (consumers’ and producers’ electricity purchase price),
which is regarded as a net economic benefit, is used for the economic analysis. The total of this
income is regarded as the willingness-to-pay (WTP) minimum and will not exceed consumers’
and producers’ willingness-to-pay level for electricity, which can be represented by the cost of
supply by a captive power, which is likely to be an oil-based diesel generator or any alternative
source of energy, such as kerosene.
In the figure below, Pa indicates assumed average electricity sales price, the WTP minimum. Pb
shows the consumers’ and producers’ average WTP. The area depicted by the points A, Pa, and
C below the demand curve represents the range that consumers are willing to pay in excess of
the prevailing tariff and is called “consumer surplus.” Regarding the calculation of the economic
analysis, since it is a principle to carry out conservative evaluation, rather than a
willingness-to-pay including consumer surplus, the income generated by the assumed average
electricity sales price of the Project is utilized for the economic analysis in order to overestimate
economic benefit of the Project. In the graph below, the quadrangle area depicted by the points
Pa, C, Qa, and 0 shows the total amount of electricity tariffs that consumers and producers pay.
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Price
A
Demand Curve Consumer Surplus
B
Pb
Pa C
Qb Qa Quantity
Pb: Willingness to Pay
Pa: Average Sales Price (WTP minimum)

Figure 10.4-1 Average Sales Price of Electricity and Willingness to Pay
Using the figure (average sales price of electricity) obtained as the unit price of the economic
benefit and multiplying the total volume of generation can quantify the value of the generated
electricity.
For reference, the benefit stemming from the saving cost comparing the Project to the least-cost
alternative project and other benefits that are not able to be monetized, as described in 10.1
Effectiveness of the Project, are as follows, although they are not calculated for economic
benefit.
(a) Cheaper electricity (because of lower generation/supply cost)
“Without the Project,” EDM will need to find an alternative power source. The difference in the
power production (or procurement) cost between the Project and the alternative power source is
regarded as a saving realized by the Project in supplying the same amount of electricity to the
grid and thus is an economic benefit of the Project.
Potential alternative power sources are limited to: (1) purchase from the Power Pool of South
Africa, (2) purchase from Aggreko, who has an additional 85 MW of capacity that can be
mobilized instead of being relocated somewhere else, and (3) a new IPP project (or expansion of
a planned IPP project) using the gas that has been allocated to the Project, which is likely to be a
gas-engine project located in Ressano Garcia.
The first two options are grossly expensive compared with the Project, costing over 20 US
cents/kWh. The third one is considered to be the least-cost alternative option, and there is a
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method of measuring the economic benefit or savings incurred by the difference between the
Project and the alternative option in terms of estimating the generation cost for the option based
on the information for the Sasol project, which includes 18 gas-engine generator sets each with
an open cycle capacity of approximately 9.73 MW.
(b) Contribution to sustainable economic development
“Without the Project,” because of insufficient electricity supply, EDM operation will be further
restricted and the number of new connections will be limited. New connections are associated
with investments. If we can identify the exact relationship between those two, we may be able to
estimate the amount of investment realized by an additional 110 MW of power the Project can
provide. However, it is very difficult, if not impossible, to undertake such an exercise.
(c) More electricity to be delivered (because of a lower transmission loss)
Because the Project is located closer to the demand center of Maputo than the least-cost
alternative options discussed above, there is a benefit resulting from the lower transmission loss.
We assume the difference in the transmission loss within the Southern System as follows:
 The difference of transmission loss between the Project and a comparable project located at
Ressano Garcia: 1.1 MW
 The difference of transmission loss between the Project and power supplied though the
STE project: Not considered as the capacity difference between the two (i.e., over 2,000
MW for the latter) is too large for this exercise.
(d) Saving from delay of investment in transmission system

As the demand of Maputo continues to increase, the transmission system around Maputo needs
to be enhanced. The Project, being located in Maputo, can delay some parts of the enhancement
needs, compared with the alternative power sources identified earlier. However, because of a
lack of data, it is difficult, if not impossible to identify the exact difference and thus monetize
this benefit.
(2) Economic costs

In the economic analysis, we use true economic prices instead of often-distorted financial or
market prices. For this purpose, we disregard all transfer payments within the country, such as
taxes and duties. Then, we convert distorted market prices into economic prices by multiplying
them with conversion factors. As far as the Project is concerned, while no “border distortion” is
assumed, domestic currency components of initial capital investment are expected to be subject
to domestic distortion. In particular, wage rates of unskilled labor tend to exceed
“opportunity-cost” wages. For simplicity, we use an average conversion factor in our
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calculations, to be applied to market prices of all domestic currency components. This average
conversion factor is estimated at 0.97, as shown below:
Table 10.4-1 Conversion Factor for Economic Costs

Item Portion of Total LC Input CF Weighed Value
Domestic 80% 1.0 0.8
material/land
Skilled labor 10% 1.0 0.1
Unskilled labor 10% 0.7 0.07
Average CF 0.97
We assume that the price of the gas to be supplied to the Project reflects its true economic value.
The gas could be sold to South Africa for higher prices. However, the gas for the Project comes
from the portion designated for domestic use.
10.4.2 EIRR
Table 10.4-2 exhibits the calculation of the EIRR of the Project based on the economic benefits
and costs discussed earlier. The EIRR is calculated at 17.1 percent, which clearly supports
economic viability of the Project. Because of some economic benefits that are not included in
the financial benefits, the EIRR is higher than the FIRR on the total investments.
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Table 10.4-2 EIRR of the Project (2014-2042)

USD Thousand
Project year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Item Calendar Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Total
1 Technical parameters
(1) Electricity generation (GWh) 376 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752 752
(2) Electricity supply (GWh) 368 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737 737
2 Benefits 37,182 74,363 74,363 74,363 75,172 75,172 75,172 75,172 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980
(1) Electricity sales 37,182 74,363 74,363 74,363 75,172 75,172 75,172 75,172 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 75,980 1,852,617
3 Costs 1,639 9,176 53,658 76,888 46,943 42,729 42,222 42,290 42,345 42,410 41,648 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 1,168,951
(1) Initial investment costs 1,639 9,176 53,658 76,888 26,813 3,153 2,647 2,715 2,769 2,835 1,168 181,823
(2) Operation 20,131 39,575 39,575 39,575 39,575 39,575 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 40,480 987,129
4 Net benefits (Item 2 - 3) -1,639 -9,176 -53,658 -76,888 -9,761 31,635 32,141 32,073 32,827 32,762 33,523 34,691 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 35,500 683,665
5 Cumulative net benefits -1,639 -9,176 -62,834 -139,722 -149,484 -117,849 -85,708 -53,635 -20,807 11,954 45,477 80,169 115,669 151,168 186,668 222,168 257,668 293,168 328,667 364,167 399,667 435,167 470,667 506,166 541,666 577,166 612,666 648,165 683,665 6,292,724
6 Net present value -1,639 -8,342 -51,929 -104,975 -102,099 -73,175 -48,380 -27,523 -9,707 5,070 17,533 28,099 36,856 43,788 49,156 53,185 56,076 58,002 59,114 59,544 59,408 58,804 57,819 56,528 54,993 53,270 51,406 49,441 47,408 529,369
discount factor 1.00 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47 0.42 0.39 0.35 0.32 0.29 0.26 0.24 0.22 0.20 0.18 0.16 0.15 0.14 0.12 0.11 0.10 0.09 0.08 0.08 0.07
7 Cumulative NPV -1,639 -9,981 -61,910 -166,885 -268,985 -342,160 -390,539 -418,062 -427,769 -422,699 -405,166 -377,067 -340,212 -296,424 -247,268 -194,083 -138,007 -80,005 -20,891 38,653 98,061 156,865 214,685 271,212 326,205 379,475 430,881 480,322 527,730
8 EIRR of the Project 17.1%
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10.4.3 Sensitivity Analysis
A sensitivity test was performed on the EIRR for the initial investment cost only, which is the
largest foreign cost component. The results of the test are as follows:
Table 10.4-3 The Results of EIRR Sensitivity Analysis

Scenario EIRR of the Project
1 10% higher initial investment cost 15.6%
2 20% higher initial investment cost 14.3%
Generally, higher EIRRs are expected for energy projects, whereas a substantial cost overrun of
the initial investment cost could undermine the Project’s viability. As a result of this sensitivity
analysis, the EIRRs are over 10 percent in cases of a 10 percent and 20 percent higher initial
investment. Thus, it can be said that the Project is economically feasible.
10.4.4 Conclusion on Economic Feasibility
We can conclude that the Project is viable in economic terms, bringing sufficient benefit to the
country to justify its implementation.
10.5 Operation and Effect Indicators

The following operational and effect indicators shall be set for monitoring power plant
performance, supervising the management of operation and maintenance and confirming the
effect of the CCPP.
Operational Indicators
・ Maximum Output
・ Plant Load Factor
・ Availability Factor
・ Gross Thermal Efficiency
・ Outage Hours by Human Errors
・ Outage Hours by Machine Errors
・ Planned Outage Hours
Effect Indicators
・ Maximum Output
・ Net Electric Power Production
・ Number of Beneficiaries
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The target of each indicator is set based on international experience of this JICA Team. The
targets shall be initially set at the lowest levels possible. They will be checked periodically and
reviewed yearly for setting and achieving higher targets toward final targets.
Each target shall be checked and reviewed based on Table 10.5-1. The indicators above are set
based on “Operational and Effect Indicators Reference, 2nd Edition, established by JBIC,
October 2002.”
Table 10.5-1 Operation and Effect Indicators

Indicator Target Check Evaluate Remarks
*1 *1
Operation Indicator
Maximum 110 MW Monthly Annually The Maximum Output shall be
Output*2 evaluated on the terms and conditions,
based on manufacturer’s evaluation
guidelines, taking the result of the
commissioning into consideration.
Plant Load 83% Monthly Annually = Annual Amount of Gross Generated
Factor*3 Output / (Rated Output x 24 x 365) x
100
Assumed base load operation case. This
might be reduced in the case of partial
load operation. The maintenance period
greatly influences the plant load factor.
Its period shall be carefully considered
when setting the target.
Availability 90% Monthly Annually = Annual Operation Hours / (24 x 365)
Factor*3 x 100
Assumed base load operation case. This
might be reduced in the case of partial
load operation. The maintenance period
greatly influences the availability
factor. Its period shall be carefully
considered when setting the target.
Gross Approx. 50% Monthly Annually = (Annual Amount of Gross Generated

Thermal Output x 860) / (Annual Amount of
Efficiency*2 Fuel Consumption x Fuel Lower
Heating Value) x 100
The gross thermal efficiency shall be
evaluated on the terms and conditions,
guidelines, taking the result of the
Outage Hours 0 hours Annually Annually Outage Hours by Human Errors is to be
by Human nearly zero.
Errors
10-24
Indicator Target Check Evaluate Remarks

*1 *1
Outage Hours 438 hours Annually Annually Unforeseen outage by machine errors is
by Machine unavoidable due to the operation
Errors records of CCPP. 5% per cent per year
is set for outage days by machine errors
for the CCPP.
Planned 192 hours Annually Annually Assumed Combustor Inspection year.
Outage Hours Combustor Inspection: 192 hour x 4
time / 6 year, Hot Gas Path Inspection:
360 hour / year, Major Inspection: 720
hour / year
Effect Indicator
Maximum 110 MW Monthly Annually The Maximum Output shall be
Output*2 evaluated on the terms and conditions,
guideline, taking the result of the
Net Electric GWh Monthly Annually The maintenance period greatly
Power influences the net electric energy
Production*2 production. Its period shall be carefully
considered when setting the target.
The target of net electric energy
production is calculated as follows.
110MW x 8,760 hour x 0.83 x (1 –
Auxiliary power ratio: 0.02)
Number of 441,000 Annually Annually Population of Maputo City is 1,178,116

Beneficiaries persons according to the INE2011. Power
demand in the region is 2,095GWh by
EDM 2011.
Hence, electricity consumption per
capita is obtained by
2,095GWh/1,178,116= 1,778kWh per
capita. Net Electric Power Production
by the project is estimated at 784 GWh.
Therefore, number of beneficiaries is
estimated by the net power production /
electricity consumption per capita =
441,000 persons, which corresponds to
37 per cent of the whole population of
Maputo city.
1) The target of each indicator shall be checked based on the “check interval” above, and reviewed based on the
“review interval” above.
2) The target of the “maximum output,” “gross thermal efficiency” and “net electric power production”
specified above shall be set based on the guaranteed specifications of an EPC contractor.
3) The “plant load factor” and “availability factor” specified above are subject to operation order from the
EDM’s dispatch center.
4) Instituto Nacional de Estatística (INE)
10-25
Chapter 11
Environmental and Social Considerations

Chapter 11 Environmental and Social Considerations
11.1 Outline of Project Components Subject to Environmental and Social

Considerations
11.1.1 Selection of Proposed Project Site
The proposed site is located in the existing Maputo Thermal Power Station (CTM), which is
approximately 3 km west of the center of Maputo city, close to the border of Matola city. The site
is situated west of Maputo cargo terminal, immediately south of the EN2 Highway and the
northeastern fence line borders the railway lines to the Maputo Cargo Terminal. The closest
community is Bairro Luis Cabral, northeast of the site between the railway lines and the EN2
highway.
There are existing facilities in the site, including three sets of GTs that are rarely used, oil tanks,
and three substations, as well as remnants of the former coal-fired power station, such as a
partially demolished power house, the CW pipe bridge, which is seriously damaged, and an open
space that used to be the coal stockyard.
Please refer to Chapters 3 and 5 of this Report for detailed information on the proposed Project
site.
11.1.2 Proposed CCGT Technology
The combined cycle gas turbine (CCGT) with a multi-shaft 2 on 1 configuration is proposed for
adoption in this Project. A CCGT is a power generation system that utilizes a combination of
GT(s) and a ST to achieve greater efficiency than would be possible independently. The gas
turbine drives an electrical generator. The GT exhaust is then used to produce steam in a heat
recovery steam generator (HRSG). Then the generated steam is fed to a ST whose output
provides the means to generate more electricity. This technology is known for its effectiveness in
terms of natural gas resource use, higher efficiency, shorter construction period, lower initial
investment cost, compact configuration and most importantly, few environmental impacts.
Please refer to Chapters 4 and 6 of this Report for a comprehensive overview of the technical
specifications and basic design of the proposed power plant.
11.1.3 Type of Cooling System
An air-cooled condenser (ACC) is proposed as the most preferred steam condenser for this
Project. The ACC technology does not need water to condense the process fluid. In this system,
exhaust steam from the turbine flows through the tube bundles and is condensed in parallel flow
tube bundles using air flow induced by properly designed axial fans. This system has the
following observable benefits:
11-1
 Elimination of additional water usage from the condensing power cycle

 Flexibility in power plant site selection
 Reduced time required for issuing plant permits because its environmental impact is less.
Refer to Chapters 4 and 6 of this Report for the comprehensive information on the technical
specifications of the proposed air-cooled condenser.
11.2 Baseline Environmental Condition

11.2.1 Natural Environment Conditions
(1) Meteorology
The meteorological data was collected from the nearest meteorological station to the Project site
(Weather Station #64 – Maputo International Airport). Presented below are significant climate
data generated from 2009–2011.
(a) Temperature
As shown in Figure 11.2-1, the highest value in the monthly average of highest temperature is
approximately 30℃ from December to March, and the lowest value in the monthly average of
highest temperature is between 25–26℃ from June to August. The monthly average of lowest
temperature is parallel to the average of highest temperature, but is 7℃to 10℃ cooler. The
highest value in the monthly average of lowest temperature is approximately 22℃in January and
February.
(Source: Instituto Nacional de Meteorologia - INAM)
Figure 11.2-1 Average monthly highest and lowest temperatures at Station No. 64
(2009–2011)
11-2
(b) Relative humidity

The relative humidity at the nearest point to the Project site suggests a small fluctuating range
between 71 and 78 percent as shown in Figure 11.2-2 below. The fluctuation of the relative
humidity results from the seasonal change of rainfall. It can also be attributed to the pattern of
solar radiation as shown in Figure 11.2-3.
Figure 11.2-2 Average monthly humidity at station No. 64 (2009–2011)
Figure 11.2-3 Average monthly solar radiation at Station No. 64 (2009–2011)
(c) Wind Direction and Speed

The wind rose was generated using the hourly meteorological data from Maputo Weather Station
#64 from 2007–2011. The weather station is about 4.5 km northeast of the Project site. The wind
rose consists of 12 petals, which represent the directions from which winds blew during the
survey period. The colors used in the wind rose as shown in Figure 11.2-4 reflect the different
11-3
categories of wind speeds. The dotted circles provide information of the frequency of occurrence
of wind speed and direction categories. The frequency at which calm occurred when the wind
speed was below 0.5 m/s is also predicted. As shown in the figure, the predominant wind
direction was from the south-southwest, with an approximate occurrence of 16%. The second
predominant wind direction is from the east.
NORTH
20%
16%
12%
8%
4%
WEST EAST
WIND SPEED
(m/s)
>= 11.1
8.8 - 11.1
5.7 - 8.8
SOUTH
3.6 - 5.7
2.1 - 3.6
0.5 - 2.1
Calms: 13.36%
Figure 11.2-4 Wind rose for Maputo at Station No. 64 (2007–2011)
Wind Class Frequency Distribution
35
31.3
30
25 23.4
19.7
% 20
15 13.4
11.1
10
5
0.9 0.2
0
Calms 0.5 - 2.1 2.1 - 3.6 3.6 - 5.7 5.7 - 8.8 8.8 - 11.1 >= 11.1
Wind Class (m/s)
Stability Class Frequency Distribution

Figure 11.2-5 Wind class frequency distribution at Station No. 64 (2007–2011)

25 23.8
22.1
20 11-4
16.2
% 15 13.4
(d) Rainfall
The rainfall data is shown in Figure 11.2-6. The annual rainfall data suggests that Maputo
received annual rainfalls ranging from 284 mm to 865 between 2007 and 2011. The rainfall
pattern shows a relatively higher rainfall in the months from November to April, which also
justifies the temperature pattern observed at the point nearest the Project site.
Precipitation in mm
(Source: Instituto Nacional de Meteorologia -INAM)
Figure 11.2-6 Monthly rainfall, Maputo 2007–2011
(2) Air Quality
The proposed Project site is located near the Maputo Port Terminal. In the greater Maputo area,
there are a number of other industries that are considered to be of significant pollution sources,
namely: cement processing, light fuel refining, coal storage and ship loading, informal industries
and waste material burning. In close proximity to the proposed site, pollution sources are
generated from vehicular traffic at the EN2 highway, the MPDC train lines of the Maputo Cargo
Terminal, the coal burning in the adjacent community, the ships traveling within Maputo Bay and
the ships loading at the Maputo Cargo Terminal.
In order to determine the baseline ambient air quality, the JICA Study Team conducted air quality
monitoring from 23 Nov to Dec 01, 2012. The monitoring point was established close to the
center of the Project site between the fuel tanks of the existing GTs (see Figure 11.2-7). The GPS
coordinates of the point are 452914.00 m E, 7130896 m S. The sampling of SO2, NO2 and PM10
were carried out in accordance with NIOSH methods as detailed in Table 11.2-1 below.
11-5
Figure 11.2-7 Location of air quality monitoring points
Table 11.2-1 Air quality sampling methods
Compound Sampling Media NIOSH Method
Sulfur Dioxide (SO2) Treated filters 6004

Nitrogen Oxides (NO2) Treated sorbent tubes 6014
Particulate matter less than 10 Pre-weighted filters 600

µm (PM10)
The ambient samples were collected using precision sample pumps that were calibrated on site
with a portable flow calibrator. The sampling duration was approximately 24 hours for each of
the seven samples for which results are shown in Table 11.2-2.
11-6
Table 11.2-2 Daily Ambient Concentrations for PM10, SO2 and NO2
Parameters
Sample
PM10 (µg/m3) SO2 (µg/m3) NO2 (µg/m3)
1 72.9 < 0.01 19.51
2 60.4 5.01 2.66
3 75.3 4.11 10.72
4 12.6 4.10 4.60
5 33.5 5.36 16.04
6 78.4 1.58 14.71
7 76.7 0.07 5.11

