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Document Title:

SCOPE OF SERVICES

Project Title:

PROFESSIONAL SERVICES FOR OWNERS TEAM TO

COLABORATE WITH TRANSNET PIPELINES IN THE

COMPILATION OF THE EPCM SCOPE OF WORK AS

WELL AS MANAGEMENT OF THE FEL 1 PHASE

(WITH AN OPTION TO EXTEND INTO OTHER

PHASES UNTIL CLOSE-OUT) OF THE PROJECT AS

PER TRANSNET PLP METHODOLOGY FOR THE

PIPELINE CONSTRUCTIONS AND FACILITIES

PROJECT

REVISION 07: FOR TENDER

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TRANSNET PIPELINES

PROFESSIONAL SERVICES FOR THE OWNERS TEAM TO COLABORATE WITH TPL IN COMPILATION OF EPCM

SCOPE OF WORKS AND MANAGEMENT OF FEL PHASES

TECHNICAL PROJECTS

RFPS 091215 of 34 Rev 7

CHANGE CONTROL DOCUMENT PREPARATION

Compiled by S. Shange Projects Manager

Reviewed by A. N. Thoolsiram Projects Manager

B. S. Panday Capital Projects Manager

C. A. Parsons MC&I Manager

D. B. Burger Electrical Manager

E. A. Fabricius Mechanical Manager

F. M. Beneke Pipeline Integrity Manager

E. v Blerk Project Liaison manager

M Pilime Operations Support Manager

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1. GLOSSARY

AC - Acquisition Council

ALR - Alrode

APT - Airport

AVTUR - Aviation Turbine Fuel

BOQ - Bill of Quantities

BDAC - Board and Acquisition Council

CAPIC - Capital Investment Committee

CF2 - Clean Fuels Act 2

CP - Cathodic Protection

DJP - Durban Johannesburg Pipeline

EDS - Engineering Design Specification (document used for software development)

EPCM - Engineering, Procurement and Construction Management

ETC - Estimate to Complete

EXCO - Executive Committee

FEL - Front End Loading

FEED - Front End Engineering and Design

EIA - Environmental Impact Assessment

E&I - Electrical and Instrumentation

EPCM - Engineering, Procurement and Construction Management

FFP - Fitness for Purpose

GIS - Geographic Information System

HAZOP - Hazardous and Operability Study

H&S - Health and Services

ICT - Information and Communications Technology

ISO - International Standards Organisation

IVW - Coastal Terminal

JMP - Jameson Park Terminal

KEN - Kendal

KRO - Kroonstad

MC&I - Metering Control and Instrumentation

LSD - Low Sulphur Diesel

LLA - Langlaagte

MCC - Master Control Centre

NEC - Mew Engineering Contract

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NOC - National Operating Centre

