Development Company (DevCo )in Phase 2 Roles & ResponsibilitiesModel of a typical DevCo set-up according to the EDF Nuclear Performance Model, ENPM®/©EDF SA
IAEA TM on Topical Issues in the Development of Nuclear Power Infrastructure- Vienna , 5th Febr. 2015
David Tersigni – EDF Nuclear Engineering Division
Responsibilities
1- Context of DevCo set-up
2 – Roles, Capabilities & Deliverables of a
EDF Nuclear Engineering Department - IAEA Tech Meeting On Design Authority
Deliverables of a DevCo
3 –Scheme & Staffing of a DevCo
2 EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 2015
Context of the typical DevCo set-up
� During the Pre-Project period , very preliminary activities such as the pre-feasibility study are performed by the parent company(ies) interested to potentially develop the Project and lead to the Kno wledgeable Commitment to a nuclear programme.
� For the Project Development’s phase, a DevCo, a specific pu rpose vehicle, should be established in order to structure and manage the activities during the IAEA Phase 2 until a Generati on Compagny set-up.
� The Scope of the DevCo is then covering 16 of the 19 IAEA issues as � The Scope of the DevCo is then covering 16 of the 19 IAEA issues as taken into account from an Owner-Operator point of view in the following EDF Nuclear Performance Model ENPM® level 0 mapping .
� The main Drivers for the DevCo’s organisation and de tailed scope are :
� the Industrial & Contractual models of the nuclear programme,
� the Regulatory Framework ,
� the preliminary Business Model (Risks Allocation & Business Plan),
� the future GenCo ownership model ,
� the mother compagny(ies) capabilities .
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 20153
Pre-projectProject
developmentCommercial operation Decommissioning
Management and leadership
Nuclear safety and emergency planning
Legal and regulatory framework
Financing and sales
eNPM Mapping level 0 ENPM®/©EDF SA
Construction & commissioning
Design and configuration management
First Fuel on Site
M1 Knowledgeablecommitment M2 Ready to invite bids M3 Ready to commission & operate
Ready for commercial operation
First Concrete
Date
Ready to choose
a technology
PHASE 2PHASE 1 PHASE 3
EDFMilestones
IAEAMilestones
Vision and strategy
Industrial milestones
1
2
3
4
5
6
GenCoset-up
Final InvestmentDecision
DevCo set-up Business milestones
Pre-feasibility study
Radiation protection
Pre-operations and operations
Human resources development and training
Supply chain and procurement
Health and safety
Fuel cycle
Licensing and permitting
Design and configuration management
Plant construction
Public acceptance and stakeholder involvement
Environmental protection
Siting
Radioactive waste management
Electrical grid
Plant deconstruction
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Analysis, feasibility Development Implementation End-of-life management
1- Context of DevCo set-up
2 – Roles, Capabilities & Deliverables of a
5EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 2015
Deliverables of a DevCo
3 –Scheme & Staffing of a DevCo
The objective of the DevCo : Main Roles
The DevCo’s objective is to manage the NPP Project Development in order to prepare the performance (Safety, economics) of the future Owner/Operator .
� To assess the Project Feasibility from all standpoints ( Techno., Siting, Business Model, etc .) necessary for the FID by the parent company(ies) .
� To define the main Contractual and Industrial Scheme (mutual agreement or Tender, EPC vs EPCM, etc.).
� To pre-qualify Vendors , to prepare the process for Invitation To Tender , the Bid's specifications (BIS).Bid's specifications (BIS).
� To screen the supply chain and forecast the localization strategy .
� To liaise with all stakeholders (Government, Safety Authority, Grid Operator etc.) involved in legal issues, regulatory process set-up, public acceptance.
� To prepare the Business Model of the project together with the allocation of risks and the associated business plan and financin g.
� To prepare and implement the smooth GenCo set-up from all operational standpoints (legal, fiscal, organization, staffing, etc.).
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 2015 6
The objective of the DevCo : Main Capabilities (qualitative approach)
� Corporate Level : � Finance� HR� Communication (mainly for public acceptance)� Legal / Local and national institutional relations� Business modeling & economics
� Project Management :� Project Control� Integrated Management System� Scheduling and Progress Reporting� Scheduling and Progress Reporting� Cost Control� Risk management� Documentation management
� Technical :� Engineering (incl. Grid)� Site Development (incl. Environmental) until comple te characterisation� Licensing and Permitting� Procurement preparation (local supply-chain screeni ng, pre-qualification, lead-time
scheduling, etc.)� Technical specifications preparation for main contr acts (EPC, etc.)
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 20157
The objective of the DevCo : Main Deliverables (1/2)� Corporate Level :
� Feasibility Study (synthesis of the next items),� Business Model / Nuclear project contractual arrang ements� Industrial & Contractual Schemes for Construction, also for Operation (draft),� HR Development roadmap for Construction, Pre-operat ions, Operations,� Communication & Information plan for upcoming publi c acceptance process,� Integrated Management System of the DevCo (base of the GenCo’s IMS)� GenCo's set-up files (legal, organization, staffing plan).