As shown in Table 11.2-2 above, the current SO2 concentrations were below the Mozambican
24-hour guideline of 365µg/m3 and the RSA guideline of 125µg/m3. The measured ambient NO 2
concentrations were also within the Mozambican 24-hour guideline of 200µg/m3. There are no
guidelines in Mozambique, however, for PM10 so the international standards and guidelines were
observed and adopted. The measured ambient PM 10 concentrations were within the current RSA
24-hour guideline of 125µg/m3; however, they were above the WHO guideline of 50µg/m3 on 5
out of the 7 sampling days. Refer to the next section (Section 11.3.1) of this Report for detailed
presentation of the ambient air quality standards and guidelines applicable to this Project.
(3) Noise Level
Sound is created when an object vibrates or radiates and part of that energy travels as acoustic
pressure or waves through air, water or solids. Sound and noise are measured in units of decibels
(dB), which are logarithmic in scale. Small changes in ambient sound levels less than 3 dB(A)
will not be detected by a human ear but 10 dB(A) sound levels would be perceived as a doubling
of sound loudness. To compare the effects of different fluctuating sounds, the average sound level
over a time period will be compared to the constant level of steady, non-varying sound that
produces the same energy during the same period. The fluctuating average noise levels over a
time period is termed as Leq and is represented by the constant noise level producing the same
sound energy over the same time period as the fluctuating noise level. Figure 11.2-8 shows
typical noise levels in various environments.
11-7
Figure 11.2-8 Typical sound levels (dB(A))
In order to determine the ambient noise level in the study area, a baseline noise monitoring survey
was conducted. The monitoring was conducted based on noise measurements obtained and done
by the use of a Type 1 precision impulse integrating sound level meter, as prescribed by the
international standards for sound level meter specifications, i.e., IEC 61672:1999, IEC
61260:1995 and IEC 60651, as well as ISO 19961:2003 and ISO 3095:2001 for the measurement
and assessment of environmental noise.
A total of 10 monitoring points were pre-selected and one additional point (MP11) was chosen to
carry out a 24-hr continuous measurement as shown in Figure 11.2-9. Its Global Positioning
System (GPS) coordinates are shown in Table 11.2-3. The monitoring points consist of:
 Five (5) monitoring points at the Project site
 Five (5) monitoring points at local communities
 One location close to the fuel tanks, about 30 m northwest of the existing No.2 GT.
11-8
Figure 11.2-9 Location of noise monitoring points
Table 11.2-3 Noise monitoring coordinates
Measurement
GPS Coordinates (WGS 84, UTM)
Points
MP01 452843.90 m E 7131027.27 m S
MP02 452954.91 m E 7130936.00 m S
MP03 452925.38 m E 7131035.01 m S
MP04 453056.00 m E 7130909.96 m S
MP05 453157.84 m E 7130804.78 m S
MP06 453172.86 m E 7130930.07 m S
MP07 453274.77 m E 7130868.29 m S
MP08 453228.12 m E 7130845.98 m S
MP09 453293.45 m E 7130777.91 m S
MP10 453333.31 m E 7130831.58 m S
MP11 452914.00 m E 7130896.00 m S
11-9
The noise measurements were performed intermittently during the day and night for a period of 5
days covering four time periods (Morning: 06:00-08:00; Daytime: 08:00-18:00, Evening:
18:00-23:00 and Night-time: 23:00-06:00), within a 24-hour period representing weekdays and
weekends. Table 11.2-4, Table 11.2-5 and Figure 11.2-10 illustrate the results of the noise levels
at each monitoring point.
Table 11.2-4 Noise levels at each monitoring points

Noise Level LAeq (dB(A))
Monitoring Morning Daytime Evening Night-time
Area Type
Points 06:00-08:00 08:00-18:00 18:00-23:00 23:00-06:00
WDa WEb WD WE WD WE WD WE
MP01 55.4 60.8 56.2 56.8 53.8 56.5 41.6 60.5 c
MP02 50.8 60.1 55.3 57.8 57.9 57.5 48.5 72.1c
MP03 Industrial 55.2 59.4 55.2 59.3 60.5 59.3 55.7 64.7 c
MP04 74.4 56.2 64.3 56.4 60.0 56.6 41.3 66.9 c
MP05 52.2 67.4 46.7 58.4 67.6 61.2 52.0 54.2 c
MP06 60.6 64.5 65.7 62.4 64.8 61.0 56.7 61.9 c
MP07 59.3 60.6 62.7 61.3 64.1 59.9 52.6 58.6 c
MP08 Residential 60.0 57.1 68.6 58.1 61.3 66.7 41.0 50.9 c
MP09 55.9 59.1 54.9 59.0 60.6 58.9 43.1 49.2 c
MP10 57.9 60.8 60.6 59.4 62.3 59.6 52.9 54.4 c
a
WD: weekday.
b
WE: weekend or public holiday.
c
: Note: The existing No. 2 GT was in operation during the weekend night-time measurements.
Table 11.2-5 Noise level at MP11*

Noise Level LAeq (dB(A))
Day Morning Daytime Evening Night-time
06:00-08:00 08:00-18:00 18:00-23:00 23:00-06:00
WD 58.8 59.4 55.8 53.4
WE 59.0 58.7 59.8 61.2
WD: weekday.
WE: weekend or public holiday.
*Note: Noise measurements were performed at 10 locations within and around the site and continuously at MP11 within
the site.
11-10
Figure 11.2-10 Average noise level at MP11 over 9 days period (Nov 23–Dec 01/2012)
Based on the results of the noise monitoring, the main noise sources within and around the
Project area were the vehicular traffic from the EN2 highway, the trains to and from the Maputo
Terminal and the existing GTs in CTM Maputo. The ambient noise levels at the monitored points
within the power station site were found to be below the World Bank/IFC Ambient Noise
Guidelines of 70 dB(A) for industrial zones, except for MP02 and MP11, which were in close
proximity to the existing No.2 GT. The noise level from GT operation increased the noise levels
on site, but they are lower than the noise levels at the Bairro Luis Cabral community. The noise
levels at Bairro Luis Cabral community during the weekend at night were found to be higher than
those during weekdays. This may be attributed to the increased night-time activity, such as loud
music, coupled with noise from the traffic and the GT. Table 11.2-6 shows the summary of the
noise monitoring results of each monitoring point.
11-11
Table 11.2-6 Monitoring results in 11 monitoring points

Monitoring Discussion of Results
point
MP01 This point is situated at the entrance of the Power Station site. It is approximately
100 m from the EN2 highway. The noise environment was mainly affected by the
traffic noise from the EN2 and the noise from the GTs when in operation. The
distance of this point to the existing No. 2 GT is approximately 180 m.
The measured ambient noise levels at this point were below the World Bank/IFC
Ambient Noise Guidelines of 70 dB(A) for industrial zones.
MP02 MP02 is at the center of the site, approximately 120 m from the EN2 highway and
60 m from the existing No. 2 GT. The noise environment at this point was dominated
by the GT operation and by the highway traffic. When the No. 2 GT was in
operation, the noise level reached 72.1 dB(A). The noise levels for the remaining
time periods were all below the World Bank/IFC Ambient Noise Guidelines of 70
dB(A) for industrial zones.
MP03 This point is located near the northern corner of the site, approximately 50 m from
the EN2 highway. The noise environment at this point was dominated by the road
traffic and the GT operation. In addition, the noise levels were intermittently elevated
due to passing trains. The measured ambient noise levels at this point for all time
periods were below the World Bank/IFC Ambient Noise Guidelines of 70 dB(A) for
industrial zones.
MP04 This point is located at the center of the northeastern fence line of the site,
approximately 100 m from the EN2 highway and 120 m from the existing No. 2 GT.
The predominant noise sources at this point were the vehicular traffic from the
highway and the GT when it was in operation. Similar to MP03, the noise levels at
MP04 were intermittently elevated due to the passing trains. The measured ambient
noise levels were below the World Bank/IFC Ambient Noise Guidelines of 70 dB(A)
for industrial zones, except for a weekday morning measurement reaching 74.4
dB(A), due to a passing train from the Maputo Terminal.
MP05 This point is located near the southeastern corner of the site. It is approximately
150 m from the EN2 highway. The noise environment at this point was primarily
affected by the EN2 road traffic and the railway activity. The two elevated noise
levels measured, i.e., 67.4 dB(A) and 67.6 dB(A), were all due to passing trains.
In the evenings, the noise levels at this point were increased due to insect and frog
activity. The evening noise levels, without the influence of the passing trains,
reached 61.2 dB(A).
The measured noise levels at this point for the remaining time periods were around
50 dB(A). As can be seen from the weekend night-time measurement, GT operation
did not cause any significant increase of the noise level at MP05. This was due to the
fact that nearby buildings provided shielding from the noise generated by the turbine
operation.
MP06 This point is at the northern border of the Bairro Luis Cabral community, about 20 m
from the EN2 highway. The noise environment at this point was primarily affected
by the vehicular traffic on the EN2.
The measured noise levels at this location were above the World Bank/IFC Ambient
Noise Guidelines for residential and the SANS guidelines for urban districts with
main roads. The average measured noise level reached 62.2 dB(A).
11-12
Monitoring Discussion of Results

point
MP07 The location of this point is within the Bairro Luis Cabral community, approximately
120 m from the site’s fence line and 25 m from the EN2 highway. The main
contributor to the noise environment at this location was the vehicular traffic on the
EN2.
The measured noise levels at MP07 were above the World Bank/IFC Ambient Noise
Guidelines for residential zones and the SANS guidelines for urban districts with
main roads.
MP08 This point lies within the Bairro Luis Cabral community, approximately 70 m from
the site’s fence line and the EN2 highway. The noise environment is affected by the
vehicular traffic on the EN2 and localised domestic activities, including music,
peoples’ conversations, children playing and other human activities.
The measured noise levels at this point were above the World Bank/IFC Ambient
Noise Guidelines for residential and the SANS guidelines for urban districts with
main roads.
MP09 This point is situated within the Bairro Luis Cabral community, which is
approximately 100 m from the EN2 highway. Similar to MP08, the main noise
sources here were the traffic from the EN2 and domestic activities. The noise from
GT operation was audible at this point, but not intrusive.
The measured noise levels at this point were slightly above the World Bank/IFC
Ambient Noise Guidelines for residential, but within the SANS guidelines for urban
districts with main roads.
MP10 This point is close to the northern border of the Bairro Luis Cabral community,
approximately 35 m from the EN2 highway. The noise environment at this point was
primarily affected by the vehicular traffic on the above-mentioned road.
The measured noise levels at this point exceeded the World Bank/IFC Ambient
Noise Guidelines for residential areas and were slightly above the SANS guidelines
for urban districts with main roads.
MP11 The MP11 is situated 70 m southwest of point MP02 at the center of the site and
close to the existing fuel tanks and the existing No. 2 GT. The noise environment at
this point was primarily dominated by the GT operation and by the vehicular traffic
on the EN2. When the existing No. 2 GT was in operation, the noise levels reached
74 dB(A), thus exceeding the World Bank/IFC Ambient Noise Guidelines of 70
dB(A) for industrial zones. The noise levels for the remaining time periods were all
below the World Bank/IFC Ambient Noise Guidelines for industrial areas.
(4) Topography
The elevation in the study area is considered to be low (<4 m above MSL of Port Maputo) due to
its coastal location. The topography of the site is regular with elevations descending steadily
towards the coast and consequently the slopes are mild. Refer to Chapter 5 for a detailed
description of the topographic condition of the proposed site.
11-13
(5) Geology and Soil

The soil texture of the proposed site is considered to be sandy-clay-loam in nature. The origin of
the soil in the site is likely from alluvial deposits associated with the proximity of the site to the
major river system, the Infulune River. Refer to Chapter 5 for a detailed description of geology
and soil condition of the proposed site.
(6) Hydrology
The proposed site is associated with the Infulune River, which is approximately 300 m west of
the proposed Project site. Fronting the Project site is an intertidal zone and a mangrove forest that
slightly extends to the southern end of the site.
To the north of the site, a storm water channel was observed running parallel to the railway. At
two points along this storm water channel, culverts passed beneath the railway enabling the
routing of storm water to Maputo Bay and beneath the site. A ‘saturated surface depression’ was
also noted at the north of the CTM site. This depression runs parallel to the CTM boundary (and
railway). The source of the water saturating this area is unknown and may be due to a number of
reasons such as surface water run-on and an associated impermeable depression, groundwater
extrusion or a burst pipe. Refer to Chapter 5 for a detailed description on hydrological conditions
of the site.
(7) Water Quality

On the basis of the hydrological characteristics of the site, surface water samples were taken in
order to determine the quality of water surrounding the site. Four (4) samples were tested from
the following monitoring locations namely:
1）Sample 1 at the existing tap on site which supplies domestic water;

2）Sample 2 at the Infulune river at the west side of the site;
3）Sample 3 at the Maputo Bay intertidal area at close proximity to the site; and
4）Sample 4 at the storm channel located southeast of the site, which drains the roads and housing
upstream.
Figure 11.2-11 shows the location map. The results of the laboratory sample tests are illustrated
in Table 11.2-7.
11-14
Sample 2
Sample 1
Sample 3
Sample 4
Figure 11.2-11 Location of water quality monitoring points
11-15
Table 11.2-7 Water quality at monitoring points

WHO Drinking Water Mozambique-
Sample Number (Concentrations in mg/l unless indicated otherwise) Sample 1 Sample 2 Sample 3 Sample 4
(Fourth Edition) Ministry of Health
pH – Value at 25°C 6.5-8.5 7.8 7.9 7.7 7.8
Electrical Conductivity in mS/m at 25°C 50-2000 55.9 4 460 4 180 517
Total Dissolved Solids at 180°C 1000 324 31 894 29 598 3 286
Total Suspended Solids at 105°C 14.8 171 142 76
Total Alkalinity as CaCO3 124 136 196 372
Bicarbonate as HCO3 151 166 239 453
Carbonate as CO3 <5 <5 <5 <5
Chloride as Cl 250 250 90 17 572 11 830 1 148
Sulphate as SO4 500 250 22 2 614 2 425 287
Fluoride as F 1.5 1.5 0.3 0.8 0.8 0.5
Nitrate as N [NO3] 50 50 0.2 <0.2 <0.2 30
E Coli / 100 mℓ 0 0 0 14 8 47
Total Petroleum Hydrocarbons (TPH-BTEX) [s] (see detailed report) <0.001 <0.001 <0.001 <0.001
Alkanes (see detailed report) <0.001 <0.001 <0.001 <0.001
Ag <0.025 <0.025 <0.025 <0.025
Al 0.2 0.2 0.278 1.46 1.82 0.266
As 0.01 0.01 <0.010 <0.010 <0.010 <0.010
B 2.4 0.3 0.09 4.41 4.13 0.56
Ba 0.7 0.7 0.095 0.032 0.048 0.091
Be <0.025 <0.025 <0.025 <0.025
Bi <0.025 <0.025 <0.025 <0.025
Ca 50 22 340 343 149
Cd 0.003 0.003 <0.005 <0.005 <0.005 <0.005
Co <0.025 <0.025 <0.025 <0.025
Cr 0.05 0.05 <0.025 <0.025 <0.025 <0.025
Cu 2 1 <0.025 <0.025 <0.025 <0.025
Fe 0.3 0.134 0.988 1.34 0.749
K 3.7 431 377 76
Li <0.025 0.25 0.21 <0.025
Mg 50 15 777 734 92
Mn 0.1 0.1 <0.025 0.069 0.469 0.364
Mo 0.07 0.07 <0.025 <0.025 <0.025 <0.025
Na 200 200 68 10530 7852 747
Ni 0.07 0.02 <0.025 <0.025 <0.025 <0.025
P 0.1 <0.025 <0.025 0.072 0.565
Pb 0.01 <0.020 <0.020 <0.020 <0.020
S 5.73 585 538 70
Sb 0.02 <0.010 <0.010 <0.010 <0.010
Se 0.04 0.01 <0.020 <0.020 <0.020 <0.020
Si 4.9 2.1 3.3 5
Sn <0.025 <0.025 <0.025 <0.025
Sr 0.155 6.85 6 1.08
Ti <0.025 0.035 0.044 <0.025
V <0.025 <0.025 <0.025 <0.025
W <0.025 <0.025 <0.025 <0.025
Zn 3 <0.025 <0.025 <0.025 <0.025
Zr <0.025 <0.025 <0.025 <0.025
As shown in the above table, it is evident that water from Sample 1 is of good quality and the
only parameter highlighted that is of concern is aluminum; however, the concentration can be
skewed by mobilization of aluminum under lower ph values (acidified bottles). Samples 2 and 3
indicate a saline environment with elevated concentrations of chlorine, sulphate, aluminum, boron,
calcium, magnesium and sodium. The total dissolved solids and electrical conductive are also
high. E-coli were present, presumably from the immediate upstream informal settlement. The
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result of Sample 4 showed a high level of E-coli (47/100 ml) with elevated concentrations of
chloride, sulphate, aluminum, boron, calcium, magnesium, iron, magnesium, manganese, sodium
and phosphorous. All samples were tested for hydrocarbons via TPH BTEX testing and none of
these samples indicated the presence of hydrocarbons.
11.2.2 Socio-economic Conditions
(1) Socio-demographic Conditions
(a) Administrative division and demography

The proposed Project site is located in Luis Cabral suburb, which is administratively under Ka
Mubukwana District (formerly Urban District 5) of Maputo City. The Ka Mubukwana District is
composed of 14 suburbs, of which Luis Cabral has the highest population accounting for a total
of 6,985 households based on the 2007 census. Table 11.2-8 provides detailed information as to
the total population in Luis Cabral.
Table 11.2-8 Population in Ka Mubukwana District, 2007

Area 1997 Census 2007 Census Growth Rate
Maputo City 966,837 1,094,315
Ka Mubuwana 211,008 293,995 39.3
Luis Cabral suburb 33,553 33,800 0.7
% of population in 15.9 11.5 -4.4
urban district
(Source: Adapted from INE 1999, INE 2010 and CmMaputo 2010)
Administratively, the urban district is headed by an Administrator nominated by the President of

the City Council and the suburbs are headed by a Suburb Secretary. Each suburb is divided into
city blocks delimited by roads called quarteróes. The quarteróes are numbered and each is
headed by a Head of the Quarteráo. The Luis Cabral suburb is divided into 83 quarteróes. The
quarteróes surrounding the proposed Project site are the quarteróes 39 and 40a and b.
(b) Housing
Housing varies considerably in Luis Cabral suburb and consists of predominantly reed houses or
huts built with either light or concrete materials. The reed houses in quarteróes 40a and 40b are
generally covered with a zinc roof and the structures are generally either wood or tin sheets and
most have no windows. Inside, they are divided into compartments with a compacted mud floor.
The yards are generally reed fenced.
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(c) Education
There are three complete primary schools in Luis Cabral but no secondary schools. In 2012, there
were 5,334 students enrolled in these schools. There is also a newly established Dom Bosco
Higher Institute, constructed in 2007 to train teachers through distance learning. In 2008, the
institute introduced new courses in tourism and administration. At present, there are 266 students
enrolled. The location of Dom Bosco Higher Institute is at the former Maquinag plot, the land
area opposite to the proposed Project site.
(d) Health and sanitation

In terms of health concerns, malaria, tuberculosis and HIV/AIDS are the common diseases. Most
of the people in Luis Cabral have access to health services in the nearby Jose Macamo Hospital,
which is located not far from the Project site, but it belongs to Malanga suburb (Urban District
Nhamankuku).
Sanitation is one of the major concerns in Luis Cabral suburb because of the absence of good
sewage and solid waste disposal systems. Most quarteróes next to the proposed Project site do
not have proper latrines. However, there are on-going initiatives that are taking place in order to
improve the sanitation and public health funded by Family Health International.
(e) Water supply