NKP - National Key Point

NMPP - New Multi Product Pipeline

OHS - Occupational Health and Safety

ORTIA - OR Tambo International Airport

P&ID - Process and Instrument Diagram

PEP - Project Execution Plan

PII - Pipeline Integrity International

PL - Pipeline

PLP - Project Lifecycle Process

PPM - Procurement Procedures Manual

RFP - Request for Proposal

SAT - Site Acceptance Test

SBG - Sasolburg

HSERQ - Safety, Health, Environmental, Risk & Quality

SANS - South African National Standards

SOC - State Owned Company

SIL - Safety Integrity Levels

TPL - Transnet Pipelines

ULSD - Ultra Low Sulphur Diesel

WAO - Waltloo

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2. CONTENTS

1. GLOSSARY...................................................................................................... 3

2. CONTENTS ..................................................................................................... 5

3. TRANSNET PIPELINES BACKGROUND .............................................................. 7

4. PROJECT HISTORY AND BACKGROUND ........................................................... 7

5. PROJECT OBJECTIVE ...................................................................................... 9

6. PROJECT REQUIRMENTS ................................................................................. 9

7. TPL PROJECT EXECUTION STRATEGY ............................................................ 10

8. PROJECT CONTRACTING STRATEGY .............................................................. 11

9. SCOPE OF SERVICES ..................................................................................... 12

9.1 SCOPE OF SERVICE OVERVIEW ..................................................................... 13

9.2 LOCATION OF THE SITES AND ACCESS ......................................................... 14

9.3 GENERAL DESCRIPTION OF THE SERVICES .................................................... 14

9.4 DETAILED SCOPE OF THE PROJECT AS PER PLP PROCESSESS ........................ 16

9.4.1 FEL 1 – CONCEPT PHASE SCOPE .............................................................. 17

9.4.2 FEL 2 – PRE FEASIBILITY PHASE .............................................................. 20

9.4.3 FEL 3 –FEASIBILITY PHASE (BASIC ENGINEERING) ................................... 24

9.4.4 FEL 4–DETAILED ENGINERING ................................................................. 25

9.4.5 EXECUTION AND CLOSE OUT PHASE ........................................................ 26

9.4.6 REQUEST FOR PROPOSAL ........................................................................ 26

9.4.7 ROLE OF THE CONSULTANT WITHIN THE PROJECT CONTEXT ................... 27

9.4.8 PROCUREMENT ....................................................................................... 27

9.4.9 DATA TO BE SUPPLIED TO CONSULTANT ................................................. 27

9.4.10 COMPLIANCE WITH LAWS ..................................................................... 27

9.4.11 NON-ASSIGNMENT ............................................................................... 27

9.4.12 OWNERSHIP OF DOCUMENTS AND COPYRIGHT ..................................... 28

9.5 COMMUNICATIONS ....................................................................................... 29

9.6 DOCUMENTATION CONTROL ......................................................................... 30

9.7 INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) ......................... 31

9.8 OFFICE SPACE .............................................................................................. 31

10. APPENDIX .................................................................................................... 32

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10.1 APPENDIX A: MAP OF TRANSNET’S EXISTING PIPELINES’ NETWORK .............. 33

10.2 APPENDIX B: TRANSNET CAPITAL UNIVERSE ................................................. 34

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3. TRANSNET PIPELINES BACKGROUND

Transnet Pipelines, a division of Transnet SOC Ltd, provides strategic pipeline infrastructure,

with associated world class pipeline logistics, for the petroleum and gas industries of South

Africa. This is done in partnership with our customers and stakeholders thereby assuring the

African sustainable development imperative. Established in 1965, Transnet Pipelines owns,

maintains and operates a network of some 3800km of high-pressure petroleum and gas

pipelines. Transnet Pipelines transports an average of 17 billion litres of fuel per annum. This

includes diesel, unleaded petrol, aviation turbine fuel and crude oil.

The pipeline network and the liquid fuels network depots traverses 5 provinces, KwaZulu-

Natal, Free State, Gauteng, North West and Mpumalanga. The intake stations are the two

refineries in Durban, the crude refinery at Coalbrook (Natref -Sasolburg) and the Synfuel

plants at Secunda (Sasol II and III). TPL transports petrochemical products through the

pipeline network comprising of underground steel pipelines, delivery depots and pump

stations as depicted in the attached map PPT 1604D. The pipeline is laid within a servitude,

which traverses through many properties (private, state owned, local authorities) with the

pump stations and delivery depots located in rural, industrial and suburban areas along the

pipeline routes.

The pipelines range from 6” (150mm) to 24” (600mm) in diameter. All the pipelines have

been constructed in accordance with the American Code ASME B31.4. Pressure in the

pipeline network is monitored 24 hours a day, 365 days a year in the current control centre in

Transnet Pipelines’ Head Office in Durban, with the future facility being at the NOC in Kirk

Road, Pinetown, KZN.

4. PROJECT HISTORY AND BACKGROUND

The Durban Johannesburg (DJP) petroleum products pipeline was the first pipeline to come

on stream at TPL and was commissioned in November 1965 for the then South African

Railways and Harbour Company, to transport petroleum products between Durban and

Johannesburg.

This 300mm (12”) diameter main line stretched over a distance of approximately 720km in

length and pump stations was located at Island View (later to be called Fuelflow), Hillcrest,

Howick, Ladysmith, Van Reenen, Bethlehem, Magdala (18km north of Kroonstad) and

Sasolburg, with take-off / delivery stations at Pietermaritzburg, Ladysmith, Bethlehem,

Kroonstad, Sasolburg, Alrode and Langlaagte.

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In 1971 due to the construction of the Natref refinery at Sasolburg and the increased

demand for fuels in the interior additional pipeline extensions were commissioned. A 200mm

(8”) pipeline from Sasolburg via Potchefstroom to Klerksdorp was laid. A 300mm (12”)

extension from Alrode via Airport, Elardus Park and on to Waltloo in Pretoria was laid in

addition to a 200mm (8”) pipeline from Elardus Park to Pretoria West

In 2003 TPL began the process to construct the 24” multi product pipeline to replace the DJP

to what eventually became the New Multi-products Pipeline (NMPP).

To reduce the cash flow impact of the NMPP project on Transnet at that stage, the following

pipeline sections, namely;

Terminal 1 (IVW) to Terminal 2 (JMP), also known as PL1 (24” diameter)

JMP to Alrode (ALR) also known as PL2 (16” diameter)

ALR to Langlaagte (LLA) also known as PL3 (16” diameter)

And Kendal (KEN) to Waltloo (WAO) also known as PL4 (16” diameter)

were completed while other sections of the pipeline were deferred to phase 2 of the NMPP.

The deferred scope is:

Replacing the section of 12” DJP from Sasolburg to Kroonstad ( approx. 124km)

Replacing the section of 12” DJP from Alrode to Airport depot (and to Waltloo),

which is used as part of the coastal jet route. This is the alternate Jet fuel route to

the 6” Avtur line from SBG to O R Tambo Int. (via. Airport Depot). This replacement

plan was to provide new routing for the coastal jet from Jameson Park to the O R

Tambo International Airport (approx. 50km).

During the original study various alternatives were considered as part of the multi modal

logistics study with the most viable alternative being the construction of the respective

pipelines.