� Project Management :� Project Management :� Level 0, 1 and Level 2 (at least partly) Schedules *, Long Lead Items scheduling
(may be done by the GenCo).� Cost Estimate (Capex, Overnight Cost for constructi on),� Risk analysis (for construction , also for operatio n),� Licensing and Permitting Plan (schedule and breakdo wn of applications),� Short-List of potential Vendors (qualification), In vitation To Tender(s), Bid
Invitation Specification , Bids evaluation methodol ogy,� Project Manual for Construction (draft),� Local Supply Chain survey & assessment (and associated
development/qualification plan), Procurement Plan-draft
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 20158
The objective of the DevCo : Main Deliverables (2/2)
� Technical :� Site Selection (Short List) Report, � Site Characterization Report (for 1 site at least),� Site Preparation (preparatory works) engineering plan and Plot plan-draft (if
envelope data available),� Site Development (infrastructures) plan, � Land Acquisition files,� Technical chapters of the Bid Invitation Specificat ion (at least an initial version).� Technical chapters of the Bid Invitation Specificat ion (at least an initial version).� Grid Analysis (connection schemes), � Grid Code Compliance studies (incl. power system reserves issue),� Environmental Impact Assessment draft (or only a plan for EIA activities),� Preliminary Safety Report’s draft (table of content or more if the technology is
known).
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 20159
The objective of the DevCo : conclusion
� During the development phase all development costs are financed through the equity injected in the DevCo by its shar eholders and at cost and at risks for the investors.
� The added value at stake for the DevCo is therefore to build an optimized project development roadmap allowing :
� to undertake all the industrial preliminary activit ies (Engineering studies, Site studies...) to de -risk as much as possible the project and studies, Site studies...) to de -risk as much as possible the project and better secure the future NPP project schedule and investment cost ,
� to master and optimize the flow of expenses related to these activities.
� Such project development roadmap leads to a detailed and optimized planning of the activities step by step w ith hold points to check that successive steps with corresponding b udget can be undertaken in a quite safe context.
EDF Nuclear Engineering Department - IAEA Tech Meeting On Design Authority10
1- Context of DevCo set-up
2 – Roles, Capabilities & Deliverables of a
11 EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 2015
Deliverables of a DevCo
3 –Scheme & Staffing of a DevCo
Possible Schemes for the DevCo
� According to the drivers mentioned in slide 4 the DevCo can be set-up according different schemes implying more or less s taff (make or by analysis) :
� A “Light DevCo”: mainly acting as “centralized costs box”, with effective Project Development managed by the mother(s) Company(ies)
� A “Leadership DevCo”: the DevCo is the “engine” of the project, with a complete team fully mobilized for the development of the project, but with a few internal resources to perform by itself the activities.few internal resources to perform by itself the activities.
� A “Full DevCo” managing directly the project development, having its own resources to perform most of the activities.
� These 3 schemes are not exclusive and the DevCo can evolve from the first to the last : the DevCo has to gather key competences in order to ensure efficient and reliable project development. The DevCo’s team will progressively be reinforced as the project's develo pment goes on.
� The DevCo must always be accountable , in control of activities, even when these are done by contractors.
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 201512
A DevCo organizational typical Scheme
Corporate Project managementTechnical
(incl. Procurement preparation)
Development Company
Supervision and management
Board of Directors
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 201513
Scheduling& progress
Corporate
Business Model
Communication
Legal
HR
Finance
Project management
Risk management
Cost control
IMS
Project control
Doc. management
(incl. Procurement preparation)
Procurement preparation
Licensing & Permitting
Site development
Engineering/ Technical spec.
A DevCo tentavive staffing (minimum « core » values*)
40
60
80
100
120
Illustrative staffing trajectory of the DevCo team
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 201514
0
20
40
DevCo set-up GenCo set-up FIDManagement
Management support team
Project control and reporting, administration
Licencing and permitting
Engineering office
Communication and public relation
Procurement
Corporate
(*) : according to a make or by analysis and the mothercompagny(ies) capabilities
Conclusions� The DevCo implementation and performance is the first commiting
and operational step of a Nuclear Project’s implementation
� The DevCo implementation requires the first significant resources to be mobilized and encompasses most of the 19 IAEA issues, hence a lot of various necessary capabilities .
� The DevCo deliverables will structure and determine the future Project’s performance and success and also the future Owner/Operator‘s Performance in the long termOwner/Operator‘s Performance in the long term
� A robust DevCo activities roadmap with hold points is key to de-risk the future NPP project while mastering the corresponding expenses at risk for the investors.
� A smooth transition from DevCo to GenCo is crucial and must be carefully anticipated according to contractual & ownership’s schemes, DevCo & GenCo’s respective scopes, the Licen se issue : major transfers of competencies and responsibilit ies may occur according to this transition’s scheme.
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 201515
Thank you
EDF Nuclear Engineering Division - IAEA Workshop on Nuclear Power Infrastructure Workshop Febr. 2015
Thank you
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