The water is administered by the FIPAG (Fundo de Investimento and Património de
Abastecimento de Água). The public provider of tapped water to households in Maputo City is
Águas de Moçambique (AdM). Accordingly, of the 14 suburbs in Ka Mubukwana Urban District,
only 10 were covered by AdM’s water supply. The majority of the people in Luis Cabral suburb
are covered by the public water supply network. However, in quarteirõ 39 (which comprises
quarteirão 39 and 39a-39f) and quarteirão 40 (which comprises quarteirão 40 and 40a-40b),
households have no tapped water supply. A public water fountain has been installed in the each
one of the “mother”-quarteirões (which means in city blocks 39 and 40), where households can
fetch water they need. The public fountain is located across the EN2.
(2) Economic Conditions
(a) Agriculture
Considering that the land use of the proposed Project site and its surrounding environment is
industrial, agriculture activities are very limited except for vacant and unused land where some
communities get permission to cultivate. The vacant and unused land close to the Project site is
used by nearby quoarteróes to plant cash crops and maize for domestic consumption.
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(b) Fisheries
The first inhabitants in Luis Cabral suburb were from Inhambane province and practiced fishing
in Maputo Bay. However, in recent years, only a few people rely on fishing and only a small
number of quarteróes own wooden boats. Fishing in Luis Cabral is limited to domestic
consumption.
(c) Industries
Most people near the Project site are laborers and workers of industrial companies like Ford
(opposite the proposed Project site), small companies for air conditioning and freezer repairs,
Volvo and Hyundai, FRESPO (trucking company), and the port terminal, which is not far from
the Project site.
11.3 System and Organization of Environmental and Social Considerations in

Mozambique
11.3.1 Environmental Laws, Regulations and Standards in Mozambique

(1) Environmental Laws and Regulations
Mozambique has relatively well-developed legal frameworks for environmental management and
protection. These are manifested by the adequate number of well-enforced legal instruments.
Some of these laws and regulations are listed in Table 11.3-1.
The umbrella law, known as the Environmental Law (Law No. 20/97) mandates all
environmental matters in Mozambique and is considered to be an important instrument in the
enactment and passage of various and specialized environmental decrees and regulations in the
country.
Significant highlights of this Law include, among others, the following basic principles for
environmental management in Mozambique:
 Rational utilization and management of the environment with a view to the promotion of
improved quality of life of citizens and maintenance of biodiversity and ecosystems
 Recognition of traditions and local knowledge which may contribute to the conservation and
preservation of natural resources and the environment
 Equitable access to natural resources for all
 Public participation
The domain of the Environmental Law comprises all activities private or public, which directly or
indirectly influence the environment and those that fall under the constitutional provision for “an
ecological balanced environment” for all citizens.
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Table 11.3-1 Environmental regulations in Mozambique

Description of the Environmental Regulation Legal Instrument
Title
 Environmental Law (Lei do Ambiente) Law No. 20/97
 Land Act Law No. 19/97
 Regulations on Waste Municipal Law No.
2/97
 Forestry & Wildlife Act Law No. 10/1999
 Regulation for Flora and Fauna Resource Protection Decree No. 12/2002
 Environmental Auditing Decree No. 32/2003
(Regulamento relative ao processo de auditoria ambiental)
 Regulation for Industrial Activities Decree No. 39/2003
(Regulamento do Licernciamento da Actividades Industrial)
 Standards for Environmental Quality and Effluent Emissions Decree No. 18/2004
(Regulamento sobre os pa sobre os padrões de qualidade ambiental e
de emissão de efluentes)
 Regulation on Mining Decree No. 26/2004
(Regulamento ambiental para actividade miniera)
 Regulation on EIA Process, replacing Decree No. 76/98 Decree No. 45/2004
(Regulamento sobre o processo de avaliação do impacto ambiental)
 Regulation on Waste Management Decree No. 13/2006
(Source: MICOA)
(2) Environmental Standards Applicable to the Proposed Project
(a) Mozambican Environmental Standards

Mozambique has not yet developed any guidelines related to environmental assessment that are
applicable to the industrial sector. However, Decree No. 18/2004 was passed on standards for
environmental quality and effluent emissions, which serves as the basis for the EIA Authority in
evaluating EIA reports. The purpose of this regulation is to establish the standards for
environmental quality and effluent emissions in order to control and maintain admissible levels of
concentration of pollutants into the environment. The provision of the regulation is applied to all
new public and private activities having a direct or indirect impact on the environment. The
existing power plants are required to evaluate and adapt their equipment to ensure compliance
within five years of the date of publication of the regulations. Although the regulation covers air
quality, water quality, soil quality, and noise, standards for certain other parameters are yet to be
established. Accordingly, non-compliance with any of the pollution standards set out under the
regulations or those applicable recognized standards and the failure to report exceedance, is
punishable by a fine of between 20 million to 200 million MTn.
Table 11.3-2 to Table 11.3-4 illustrate the environmental guidelines set forth under the
environmental quality and effluent emissions standards in Mozambique.
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Table 11.3-2 Air quality standards in Mozambique

(mg/Nm3)
Sampling Time
Parameters 1 hour 8 hours 24 hours Annual
Arithmetical
Mean
Primary Second- Primary Second- Primary Second- Primary Second-
ary ary ary ary
Sulfur dioxide 800 365 80
(SO2)
Nitrogen 400 200 100
dioxide (NO2)
Carbon 40,000 10,000
monoxide (CO)
Ozone (O3) 160 50 70
Total 200
suspended
particle
Lead (Pb) 3 0.5-1.5
(Source: Government Bulletin, 02 June 2004 (Decree No. 18/2004))
Table 11.3-3 Standards of emission for airborne pollutants by thermal power stations
(mg/Nm3)
Activity Total of SOx NOx Others
Suspended
Particles
Thermal power 50 0.2 per day (500 MW) Coal = 750
stations (new) 0.1 per day (>500 MW) Diesel = 460
Gas = 320
Table 11.3-4 Standards of potentially harmful substances

Parameter Maximum Limits Parameter Maximum
Limits
Aluminum 1.5 mg/l Phenols 0.001 mg/l
Ammonia 0.4 mg/l Soluble Iron 0.3 mg/l
Antimony 0.2 mg/l Fluorides 1.4 mg/l
Arsenic 0.05 mg/l Manganese 0.1 mg/l
Barium 1.0 mg/l Mercury 0.0001 mg/l
Beryllium 1.5 mg/l Nickel 0.1 mg/l
Boron 5.0 mg/l Nitrates 10.0 mg/l
Bromine 0.1 mg/l Nitrites 1.0 mg/l
Cadmium 0.005 mg/l Silver 0.005 mg/l
Lead 0.01 mg/l Selenium 0.01 mg/l
Cyanide 0.005 mg/l Surface-active substances 0.5 mg/l
that react to methylene blue
Residual chlorine 0.01 mg/l Sulphides such as H2S 0.002 mg/l
Copper 0.05 mg/l Thallium 0.1 mg/l
Total chrome 0.05 mg/l Uranium 0.5 mg/l
Tin 2.0 mg/l Zinc 0.01 mg/l
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(b) Regional and International Environmental Standards

In the absence of environmental quality and effluent standards set forth under Decree No. 18/2004,
particularly on significant parameters, the Mozambique government follows the standards set by
the following:
 South African Bureau of Standards
 World Health Organization
 World Bank – International Financial Corporation
1) South African National Ambient Air Quality Standards on Selected Parameters
Mozambique’s Decree No. 18/2004 on Environmental Quality Standards and Effluent Emissions
has yet to establish the standards for the following parameters: PM10, dust, and noise; thus, the
following standards are adopted from the South African National Air Quality values. Table
11.3-5 and Table 11.3-6 illustrate the standards for the parameters mentioned.
Table 11.3-5 Ambient air quality standards for PM10 parameter

Pollutants Average Limit value Frequency of Compliance Date
Period in Exceedance
μg/m3
PM10 24 hours 120 4 Up to 31 Dec 2014
75 4 Up to 1 Jan 2015
1 Year 50 0 Up to 31 Dec 2014
40 0 Up to 1 Jan 2015
(Source: Air Quality Act- (No. 39 of 2004) (NEM:AQA), SANS 69 and SANS 1929:2005 Ambient Air Quality)
Table 11.3-6 Dust-fall criteria

Classification Description
Slight Less than 250 mg/m2/day
Moderate 250 to 500 mg/ m2/day
Heavy 500 to 1,200 mg/ m2/day
Very Heavy More than 1,200 mg/ m2/day
(Source: Air Quality Act (No. 39 of 2004))
2) World Health Organization
The global environmental standards set by WHO are also being used as a reference in
Mozambique as far as environmental health is concerned, including some of the significant
parameters illustrated in Table 11.3 7.
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Table 11.3-7 WHO ambient air quality guidelines

Parameter Guideline
PM25 3
10 μg/m annual mean
25 μg/m3 24 hour mean
PM10 20 μg/m3 annual mean
Ozone (O3) 100 μg/m3 8 hour mean
Nitrogen dioxide (NO2) 40 μg/m3 annual mean
Sulfur dioxide (SO2) 20 μg/m3 24 hour mean
500 μg/m3 10 minute mean
(Source: WHO Air Quality Guideline Global Update 2005)
3) International Finance Corporation (IFC) – World Bank Group
In the absence of standards and guidelines, Mozambique uses the guidelines for noise levels set
by the South African Noise Control Standards and the International Finance Corporation – World
Bank Group Environmental Health and Safety Guidelines. Table 11.3-8 illustrates the following
ambient noise levels set the IFC-World Bank Group.
Table 11.3-8 IFC ambiant noise level guidelines

Receptor 1 Hour LAeq (dBA)
Daytime: 07:00 – 22:00 Night Time: 22:00 – 07:00
Residential, Institutional and 55 45
Educational
Industrial, Commercial 70 70
(Source: IFC-World Bank Group Environment Health and Safety (EHS) Guideline on Noise Management, 2007)
With regards to effluent standards, the IFC-EHS Guidelines for Thermal Power Plants (2008)
have specified performance indicators and environmental monitoring requirements. This
guideline stipulates: “Effluent guidelines are applicable for direct discharges of treated effluents
to surface waters for general use. Site-specific discharge levels may be established based on the
availability and conditions in the use of publicly operated sewage collection and treatment
systems or, if discharged directly to surface waters, on the receiving water use classification as
described in the General EHS Guideline (2007). Guideline values for process emissions and
effluents in this sector are indicative of good international industry practice as reflected in
standards of countries with recognized regulatory frameworks. These levels should be achieved,
without dilution, at least 95 percent of the time that the plant or unit is operating, to be calculated
as a proportion of annual operating hours. Deviation from these levels due to specific local
project conditions should be justified in the environmental assessment.”
Table 11.3 9 provides the effluent guidelines based on parameters.
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Table 11.3-9 IFC Effluent Guidelines

Parameter Unit mg/L, except for pH and Temp
pH 6-9
TSS 50
Oil and grease 10
Total residual chlorine 0.2
Chromium-Total (Cr) 0.5
Copper (Cu) 0.5
Iron (Fe) 1.0
Zinc (Zn) 1.0
Lead (Pb) 0.5
Cadmium (Cd) 0.1
Mercury (Hg) .005
Arsenic (As) .05
Temperature increase by  Site specific requirement to be established by the EIA
thermal discharge from
 Elevated temperature areas due to discharge of once-through cooling
cooling system
system (e.g., 1 Celsius above, 2 Celsius above, 3 Celsius above
ambient water temperature) should be minimized by adjusting intake
and outfall design through the project specific EIA depending on the
sensitive aquatic ecosystem around the discharge point.
(Source: IFC-EHS Guidelines for Thermal Power Plants, 2008)
11.3.2 Environmental Impact Assessment System in Mozambique
(1) Legal Basis of Environmental Impact Assessment
Decree No. 45/2004, known as the Regulation on EIA Process, provides the EIA procedural
framework in the conduct, evaluation and overall management of EIA process in Mozambique. It
outlines the steps to be undertaken for all development activities, whether public or private.
The EIA Regulation also mandates that only EIA professionals (técnicos médios e superiores)
who are registered environmental consultants can undertake an EIA process in Mozambique.
Consultants are required to register either as individuals, companies or as a consortium of
companies (e.g., for a specific project) and are required to have at least five years of relevant
experience at the time of registration. Only an ‘advanced’ professional can act as a project
manager and sign on EIA reports. For non-Mozambican companies who wish to conduct an EIA
process in the country, the process must be subcontracted to a company registered in
Mozambique. In addition, the company must submit documentation consisting of a list of similar
projects undertaken, CVs and the qualifications of each member proposed for the EIA team.
Corresponding fees are collected in accordance to the following:
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Table 11.3-10 Licensing and fees
Required Fees Amount
Issuance of Registration Certificate for Environmental Consulting Firms 30 million MTn

Issuance of Registration Certificate for Individual Environmental 10 million MTn
Consultants
Updating of Registration (every 3 years for environmental consulting firms) 15 million MTn
Updating of Registration (every 3 years for individual environmental 5 million MTn
consultants)
(Source: Country Report, 2007-South African Development Community Handbook on Environmental Legislation)
(2) System of Project Categorization
(a) Classification and Categorization of Project

Environmental assessment requirements of projects depend on the significant impacts and are
evaluated based on location, sensitivity, scale, nature and magnitude of impact. Therefore,
projects are screened based on their expected environmental impacts and are classified as one of
the following categories.
 Category A are those projects that may have a significant impact on the environment and
whose activities are listed in Appendix 1 of the EIA Regulations including, among others,
power generation, transmission lines with a voltage of 110 kV with a length of more than 10
km, and gas pipelines longer than 5 km. Project types like these require an EIA level study
and the formulation of an Environmental Management Plan.
 Category B are those projects or activities listed in Appendix 2 of the EIA Regulations,
which do not significantly affect communities, environmentally sensitive areas and for which,
the intensity and extent of impact are lower than that of those in Category A. Category B
projects only require a Simplified Environmental report (SER).
 Category C are those projects or activities listed in Appendix 3 of the EIA Regulations,
which show insignificant or negligible impacts on the environment. A declaration for
exemption for any EIA or SER requirement will be issued by the EIA authority or
responsible DPCA.
(3) Process of Environmental Impact Assessment

A brief description of the salient EIA process is described below and Figure 11.3-1 shows the
schematic presentation of such process.
(a) Application and Screening

A compulsory application form called the Preliminary Environmental Information Form shall be
filed by the project proponent and submitted to MICOA or at a designated Provincial Directorate
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for Environmental Affairs (PDCA). Based on the information contained in the application form,
MICOA or PDCA will conduct a screening or pre-evaluation in order to determine the project
classification and categorization.
(b) Environmental Pre-Viability Report and Scoping Definition (EPDA)

An EPDA is a compulsory requirement for all Category A projects. This document contains a
preliminary prediction of impact and identification of significant environmental and social issues
to be scoped during the EIA Study.
(c) TOR for the Environmental Study

The Terms of Reference (TOR) is a set of steps and processes to be followed by the registered
consultants in the conduct of an EIA level study for Category A projects and SER level study for
Category B projects.
(d) Review and Approval Process

The TOR for Category A projects shall be submitted to the EIA Authority for review and
approval before the start of the EIA Study, while for the Category B projects, the TOR shall be
submitted to the respective DPCA for review and approval.
(e) EIA Report and SE Report

EIA Report and SE Report shall be submitted to an EIA Authority and DPCA, respectively for
review and approval.
(f) Public Participation Process

For Category A projects, intensive public participation processes are required and compulsory in
order to generate feedback from the general public on their perceptions and ideas regarding the
project. The public participation process is optional for Category B projects.
(g) Schedule of Decision-making

Decisions by the EIA authorities (MICOA and/or DPCA) are to be made in accordance with the
following schedule:
Table 11.3-11 Schedule of decision-making, by project category
EIA Process Schedule of Decision-making (in days)

Category A Category B Category C
Screening/IE 5 5 5
EPDA/TOR 30 15 -
EIA/SER Review 45 30 -
Public Participation Process 30 days Optional -
(Source: MICOA, Article 18 of Decree 45/2004-EIA Regulation)
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(h) Issuance of Environmental License

The issuance of the environmental licenses are granted by the MICOA and/or DPCA upon the
payment of licensing fees applied based on the classification and categorization of the projects as
follows:
 Environmental license for Category A and B projects: 0.1% of the total value of investments
 Issuance for exemption declaration for Category C projects: 0.01% of the total value of
investments
(Source: MICOA)
Figure 11.3-1 Schematic presentation of the EIA process in Mozambique
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(4) Comparison of Environmental and Social Considerations Guidelines
The JICA Guidelines of April 2010 on environmental and social considerations is the
fundamental instrument used in carrying out the environmental assessment for this Project in
Mozambique. However, environmental laws and regulations in Mozambique are also being
considered. In addition, the policies and guidelines published by the Asian Development Bank
(ADB) are being referred to in order to ensure that significant environmental and social elements
of the Project are balanced and looked into fairly. Based on the study conducted, no significant
differences or gaps have been identified among the three legal documents mentioned. Table
11.3-12 shows the comparative descriptions of significant environmental and social
considerations published by JICA, ADB and the Government of Mozambique, which are relevant
in carrying out the Project.
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Table 11.3-12 Comparison of environmental and social considerations by JICA, ADB and Mozambique
Significant Items JICA ADB Mozambique
Disclosure of  Environmental assessment reports are  Environmental assessment reports for  Environmental assessment reports are
information accessible to any interested parties and ADB projects are accessible to interested accessible to the general public.
general public and accessible through parties and the general public.
the JICA website.
Public participation  JICA social acceptability policy  ADB requires public consultation in the  Article 13 of the EIA regulations sets out in
process dictates the need for public environmental assessment process. broad terms the basic components of the
participation process.  For Category A and B projects, the public participation process during the
 In order to have meaningful meetings, borrower must consult with groups compilation of environmental assessment
JICA encourages project proponents to affected by the proposed project and reports.
publicize and consult with local local non-government organizations  In some cases, MICOA may see public
stakeholders, with particular attention (NGOs). comment or hold a public hearing during the
to directly affected people.  For Category A projects, ADB ensures review process of any documents submitted
 In the case of Category A projects, that the borrower carries out public before approval.
project proponents need to consult consultation at least twice: (i) once  For Category A projects, public participation
with local stakeholders about their during the early stages of EIA field is a mandatory process. It is optional for
understanding of development needs, work; and (ii) once when the draft EIA Category B projects.
the likely adverse impacts on the report is available, and prior to loan  Public meetings must be advertised at least 15
environment and society, and the appraisal by ADB. The public days in advance, to which all interested parties
analysis of alternatives at an early consultation process needs to be are invited to comment.
stage. described in the EIA and SEIA reports.
 In the case of Category B projects,
project proponents are required to
consult with local stakeholders when
necessary.
Safeguard Policies  For projects that will result in  ADB has three safeguard policies,  MICOA coordinates with the Ministry of
large-scale involuntary resettlement, namely: Gender and Social Affairs in cases of human
resettlement action plans must be a) Indigenous People’s (IP) Policy resettlement, compensation and rehabilitation
prepared and made available to the b) Environment Policy of people affected and displaced by
public. c) Involuntary Resettlement (IR) Policy. development projects.
 It is desirable that the resettlement
action plan will include elements laid These policies set important provisions to
out in the World Bank Safeguard make sure that development projects are
Policy, OP 4.12, Annex A. not detrimental or harmful to the society
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Significant Items JICA ADB Mozambique

 Measures for the affected indigenous and the environment.
peoples must be prepared as an
indigenous peoples plan (which may These policies, in principle, set guidelines
constitute a part of other documents on how to ensure the observance of the
for environmental and social rights of vulnerable groups and protection
consideration) and must be made of the environment.
public in compliance with the relevant
laws and ordinances of the host
country.
 It is desirable that the indigenous
peoples plan will include the elements
laid out in the World Bank Safeguard
Policy, OP4.10. Annex B.
Examination of  Multiple alternatives must be  ADB requires proponents to study the  Article 2 of the EIA regulation mandates the
measures examined in order to avoid or comparison and evaluation of study and comparison of alternatives including
minimize adverse impacts. REASONABLE ALTERNATIVES a No Go option.
 In the examination of measures, included in the approaches to the  An Environmental Management Plan
priority is given to avoidance of selection of alternatives, NO ACTION including mitigation measures, and monitoring
environmental impacts; when this is alternative, and evaluation and of impacts, environmental education, accident
not possible, minimization and comparison of alternatives, in relation to prevention and contingency plans are required
reduction of impacts must be social and environmental problems, costs to be incorporated in the EIA/SER reports.
considered. and benefits.  Article 24 of EIA Regulations requires regular
 Compensation measures must be  According to the Operation Manual inspections and audits for Category A and B
examined only when impacts cannot issued October 2003, Category A and projects to ensure that EMP is properly
be avoided by any of the environmentally sensitive Category B implemented and enforced.
aforementioned measures. projects require, as part of the
 Appropriate follow-up plans and environmental assessment process, the
systems, such as monitoring and development of EMPs that outline
environmental management plans, specific mitigation measures,
must be prepared including costs and environmental monitoring requirements,
the financial methods to fund such and related institutional arrangements,
activities. Projects with particularly including budgets.
large potential adverse impacts must
be accompanied by detailed
environmental management plans.
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11.3.3 Organization Responsible for EIA System in Mozambique
(1) Ministério para a Coordenação da Acção Ambiental (MICOA)
The Ministério para a Coordenação da Acção Ambiental (MICOA) was established in 1995
with the mandate to implement the National Environmental Management Plan, enforce
environmental policies and legislation as well as to coordinate with relevant ministries on
environmental concerns and ensure that the environmental considerations are integrated into
sector plans, programs, policies and development projects. Figure 11.3-2 shows MICOA’s
organizational structure.
MICOA is composed of five departments, namely: environmental impact assessment,
management of natural resources, land planning, promotion of environmental awareness and
planning, for which each department has its own respective mandates.
In December 1999, the EIA Department was upgraded to National Directorate of Environmental
Impact Assessment in order to effectively and efficiently implement the mandate contained in
Law No. 20/97 known as the Environmental Law. The new enhanced National EIA Directorate
comprises of a team of professional staff, including a National Director, deployed flexibly to
perform the tasks and supported by EIA Department and Environmental Auditing Department.
Furthermore, in line with the government’s decentralization policy and in order to discharge its
mandate more effectively, MICOA established the Provincial Directorates to coordinate
environmental affairs (DPCAs) at the provincial level in ten provinces all over the country. In
principle, the role of the provincial directorates is to facilitate the implementation of the
centrally developed environmental legislation, policies and programs, including EIA regulations
and guidelines at the local level. At present, most of the provincial governments have
institutionalized a Department of Environmental Management and some provinces have
established a separate EIA Department.
(2) Other Key Ministries/Departments Involved in Environmental Protection
(a) National Commission for Sustainable Development.