The DJP was commissioned in 1965 and although currently still in use, this pipeline will reach

the end of its technical and economic life and will be replaced by the new NMPP.

With NMPP Phase 1 not yet complete and only expected to be complete in 2017 and the

NMPP Phase 2 planning an uncertainty, there is a need to commence with planning for the

replacement of the pipelines from Sasolburg (SBG) to Kroonstad (KRO) and Alrode (ALR) to

Airport (APT) as there is the added risk of the DJP failing in service or TPL not being able to

sustain the integrity of the DJP.

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Furthermore a report of the coastal jet study has indicated that while it is possible to

transport jet fuel in a common pipeline with ULSD, under Clean Fuels 2 (CF2) regulations, it

is not possible to deal with intermix within the typical pipeline operations i.e. refractionation

or blending, unless there is a high sulphur product in the transported product mix to use as

the ‘sacrificial’ product to blend into. Hence the need for a dedicated jet pipeline from

Jameson Park (JMP) to APT.

5. PROJECT OBJECTIVE

5.1 The project objective is to design, construct, commission and hand over:

An adequately sized and specified pipeline from TPL’s Jameson Park depot to

TPL’s Airport depot, an estimated distance of 50km,

And an adequately sized and specified pipeline from TPL’s Sasolburg depot to

TPL’s Kroonstad depot an estimated distance of 124km,

Upgrading of the associated facilities found on either ends of respective pipe

lines to cater for the relevant pipeline operational requirements,

by September 2022, within the allocated budget.

6. PROJECT REQUIRMENTS

6.1 The requirement is for the project to complete and handover the new legal, compliant

and adequately sized pipelines for TPL pipeline operations. This is to include the new

pipelines interfacing with the existing pipelines systems.

6.2 The pipeline is to align to TPL’s engineering standards and specifications in

conformance with ASME 31.4 code. The engineering is to include but not be limited

to the following requirements.

Operational and maintenance requirements (including Cathodic Protection (CP)

Process requirements

Civil requirements

Structural, mechanical, fire and piping requirements

Pipeline integrity requirements

Electrical requirements

Metering, control and instrument requirements

Business information systems requirements

6.3 The pipeline is to be designed and constructed in accordance with the regulatory and

compliance requirements as stipulated by the applicable legislation, including but not

be limited to the

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Regulatory legislations

Environmental legislations

Health and Safety legislations

Construction legislation

6.4 The project is to be completed with little to no impact on TPL’s day to day operations.

6.5 Transnet’s policies and procedures are to be used throughout the project lifecycle and

should there be any deviation, the deviation is to be highlighted to the project

sponsor and or steering committee.

7. TPL PROJECT EXECUTION STRATEGY

All of the capital projects in the TPL capital projects portfolio are managed according to the

PLP methodology. The Project Lifecycle Process, referred to as the PLP, is the methodology

for the effective management of capital investment projects within Transnet to ensure that

all projects are managed with a consistent approach. The study phases, or Front End

Loading (FEL) phases, are crucial to the successful implementation of the execution and

finalization phases. The term Front End Loading is a term commonly used to illustrate the

value and opportunity that may be realized by doing upfront work in the early study phases

of the project lifecycle when there is still potential to influence the successful outcome of the

project. A gate review is conducted by an independent team at the end of each study phase

to determine whether the work in that phase has been done with sufficient thoroughness for

the project to proceed to the next phase. The PLP is broken up into 6 sequential phases

namely;

Front End Loading (FEL) 1 or concept Phase: where the project options are defined and

the engineering is completed up to 10%.

FEL2 or prefeasibility phase: where the optimum option is selected and detailed up to

30% of engineering.

FEL3 or feasibility phase: where the project is defined and the execution planning of

the project completed. The engineering of the project at the end of the FEL3 phase is

approximately 70% complete. The scopes of works are to be complete and approved

for tender stage.

FEL4 or detailed design phase: Where the designs are detailed to approved for

construction stage. (AFC) The engineering is complete up to 100%

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And the execution phase: where the project is implemented. This includes all testing

and commissioning up to plant / equipment handover.

Close out phase: This is the final phase and includes commercial, financial and

technical closure of the project.

The picture below represents the various phases of the project life cycle planning process and is

intended to graphically illustrate the weighting of the commercial and technical stream as the

project progresses through the phases.

Picture 1: technical versus commercial streams

8. PROJECT CONTRACTING STRATEGY

During the various phases of the project the employer will split the services required in

distinct contracts or contract groups.

Contract Group 1 (Owners Team) – Contract(s) will be entered into with service

provider(s) who will provide hydrocarbon pipeline engineering consulting services to the

employer based on their specialist pipeline experience and knowledge. This service will

be rendered for the FEL 1 phase with an option to extend to other FEL Phases should

Transnet Pipelines choose to do so. It is anticipated that this will be a contract with a

single service provider but TPL reserves the right to award this work to more than one

service provider should it be required. TPL also reserves the right to discontinue or

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terminate the services of the Specialist (Owners team) at or before the end of a phase

i.e. FEL 1, FEL2, FEL3, etc.