The National Commission for Sustainable Development is linked to the Council of Ministers,
which was created in October 2000 by a provision in the Framework Environmental Act. This
commission seeks to ensure the effective coordination and integration of sector policies and
plans related to environmental management at the highest level.
(b) The Ministry of Agriculture and Rural Development has a broad responsibility in relation
to natural environmental management including agriculture, livestock, forestry and wildlife.
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(c) The Ministry of National Directorate of Forestry and Wildlife is in charge of managing the
country’s vast forestry and wildlife resources outside national parks and reserves.
(d) The Ministry of Tourism also known as the Directorate for Conservation Areas is
responsible for the protection of National Parks, unless these parks have been specifically
declared by another agency.
(e) The Ministry of Fisheries is responsible for the implementation of Law No. 3/1990 known
as the Fisheries Law that covers management of freshwater and marine fish resources as well as
overseeing aqua and marine-culture industries.
(f) The Ministry of Trade and Industry is involved in larger development projects.
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(Source: Country Report-South African Development Community Handbook on Environmental Legislation)
Figure 11.3-2 Organization structure of MICOA
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11.3.4 Project Categorization of the Proposed Project
(1) Project Categorization
The Electriçidade de Moçambique (EDM) submitted the application to MICOA Headquarters

and DPCA on October 11, 2012 in order to obtain the classification and categorization of the
proposed Project. After the screening process, MICOA categorized the proposed Project as
Category A as per official communication received by EDM on 23 October 2012. Based on
information gathered, the result of the categorization of the proposed Project was in accordance
with the following criteria:
 Project type (hydroelectric power plants, thermal power plant stations with 110 kV power
transmission lines with more than 10 km in length, and a gas pipeline of more than 5 km as
listed in Appendix 1 of the EIA Regulations
 Probability, nature, duration and extent and significance of potential impacts of the
proposed Project
 Direct and indirect impacts of the Project with global cumulative effect
 Reversibility of impacts and the likelihood of compliance with Mozambican environmental
quality standards or applicable regional and international standards
 Previous knowledge of the proposed Project site
 Amount or value of the investment
(2) Undertakings of EDM

EDM is scheduled to proceed with the official EIA procedure required by MICOA (refer to
Figure 11.3-1 for the process involved in Category A projects) and shall take the necessary steps
in obtaining the environmental license. A tentative schedule of work related to the EIA process
has been drawn as shown in Table 11.3-13. The schedule was drawn on the basis of JICA’s
information disclosure policies related to the sharing of the results on the Environmental and
Social Considerations (“ESC”) studies undertaken during the FS stage of the Project.
Table 11.3-13 Tentative schedule of official EIA process of the proposed project
Broad Tasks/Activities 2012 2013
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Application to MICOA
Consultancy Service Procurement Procedure
Commission Local Consultant for follow thru

activiies on JICA ESC Study
Follow thru activities and EPDA/TOR submission
MICOA's decisions on EPDA/TOR
EIA Study
Approval Process of EIA Report
Issuance of Environmental License
11-34
11.4 Comparison and Study of Alternatives (including Zero Option or Without

Project)
11.4.1 Project Site Selection

There are two sites proposed for the development of the new power plant in Mozambique
namely: the site in Beluluane Industrial Park and the existing Maputo Thermal Power Plant
(CTM) in Maputo City. The Beluluane Industrial Park site is located along the Maputo Corridor,
approximately 18 km west of Maputo city and about 20 km from the Port of Maputo. The CTM
site is located approximately 3 km west of the urban district of Maputo city. There are no
significant environmental and social considerations (refer to Chapter 3 of this Report for
detailed information about the sites) in either site, and no sensitive environmental characteristics
or areas of environmental significance have been identified. Hence, the criteria used in the
selection of the Project site centered on the following:
 Land use
 Area size for development
 Site accessibility and ease in land preparation
 Topographic condition of the site
 Maximum applicable output based on transmission line capacity
 Availability of fuel gas volume
 Availability of water resource
 Applicability of appropriate cooling system
 Availability of potential configuration of CCGT
On the basis of the above criteria, the CTM site is considered to be the most advantageous site
compared to the Beluluane site.
Table 11.4 1 shows the results of the comparative analysis undertaken by the JICA Study Team
in October 2012.
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Table 11.4-1 Summarized results of the comparative study on site selection

Criteria Proposed Sites
CTM Site Beluluane Site
1 Land use Industrial use/Mixed use Industrial use
2 Area size for development 3.7 hectares 1.5 hectares
3 Site accessibility and ease in land Easy access during transport Easy access during
preparation and land clearance transport and land
clearance
4 Topographic condition of the site Flat Moderate
5 Maximum applicable output based 100 MW or more 50 MW
on transmission line capacity
6 Availability of fuel gas volume 6.0 MGJ/year 3.0 MGJ/year
7 Availability of water resource Sufficient water resource Insufficient water resource
8 Applicability of appropriate cooling 3 applicable cooling system Cooling system option is
system alternatives: once-through, wet limited to air-cooled
cooling tower and air-cooled condenser
condenser
9 Availability of potential Wide selection of prospects for Prospects for selection of
configuration of CCGT of CCGT configuration CCGT configuration are
few
11.4.2 Type of Cooling System
There are three (3) cooling systems identified that are potentially applicable to the envisioned
new power plant namely: once-through, wet cooling tower and air-cooled condenser.
The following criteria are used to determine the best possible option:
 Environmental consideration
 Technical consideration
 Administrative consideration
 Duration of construction
 Construction cost
 Lifetime cost
The comparative results of the evaluation by the JICA Study Team in October 2012 are shown
in Table 11.4 2 below.
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Table 11.4-2 Summarized results of the comparative study on cooling system

Criteria
Cooling Condenser System
Once-through Wet cooling tower Air-cooled
condenser
1 Environmental Uses sea/river water for Uses fresh water for Doesn’t use water
consideration cooling (about 7,000 cooling (about 300 m3/h) for cooling
m3/h)
Abundant source of water Water is expensive in Considerable impact
near Project site Maputo on noise and
(Maputo Bay and vibration
Infulune River)
Considerable impact on Considerable impact on
the coastal zone including the carryover when salt
near shore deformation, and other contaminants
coastal water quality and are present in the water
sea-bottom droplets
sedimentation, marine
ecosystem including
fishery, sea grass,
benthos, beach vegetation
including mangroves, etc.
caused by the change in
ecosystem conditions and
increase in temperature of
the discharge water
2 Technical Highest plant efficiency Lower plant efficiency by Lower plant
consideration vacuum level efficiency by
vacuum level
3 Administrative Requires approval from n/a n/a
consideration Maputo Port
Development Company1
for the use of the coastal
zone
4 Duration of Longer construction Shorter construction Shorter construction
construction period period period
5 Construction cost2 Relatively higher Relatively high Relatively lower
construction cost construction cost construction cost
Needs construction of comparable to compared to
new intake system and once-through once-through and
pipeline wet condenser
system
6 Estimated lifetime US$ 360.3 million US$ 357.3 million US$ 340.2 million
cost3
1
Maputo Port Development Company is an authority that operates and governs the Mozambique ports of Maputo and Matola. It
holds the concession to manage, construct, operate, develop and optimize the concession area until 2033 with options to extend.
2
Please refer to Chapter 9 for detailed information on Project cost.
3
Please refer to Chapter 10 on economic and financial analysis.
11-37
11.4.3 Zero Option or Without Project
Without the Project, in order to bridge the gap in power balance up to completion of the STE
Project, EDM needs to acquire power from gas-fired thermal plants being planned mainly in
Ressano Garcia. Natural gas can be tapped off the existing gas pipeline transferring gas from the
Pande & Temane Gas Fields in Mozambique to South Africa.
Since these power plants are generally located in inland hilly areas where cooling water cannot
be easily obtained, gas engines are to be mainly used for power generation. On the other hand,
the proposed new power plant is expected to be a Combined Cycle Gas Turbine (CCGT) plant,
and can achieve a higher thermal efficiency than a gas-engine power plant. Therefore, even if
the plant output is the same, CCGT plants will emit less CO2 than gas-engine power plants.
Assuming the gas-engine power plant with an output of 100 MW is replaced by a CCGT plant
with the same output, the potential CO2 emission reductions can be preliminarily calculated as
follows:
Potential reduction in CO2 emission
① Rated output: 100MW

② Capacity Factor: 83%
③ LHV/HHV ratio: 0.9019
④ Gas consumption of CCGT power plant (assuming thermal efficiency at LHV of 50%):
5,804,459 GJ/year
⑤ Gas consumption of gas-engine power plant (assuming thermal efficiency at LHV of 44%4):
6,595,977 GJ/year
⑥ CO2 emission factor for natural gas: 0.051 tCO2/GJ
⑦ CO2 emission reduction: 40,774 tCO2 (=(⑤-④)*⑤)
Since Mozambique with a significant proportion of hydro-generation capacity (95%) has an

extremely low Grid Emission Factor (GEF), grid-connected CDM projects are not feasible.
4
Environmental Pre-Feasibility Study and Scope Definition for Mozambique Gas Engine Power Plant
(MGEPP) Project in Ressano Garcia, Mozambique (2011)
11-38
11.5 Scoping and TOR for the Environmental and Social Consideration Study
11.5.1 Scoping for Environmental and Social Consideration Issues

The scoping for significant environmental and social issues of the Project was undertaken in
accordance to JICA Guidelines for Category B projects and the environmental regulations of
Mozambique.
In order to ensure that all significant environmental and social issues are considered, an
environmental checklist was generated, details of which are attached in the Appendix-7 of this
Report. Table 11.5-1 below provides the summarized items in the environmental checklist.
Table 11.5-1 Items in the environmental checklist
Category Item/Environmental Parameter
1 Permits, approval and public participation EIA and environmental license

process Public participation and stakeholders
engagement
2 Environmental quality standards Air quality
Water quality
Noise/vibration
Waste management
Soil
Site contamination
Climate change factors
3 Natural environment Topography
Geology
Hydrology
Ecosystem
Biodiversity
Protected areas
Area of environmental significance
4 Economic and social environment Local economy
Resettlement
Indigenous people
Landscape
Cultural heritage
Health and Safety
On the basis of the above, the JICA Study Team conducted an initial evaluation of these
environmental elements to determine key environmental issues to be included and scoped in the
environmental and social considerations study. Table 11.5-2 illustrates significant results.
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Table 11.5-2 Draft scoping of environmental impact

Classification Environment Evaluation Reasons for Evaluation
Parameter Operation
Construction and
Maintenance
Environmental Air quality B- C- During construction, air pollutants are
quality expected from heavy equipment and
standard and trucks, which generate dust and CO2 gas.
pollution During O&M, emissions to the
control atmosphere by significant pollutant
parameters need to be clarified.
Understanding the baseline conditions is
important.
Water quality D C- Prior to construction, the quality of
surface waters in the site and its
surroundings need to be determined in
order to understand its characteristics.
Noise/vibration B- C- Noise is a critical aspect. The Project site
has existing facilities that are sometimes
used by EDM. The site is near a national
highway and a railway line. These and
other sources of noise should be clarified
apart from the noise level that the Project
will produce during construction and
O&M. This is an issue raised during
Board Meeting with EDM in Oct. 2012.
Waste C- C- Domestic and industrial wastes including
hazardous and a range of other typical
waste material are expected during
construction and O&M. It is important to
understand waste management standards
and ensure a good and effective waste
management system.
Soil C- D The site used to be a coal power station.
Soil contamination issues need to be
clarified.
Climate change D C- Emissions to the atmosphere by the
Factors significant parameter (CO2), which maybe
have an impact on the ozone layer, can be
expected in the long run.
Natural Topography D D The Project will not affect or change the
Environment topographic features of the Project site.
Geology D D The Project will not affect or change the
geological characteristics of the Project
site.
Hydrology C- C- In 2000, Maputo was submerged by
floodwater. During O&M, measures to
mitigate or avoid this should be taken into
consideration.
Ecosystem D D The Project is not expected to affect the
ecosystem.
Biodiversity D D The Project is not expected to impact
biodiversity.
Protected areas D D The Project is not near any protected areas
so an impact is not expected.
Areas of D D No areas for environmental significance
environmental are present in the Project site although
significance there is a mangrove forest in the
surrounding area. However, the Project is
not expected to impact the mangrove
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Classification Environment Evaluation Reasons for Evaluation

Parameter Operation
Construction and
Maintenance
forest.
Social Local C+ C+ The Project may result in employment
Environment Economy generation and is expected to encourage
and increase livelihood and business
opportunities for people living near the
Project site.
Resettlement D D Resettlement is not expected in the

Project area. This was scoped out based
on interviews and a site visit.
Indigenous D D No indigenous peoples will be affected by
people the Project. This item was scoped out
based on interviews and a site visit.
Cultural D D There is no identified cultural heritage site
Heritage near the Project site. This item was
scoped out based on interviews and a site
visit.
Health and B- C- During construction activities, tendencies
Safety are high that the Project will attract
travelers to participate in some illegal
activities such as prostitution, etc.
During construction and operation works,
workers are exposed to various types of
risks.
Legend:
A+/- : Significant positive/negative impact is expected
B+/- : Positive/negative impact is expected
C+/- : Extent of positive impact/extent of negative impact is unknown (needs further investigation and clarification or whether
the impact can be clarified as the ESC Study progresses)
D : No significant impact is expected or no impact at all is expected
11.5.2 TOR for Environmental and Social Considerations Study
The results of the scoping activities are used in drawing out the TOR for the conduct of the
environmental and social consideration study. There were five significant environmental issues
that require clarification and further investigation namely: air quality, water quality,
noise/vibration, waste management, and social and economic conditions of the people living in
the surrounding area of the Project site. Soil and hydrological surveys are undertaken in
conjunction with the civil works. More detailed investigation of significant environmental issues,
including soil contamination and the significance of site contamination assessment are
considered for intensive investigation during the official EIA study to be undertaken by EDM.
It is important to stress that while the principle in conducting the ESC study is following the
JICA Guidelines for Category B, in the absence of secondary data, and in consonance with the
environmental regulations of Mozambique, significant baseline level information are gathered
in a simplified manner in order to provide baseline information necessary to predict and
evaluate the impact of the proposed Project. Local consultants are commissioned to assist the
11-41
JICA Study Team in carrying out these tasks efficiently and effectively. It is noted, that the
outputs of these studies will serve as a working document for EDM once the official EIA
process commences. Table 11.5-3 outlines the terms of reference in the conduct of the
environmental and social consideration study.
Table 11.5-3 TOR for environmental and social consideration study

Environmental and Social Survey Items Methodology
Issues
1 Air Quality  Clarify environmental standards  Collection of secondary
 Review of climate data including data
temperature, humidity, wind  Field survey
direction and speed, rainfall and  Interview with relevant
solar radiation in nearby agencies
observation station including  Field reconnaissance
hourly/monthly highest, lowest and Survey
average data for the past three years
 Establish air quality condition in the
Project site for NO2, SO2, dust/PM10
 Identify current air pollution
sources
 Evaluate the impact
2 Noise/Vibration Level  Clarify environmental standards  Collection of secondary
 Establish baseline conditions of data
noise level in the Project site and  Field survey
surrounding areas  Interview with relevant
 Evaluate the impact agencies
3 Water Quality  Clarify water quality environmental  Collection of data
standards  Field survey
 Establish water quality condition in  Field reconnaissance
the Infulune River including the survey
following parameters: water  Interview with relevant
temperature, pH, DO (dissolved agencies
oxygen), COD, BOD, SS and
coliform
4 Waste Management  Clarify waste management  Collection of secondary

standards including wastewater data
discharge to rivers  Interview with relevant
 Predict types and generated amount agencies
of construction
5 Social and economic  Clarify social and economic  Interview
conditions of the conditions of communities in the  Simplified survey
communities surrounding area of the Project site
surrounding the Project  Evaluate the impact
site
6 Stakeholders’  Clarify views and opinion of people  Perception survey
Engagement about the Project  Stakeholders’
 Clarify environmental and social meeting/small group
issues that are important to the discussion/consultation
people
 Evaluate stakeholders’ stakes,
interest and needs
11-42
11.6 Land Acquisition and Resettlement
11.6.1 Land Acquisition
Land acquisition is not necessary for this Project because the proposed site is within the vicinity
of the existing power plant owned and operated by EDM.
11.6.2 Resettlement
There are no resettlements involved in the Project because there are no legal or illegal settlers
that will be displaced.
11.7 Results of the Environmental and Social Study based on Scoping

Based on the results of the environmental and social study, the scope for the environmental
impact assessments are identified as contained in Table 11.7-1.
Table 11.7-1 Results of the environmental and social study based on scoping
Item Impact at Impact based Reason for Evaluation
scoping on Study
Results
Con O/M Con O/M
Environmental quality standards and pollution control
1 Air quality B- C- B- B-  Air pollution can occur caused by gas emissions
generated from the use of machinery, equipment
and heavy trucks. However, the value of the
particulate matter is lower than the prescribed air
quality standards of Mozambique and the standards
used by IFC and SANS.
 Dust is generated from various sources including
the different kinds of heavy earth works, although
this can be temporary, as leveling works will only
be done for a certain period.
 During the pre-construction and construction
period, there will be an increase in vehicle traffic as
a result of transporting construction materials and
construction/domestic wastes.
 Emission gas generated from the Project is
predicted to meet the air quality standards set by
Mozambique (Decree No. 18/2004), SANS
Ambient Air Quality Standard and IFC. When the
existing GTs and the new power plant operate at
the same time, there might be an increased
concentration of NOx that may exceed air quality
standards; however, this is also negligible as there
is a plan to rehabilitate and upgrade the existing
GTs.
2 Water quality D C- B- B-  Wastewater containing concrete and oil will be

generated.
 It is assumed that during construction, workers will
generate wastewater.
 Leakage of the fuel from construction machinery
can cause underground water pollution.
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scoping on Study
Results
Con O/M Con O/M
 Industrial and domestic wastewater will be treated
at the waste treatment facility to meet the discharge
standards prior to discharge.
3 Noise/Vibration C- C- B- B-  Temporal increase of noise level effect in the

community around the site during construction.
4 Waste B- C- B- B-  General waste and hazardous waste are generated

during construction as well as during operation
and maintenance. Wastewater is also generated
and is expected to be treated at the water
treatment facility. This treated wastewater will be
discharged to Maputo Bay/Infulune River. It is
important to ensure that the discharged
wastewater meets the required effluent standards
in Mozambique, IFC or SANS.
5 Soil C- D B- D-  Results of the soil investigation survey revealed
that soil is partially contaminated with leachate
and the seepage originating from the former coal
stockyard located at the north side of the site.
However, the contamination is limited to the
surface soil, and contamination of soil in the
surrounding area is not expected.
6 Climate factors D C- B- B-  Emissions to the atmosphere by significant
parameters (CO2) impact the ozone layer, but
because the capacity of the proposed plant is very
small, the impact is not very significant.
Natural environment
7 Topography D D D D  The Project is on vacant land within the existing
power plant and thus no changes in land use and
topography are expected.
8 Geology D D D D  There is no geological impact.
9 Hydrology C- C- B- B-  The site is fronting an intertidal zone that extends
slightly into the site. During the field survey, the
storm water channel was noted running parallel to
the nearby railway. A saturated surface depression
was also noted that runs parallel to the site
boundary and the railway. The depression was
coincident with sedges indicating that the soil in
the area is wet for a significant part of the year.
10 Ecosystem D D D D  There is no known significant impact on the
ecosystem.
11 Biodiversity D D D D  There is no known impact on biodiversity.
12 Protected areas D D D D  There is no known impact on protected areas.
13 Areas of D D D D  There is no known impact on areas of
environmental environmental value to Mozambique.
value
Social environment
14 Local economy C+ C+ C+ C+  The plant plans to employ local laborers.
 Creation of enterprises to local residents is
promoted with increase construction workers.
15 Resettlement D D D D  The land is owned by EDM and there is no
inhabitants presently occupying the area..
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scoping on Study
Results
Con O/M Con O/M
16 Indigenous peoples D D D D  There are no indigenous peoples in the area and
no impact is expected to them.
17 Cultural heritage D D D D  There is no known impact on cultural heritage.
18 Health and safety B- C- B- B-  High possibility of work related accidents and
risks of safety and overall well-being of the
people in and around the plant. It is important to
ensure a good and effective environment, and
health and safety management system to mitigate
any risks occurring in the plant during the
construction and operation phase.
Legend:
A+/- : Significant positive/negative impact is expected
B+/- : Positive/negative impact is expected
C+/- : Extent of positive impact/extent of negative impact is unknown (needs further investigation and clarification or whether
the impact can be clarified as the ESC Study progresses)
D : No significant impact is expected or no impact at all is expected
11.8 Evaluation of Significant Environmental Impacts
The construction and operational phase of the proposed Project comprises various activities,
each of which may have an impact on environmental parameters as mentioned in the preceding
sections of this Report. Various impacts during the construction and operation phase on the
environment have been studied to predict the impact on the environmental attributes. The
probable impacts of each of these activities are predicted depending upon the inputs from the
source, efficacy of pollution control equipment and capacity of the receiving environment.
11.8.1 Impact during Construction Phase

The impact during construction will be localized and in the short term, and will be primarily
related to the civil works and less intensive impact is expected during erection of the equipment
and trial operation. The environment impact matrix illustrating the impact of each activity
during construction on the specific environment parameters is presented in Table 11.8 1 below.
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Table 11.8-1 Environmental impact matrix

Environmental Parameters
Health and safety

Local economy
Water quality
Air quality
Noise and
vibration
Waste
Activities
Soil
Civil construction works X X X X X X X
Materials storage and handling X X X X
Water supply X
Mechanical and electrical erection X X X X
Transportation X X X X
(1) Impact on Air Environment

The main source of emission during the construction phase is the movement of equipment and
vehicles at the site. The equipment deployed during the construction phase is also likely to result
in marginal increase in the levels of SO2, NOX and particulate matter. The impact is reversible,
marginal and temporary in nature. The construction activities on site will be minimal and
restricted to civil and small structural fabrication. Generally, the equipment will be fabricated
outside and will only entail erection activities that will be carried out on site. Therefore, it helps
to limit the construction period to a short span. The main sources of air pollution are:
 Vehicular exhaust due to transport of materials
 Fugitive windblown dust due to construction and vehicle movements
 Portable diesel generator sets and other onsite power generators
 Emissions from vehicles and equipment
Water sprinkling will be regularly carried out in order to prevent the fugitive dust to the
maximum extent possible. All construction equipment shall be maintained properly. Only
certified vehicles of the contractor shall be deployed at the site. However, as the plant site will
be cordoned off, such particulate impacts will be confined to only within the plant site. The
vehicular exhaust and other related activities would result in a rise of NOX. However, the
incremental values are expected to be negligible.
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(2) Impact on Water Environment

Requirements of water will be mainly for concrete curing, usage in spray and sprinklers for dust
suppression. Surface run off from the construction area, equipment and materials and generation
of domestic sewage, grey water and subsequent discharge will have an impact on surface water.
The main pollutants are organic components and microorganisms with the potential to cause
contamination of surface water. Disinfected latrines (e.g., through regular cleaning) will be used
as the main component of the sanitation system. The resulting wastewater could potentially
carry inorganic solids and rapidly react to alkalinity as mentioned above and the applicable
discharge standards. The potential negative impact is considered minor as it mostly occurs
during the construction period and has no long-term impact from the viewpoint of persistent
pollution. Alkaline wash water containing excessive amounts of cement will be settled and
neutralized before discharge.
The overall impact on the water environment during the construction phase due to the proposed
Project would be short term in duration and is considered insignificant.
(3) Impact on Waste
During the construction phase, various wastes will be generated including industrial solid waste,
domestic waste at the construction site, sewage and other construction debris. The main concern
on waste that may cause serious impact is the use of materials that contain PCB
(polychlorinated biphenyl), PCT (polychlorinated terphenyl), asbestos and other dangerous
substances. Hence, use of these should be avoided when possible. Other construction wastes,
domestic waste and sewages can be mitigated by establishing a good waste management plan
and vigorously implementing it.
(4) Noise Impact

The study area is likely to experience a comprehensive increase in ambient noise level due to
the heavy construction activities, the traffic for loading and unloading, fabrication and handling
of equipment and materials, construction equipment like concrete mixers, cranes, generators
pumps, compressors, earth drills, pneumatic tools, vibrators, etc. During the construction phase,
this equipment will generate noise ranging between 55–70 dB (A). The affected areas will be
those that are closer to the site. To minimize the impact on nearby communities, construction
schedules would be optimized to daytime activities and the night activities will be scaled down.
Extensive earthmoving and movement of heavy equipment would be conducted only during the
regular working hours in the daytime. Noise and vibration impacts at construction sites will be
minimized by:
 Locating generators as far away as possible from the working area
 Fitting mufflers to road vehicles and construction equipment
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 Adequate personal protective equipment like ear plugs and ear muffs shall be provided to
the plant workers to reduce the effect of noise
Overall, the impact of generated noise on the environment during the construction period is
likely to be insignificant, reversible, localized in nature and mainly confined to the day hours.
The noise level will only drop down to an acceptable level once the construction period is over.
(5) Impact on Soil

Site preparation activities (like site clearing and leveling, excavation, earth movement) and
construction activities would result in a permanent loss of topsoil in the construction area. The
eroded soil may also get carried away by winds and be deposited on the surrounding area,
thereby interfering with the free gaseous exchange of the plants. These impacts are envisaged to
be insignificant because of the following reasons:
 It shall be confined to the construction areas
 The removed topsoil may be utilized for landscaping and land improvement in other areas,
which are not under construction
 A physical barrier shall be created to make sure that impact are confined to the construction
site
(6) Impact on Social Environment
(a) Local economy

The Project will create both direct and indirect job opportunities to the local population as much
as possible. There will be some migration of skilled labor force from outside the study area
during the construction phase, which may put some pressure on the local settlements and
resources. Considering the size and type of construction activities envisaged, the immigration of
the work force for the construction phase (including contractor laborers) would be insignificant
to the immediate vicinity area. In addition, the socioeconomic status of the area may improve
due to the inflow of workers, materials and money. Infrastructure facilities such as sanitation,
fuel, restrooms, medical facilities, safety, etc. during the construction phase are proposed to be
provided for the labor force during construction as well as for the casual workers including
truck drivers. Some positive impacts of these activities may lead to the following:
 Increase in employment opportunity to non-workers as non-skilled or semi-skilled workers.

 Growth of services (like retail shops, automobile workshops, etc.) and an increase in
employment and trade opportunities in the service sector.
The negative impacts could be summarized as follows:
 Strain on civic amenities (like road, transport, communication, water supply and sanitation,
health care and recreational utilities, etc.) due to an increase in floating population.
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 Increase in consumer prices of indigenous services and produces like eggs, fish, vegetables,
milk, etc.
It is difficult to assess the above impacts quantitatively on a measurable scale. However, most of
these impacts will be short term and limited to the construction period only. The increase in
employment opportunities (project and service sector) and overall economic improvement of the
area is certain to happen.
(b) Traffic congestion

Traffic volume on nearby roads will take place due to movement of heavy vehicles during the
construction phase, which may cause public inconvenience. This will have a minimal affect
considering the size and nature of the Project. A traffic management plan for the area will be
developed to ease the situation. The following arrangements would be made to ease the
situation.
 Existing roads will be strengthened, if required, for transportation of materials, goods, etc.
 Drivers of trucks/dumpers engaged in construction work will be instructed to give way to

passenger buses, cars, etc. to avoid inconvenience to the public transport system.
 Transport of construction materials and machineries shall be carried out during lean traffic
period of the day or during the night.
11.8.2 Impact during Operation Phase
The impact during the operation phase will be continuous in nature. For a gas-based plant of this
capacity (100 MW), the potential for imparting adverse impacts is not high. However, any
impact on the environment is expected to be minimized by incorporating efficient technologies
for pollution control measures.
(1) Impact on Air Quality
Natural gas will be used as the fuel for operation. The exhaust gas due to combustion of gas
from GTs during the operation may lead to air pollution by NOx. The current air quality is
below the limit of the ambient air quality standards of Mozambique. Appropriate measures must
be taken to ensure that the standards will be met in the future as well.
(a) Basic assumptions

Given that CCGT uses natural gas for operation, NO2 levels will be predicted under the
following special conditions resulting in high concentrations as well as normal diffusion
conditions.
 Inversion Layer: if there is a temperature inversion layer above the stack, the exhaust gas
11-49
may remain under the inversion layer and result in a high concentration.
 Downdraft / Downwash: a downward flow caused by leeward entrapment due to the

influence of a nearby building may lower the rising height of smoke emitted from a stack
and result in a higher concentration of pollutants. This phenomenon is called downdraft.
This phenomenon may be caused in general when 2.5 times the building height exceeds the
height of the stack. On the other hand, a stack may entrap the smoke emitted from it due to
the influence of a nearby building during strong wind and may lower the rising height of the
smoke and result in a high concentration of pollutants. This phenomenon is called
downwash. In general, downwash reportedly occurs with a wind speed 1.5 times or more
than the exhaust gas speed.
(b) Present concentration of pollutants

As explained in Section 11.2, measurement is conducted at seven points in CTM Maputo. NO2
ranges from 2.66μg/m3 to 19.51μg/m3 and SO2 from less than 0.01μg/m3 to 5.36μg/m3 and those
values fully meet those standards. Table 11.8-2 shows the results with the environmental quality
standard of Mozambique and IFC/WB guideline value.
Given that actual data was not available at the time of conducting simulation analysis, the
present NO2 concentration for prediction was set at the highest level of 5.74μg/m3.
11-50
Table 11.8-2 Measurement cases of atmospheric pollutants
(Unit: μg/m3)
Mozambique's EU IFC Japan’s
Item Time
Reference Environmental Quality Standard Limit Value EHS General Guidelines Environmental Quality Standard
Sulfur 10 min. －－－ 500 －
dioxide
(SO2) 1 hr <0.01 – 5.36 800 350 － 260 (0.1ppm)
24 hrs 365 125 125 100 (0.04ppm)
Annual 80 20 －－
Nitrogen 1 hr 1.17 - 5.74 400 200 200 －
dioxide
(NO2) 24 hrs 200 －－ 75 - 110 (0.04 - 0.06ppm)
Annual 100 40 40 －
Suspended 1 hr －－－ 200
particulate
matters 24 hrs 200 (TSP) 50 150 100
(ＰM10)
Annual － 40 70 －
Note: 1. The IFC guidelines adopt a WHO value if there is no guideline in the relevant country. Of various stages of values of sulfur dioxide and suspended particulate matters such as
from target values to guideline values, this table shows the Target value 1 that is of high emergency and equivalent of the environmental quality standards specified in other
countries.
2. EU, “COUNCIL DIRECTIVE 2008/50/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 May 2008
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:152:0001:0044:EN:PDF
3. Japan, “Environmental Quality Standard for Air Pollution”, http://www.env.go.jp/kijun/taiki.html
4. IFC, “Environmental, Health, and Safety General Guidelines”
11-51
(c) Prediction formula

The concentration under normal and special diffusion conditions will be predicted using
different Gaussian diffusion models as shown below according to the time scale in the
environmental quality standards of Mozambique.
 Normal conditions
 y2   （z－He）２  ２ 
 (z＋He） 
C( x, y, z) 
Q
exp  exp 
－

 exp －

 2πσ2  ２   ２ 
2πσyσz u
 y  
 2σｚ  
 2σｚ 
In which,
C : Concentration at ground level and y (m) distance leeward
Qp : Volume of exhaust gas (g/s)
σy : Parameter in horizontal direction (m)
σz : Parameter in vertical direction (m)
u : Wind Speed (m/s)
y : Horizontal distance from the point of exhaust gas source to the
calculation point (m)
z : Height from the ground (m)
He : Effective stack height (m)
He = H + ΔH
H : Stack Height (m)
ΔH : Rising Height of Exhaust Gas (m)
Rising Height of Exhaust Gas is calculated using CONCAWE model.
 Special conditions
<Inversion Layer>
Ｑp
Ｃ(ｘ)　＝　
2πσｙ σｚ ｕ
３   （Ｈ e＋2ｎ・Ｌ）２
  （  Ｈe＋2ｎ・Ｌ）
２

  exp 
　　　　　２ 　＋　exp  ２ 
ｎ ３
  2σｚ   2σｚ 
In which,
C(x) : Concentration at ground level and y (m) distance leeward
Qp : Volume of Exhaust gas (g/s)
σy : Parameter in horizontal direction (m)
σz : Parameter in vertical direction (m)
u : Wind Speed (m/s)
11-52
L : Height of mixed layer (m)

(L = He in the worst case)
n : Number of reflection
<Downdraft / Downwash>
For the effective stack height, the following prediction formula was used with the
lowered heights taken into consideration.
He = Ho + ΔH + ΔH′ + ΔH″
Ho : Actual stack height (m)
ΔH : Rising height (m)
ΔH′ : Reduced plume main axis in consideration of the effect of the stack
ΔH″ : Reduced plume main axis in consideration of the effect of the
building
(d) Emissions specifications

The values as shown in Table 11.8-3 were used as emission specifications while the exhaust gas
amount, temperature, and speed, and nitrogen oxide emissions were used for diffusion
prediction based on the design conditions for the GT planned at present. The prediction was
made on the assumption that all the exhaust nitrogen oxides are nitrogen dioxide. The
suspended particulate matters from the GT were excluded from the prediction because the
emissions are too small.
Table 11.8-3 Emissions specifications

Newly installed GT Existing GT
Item Unit
No. 1 No. 2 Natural gas
Exhaust gas amount
Nm3/h 381,960 381,960
(wet)
Exhaust gas temperature °C 117 117
Exhaust gas speed m/s 18.8 18.8
Actual stack height m 30 30
Nitrogen oxide
kg/h 18 18
emissions
Note: The values are at the maximum continuous load.
(e) Meteorological conditions

The maximum concentration resulting from the diffusion of smoke emitted from the stack
significantly is dependent on the wind speed and the diffusion parameter at the ground level.
Hence, in order to study the actually predicted wind speed and diffusion parameter cases, data
11-53
and measurement from Instituto Nacional Weather Station # 64 covering the period from 2009
to 2011 were utilized. The meteorological data used are as shown below.
a. Temperature and humidity

The annual maximum ambient temperature range is 38.5°C to 43.0°C, the annual minimum
temperature range is 8.9°C to 12.1°C and the annual average humidity range is 72.8% to 74.6%
as shown in Table 11.8-4 and Table 11.8-5.
Table 11.8-4 Monthly ambient temperature

(°C)
Year Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Maximum 39.2 39.9 33.8 34.2 36.5 32.4 33.1 31.9 35.3 36.0 31.8 41.5 41.5
2009
Minimum 17.5 18.4 16.6 15.2 15.0 9.8 8.9 10.6 13.5 12.2 14.2 17.0 8.9
Maximum 35.9 35.6 36.3 35.1 34.2 31.3 28.7 34.5 37.6 38.1 38.5 37.4 38.5
2010
Minimum 18.2 19.7 20.0 13.5 14.5 9.4 10.3 11.0 13.7 14.0 16.5 - 9.4
Maximum 37.9 36.1 34.3 35.8 34.7 34.5 32.9 37.7 41.1 41.7 43.0 38.4 43.0
2011
Minimum 20.9 19.9 17.0 12.5 13.0 12.8 12.1 13.6 14.1 14.8 15.0 17.9 12.1
Table 11.8-5 Monthly humidity

(%)
Year Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Average 79.9 78.2 74.4 69.0 74.3 70.4 70.6 73.5 73.2 78.0 79.0 75.3 74.6
2009 Minimum 66.0 64.0 62.0 47.0 56.0 34.0 52.0 53.0 39.0 57.0 59.0 65.0 34.0
Maximum 97.0 95.0 94.0 79.0 86.0 98.0 93.0 93.0 95.0 98.0 97.0 93.0 98.0
Average 76.6 74.0 78.2 80.5 75.7 69.4 75.5 68.3 63.9 69.2 70.4 71.8 72.8
2010 Minimum 62.0 65.0 67.0 60.0 48.0 46.0 46.0 32.0 30.0 41.0 40.0 48.0 30.0
Maximum 98.0 93.0 92.0 97.0 94.0 87.0 89.0 95.0 73.0 91.0 94.0 92.0 98.0
Average 76.8 76.0 79.9 78.3 76.1 73.9 77.6 73.2 76.5 78.6 78.1 75.1 76.7
2011 Minimum 66.0 68.0 73.0 66.0 57.0 39.0 37.0 32.0 42.0 56.0 65.0 61.0 32.0
Maximum 90.0 92.0 91.0 86.0 88.0 88.0 95.0 88.0 91.0 90.0 92.0 86.0 95.0
b. Wind direction/wind speed