Contract Group 2 (Engineering, Procurement and Construction Management (EPCM) –

Contract(s) will be entered into with service provider(s) who will provide the services

from the concept design through to the approved for construction design based on their

experience, capability and capacity to undertake a project within the constrained

requirements. Their service is to also include the supervision during construction, the

commissioning support during commissioning; project handover and project close out.

It is anticipated that this will be a contract with a single service provider but TPL

reserves the right to award this work to more than one service provider.

Contract Group 3 (Supply Contracts) – For the supply of plant and material which is not

defined at this stage.

Contract Group 4 (Construction Contracts) – Construction contracts to complete the

supply, fabrication, manufacture, installation, and construction works as per the

approved designs which is also not defined at this stage.

This scope of service is restricted to the contract group 1 (owners team) for the specialist

consultant.

It is also important to note that if a service provider is awarded work in one contract group

then it precludes him / her from being awarded work in another contract group, to avoid

situations of conflict of interest.

9. SCOPE OF SERVICES

The service provider is to provide hydrocarbon pipeline engineering consulting services to

the employer, serving as part of the employer’s owner’s team on the Transnet Pipeline

PL5&PL6 project. This is to include the required commercial, engineering, regulatory and

compliance input to assist the employer in selecting the most viable solution, for project

development and to assist the employer throughout the development of the project.

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These services are to be undertaken from the FEL 1 through to the close out phases of the

project lifecycle within the PLP process and will include the requirement for the service

provider to work with the employer in developing and producing all the required and agreed

gate review deliverables as well as partake in the gate review process together with the

EPCM.

During gate reviews the project may not be given authority to proceed onto the next FEL

phase due to various reasons, in which case, TPL reserves the right to discontinue the

services of the specialist consultant from one FEL phase to the next and will be included in

the contract as key dates (milestones), even though it may be (is) included in the contract.

The services are to be structured around the employer’s project objective of replacing the

section of 12” DJP pipeline from Sasolburg to Kroonstad (with PL5) and replacement of the

section of 12” DJP pipeline from Alrode to OR Tambo International Airport, which is used as

part of the coastal jet route (with PL6). This replacement route (PL6) is between Jameson

Park and Airport. It also includes the upgrade of the associated facilities found on either end

of respective pipelines to cater for the relevant pipeline operational requirements. This may

be expanded to other services at the discretion of the employer and or his agent.

9.1 SCOPE OF SERVICE OVERVIEW

The Employer intends to enter into a contract with a service provider to assist the employer

in the development of the project over the project lifecycle. The consultant will serve as a

specialist consultant on the project owner team and the service in brief is to include the

following:

Establish what the commercial, regulatory, engineering and financial requirements

are for the completion of the project on behalf of the employer.

Drafting a scope of service, compiling a tender in accordance with Transnet

Procurement requirements and deliverables, assisting the employer with the tender

briefing/s, evaluating the tender in lieu of awarding a contract to an EPCM service

provider.

Assist the employer in the review of deliverables during the optioneering phase of the

project (FEL 1 and 2)

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Provide quality assurance, including design reviews and approvals during the design

phases (FEL 3 and 4)

Provide quality assurance during the execution phase of the project.(Provide

Construction Project Management services for the execution phase)

Assist the employer to ensure that the project is adequately closed out, including

technical, operational, administrative, financial and contractual close out

9.2 LOCATION OF THE SITES AND ACCESS

The services rendered will be largely office based, with the TPL engagement sessions

convened at TPL’s Head Office at 202 Anton Lembede Street, Durban but will include site

work on the TPL sites specifically TPL Sasolburg Depot and TPL Kroonstad Depot including

the linking route as well as the TPL Jameson Park Depot and TPL OR Tambo International

Airport Depot including the linking route. Attached map PPT 1604D illustrates the location of

these sites.

9.3 GENERAL DESCRIPTION OF THE SERVICES

The Consultant shall function within the Project Team as the Specialist Consultant led by

Transnet Pipelines Project Manager/s with the aim of supporting all the technical aspects of

the project towards achieving a successful implementation of all elements of the project. In

achieving this goal, the consultant shall:

Maintain communications with the Transnet Pipelines project manager along with

project EPCM. It should be noted that although direct lines of communication

between the Consultant and the project manager is required for discussion/resolution

of all Technical issues, all such proposals/agreements shall be made with the consent

of the Project Manager, who carries overall responsibility for Project Management.

Evaluate and interpret client requirements, preliminary investigation, where any of

these are required for determination of feasibility. Furthermore, the Consultant shall

be responsible for all user related issues relating to design, supply, installation and

commissioning of the various elements of the project.

Write functional descriptions and user requirement specifications as needed. This will

be included in the preparation of detailed Scopes of Work for the EPCM tender,

encompassing all mechanical, civil, structural, environmental, instrumentation and

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electrical design and construction activities required to be performed during the

projects.