The occurrence conditions of wind direction/wind speed during the period from 2009 to 2011
are as shown in Table 11.8-6 to Table 11.8-8 and Figure 11.8-1 to Figure 11.8-2. The most
prevailing wind direction is southwest with an occurrence ratio of 23.2% followed by northwest
with the occurrence ratio of 18.0% and west with the occurrence rate of 15.0%.
The most prevailing wind speed is 1.0 m/s to 1.9 m/s with 25.3% followed by 2.0 m/s to 2.9 m/s
with 25.0% and 0.5 m/s to 0.9 m/s with 21.3%. Thus, the site has relatively weak winds in
general but also a wind speed of more than 6 m/s with an occurrence ratio of more than 1%.
The annual average wind speed is 2 m/s. The wind speed is low from January to July and high
11-54
from August to December.
Table 11.8-6 Annual occurrence ratio by wind speed/wind direction (2009–2011)

(%)
Wind direction
N NE E SE S SW W NW Total
Wind speed
0.5-0.9 (m/s) 1.4 0.6 1.1 1.4 3.2 5.2 3.8 4.6 21.3
1.0-1.9 (m/s) 3.3 0.8 0.6 1.7 2.8 6.9 4.5 4.8 25.3
2.0-2.9 (m/s) 2.0 1.0 1.2 2.4 3.5 6.7 3.9 4.4 25.0
3.0-3.9 (m/s) 1.2 0.9 0.9 1.3 1.9 2.7 2.0 2.9 13.7
4.0-5.9 (m/s) 0.6 1.2 0.5 1.2 1.6 1.3 0.6 1.3 8.3
6.0-7.9 (m/s) 0.4 0.2 0.1 0.3 0.3 0.3 0.1 0.0 1.6
8.0< (m/s) 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1
Total 8.8 4.5 4.2 8.4 13.2 23.2 15.0 18.0 95.4
Calm (<0.4 m/s) 4.6
Table 11.8-7 Monthly wind direction occurrence ratio (2009–2011)

(%)
Occurrence
N NE E SE S SW W NW
ratio
Jan 10.1 3.4 5.6 14.6 7.9 37.1 9.0 10.1
Feb 16.4 0.0 1.4 12.3 27.4 23.3 8.2 8.2
Mar 3.4 1.1 4.5 10.2 26.1 28.4 10.2 12.5
Apr 6.8 3.4 0.0 5.7 9.1 29.5 22.7 17.0
May 9.1 1.1 0.0 2.3 11.4 11.4 29.5 26.1
Jun 1.1 0.0 0.0 2.2 10.1 21.3 29.2 28.1
Jul 3.4 0.0 0.0 0.0 4.6 27.6 31.0 31.0
Aug 11.2 3.4 0.0 3.4 14.6 19.1 16.9 27.0
Sep 11.1 10.0 4.4 13.3 12.2 18.9 4.4 21.1
Oct 12.6 10.3 12.6 16.1 8.0 20.7 5.7 9.2
Nov 15.1 16.3 8.1 11.6 11.6 12.8 7.0 12.8
Dec 6.7 4.5 13.5 10.1 18.0 28.1 4.5 11.2
Annual 8.8 4.5 4.2 8.4 13.2 23.2 15.0 18.0
11-55
Table 11.8-8 Monthly average wind speed by wind direction (2009–2011)

(m/s)
Month N NE E SE S SW W NW Monthly
Jan 1.9 1.2 1.3 1.8 1.5 1.3 1.5 1.6 1.5
Feb 2.4 1.9 2.0 1.9 1.8 1.6 1.6 1.9
Mar 1.3 1.1 1.7 1.7 1.4 1.6 1.6 1.6 1.5
Apr 1.6 1.2 1.2 1.5 1.6 1.5 2.1 1.6
May 0.8 1.7 1.8 1.1 1.6 1.3 1.7 1.4
Jun 0.6 3.6 2.6 1.9 1.7 1.5 1.8
Jul 1.6 2.2 2.1 1.8 1.6 1.8
Aug 2.3 3.1 3.2 1.8 2.0 1.9 1.7 2.0
Sep 1.9 2.8 3.1 3.3 3.3 2.5 1.7 2.2 2.6
Oct 3.0 4.0 2.2 3.4 2.8 1.6 2.9 3.0 2.7
Nov 1.7 2.9 2.0 2.3 2.3 2.6 2.9 2.2 2.4
Dec 4.0 3.6 3.1 2.8 3.4 2.6 2.4 3.0 3.0
Annual 2.1 2.9 2.3 2.5 2.1 1.9 1.7 1.9 2.0
2009-2011 N
30%
NW 20%
NE
10%
W 0% 0m/s E
1m/s
2m/s
SW SE
3m/s
S
---- : Occurrence ratio of Wind Direction
---- : Wind Speed
Figure 11.8-1 Wind rose (Average from 2009 to 2011)
11-56
2009 N
30%
NW 20%
NE
10%
W 0% E
0m/s
1m/s
SW 2m/s SE
S3m/s
---- : Wind Speed
2010 N
30%
NW 20%
NE
10%
W 0%
0m/s E
1m/s
2m/s
SW SE
3m/s
S
---- : Wind Speed
2011 N
40%
NW 30% NE
20%
10%
W 0% E
0m/s
1m/s
2m/s
SW 3m/s SE
4m/s
S
---- : Wind Speed
Figure 11.8-2 Wind rose (2009–2011)
11-57
(f) Study cases

a. Normal conditions
The calculation is conducted based on the stability and wind speed as shown in the Pasquill
atmospheric stability categories. The wind speed observed at the Instituto Nacional Weather
Station near the power plant is mostly low but sometimes exceeds 6 m/s. Accordingly, the wind
speed was set at a range corresponding to the Pasquill atmospheric stability as shown in Table
11.8-10.
Table 11.8-9 Condition of the stability and wind speed

Stability Wind speed at ground level (m/s)
A 1, 2
Unstable
B 1, 2, 3, 4
C 1, 2, 3, 4
Neutral
D 1, 2, 3, 4, 6, 8, 10
Table 11.8-10 Pasquill stability categories

Wind speed at Daytime Nighttime
ground level Rate of solar radiation Q (unit 0.01 kWm-2) (rate of solar
U (m/s) 60 < Q 30 - 59 15 - 29 1 – 14 radiation = 0)
U < 2.0 A A-B B D F
2.0 - 2.9 A-B B C D E
3.0 - 3.9 B B-C C D D
4.0 - 5.9 C C-D D D D
6.0 < U C D D D D
The contributing concentration distribution was set at the southwest wind considering the
typical wind directions recorded by the Instituto Nacional Weather Station are towards the
southwest and northwest. The exhaust gas from the power plant heads towards the sea with a
northwest wind, it heads towards residential areas with a southwest wind. The wind speed was
calculated under the conditions where it shows the highest concentration at the ground level.
b. Special conditions
<Inversion layer>
The inversion layer was calculated with the atmospheric stability and wind speed with the
highest concentration in light of the above diffusion results under the normal conditions.
<Downdraft/downwash>
The exhaust gas from the stack is emitted from a height of 30 m. Given that the downdraft
phenomenon due to the building is caused by buildings with a height, 2.5 times of which exceed
11-58
the height of the stack, the study targeted buildings of 12 m or higher.
The structures with a height of 12 m or more at the power plant include the bypass stack (30 m),
which is the highest at the power plant, and the heat recovery steam generator (HRSG, 30 m).
Downdraft was calculated by selecting all the cases shown in Table 11.8-9 in accordance with
general diffusion conditions. The impact of downwash was insignificant given that the speed of
the exhaust gas is set high (18.8 m/s) and the wind speed is 1.5 times higher than the set wind
speed (28 m/s).
(g) Analytical results

a. Normal conditions
The prediction results of the maximum concentration at the ground level of nitrogen dioxide
emitted from CCGT are as shown in Figure 11.8-3, Figure 11.8-4 and Table 11.8-11.
The maximum concentration of nitrogen dioxide is 16.3 μg/m3, which is the highest at the wind
speed of 1.0 m/s with atmospheric stability A at the ground level. This concentration is
approximately 4% of Mozambique's environmental quality standards and approximately 8% of
the IFC/WB guidelines.
As to the maximum future concentration (obtained by adding the present concentration to the
predictive value), the concentration value is 22.04 μg/m3, which is significantly lower than
Mozambique's environmental quality standards and the IFC/WB guidelines.
11-59
(Atmospheric Stability A)
gas-NOx-StabilityA
20
18
16
14
12
μ g/m3
1m/s
10 2m/s
8
6
4
2
0
0 2000 4000 6000 8000 10000
m
(Atmospheric Stability B)
gas-NOx-StabilityB
20
1m/s
2m/s
15
3m/s
4m/s
10
μ g/m3
0
0 2000 4000 6000 8000 10000
-5
m
Figure 11.8-3 Prediction Result of the Maximum Concentration at the Ground Level
of NO2 under the Normal Conditions Resulting from Installation of
New CCGT (1 Hour Value) for Atmospheric Stabilities A and B
11-60
(Atmospheric Stability C)
gas-NOx-StabilityC
20
1m/s
18
2m/s
16
14 3m/s
12 4m/s
μ g/m3
10
8
6
4
2
0
0 2000 4000 6000 8000 10000
m
(Atmospheric Stability D)
gas-NOx-StabilityD
20
1m/s
18
16 2m/s
14 3m/s
12 4m/s
μ g/m3
10 6m/s
8 8m/s
6 10m/s
4
2
0
0 5000 10000 15000 20000
m
Figure 11.8-4 Prediction Result of the Maximum Concentration at the Ground Level
of NO2 under the Normal Conditions Resulting from Installation of
New CCGT (1 Hour Value) for Atmospheric Stabilities C and D
11-61
Table 11.8-11 Prediction Result of the Maximum Future Concentration at the Ground
Level of NO2 under the Normal Conditions Resulting from Installation of
New CCGT (1 Hour Value)
Maximum Mozambique
Distance for Maximum
concentration at Present atmospheric IFC/WB
maximum future
Wind the ground level concentration at concentration environmental EHS
Item Stability concentration
speed a b quality guidelines
the ground level a+b
(μg/m3) standard (μg/m3)
(μg/ｍ3) (km) (μg/m3)
(μg/m )3
1 m/s 16.3 0.8 22.04

A
2 m/s 15.6 0.6 21.34
1 m/s 9.1 2.0 14.84
2 m/s 10.3 1.3 16.04

B
3 m/s 10.8 1.0 16.54
4 m/s 11.0 0.9 16.74
1 m/s 6.9 4.0 12.64
2 m/s 8.4 2.1 14.14

C
NO2 3 m/s 9.1 1.8 5.74 14.84 400 200
4 m/s 9.5 1.5 15.24
1 m/s 2.4 16.9 8.14
2 m/s 3.8 8.3 9.54
3 m/s 4.6 5.6 10.34
D 4 m/s 5.1 4.3 10.84
6 m/s 5.5 3.5 11.24
8 m/s 5.8 3.0 11.54
10 m/s 6.2 2.3 11.94
The prediction results of the maximum concentration distribution of nitrogen dioxide from
CCGT with southwest wind at each stability level are as shown in Figure 11.8-5 to Figure
11.8-8.
11-62
Figure 11.8-5 Predicted Concentration Distribution Chart of NO 2 (Southwest Wind,

Stability A, Wind Speed 1.0 m/s)
Figure 11.8-6 Predicted Concentration Distribution Chart of NO2 (Southwest Wind,

Stability B, Wind Speed 4.0 m/s)
11-63
Figure 11.8-7 Predicted Concentration Distribution Chart of NOx (Southwest wind,

Maximum Level at the Stability Level, C-1 Hour Value)
Figure 11.8-8 Predicted Concentration Distribution Chart of NOx (Southwest Wind,

Maximum Level at the Stability Level, D-1 Hour Value)
11-64
b. Special conditions
The prediction result of nitrogen dioxide under the special conditions is as shown in Table
11.8-12 and Figure 11.8-9.
The maximum concentration of nitrogen dioxide is highest, around 32.7μg/m3, when the
inversion layer occurs at the ground level. This value is approximately 8% of Mozambique's
environmental quality standards and approximately 16% of the IFC/WB guidelines.
The maximum future concentration (obtained by adding the present concentration to the
predictive value) is 38.44μg/m3, which is significantly lower than Mozambique's environmental
quality standards and the IFC/WB guidelines.
Table 11.8-12 Prediction Result of the Maximum Future Concentration at the Ground
Level under the Special Conditions Resulting from Installation of New
CCGT (1 Hour Value)
Maximum Atmospheric
Distance for Maximum
concentration Present environmental IFC/WB
maximum future
Wind at the ground concentration quality EHS
Item Condition Stability concentration concentration
speed level b standard of guidelines
at the ground a+b
a (μg/m3) Mozambique (μg/m3)
level (km) (μg/m3)
(μg/m3) (μg/m3)
Inversion
A 1 m/s 32.7 0.8 38.44
layer
NO2 5.74 400 200
Downdraft D 10 m/s 26.9 0.6 32.64
Note: The maximum concentrations at the ground level of downdraft are predicted maximum values of all the wind speed by
stability level.
11-65
(Inversion Layer)
gas-NOx-StabilityA
40
1m/s
35
30
25
μ g/m3
20
15
10
5
0
0 2000 4000 6000 8000 10000
m
(Downdraft)
gas-NOx-StabilityＤ
40
10ｍ/ｓ
35
30
25
μ g/m3
20
15
10
5
0
0 2000 4000 6000 8000 10000
m
Figure 11.8-9 Prediction Result of the Maximum Future Concentration at the

ground level of NO2 under the Special Conditions Resulting from
Installation of New CCGT (1 Hour Value)
11-66
(h) Conclusion
As a result of the simulation analysis, it was found that the predicted future concentration is
sufficiently lower compared with the Mozambique's environmental quality standard and the
IFC/WB guidelines. Since there is no significant difference between actual measured data at
CTM Maputo and the assumed NO2 concentration for prediction, need of changing the height of
the stack is not expected.
(2) Impact on Noise
The main sources of noise during the operation phase are generated from GTs, heat recovery
steam generators (HRSG), ST generator, air-cooled condenser (ACC), various pumps,
ventilation fans and other miscellaneous equipment. These levels of noise generated can be
readily controlled through the application of appropriate acoustic equipment. According to the
Feasibility Study on the technical requirements of this Project (see Section 6.4.4), the ambient
noise level for all equipment operating under steady state conditions shall not exceed 85 dB (A)
at 1 m from the edge of the equipment or close to the source. Its equivalent noise level at a
height of 1 m on the boundary of the plant shall not exceed 70 dB (A). With 70 dB (A), the
prescribed and applicable standards for industrial and commercial areas (day-time and
night-time) given in Section 11.3.1 are met. The results of the noise monitoring survey also
revealed that the current cumulative noise level in the vicinity of the site is relatively high while
the noise contribution from the existing No.2 GT is relatively low. (see Section 11.2.1). Given
this, it can be assumed that the proportion of the noise level generated by the proposed CCGT
with appropriate acoustic equipment will result in no significant increase of the overall noise
level in the vicinity of the site.
(3) Impact on Water Quality
The proposed power plant will use the air-cooled condenser and therefore, water is not required
for the power plant operation. Hence, there will be no impact on surface water and ground water.
However, the effluent from the wastewater treatment facilities may need to be periodically
monitored, as the clean wastewater streams will be discharged through the main drainage
pipeline of Maputo Bay.
(4) Impact on Waste
During the operation phase, the power plant will generate hazardous and non-hazardous wastes
including among others, oil and grease, dehydrated sludge, deposits from screens and filters and
GTs. Landfill sites shall be identified in accordance with the regulatory requirements on
industrial waste disposal. At present, there are two municipal dumping sites indentified for
11-67
general wastes located in Hulene in Maputo and Malhampsene in Matola and only one land fill
site for hazardous wastes, the Mavoco land fill in Boane suburb.
Wastewater is also expected to be generated from the neutralized regeneration waste of the
HRSG blow down, floor drains from GTs and the ST building, contaminated drains from the
transformer areas and sewage, among others. This wastewater shall be treated and confer with
the prescribed effluent standards of IFC and SANS before being discharged to Maputo Bay.
The plant is also predicted to generate other waste and domestic waste. Hence, it is important to
establish a waste management system including the wastewater system as a measure of
mitigating the adverse impact on waste while at the same time, providing a framework for an
appropriate monitoring system.
(5) Impact on Traffic and Transportation
There will be no impact on the traffic and transport system as envisaged because the fuel and
gas required for power plant operation will be transported through a pipeline via the new route
linking the MGC pipeline to CTM Maputo.
(6) Impact on Health and Safety
During the operation phase, health and safety of operation and maintenance personnel are
important. A vigorous fire-fighting system as well as a health and safety plan will be employed
in order to respond to the worst-case scenario of the plant. This shall be implemented in
accordance to the prescribed standards and guidelines set by Mozambique, IFC and SANS.
(7) Impact on Climate Change
CO2 will be generated from the Project, contributing to the global climate change, but
considering the capacity of the Project, the impact will not be significant.
(8) Impact on Social Environment
After the setting up of the proposed power plant, employment will be generated in the secondary
sector, which will include the non-working population of the area.
During the operation phase, indirect job opportunities will be created in the plant and small and
medium-scale enterprises can be promoted outside the Project boundary. Many will find
employment in the service sector and marketing of day-to-day needs.
There will be no negative health impact on the people as the proposed plant will be gas-based,
will have a very small concentration of SO2 and the PM10 level will be in accordance to the
prescribed standards. Overall, it can be said that there will be marginal impact on the
socio-economic condition of the locality and the impact will be mostly positive.
11-68
11.9 Mitigation Measures and Cost of Implementation
Based on the analysis of the significant impact of the Project, measures are proposed and
established in order to manage any adverse impact.
Table 11.9 1 and Table 11.9 2 illustrate the mitigation measures during the construction phase
and operation phase, respectively
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Table 11.9-1 Mitigation measures during construction phase

Item Impact Mitigation measures Responsible Cost
agencies/
organization
Air  SOX, NOX, smoke,  Regular monitoring and maintenance of Project Within
pollution sand and dust construction machines and equipment will be Implementation
EPC cost
dispersion from conducted. Unit
construction  Burning of rubbish within the site will be strictly
machines and prohibited.
equipment  Introduction of an appropriate traffic and
transportation management control to avoid
unnecessary machine works and vehicle trips.
 Limitation on the speed on heavy transportation
vehicles will be observed.
 Dust from earth and  Regular water spraying at construction and Project Within
other civil works disposal sites. Implementation EPC cost
 Introduction of an appropriate traffic and Unit
transportation management control to avoid
unnecessary machine works and vehicle trips.
 Limitation of speed on heavy transportation
vehicles.
 Covering sensitive dust producing materials with
nylon plastic, whenever possible.
Water  Soil runoff, turbid  Temporary installation of settling tanks and Project Within
pollution water and wastewater sediment fencing. Implementation EPC cost
from machine and  Water used for machine and equipment cleaning Unit
equipment cleaning shall be collected in tanks and treated before
(1) Environmental Pollution
discharge.
 Monitoring of water outlet will be periodically
conducted.
 Construction of temporary rain drainage ditches
to prevent accumulating water in levelled area in
the construction site.
 Oil and grease and chemicals shall be segregated
and kept in temporal storage tanks.
 Vehicles and machines/equipment are
maintained and refueled on sealed, bunded and
roofed areas.
 Fuel storage tanks are installed in sealed, bunded
and roofed areas.
 Drainage water with  Fences are established around the excavation Project Within
soil works to prevent soil erosion and a temporal Implementation EPC cost
settlement pond is prepared to decrease turbidity Unit
of the discharged water.
Waste  Industrial solid waste  Waste management plan shall be prepared. Project Within
 Hazardous and non-hazardous materials shall be Implementation EPC cost
segregated. Unit
 Avoid the use of materials that contain PCB
(polychlorinated biphenyl)/PCT (polychlorinated
terphenyl), asbestos and other dangerous
substances, when appropriate.
 Domestic waste at  Construct a temporary domestic disposal area Project Within
construction site and regular disposal to avoid accumulation of Implementation EPC cost
odor. Unit
 Encourage workers to use reuse, recycle and
reduce waste.
 Sewage  Sewage shall be treated by septic tanks. Project Within
Implementation EPC cost
Unit
11-70

agencies/
organization
Construction debris  Proper disposal of construction waste to Project Within
designated disposal sites. Implementation EPC cost
 Waste management plan will be prepared. Unit
Noise and  Noise from machines,  The latest noise-reduction machines and vehicles Project Within
vibration equipment and shall be used. Implementation EPC cost
vehicles  Silencer and mufflers on machines and vehicles Unit

shall be used if necessary.
 Construction works shall be confined to
daytime.
 Construction of noise wall or installing a noise
reducer in noise-affected areas.
 Schedule and timing of vehicle and machines
shall be optimized to standardize workload and
reduce noise as much as possible.
 Construction of temporary fence around Project
site.
Soil  Soil erosion due to  Spraying the site with water will be conducted. Project Within
(2) Natural Environment
rain and wind  Cover the soil whenever possible to avoid Implementation EPC cost
erosion. Unit
Climate  Gas emission from  Regular maintenance of construction machines Project Within
factor construction and equipment. Implementation EPC cost
machines, equipment  Moderate speed of vehicles will be observed. Unit
and vehicles  Limitation of weight loads of vehicles.
Local  Employment by the  Utilization of local services such as cleaning and Project Within
economy Project catering among others. Implementation EPC cost
Unit
 Procurement of minor  Appropriate and acceptable procurement Project Within
things by the Project guidelines shall be formulated. Implementation EPC cost
Unit
Health and  Risks for infectious  Awareness about infectious diseases will be part Project Within
Safety diseases of the education program to be prepared. Implementation EPC cost
Unit
 Accidents on site  Health and safety plan will be prepared. Project Within
 Basic health and safety education program will Implementation EPC cost
Social Environment
be prepared and conducted at the beginning of Unit

employment.
 Personal safety gear (protective clothing and
equipment) such as ear protection covers and
safety shoes are provided to workers.
 Safety measures near construction machines
such as a “No Man Zone” shall be employed.
 Medical unit will be established.
 An emergency transportation plan will be
(3)
initiated with the Jose Macamo Hospital, the

hospital adjacent to the site.
 Project Implementation Unit shall refer to the
guidelines for Environmental, Health and Safety
in Mozambique or IFC.
 Traffic accidents  Traffic control plan shall be prepared. Project Within
around the site  Necessary traffic signals and signs are set up Implementation EPC cost
around the site. Unit
 Basic traffic education is provided to drivers.
11-71
Table 11.9-2 Mitigation measures during operation phase

agencies/
organization
Air  SOX, NOX, and PM10  Adoption of high stack. Project Within
pollution from the plant  Installation of Continuous Emission Monitoring Implementation EPC
System (CEMS) to monitor amount of flue gas Unit
and concentration of SOX, NOX, and PM10.
EDM Within
 Conduct of regular monitoring and
O&M
maintenance.
Water  Effluent from waste  Periodic monitoring of the amount of effluent. EDM Within
pollution treatment facility on O&M
the following
parameters ph value
and turbidity
 Generation of  Adaption of wastewater system to separate oil Project Within

wastewater from and grease. Implementation EPC
 Installation and construction of waste treatment
HRSG blow down, Unit

floor drains from and purifying facilities.
GTs, ST building and
yard drains
Waste  Industrial solid waste  Waste management plan shall be prepared. EDM Within
 Hazardous and non-hazardous materials are O&M
segregated.
Project Within
 Waste generated shall be treated in the
Implementation EPC
treatment facilities.
Unit
 Sludge will be recycled.
 Dehydrated sludge (cake), deposits from the
screens and filter screens and GTs shall be
treated as solid waste and deposited to the
identified solid waste dumping site.
 Monitoring of water quality near the site.
 The facility shall be managed and operated
under the environmental standards and
guidelines of Mozambique, SANS and IFC.
 Domestic waste from  Promotion of 3Rs in waste management EDM Within

plant (reduce, reuse and recycle). O&M
Noise and  Noise from machines,  Regular and periodic maintenance are EDM Within
vibration including the ACC conducted. O&M
Soil  Soil erosion due to  Spraying the site with water will be conducted EDM Within
rain and wind to reduce soil erosion by rainwater. O&M
 Installation of storm water drainage.
Project Within
EEnvironment
Environment
Implementation EPC
Unit
(3) (2) Natural
Climate  CO2 gas emission  Regular maintenance and monitoring of GTs. EDM Within
factor from the plant O&M
m
E
S
n
o
o
c
t
i
Local  Employment by the  Labor guidelines in Mozambique are observed. EDM Within
E
S
c
(
)
3
a
i
11-72

agencies/
organization
economy plant O&M
 Procurement of minor  Appropriate and acceptable procurement EDM Within
things by the Project guidelines shall be formulated. O&M
Health and  Fire  Formation of fire fighting system. Project Within
Safety  Installation of fire water pipeline will be Implementation EPC
strategically located in yard hydrants. Unit
 Ensure water supply from FIPAG/Aqua de
Mozambique.
 Fire water distribution will include
sectionalizing valves so failure in any part of
the system can be isolated.
 Fuel oil tanks will be equipped with fire
fighting systems.
 Installation of electricity driven main pump and
second duty diesel engine drive pump and shall
be reserved for water demand for worst-case
condition.
 Accidents on site  Health and safety plan will be prepared. EDM Within
 Basic health and safety education program will O&M
be prepared and conducted at the beginning of
employment.
 Personal safety gear (protective clothing and
equipment) such as ear protection covers and
safety shoes are provided to workers.
 Safety measures near construction machines
such as a “No Man Zone” shall be employed.
 Medical unit will be established.
 An emergency transportation plan will be
initiated with the Jose Macamo Hospital,
adjacent to the site.
 Regarding Occupation, Health and Safety,
EDM and LTSA shall refer to the following
guidelines:
o Environmental, Health and Safety General
Guidelines (IFC, 2007)
o Environmental, Health and Safety Guidelines
for Thermal Power Plant (IFC, 2007).
In terms of the estimated capital costs to be incurred for undertaking pollution prevention
measures at the plant, the budgetary requirement during construction phase will be within the
EPC cost, and the requirement during operation phase will be included in EDM’s ordinary
operation and maintenance cost as discussed in Chapter 9 of this Report.
11-73
11.10 Monitoring Plan
An environmental monitoring plan provides a delivery mechanism to address the adverse

environmental impacts of a project during its execution, to enhance project benefits, and to
introduce standards of good practice to be adopted for all project works. Hence, in order to
assist in detecting the development and significant changes in any aspects of the environmental
parameters and to provide timely adoption of appropriate control measures, a monitoring plan
has been formulated to take care of impact of the proposed Project. The emission levels from
the stack and the ambient air quality around the proposed plant will be periodically monitored.
Further, noise levels will also be regularly monitored. Table 11.10-1 and Table 11.10-2 present
the summary of the monitoring field including the number, location of monitoring stations,
frequency of sampling and parameters to be covered.
Table 11.10-1 Environmental monitoring plan during construction phase
Monitoring Monitoring Parameters Monitoring Locations Sampling
Field Frequency
Ambient air PM10, SO2, NOx, CO Construction site boundary Once a month
quality (three points: west, east and
(Meteorological data such as air, south)
temperature, relative humidity,
wind direction and wind speed)
Effluent of Water temperature, pH, DO, Exit point of the temporary Once a month
water quality BOD5, COD, SS, oil and grease, settlement pond
and heavy metals
(Heavy metals are indicated in
the IFC standards)
River water Water temperature, pH, DO, Exit point of effluent from Quarterly (four
quality BOD5, COD, SS, TD, oil and plant times a year)
grease, and heavy metals based
on standards and guidelines of
Mozambique, SANS and IFC
Noise dBA Construction site boundary Once a month

(three points: west, east and
(Meteorological data such as air, south)
Vibration dB or ppv Construction site boundary Once a month

(three points: west, east and
south)
11-74
Table 11.10-2 Environmental Monitoring during operation phase

Monitoring Monitoring Parameters Monitoring Locations Sampling
Field Frequency
Ambient air PM10, SO2, NOx, CO Plant boundary and four points Once a month
quality at a radius of 2 km from the
(Meteorological data such as air, plant
Effluent air O2, PM10, SO2, NOx, CO HRSG stacks Continuance

quality monitoring by
CEMS
Effluent of Water temperature, pH, DO, Exit point of the water Quarterly (four
water quality BOD5, COD, SS, oil and grease, treatment facility times a year)
and heavy metals
(Heavy metals are indicated in
the IFC standards)
River water Water temperature, pH, DO, Exit point of effluent from Quarterly (four
quality BOD5, COD, SS, TD, oil and plant times a year)
grease, and heavy metals based
on standards and guidelines of
Mozambique, SANS and IFC
Noise dBA Plant boundary (three points: Twice a month
west, east and south)
(Meteorological data such as air,
wind direction and wind speed
Vibration dB or ppv Plant boundary (three points: Once a month

west, east and south)
11.11 Stakeholders Meeting and Engagement
(1) Objective of the Consultation
The following are the objectives of the stakeholders’ meeting:

 To inform the community surrounding the proposed Project about the plan for a new power
plant in CTM
 To gather information on their initial views and opinions about the proposed Project
(2) Schedule and Participation
Two stakeholders’ meetings were held in Luis Cabral suburb. The first meeting was conducted
on January 24, 2013 at the Luis Cabral Community School. It was attended by 18 people
including the Secretary of Luis Cabral suburb, Secretaries of urban blocks 40 and 40a and the
Heads/In-charge of 10 houses. The second meeting was conducted on January 25, 2013 at Dom
Bosco Higher Institute. It was attended by 9 representatives from 4 companies located adjacent
11-75
to the proposed Project site, namely: Dom Bosco Higher Institute, SOMOTOR Lda, Intertek
and Petroauto. The Luis Cabral secretary, 1st Secretary of the Party Cell B and EDM also
participated in the meeting. Refer to Appendix-6 for the list of participants. It is noted that these
participants were selected on the basis of their interest to the Project, availability to the meeting
and the nature of their leadership in the community. The following are some of the snapshots
taken during the meetings.
Figure 11.11-1 Participants from the Heads of 10 Houses, Urban Blocks 40 and 40a
Figure 11.11-2 Participants from the Companies and Institutions adjacent to the
Site
(3) Record of Discussion

During the respective meetings, the initial ideas about the proposed Project were presented and
various questions and comments were raised and clarified. Refer to Appendix 6 for the detailed
recording of the discussion.
11-76
Appendix 1
Drawings
List of Drawings
No. Title of Drawings
001 Overall Project Plot Plan
002 Overall Flow Diagram Steam Water Cycle
003 Steam System Diagram
004 Feed Water and Condensate System Diagram
005 Cooling Water System Diagram
006 Make-up Water System Diagram
007 Fuel System Diagram
008 Circulating Water System Diagram
009 Fuel Gas System Flow Diagram

EQUIPMENT
No. EQUIPMENT NAME NOTE
1 GAS TURBINE
2 GT GENERATOR
3 GT LUBE OIL TANK
4 REDUCTION GEAR
5 FUEL GAS VALVE SKID
6 EXHAUST DUCT
7 HEAT RECOVERY STEAM GENERATOR
8 STACK
9 CO2 FIRE FIGHTING SYSTEM
10 GT GENERATOR AUXILIARY CUBICLE
11 STEAM TURBINE
12 ST GENERATOR
13 ST LUBE OIL TANK
14 AIR COOLED CONDENSER
15 ST GENERATOR AUXILIARY CUBICLE
16 RADIATOR
17 TRANSFORMER
18 CONTROL ROOM & ELECTRICAL BUILDING
19 AIR COMPRESSOR
20 WATER TREATMENT SYSTEM
21 WASTE WATER SYSTEM
22 N2 SUPPLY UNIT
23 WARE HOUSE
24 CAFETERIA
Appendix 2
Terms of Reference of Engineering Consultancy Services

TERMS OF REFERENCE (TOR)
OF
ENGINEERING CONSULTANCY SERVICES
FOR CTM 85 MW COMBINED CYCLE POWER PLANT
DEVELOPMENT PROJECT
A. PROJECT INFORMATION
a) Background Information
The Gas Fired Power Plant Development in Mozambique (hereinafter called “the
project”) is aiming for supplying electric power to satisfy middle- and long-term
power demand in Southern region of the Republic of Mozambique (hereinafter called
“Mozambique).
The nationwide power demand shows only 610 MW of the maximum generating
capacity and 4,025 GWh/year of the gross power production but the annual average
increase rate in past 5 years shows remarkable growth; i.e. 13.8% and 10.6% each. In
particular, the maximum generating capacity only in Southern Mozambique is 369
MW which is 60% of 610 MW mentioned above and the annual average increase rate
shows steady growth; i.e. 11.3%.
Although Electricidade de Mozambique (EDM) makes an effort to ensure power
supply capacity; e.g. rehabilitation of aged small-scaled hydroelectric and thermal
power plants, purchase of electric power from IPP power supply being built in
Ressano Garcia area, and capital participation into IPP, the urgent issue to satisfy
middle- and long-term power demand is to ensure a new power supply in Maputo city.
Based on such a background, Mozambique government requested Japanese ODA
from Japanese government in December, 2011 to support gas-fired combined cycle
power plant building in Southern Mozambique.
b) Location of the project and information on the surrounding area

The project site is located approximately 6km west-north-west from down town of
Maputo city, capital of Mozambique. The existing Maputo Thermal Power Plant is
surrounded by the ocean and highway, and can be reached in approximately 20
minutes by car from the center of Maputo. Site of about 27,000 m2 is available as a
construction on the premises of an existing power station of EDM that is 3 km in the
northwest from Maputo Port.
Maputo city features a tropical savanna climate that borders on a humid subtropical
climate. The city has short rainy season lasting from November through March.
Maputo also features noticeably warmer and cooler season, with its warmest month is
January and coolest month is July. Average maximum and minimum temperature is
28oC and 18oC in the last 5 years. At present, the Maputo Thermal Power Plant has
three gas turbine power generation facilities (Unit 1: jet fuel fired type having a
generation capacity of 17.5 MW; Unit 2: diesel oil-fired type having a generation
capacity of 36 MW; Unit 3: diesel oil-fired type having a generation capacity of 22
MW)
Since the site is on the premises of an existing power station, it is not necessary to
develop or prepare land to construct a power plant. However, fuel tanks that are no
longer used are on the premises and these fuel tanks need to be removed to construct
new facilities in this area.
APP 2- 1
c) Stage reached in the project preparation and summary of the findings of
studies to date
Feasibility study will be completed on March 2013 by Tokyo Electric Power Services
Company Ltd and Oriental Consultants Company Ltd in Co-operation with JICA,
JAPAN.
d) Implementing Organization
The Electricidade de Moçambique (EDM)
B. OTHER RELEVANT INFORMATION
a) Technical Information
The capacity of the Plant will be 85 MW (70MW – 110MW). One multi-shaft 2-on-1
Combined Cycle Gas Turbine (CCGT) will consist of two gas turbines unit and one
steam turbine unit. In this project the technical standards to be followed will be JIS,
IEC, ISO, ANSI, ASTM and DIN
b) Relevant laws and regulations

This Project will be guided by Laws of the land (Mozambique).
c) Related Projects.
New natural gas pipeline is planned by ENH.
I. INTRODUCTION
The Government of People’s Republic of Mozambique (hereinafter called “GOM”) is

going to receive financing (Credit) from Japan International Cooperation Agency
(JICA) (hereinafter called “loan”) toward the cost of CTM 85 MW Combined Cycle
Power Plant Development Project (hereinafter called “the Project”) and intends to
apply part of the proceeds of this credit to payments under the Consulting Services for
the supervision of implementation of the Project. The Electricidade de Moçambique
(EDM) intends to employ a firm of consultants for the contract to manage and
supervise the implementation of the Project, CTM, Mozambique.
II. SCOPE OF WORKS UNDER THIS PROJECT

The scope of work (Including procurement & erection/ commissioning) for the project
(under Turnkey contract) is as follows:-
1-1. Installation of CTM 85 MW Combined Cycle Gas Turbine (CCGT) and
its auxiliaries.
1) Gas Turbine, Generators and auxiliaries
2) Steam Turbine, Generators and auxiliaries
3) Heat Recovery Steam Generator (HRSG) and auxiliaries
APP 2- 2
4) Air cooled condenser and related facilities
5) Closed cooling water system for cooling of lubricating oil and other cooling
media
6) Drain Recovery System
7) Waste water treatment system
8) Main stack
9) Fuel Gas supply system (new gas station ~ CCGT)
10) Indirect type fuel gas heater (if necessary)
11) Generator step-up transformers
12) Unit auxiliary transformers
13) Auxiliary Power Supply System
14) Emergency diesel generator
15) DC Power Supply System
16) Power Cables and control cables
17) Electrical equipment and materials.
1-2. System facilities for CCGT
18) Protection, metering and control system

19) Plant Data Management system
20) Continuous emission monitoring system
21) Service and instrument air supply system
22) Compact Simulator
23) Communication facilities
24) Control and instrumentation equipment and materials
1-3. Buildings for CCGT
25) Steam turbine building including structural steel, siding, roofing windows
26) Overhead crane and mobile crane
27) Other buildings and houses for supplied equipment
28) Administration building.
29) Ventilation and air conditioning
30) Site & building lighting
31) Architectural materials
32) Finish painting of equipment and materials
33) Fire pump house including structural steel, masonry block walls, roofing,
doors and louvers (if necessary)
1-4. Modification of existing 66kV Substations facilities
34) Cable head

35) Protection relay
36) Control system etc
APP 2- 3
1-5. Gas Facilities (Gas Station ~ RMS)
37) Gas supply piping with RMS (Regulatory & Metering Station) between Gas
Station and gas compressor ( or decompression facility )
38) Fuel gas compressor/booster or decompression facility (if necessary)
39) Fuel gas pre-treatment system(if necessary)
1-6. Civil Work
40) Site drainage/Site Sanitary
41) Piling (if necessary) and foundations for equipment.
42) All civil works including foundations for supplied equipment and buildings
and houses.
43) Preparation, excavation and leveling works of site area including temporary
storage area during construction and preparation of access road for carrying-in
of heavy components.
44) Fencing around the new plant site and access road (including access road to
equipment and drainages inside the new plant site)
45) Construction of approach road
46) Necessary temporary facilities on the downstream side from the connection
points of utilities such as electric power, water and the like necessary for
construction.
47) Irrigation canal shifting
48) Temporary works and facilities for construction
1-7. Others
49) Spare parts for one Combustion Inspection (CI), one Hot Gas Path Inspection
(HGPI), one Major Inspection (MI), which will be out of scope of LTSA spare
parts supply and supply of consumable parts for warranty period.
50) Standard and special tools.
III. UNDERTAKING BY EDM

For carrying out the engineering services of consultant, EDM shall provide the
following to the consultant without any cost:
1) All available documents, drawings, maps, statistics, data and information
related to the project, and
2) Full time counterparts of EDM project team to participate in the consultants
activities, and
3) All necessary permits, recommendation and authorization for carrying out the
construction work and
4) Working office required to be hired as near as possible to the EDM
headquarter, during design phase. It will be shifted to the project site during
construction phase.
IV. SCOPE OF SERVICE OF THE CONSULTANTS

The services of the consultant are to undertake the necessary conceptual study, design,
engineering, project management and execution including supervision of construction,
commissioning through the pre-construction stage, construction stage and warranty
period of the Combined Cycle Power Plant together with the associated auxiliaries
APP 2- 4
and ancillary equipment to compete the project. The Consultant is required to offer a
comprehensive proposal to include the following:
A. Review of implementation program and feasibility study.