Assist the employer in the interpretation of functional specifications and ensure to

review, and make recommendations on the technical design documents as

developed by the EPCM. Review of the detailed scopes of work prepared by the

EPCM contractor.

Liaise with TPL operations and maintenance staff and advise on overall

implementation approach. Review and recommendation of the design of any process

or system or refinement of the preliminary process design, where such process

design is a prerequisite for the design of the Works

Review, familiarize and understand the proposed site including all constraints and

environmental factors.

Assist in the co-ordination and attend inspections such as factory acceptance testing

(FATS) and investigations with technical counterparts from TPL, the EPCM team,

contractors, etc.

Maintain in-depth technical knowledge of products utilised by Transnet Pipelines.

Interpret and perform valued input early within Transnet Pipelines’ decision making

process. Assistance with the evaluation of tenders received, and the submission of

recommendations. Review contractors including EPCM’s procedures, policies and

design documentation.

Co-ordinate and generally inspect the execution of the design works for compliance

with the EPCM Contract at such intervals as the Consultant may deem necessary.

Control and co-ordination of all quality assurance issues that may arise between the

Employer and other parties, ensuring full compliance with SANS/ISO procedures.

Assisting with resolving disputes or differences that may arise between the Client and

EPCM Contractor, excluding mediation, arbitration and litigation.

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Assist in the attendance and witnessing of performance and acceptance tests if

required.

Assistance during commissioning periods, as and when required.

Verifying the monthly assessment for services rendered by the EPCM and or other

contractors, including assisting with re-measurement if required.

Prepare reports at the various stages of the projects to the project team and other

relevant stakeholders.

Undertake design review coordination with the employer’s team.

Undertake and be available to execute Squad checks at various stages as and when

required.

Manage the EPCM to ensure the planning and execution of all phases and aspects of

the project so as to ensure that the project is executed expeditiously and efficiently.

Assist the employer in the review of the EPCM’s methodology and program

Obtain prior approval from the employer and or his agent for the mobilisation of a

resource to serve on the project.

The supplier to demonstrate by means of resource schedule with timelines as to how

the resources will be deployed and utilised for different phases and deliverables of

the project.

Should there be a need to demobilise key resources as identified at tender and award

stage, the employer should be notified of such demobilisation. The employer is to

approve all suitability and mobilization key resources.

9.4 DETAILED SCOPE OF THE PROJECT AS PER PLP PROCESSESS

The following pertains to the scope, in terms of project activities and or deliverables

envisaged. The requirement for the specific deliverable is captured below and is intended to

be a guide. Even though the activities / deliverables are intended to be sequential, it is

dependent on the methodology of the EPCM service provider.

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9.4.1 FEL 1 – CONCEPT PHASE SCOPE

9.4.1.1 Project Kick-off – Through engagement with the TPL owner’s team members confirm

the roles and responsibilities of the various role players in the project, amongst other

project kick off requirements.

9.4.1.2 Compilation of Owners Requirement Specifications (ORS) – Through engagement with

the TPL owner’s team members as well as engineering research to understand the

operational and technical requirements of the project to include and not limited to:

o The TPL operations philosophy

o The TPL operations capacity analysis

o The 30 year demand analysis

o Project sustainability objectives

o TPL pipeline routing criteria

o Pipeline routing hazards

o TPL environmental design criteria

o Project specific legal register

o Project specific compliance and regulatory universe

o Stakeholder identification

o Risk identification

The ORS is to be approved by the person with the correct delegated authority (within

Transnet / TPL) and be the guiding document for the project during the phase.

9.4.1.3 Compilation of Project Execution Plan (PEP) – On approval of the project ORS, develop

the project execution plan. The plan is to consider the following and not limited to:

o Stakeholder management plan

o Project risk management plan

o Procurement and contracting plan

o Engineering management plan

o Environmental management plan

o Health and Safety Management plan

o Cost, Time and Quality management plan

o Project resourcing or organisational plan

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9.4.1.4 Compilation of EPCM scope of service –

o Compile a scope of service for the engineering, procurement and construction

management (EPCM) for the FEL 1 to Close out phase of the project.

o Compile other tender documents including schedule of quantities, technical

returnables, adjudication criteria and other necessary documents for the EPCM

tender.

o Attend site briefing, complete tender adjudication and recommendation

o Provide input to contract negotiation and award.