B. Design and engineering.
C. Assist EDM in pre-qualification for Bidders.
D. Assist EDM in international competitive biddings.
E. Project Management at all levels including periodic review of budget
estimate and administration of project cash flows.
F. Inspection, testing and delivery control during manufacturing
G. Construction supervision.
H. Commissioning and acceptance tests.
I. Ensure the quality of transfer of knowledge and technology from
manufacture to EDM personnel.
J. Assist EDM in operation and maintenance.
K. Assist EDM for environmental aspects.
L. Conduct HIV/AIDS prevention program, and
M. Prepare reports and documents.
A) Review of implementation program and feasibility study

1) The scope of services would include all design concept study for the selection of
plant, especially the type and design parameters of the main equipment after
assessment of EDM’s needs and analysis of the problem involved. The study
should include a value analysis of alternatives and recommend the type of plants
& auxiliaries to be selected.
2) The Consultant also shall make provisions to undertake the following:

a) Review and comment on all the existing documents including the pre-
investment study report, JICA Feasibility Study Report, design parameters,
etc. and recommend revision or modification, if necessary to achieve the
successful completion of the project.
b) Review and comment on the project cost estimates originally envisaged
and recommend modification or adjustment, if necessary, so that all the
works originally envisaged including consulting services are completed
within the original cost estimates.
c) Prepare updated project program, cost estimate and cash flow.
B) Design and Engineering

The consultant shall be responsible for but not be limited to:-
a) Prepare design calculations, basic plans, drawings, specification and schedules
for Bidders and for contract documents. The design shall include but not
limited to; calculations to determine size or capacity requirements; single line
diagram with control and protection scheme; layout and arrangement of
components, plant area layout, selection of equipment and materials including
those related to environmental issues; models of testing equipments and
materials and specialized research, if any required.
b) Review and update the above mentioned documents based on EDM and JICA
comments
C) Assist EDM in Pre-qualification for Bidders
APP 2- 5
The consultant shall undertake the following works:
a) Select pre-qualification criteria including but not limited to, eligibility
requirement; joint venture requirement; general experience requirement;
specific experience requirement; financial capability; organizational capability
and others.
b) Prepare Pre-qualification documents.
c) Check and review pre-qualification proposal from Bidders with due co-
ordination of guidelines of EDM and JICA.
d) Assist EDM for pre-qualification advertising.
e) Evaluate all Bids in accordance with established EDM and JICA approved
criteria.
f) Review and update the draft report based on comments from EDM and JICA.
g) Prepare draft evaluation reports to EDM and assist EDM in preparing final
evaluation reports.
D) Assist EDM in International Competitive Biddings

The consultant shall undertake the following works:
a) Prepare, check and review of Bid documents both for the EPC and Long Term
Service Agreement (LTSA) contracts, including but not limited to, general and
commercial terms and conditions for bidding purpose conditions of contract,
technical specification and drawings for bidding purpose, schedule and forms
for bidding purpose with due coordination of guidelines of EDM and JICA.
Suggestion for appropriate level of service, Bidding method, timing for the
LTSA contract to be provided.
b) Assist EDM for pre-bid conference.
c) Assist EDM in replying Bidders question and in issuing addenda to Bid
documents
d) Examine and evaluate the technical Bids received (on qualification and
technical aspects) in accordance with established EDM and JICA approved
criteria.
e) Prepare draft evaluation report of EDM and assist EDM in selecting
technically responsible Bidders.
f) Evaluate and tabulate contents of all Bids for compliance with the Bid
documents, reasonableness of price and proposed time for completion of the
work and any other guidelines as required by EDM and JICA.
g) Prepare final evaluation reports and recommend for award of contract taking
into consideration to comments of EDM and JICA on draft evaluation report.
h) Prepare draft contract agreement issued by EDM to successful Bidder.
i) Assist EDM for contract negotiation of LTSA including service contents and
duration, if it needs to be dealt separately.
E) Project management at all levels including periodic review of budget estimate

and administration of project cash flows
The consultant shall establish a project management system acceptable to EDM,
which will be used to monitor, track and pin point problem.
The works involved will include but not be limited to the following:
a) Establish the basic overall project construction schedule, budget and cash
disbursement schedule for both foreign and local portion;
b) Establish and implement a project management system and procedures to
monitor and control the cost and time schedule to enable timely corrective
measures.
APP 2- 6
c) Support, co-coordinate, supervise, and make decision and issue instruction for
all design and engineering related to the construction activities to EDM from
view point of ensuring the engineering standards, quality assurance and safety
of the project
d) Set up a quality reporting system of project progress and status to EDM.
e) Manage claims by and against the contractor properly and reasonably within
reasonable time considering the best interest of EDM.
f) Anticipate and identify potential difficulties or conflicts and their effect on the
implementation schedule and recommended and agree steps to be taken by the
contractor or recommending steps to be taken by EDM to overcome the
difficulties and to avoid delays.
g) Prepare and/or evaluate recommendations to EDM regarding any change
proposals, technical amendments and change in the scope of work, if any, the
appropriateness of their pricing and if agreed by EDM the timely issuance to
the contractor of charged order, as per the conditions of the supply and
installation contract.
F) Inspection, testing and delivery control during manufacturing

The consultant with EDM participation shall undertake to implement the following:
a) Check and approve proposal on quality assurance, quality control plan and
delivery schedule prepared by the contractor.
b) Regularly review production and delivery schedule submitted by contractor.
c) Check and approve factory testing procedures and factory test results
submitted by the contractor.
d) Monitor manufacturing progress by testing regular inspections to ensure
compliance to contract documents.
e) Witness factory test of major equipment and preparation of corresponding
certificates (test items to be witnessed are to be agreed between EDM and the
contractor).
f) Check and review inspection report on each factory testing submitted by the
contractor.
G) Construction Supervision
The consultant with EDM participation shall undertake the following;
a) Ensure that the contractor sets up his site works appropriately and in
accordance with the contract terms and with due consideration to aspects of
environmental protection.
b) Act on behalf of EDM by administrating the contract between EDM and the
contractor.
c) Check and approve the contractors design and drawings of the projects.
d) Check and approve the contractor’s temporary works and facilities.
e) Check and approve the contractor’s equipments.
f) Coordinate, supervise and inspect all construction and erection activities.
g) Check and approve the construction methods and site works caries out by the
contractor.
h) Check and approve the contractor’s quality assurance and control program.
i) Issue instructions to the contractor on behalf of EDM.
j) Indicate and approve final reference points for the setting out of all structures.
k) Check and approval of test procedure for materials and equipment to be tested
on site by the contractor and witness of such tests.
l) Check and approve work progress for purpose of certifying progress payment.
APP 2- 7
m) Assist issuance of payment certificates by EDM.
n) Maintain records of payment made by EDM to the contractor.
o) Monitor and control work progress and initiation of corrective measures, if
required
p) Recommended any modification of complementary items to be necessary to
the contractor.
q) Hold monthly progress meeting and submission of monthly progress reports to
EDM.
r) Support EDM to prepare quarterly progress reports to GOM/JICA.
s) Maintain records of contractual matters (Guarantees, performance bonds,
issuance, claims etc.)
t) Assist EDM in contractual matters (Guarantees, performance bonds, issuance,
claims etc.)
u) Inspect and direct preventive safety and environmental control measures.
v) Prepare project complementation report.
w) Check and approve as built drawings.
x) Issue “Certificate of Ready” for commissioning certificates.
y) Assist EDM for submitting Project Completion Report to EDM within six (6)
months after the project completion
H) Commissioning and Acceptance Tests

The consultant shall undertake the followings.
a) Assist EDM during the various commissioning stages of the plants.
b) Check and approve the contractor’s start-up and testing procedures including
performance test to meet guarantees.
c) Coordinate and supervise all tests according the contract.
d) Check and approval of the contractor’s commissioning test report after taking
into consideration of EDM’s comments
e) Issue tentative taking over certificates and final acceptance certificates for
power plant equipment subject to prior approval of EDM.
I) Ensure the quality of transfer of knowledge and technology from Manufacture

to EDM Personnel
The consultant shall undertake the following:
a) Define the manufacture’s responsibility to develop, arrange and implement
adequate on-the-job training program, both during construction and LTSA
implementation period for EDM’s operation/maintenance (O/M) staff assigned
to operation and maintenance of the plant.
It should be ensure that the manufacture shall provide the O/M training during
the construction period of, including but not limited to, the assembly of the
structure of the equipments of the power plant which cannot be checked
during operation, and test operation, as well as during LTSA period, where
EDM O/M staff should be able to observe and record the manufacture’s of-site
maintenance activities. It should also be ensured that the extension of LTSA
training services without significant extra cost, if provided LTSA training is
assessed insufficient or inadequate for EDM operation/maintenance staff to
acquire the expected skill and technology levels.
b) Incorporate the manufacture’s responsibility for the above mentioned on-the-
job training for EDM’s operation/maintenance staff into the Bid Documents.
APP 2- 8
c) Ensure the quality of training and knowledge transfer provided from the
manufacture to EDM’s O/M staff during both the construction period and
LTSA implementation period.
If it is found necessary, take corrective action to materialize the training and
knowledge transfer outcome, where EDM become able to implement
independently quality operation and maintenance activities, of which training
are provided by the manufacture. Corrective action may include programming
training of power station staff in coordination with the manufacture.
d) Support EDM O.M staff to acquire quality assurance skills to assess the
quality of O/M and LTSA training and to identify training-needs.
e) Encourage and ensure EDM staff to acquire such skills as reading design
drawings and circuit diagrams, listen to contractor on near-miss experiences
and learn safety management scheme from contractors implementation scheme,
learn maintenance skills from the manufacture and record such construction
and maintenance experiences by video recording and through documentation.
J) Assist EDM in Operation and Maintenance

Strategic Planning
a) Assist EDM to develop the Operation and Maintenance Strategy, including but
not limited to, the plant performance target and plant Operation and
Maintenance policy, where EDM O/M staff are to become able to conduct
O/M activities in sustainable and independent manner.
b) Assist EDM to develop the procedure to make the breakdown targets from
Key Performance Indicators for each department/division of the plant and
employees
c) Assist EDM to establish and implement PDCA.
Good Practice
d) Assist EDM to develop and implement a system for recording data on plant
efficiency and performance, including but not limited to, daily operation, daily
inspection, periodical inspection, maintenance record and accident record.
e) Assist EDM to establish and implement maintenance schedule and procedure.
f) Assist EDM to acquire knowledge and skills of monitoring and checking
during operation, such as materializing equipment functions, maintaining heat
efficiency, reducing equipment wear, reducing creep and fatigue degradation
of hot parts, by utilizing computer-based simulator and OJT through daily
operation.
g) Assist EDM to establish and implement a trouble-management scheme,
including trip cause analysis and recurrence prevention.
h) Assist EDM to establish and implement safety management scheme, including
ex-ante and ex-post safety activities.
i) Assist EDM to prepare inventory records (assets listing) of nameplate,
summary list of equipment facilities “as-built” drawings for electro-
mechanical equipment
j) Assist EDM to acquire knowledge and skills to conduct non-destructive
inspection.
k) Assist EDM to develop basic design of IT-enabled Operation and
Management System which includes, but not limited to the plant budgeting
APP 2- 9
database and parts management system for system detailed design to be taken
up in later stage.
l) Closely coordinate and communicate with management consultant, who will
be responsible to develop EDM’s finance and accounting capacity including
budget management;
m) Guidance and coordination of the preparation of the Contractor’s operation
and maintenance manuals, which includes negotiation with the contractor to
provide their operation/maintenance manuals before the commissioning so that
EDM could customize the provided manuals to their operation/maintenance
before the commissioning
K) Assist EDM for Environmental aspect

a) Assist EDM in the further elaboration of environmental management and
monitoring programs, both at corporate level and at management level.
b) Assist EDM to enhance respect to compliance in environmental aspects.
c) Assist EDM to implement energy conservation education.
L) Conduct HIV/AIDS prevention program

The consultant team shall incorporate specialists in the HIV/AIDS program with
relevant experience regarding HIV/AIDS prevention program within large
construction projects. The consultant team shall also incorporate a local NGO in the
HIV/AIDS prevention program of the project.
(First stage: During the detailed design stage)
The consultant will conduct a study in order to prepare a HIV/AIDS prevention

program (“The study”) for the local people taking account of the nature of the
project and the socio-economic contents. The consultant shall identify the
appropriate HIV/AIDS prevention program for the construction workers to be
carried out by NGO in the framework of construction contract under the project an
the program for the local people to be carried out by NGO, and shall draft the
HIV/AIDS prevention clauses to be included in construction contracts in the study.
The program should be started as soon as practicable after worker arrive at the
construction site, And the program should include at least (I) facilitation of condom
access and promotion of condom uses, (2) HIV/AIDS education through peer
education and (3) Provision of information on “Test and treatment of Sexual
Transmitted Infection (STI) and “Voluntary Counseling and testing”. The program
shall be in the line with national strategic plan for HIV/AIDS, and shall be agreed
upon with the relevant Ministry. The consultant shall identify a local NGO which is
capable of implementing the program, obtain and discuss their proposal in order to
decide on implementation plan. The program should cover the practical details of
implementation plan including schedule and costs and the gender issue related to
HIV/AIDS prevention will be discussed during the consultation.
(Second Stage: During the construction stage)
During the construction phase, the consultant will be a tasked to implement the
HIV/AIDS prevention program for construction workers in the framework of the
APP 2- 10
construction contracts through the local NGO. Those activities will be reported to
EDM, and the relevant Ministry monthly and to JICA in the progress report on a
quarterly basis. The consultant shall ensure appropriate liaison with relevant health
authorities and organizations.
(Third Stage: Upon Completion)
Upon completion, the consultant will be tasked to prepare the report on

success/failure of the program to EDM, the relevant Ministry and JICA.
V. REPORTS & DOCUMENTS

The consultant shall prepare and submit to EDM the following documents reports.
1. Inception report (including schedule).
2. Engineering report (including basic design report).
3. Construction schedule and cost estimate.
4. Draft of pre-qualification documents.
5. Draft of Bid documents.
6. Draft of evaluation criteria and method of pre-qualification.
7. Draft of evaluation report of pre-qualification.
8. Draft of evaluation criteria and method of international competitive biddings.
9. Draft of evaluation report of international competitive biddings.
10. Monthly progress report.
11. Quarterly progress report.
12. Project completion report.
VI. EXPERTISE REQUIREMENT

The engineering services shall be provided by the foreign and local consultants,
which shall include but not be limited to the following:
Foreign Consultant
1. Project Manager (Team leader: M or E).
2. Plant Design Engineer.
3. Mechanical Engineer (Gas Turbine).
4. Mechanical Engineer (Steam Turbine).
5. Mechanical Engineer (HRSG).
7. Electrical Engineer.
8. I & C Engineer.
9. Civil Engineer
10. Contract Engineer.
11. Environmental Engineer.
APP 2- 11
Local Consultant
13. Deputy Project Manager (deputy Team leader)
14. Plant Design Engineer.
15. Mechanical Engineer (Gas Turbine).
16. Mechanical Engineer (Steam Turbine).
17. Mechanical Engineer (HRSG).
19. Electrical Engineer.
20. I & C Engineer.
21. Civil Engineer
22. Environmental Engineer.
VII. DURATION OF SERVICE

The engineering service shall cover the duration of Forty-five (45) months, starting
from commencement of consultant services to the completion of the project.
1) Pre-Construction stage : 15 Months

2) Construction stage : 30 Months
3) Defect Liability Period : 12 Months
3) International Consultant : 342-Man- Months
4) Local Consultant : 307-Man- Months
VIII. SELECTION CRITERIA OF CONSULTANTS

1. Basic Qualification
Based on submission after EOI, the Employer Electricidade de Mozambique
(EDM) shall prepare a Short List of Consultants to be invited to submit proposals.
The number of the short-listed consultants will be 3 to 5. The consulting firms
shall satisfy the following conditions to be listed in the short list
1.1 Overseas experience of consulting services in similar power station project.
Minimum requirement: A firm shall have experience of consulting
services of at least in a developing country under similar environment 70
MW of (2-on-1, or 1-on-1*2) or above capacity combined cycle power
station project under a single contract to be considered for short listing and
contract value of such services shall be more than US $ 100 Million.
Consultants must have origin from eligible source countries (i.e. All
countries and areas of the world) as defined under Japanese ODA loans.
1.2 Firms that propose Man-Months less than those specified in the ‘TOR’
will be disqualified.
2. Technical Capability
Following additional criteria will be considered during evaluation of firms
2.1 Experience in a developing country in similar environment.
2.2 Experience under Japanese finance ODA Loan Projects.
APP 2- 12
2.3 Professional Strength.
2.4 Experience in relevant field.
Relevant field means experience in the following fields but not limited to:
2.4.1 Preparation of Specification of Power Station as well as Substation
materials.
2.4.2 Preparation of bill of quantities.
2.4.3 Preparation of bidding document with commercial terms & designs..
2.4.4 Experience in Bid document evaluation.
2.4.5 Preparation of Contract document.
2.4.6 Review and Approval of technical design, drawing.
2.4.7 Preparation of Project Implementation Schedule.
2.4.8 Supervision and Monitoring of Construction works, Quality control,
testing, & commissioning works.
2.4.9 Preparation of Test Schedule.
2.4.10 Completion and Acceptance certificate Issuance.
2.4.11 Preparation of Operation and Maintenance (O&M) Manual.
3. Financial Capacity
3.1 Turnover of the consulting firm
3.2 Contract value of consulting services already performed
4. Specific Requirement:
4.1 Both Foreign & Local consultant shall maintain their office separately at
Maputo, Mozambique.
4.2 Foreign consultant should render their service staying in Mozambique
for a reasonable time mutually agreed by Employer and Engineer.
4.3 Full time engineers shall stay in Mozambique covering 100% of Man-
Months allocated for them.
Short listing will be made on the basis of the stated Criteria Section. VIII of EOI in
accordance with the “Guidelines for Employment of consultant under Japanese ODA
Loans” March 2009.
APP 2- 13
Appendix 3
Site Survey
APP3-1
APP3-2
APP3-3
APP3-4
APP3-5

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Chapter 8

Project Implementation Plan

Chapter 8 Project Implementation Plan

8.1 Implementation Schedule in ODA Scheme

8.1.1 Project Preparation

(1) Environmental Impact Assessment (“EIA”)

(2) Selection of Consultant

8.1.2 Selection of EPC Contractor

Project Implementation Schedule

(Source: JICA Study Team)

Figure 8.1-1 Project Implementation Schedule

8.2 Construction, Procurement and Transportation

8.2.1 Present State of Site

(Source: JICA Study Team)

Figure 8.2-1 Overhead View of CTM Maputo Site

(1) Site Preparation

(2) Infrastructure for Construction

(3) Construction Area

(4) Temporary Yard

 Vacant land at north side of construction area

(5) Gas Station

8.2.2 Transportation of Heavy Equipment

(1) Unloading at Port Maputo

Table 8.2-1 List of Berths at Port Maputo

(2) Inland Transportation

(a) Weight and Size Limit

 Weight: Total weight should not exceed the following limits

 Size: Maximum length: 22 m

(b)Route of Inland Transportation

(Source: JICA Study Team)

(Source: JICA Study Team)

Figure 8.2-3 Crossover-1

(Source: JICA Study Team)

Figure 8.2-4 Crossover-2

8.2.3 Maputo Ring Road Project

(Source: Maputo Sul)

Figure 8.2-5 General View of Maputo Ring Road Plan

(Source: JICA Study Team)

(Source: JICA Study Team)

There is a possibility that Section 6 may interfere with:

8.2.4 Other Issues for Construction Planning

(1) Special Methods of Construction

(2) Connection with Power Transmission Line

(3) Climatic Conditions

(4) Long Holidays

8.3 Points of Concern for Project Implementation

8.3.1 Procurement in Mozambique

8.3.2 Tendering Method and Contract Conditions

8.3.3 Selection of a Consultant

8.3.4 Selection of an EPC Contractor

(1) Package for Tender

(2) PQ and Tender

(c) Financial position

8.4 Management at Construction Stage

8.4.1 Project Implementation Organization

(1) Organization of EDM

Power Generation, transmission &

CTM CCGT PIU

(Source: JICA Study Team)