9.4.1.5 Review and recommend the concept (FEL1) design basis as compiled by the EPCM

including and not limited to:

o Engineering

Process design criteria

Draft civil design criteria

Draft structural, mechanical and piping design criteria

Draft fire System design criteria

Draft electrical design criteria

Control system philosophy

Draft functional design criteria for metering control and instrumentation

Draft sustainability design criteria and alternatives analysis

o Health Safety Environmental Risk and Quality (HSERQ)

Environmental authorisation requirements including permitting requirements

Environmental baseline data collection requirements

o Community Management and Social Risks

Stakeholder / landowner identification model

o Regulatory and compliance

Regulatory specifications and requirements

9.4.1.6 Review and advice on the end of phase deliverables (FEL1) compiled by the EPCM

including and not limited to:

o Engineering

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Preliminary pipeline routing

Major civil property impacts of project

Identify geotechnical data

Preliminary site conditions

Digital Terrain model

Preliminary seismic data

Preliminary GIS

Preliminary structural concepts

Preliminary corrosion protection plans

Preliminary mechanical equipment list

Preliminary piping specifications

Preliminary piping material classes

Preliminary electrical equipment list

Completed electrical power supply survey

Preliminary hazardous area classification

Preliminary energy optimisation study

Final control system architecture

Preliminary instrument equipment list

Preliminary SIL analysis

Preliminary operational analysis and commissioning plan

o HSERQ

Preliminary quality management systems and procedures

End of phase risk review update for the FEL 2 phase


Stakeholder / Landowner engagement strategy

o Cost and Schedule

Class 2 capital cost estimate with cash flow for entire project

Class 4 capital estimate for the FEL 2 phase

Class 2 operating cost estimate

Estimate basis

Level 2 master schedule

Summary of schedule basis

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9.4.1.7 Finalise end of phase reports including:

o Regulatory, Compliance

Draft regulatory submission for project construction licence (Project Intent)

o Commercial and Procurement

Draft work package list for entire project

Final work package list for FEL2

o Financial

Financial analysis and project viability

o Draft FEL 2 business case

9.4.1.8 Prepare for gate review (FEL1)

9.4.1.9 Participate in FEL 1 gate review

9.4.1.10 Resubmission of FEL 1 gate review documents if required.

9.4.1.11 Compilation and submission of business case for approval to TPL CAPIC, Transnet

CAPIC, Transnet EXCO, Transnet BDAC and the shareholder.

9.4.2 FEL 2 – PRE FEASIBILITY PHASE

9.4.2.1 Phase Kick-off – Through engagement with the project team members participate in

the review the roles and responsibilities of the various role players in the project,

amongst other phase kick off requirements.

9.4.2.2 Update of ORS – Through items identified in the FEL 1 phase of the project as well as

through research update the operational and technical requirements of the project to

include but not limited to:

o The updated TPL operations philosophy

o The updated TPL operations capacity analysis

o The 30 year demand analysis

o The updated project sustainability objectives

o The updated pipeline routing criteria

o The updated routing hazards

o The updated environmental design criteria

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o The updated project specific legal register

o The updated project specific compliance and regulatory universe

The ORS is to be approved by the person with the correct delegated authority (within

Transnet/TPL) and be the guiding document for the project during the FEL 2 phase.

9.4.2.3 Update of Project Execution Plans – On approval of the project ORS, update the project

execution plan. The plan is to consider the following but not limited to:

o Stakeholder management plan

o Project risk management plan

o Procurement and contracting plan

o Engineering management plan

o Environmental management plan

o Health and Safety Management plan

o Cost, Time and Quality management plans

o Project resourcing and organisational plan

9.4.2.4 Motivate for the extension of the EPCM contract to the TPL acquisition council or

alternatively assist in the procurement of the required service through the open market

9.4.2.5 Review and advise on the updated pre-feasibility (FEL2) interim design review compiled

by the EPCM and a finalisation of the following design criteria but not limited to:

o Environmental design criteria

o Process design criteria

o Civil design criteria

o Structural, Mechanical and Piping design criteria

o Fire System design criteria

o Updated control philosophy

o Electrical design criteria

o Functional design criteria for metering control and instrumentation

o Sustainability design criteria

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9.4.2.6 Finalise the regulatory submission for the project construction licence.

9.4.2.7 Review and advise on the end of phase pre-feasibility deliverables (FEL2) compiled by

the EPCM including but not limited to:

o Engineering

Frozen pipeline routing

Preliminary site plot plans

Preliminary layout design criteria

Preliminary facility layouts

Major and Minor civil property impacts of project

Detailed geotechnical data

Final site conditions

Final Digital Terrain model

Final seismic data

Final GIS

Final structural concepts

Final corrosion protection plans

Detailed mechanical equipment list

Preliminary P&ID

Final piping specifications

Final piping material classes

Detailed electrical equipment list

Final electrical power supply survey

Final hazardous area classification

Final energy optimisation study

Frozen control system architecture

Detailed instrument equipment list

Detailed SIL analysis

Updated operational analysis and commissioning plan

o HSERQ

Updated environmental management plan

Environmental baseline data completed

Environmental authorisation submission completed

Environmental permits application completed

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Updated quality management systems procedures and plan

End of phase risk review update for FEL 3 phase


Updated stakeholder management plan for FEL 3

Land acquisition approvals initiated

o Cost and Schedule

Class 3 capital cost estimate with cash flow for entire project

Class 4 capital estimate for the FEL 3 phase

Class 3 operating cost estimate

Updated Estimate basis

Updated Level 2 master schedule

Updated summary of schedule basis



Response to regulator and obtain approval for construction licence


Updated work Package List for project

Final work package list for FEL3

o Financial

Updated financial analysis and project viability

o Draft FEL 3 business case

9.4.2.9 Prepare for gate review (FEL2):

9.4.2.10 Participate in FEL 2 gate review:

9.4.2.11 Resubmission FEL 2 gate review documents if required


9.4.2.13 Submission of business case for approval to TPL CAPIC, Transnet CAPIC, Transnet

EXCO, Transnet BDAC and the shareholder.

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9.4.3 FEL 3 –FEASIBILITY PHASE (BASIC ENGINEERING)




9.4.3.2 Review of Preliminary design documents for the FEL 3 phase in the following work

streams:

o Pipeline engineering and design

o Facility engineering and design

9.4.3.3 30% model reviews for designs


PL5 (124km)

PL6 (50km)


Sasolburg

Kroonstad

Airport

Jameson Park

9.4.3.4 70% model reviews for designs


PL5 (124km)

PL6 (50km)


Sasolburg Pump Station

Kroonstad Depot

Airport Depot

Jameson Park Terminal – TM2

9.4.3.5 Business Information Systems assessment



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Regulator updates and communication


Review final work package list for FEL4 phase

o Financial


o Updated FEL 4 business case




9.4.3.10 Submission of updated business case for approval to TPL CAPIC, Transnet CAPIC,

Transnet EXCO, Transnet BDAC and the shareholder.

9.4.4 FEL 4–DETAILED ENGINERING




9.4.4.2 Review of detailed design documents for the FEL 4 phase

9.4.4.3 Participate in the 90% model reviews of the EPCM`s designs



Regulator updates and communication


Participate in the tender briefing, technical evaluation and award of major

contracts

o Financial


o Updated FEL 4 business case

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9.4.4.8 Submission of updated business case for approval to TPL CAPIC, Transnet CAPIC,

Transnet EXCO, Transnet BDAC and the shareholder.

9.4.5 EXECUTION AND CLOSE OUT PHASE

9.4.5.1 Provide quality assurance during installation

9.4.5.2 Prepare for post implementation review

9.4.5.3 Assist employer with technical, financial, administrative and commercial close out of

project.

9.4.5.4 Prepare for post implementation review

9.4.6 REQUEST FOR PROPOSAL

A suitable Professional Services Contractor will be appointed though an NEC Professional

Services Option E contract (cost reimbursable contract). Tenderers are requested to submit

valid information in the form of a tender / bid based on their experience to deliver the

required services, to the employer. The employer will evaluate the tenderer’s proposal on

9.4.6.1 Company and staff experience, capability, and capacity to undertake this service

with a special focus on the hydrocarbon industry, consulting on the design and

management of hydrocarbon pipelines.

9.4.6.2 The tenderers understanding of the specific project requirements.

9.4.6.3 And the tenderers proximity to the TPL head office situated at 202 Anton Lembede

Street. It is the employer’s requirements to ensure logistical efficiencies are

assessed when resources assigned to the service are mobilised.

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9.4.7 ROLE OF THE CONSULTANT WITHIN THE PROJECT CONTEXT

The consultant will provide specialist technical assistance to the employer within a pipeline

development context. The role is largely to provide specialist input during the development

of a typical hydrocarbon pipeline project and to perform technical quality assurance on the

project in the various pipeline specific disciplines and any other services in connection with

the carrying out of the project:

9.4.8 PROCUREMENT

The consultant is to assist the employer in the procurement of the contractors, including

specialised services and equipment. It is important to note that all contracts are to be

procured through TPL’s procurement department and all procurement activities will be

aligned to Transnet’s Procurement and Procedures manual (PPM). It is the responsibility of

the consultant to familiarise him/herself with the manual and its updates. The ruling of

National Treasury on procurement matters to be adhered to.

9.4.9 DATA TO BE SUPPLIED TO CONSULTANT

Transnet Pipelines will furnish, with all reasonable expedition, all available pertinent data and

information and give such assistance as may reasonably be required by the Consultant for

the carrying out of his duties under this agreement.

9.4.10 COMPLIANCE WITH LAWS

The Consultant shall comply with all laws or regulations applicable to or in connection with

the project, and with all applicable requirements of any government, provincial or any other

responsible governing or public authority.

9.4.11 NON-ASSIGNMENT

The Consultant may at any time take into partnership a partner or partners, and that he/she

or they shall thereafter be deemed to be included in the expression “the Consultant”, where

the context so allows or permits. The Consultant shall not re-assign or transfer his rights or

obligations or any part thereof under this agreement without the prior written approval of

Transnet Pipelines.

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It may be a requirement for the consultant to mobilise other resources not in the employ of

the consultant to satisfy the requirements of the project on short assignments as and when

needed.

9.4.12 OWNERSHIP OF DOCUMENTS AND COPYRIGHT

9.4.12.1 The Consultant hereby grants to Transnet Pipelines a non-exclusive licence in

accordance with the provisions of section 22 of the Copyright Act 1978:

i. to copy any plan, diagram, drawing, specification, bill of quantities, design,

calculation, or similar document made, other than under the direction or control of

Transnet Pipelines, by the Consultant in connection with the Project;

ii. to make free and unrestricted use thereof for its own purposes.

iii. to provide copies thereof to other consultants to be used by them for the purposes of

the consultancy;

iv. to provide other parties with copies thereof for the purpose of tenders invited by it.

9.4.12.2 The Consultant, furthermore, shall engage any specialist and/or firm employed by him

for investigation or for design in connection with the project, to grant to Transnet

Pipelines a similar non-exclusive licence for the purposes set out herein. No separate or

extra payment shall be due by Transnet Pipelines in respect of any non-exclusive

licence granted in terms of this clause.

9.4.12.3 The source codes of computer programmes designed and developed for Transnet

Pipelines by the consultant shall be the sole property of Transnet Pipelines, and

Transnet Pipelines has the right to copy and alter code without obtaining permission of

the Consultant. No portion of the completed system shall be available as commercial

value for any party besides Transnet Pipelines. After completion of such software, and

prior to final payment the Consultant will forward a copy of the data code with all

documentation.

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9.5 COMMUNICATIONS

9.5.1 The Consultant shall abide to all communication requirements imposed upon them by TPL.

Any communication received, produced or issued by the Consultant shall first be reviewed by

TPL before transferred onto another party. This covers but is not limited to; engagement with

market place, advertisements, communications with Transnet Clients, industry forums,

magazines, websites, blogs and any other social media.

9.5.2 All communication initiatives shall be approved by TPL.

9.5.3 The engagement, communication (timing and context) templates and formats shall be agreed

and signed off by the relevant Employers’ process owner before any deliverables are started.

Time spent correcting incomplete and incorrect documentation will be for the Consultant`s

own cost. All reports shall be cross-referenced against other disciplines and tools to ensure

accuracy and integration of information. All communications direct, indirect, 3rd party or other

shall be captured in the relevant document control system.

9.5.4 It is important that there be no communication between the Consultant and the contractor

without the approval of the EPCM and or TPL Employers Agent or Project Manager.

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9.6 DOCUMENTATION CONTROL

9.6.1 The Consultant’s documentation shall comply with the Employer’s standards and

requirements. The Employer will issue all relevant documentation to the Consultant, but

control, maintenance and handling of these documents will be the Consultant’s sole

responsibility and at its expense, and managed with a suitable document control system. At

agreed periods throughout the development of the project the Consultant will be required to

transfer/migrate documentation to the TPL document management system. The format of

these documents shall be agreed up front and shall be fully usable and in native & PDF

format. All the relevant links and supporting documents shall be provided.

9.6.2 All documents issued to 3rd Party contractors and to the Employer must be submitted as per

the TPL’s Document policy. Any contractual communication between TPL and the

contractors shall be issued by the Consultant on behalf of TPL. These communications shall

be similarly recorded through the Consultant’s document control system and all

communication to be restricted to the communication protocol.

9.6.3 Upon completion of services ownership of Data, Designs and Documents: The Parties shall

agree that copyright in the data, design and documents shall, after payments by the

Employer of the services to the Consultant, lie with the Employer subject to the Employer’s

indemnification against any claim from any party that may arise as a result of the Employer’s

use of such a document due to the Consultant’s infringement of copyright.

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9.7 INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT)

9.7.1 The Consultant shall provide and have available computing, server, back-up,

communications, software’s and licencing in order to successfully interface with Transnet’s

tools and systems.

9.7.2 Should the Consultant access Transnet’s Information Assets; they will use these in a

manner that will not harm or endanger Transnet as a company in line with the Transnet’s

Information Security Policy and any other related policies.

9.7.3 The Consultant shall sign the confidentiality agreement to adhere to Transnet’s Information

Security Policy and all other relevant Transnet’s Policies

9.7.4 The software used shall similarly be conversant with Transnet’s approved software in order

to meet the obligation of the document control process spelt out in this document.

9.7.5 The Consultant shall make available connectivity, internet access, ICT infrastructure and

applications access, document control access and any other systems used by the

consultant shall be made available to the Employer at any point in time during the project.

9.7.6 The Consultant shall ensure that all data stored on the workstations is backed up to the

secure server provided by the Consultant. It is the responsibility of user of the desktop,

laptop, handheld mobile devices to ensure that business information and data stored on

these devices is backed up.

9.8 OFFICE SPACE

9.8.1 The services are to be rendered from the consultants’ office. It is a requirement that the

consultant make provision for office space for the employer’s agent and at least one other

on and as and when required basis. This requirement is anticipated to change when the

project is in the construction phase and the

9.8.2 The office is to include a venue where meetings and other engagement sessions could be

held to accommodate the employers owners team.

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10. APPENDIX

APPENDIX A: DRAWING LIST

APPENDIX B: TRANSNET CAPITAL UNIVERSE

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10.1 APPENDIX A: MAP OF TRANSNET’S EXISTING PIPELINES’ NETWORK

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10.2 APPENDIX B: TRANSNET CAPITAL UNIVERSE