““LET’S BUILD SAFELY”LET’S BUILD SAFELY”

IMPLEMENTATION OF THE HEALTH IMPLEMENTATION OF THE HEALTH AND SAFETY MANAGEMENTAND SAFETY MANAGEMENT SYSTEM SYSTEM WITHINWITHIN S.C. HIDROCONSTRUCTIA S.C. HIDROCONSTRUCTIA

S.A.S.A.

BY: eng. LIVIUS POPESCUBY: eng. LIVIUS POPESCU

Hidroconstructia S.A.Hidroconstructia S.A.

- 54 years of activity54 years of activity- A company with private A company with private

capital since 1995capital since 1995- 11 subsidiaries in Romania 11 subsidiaries in Romania

and one subsidiary in and one subsidiary in GermanyGermany

- approx. 10,000 employees approx. 10,000 employees - Head office in BucharestHead office in Bucharest

BICAZBICAZ

Izvorul Muntelui damIzvorul Muntelui dam - - position 112 in the Word position 112 in the Word DamDam Register Register- gravity dam, height 127 m, storage lake - gravity dam, height 127 m, storage lake 1,230,000 thounsand cubic meters 1,230,000 thounsand cubic meters

Stejaru HPPStejaru HPP- installed power 210 MW- installed power 210 MW

ARGESARGES

VVidraru damidraru dam – position 238 in the Word Dam – position 238 in the Word Dam RegisterRegister- arch dam, height 166 m, storage lake 465,000 - arch dam, height 166 m, storage lake 465,000 thousand cubic metersthousand cubic meters

Corbeni HPPCorbeni HPP- undergroud HPP, installed power 220 MW- undergroud HPP, installed power 220 MW

Hydropower system Iron Gates IHydropower system Iron Gates I

Iron Gates I dam Iron Gates I dam – position 162 in the Word Dam– position 162 in the Word Dam Register Register- gravity dam, height 60 m, storage lake 2,100,000 - gravity dam, height 60 m, storage lake 2,100,000 thousand cubic metersthousand cubic meters

HPPHPP- installed power 1050 MW- installed power 1050 MW

SluiceSluice

Raul Vadului ViaductRaul Vadului Viaduct

Bridge over motorway Bridge over motorway Zwickau MeraneZwickau Merane

Bridge over Danube arm Bridge over Danube arm Gogosu at Iron GatesGogosu at Iron Gates

Savings bank SibiuSavings bank Sibiu

Customs-house GiurgiuCustoms-house Giurgiu

Water tank Dealul Water tank Dealul MelcilorMelcilor

Dump DavidestiDump Davidesti

Wood processing hall TENECO - TimisWood processing hall TENECO - Timis

Bucharest Wholesale MarketBucharest Wholesale Market

HISTORY OF SYSTEM IMPLEMENTATIONHISTORY OF SYSTEM IMPLEMENTATION

Taking into account the size of our company and the Taking into account the size of our company and the diversified structure of the works, the company diversified structure of the works, the company management considered it necessary and compulsory to management considered it necessary and compulsory to implement a implement a OOHS management systemsHS management systems As well, the number of casualties and / or professional As well, the number of casualties and / or professional illness occurred along the years determined the Company illness occurred along the years determined the Company Management to reconsider the safety criteria in Management to reconsider the safety criteria in researching, designing and performance of objectives, researching, designing and performance of objectives, especially in their management especially in their management Thus the labor safety criterion is at least as important as the economic criterion, since it is not subordinated to the latter

HISTORY OF SYSTEM IMPLEMENTATIONHISTORY OF SYSTEM IMPLEMENTATION These prerequisites brought about the necessity to implement a OSH management system. Several systems were studied at first, namely SCC, BS 8800:1996, OHSAS 18001:1999.The adopted system was implemented betwen 2000 and 2001 and certified in November 2001, having as a reference OHSAS 18001:1999.One of the basic features of the implemented LHS management system is represented by the fact it involves, besides the weeting of the social and legal obligations of the Management, also critical economic aspects, namely the reduction of material losses caused by casualties and / or professional illness, reduction of idle periods of time, etc.

HISTORY OF SYSTEM IMPLEMENTATIONHISTORY OF SYSTEM IMPLEMENTATION Upon setting up its Management System Hidroconstructia pursued 3 backgrouds:

The normative background: within which the basic principles of the company, its policy, objectives were establishead;

The strategic background: within which the objectives set up within the normative background were turned into average and long term programs and into action programs

The operative background: the implementation at all levels of the strategies and programs by periodically assessing them with a wiew to correlating them with the set up objectives

Upon the OHS system implementation the QA and environment protection systems were also taken into account and a future objective aims at integrating the 3 systems

CERTIFIED MANAGEMENT SYSTEMSCERTIFIED MANAGEMENT SYSTEMS

The quality management systemThe quality management system – – as per the reference standard SR EN as per the reference standard SR EN ISO 9001:1995 of the year 2000 ISO 9001:1995 of the year 2000 registered with registered with LLOYD’S REGISTERED

The health and safety management The health and safety management systemsystem – as per reference standard – as per reference standard OHSAS 18001:1999 of the year 2001 OHSAS 18001:1999 of the year 2001 registered with registered with TUV Rheinland

The environment management The environment management system system – as per reference standard – as per reference standard SR EN ISO 14001:1997 of the year SR EN ISO 14001:1997 of the year 2001 registered with 2001 registered with TUV Rheinland

ELEMENTS OF THE OSH MANAGEMENT SYSTEM

THE HIDROCONSTRUCTIA POLICYTHE HIDROCONSTRUCTIA POLICY

The meeting of our clients, demands requirements and The meeting of our clients, demands requirements and expectations; offering of quality products and servicesexpectations; offering of quality products and services

Evaluation and control, prevention and reduction of Evaluation and control, prevention and reduction of casualty hazards, professional illnesses and major casualty hazards, professional illnesses and major impact on the environmentimpact on the environment

A suitable working environment in order to perform A suitable working environment in order to perform processes / products / services at the level of demandsprocesses / products / services at the level of demands

The on - going improvement of the company’s The on - going improvement of the company’s performancesperformances

Maintenance and improvement of the OHS management system in accordance with the legal requirements (correlated with the europen norms)

Provision of organizational structures, of methods, means and necessary resources to evaluate, prevent and reject casualty hazards and professional illnesses

Improvement of the health and safety performance, reduction of casualty and professional illness hazards for all participants in the working process, monitoring of activities having a high degree of or iminent hazard

Involvement of the whole personnel in the implementation of the adopted OHS policy and objectives and of the workers protection measures

Improvement, training and perfecting of the personnel ‘s professional training level in order to acquire, implement and meet the OHS provisions included in the system documents, the legal stipulations in force, as well as those included in the adopted performance designs and technologies

General OBJECTIVES

A reprezentative of the management was appointed at the company and subsidiary level in order to follow - up the implementation of the OHS management system provisions

The following working bodies are set up for reviews:1.CSSM – health and safety at work committee (involves

the employees’ participation through their reprezentatives)2.CTSSM – health and safety technical committee (the

technical management of the OHS activity) There are OHS responsibilities provided in the job

sheets, for the whole personnel (company management, personnel having direct duties in the OHS field, workers)

ORGANIZATIONAL STUCTURE

SITESThe

actual performance of construction works

Industrial Production and

Transport Section:Metal worksPrefab performanceRepairment of

equipmentRepairment of

electric facilitiesPerformance of

spare partsVehicle repairment

and maintenance

Colonies

Material storehouses

Ballast trucksQuarriesGrading

plantsConcrete

stations

STRUCTURE OF THE SUBSIDIARY ACTIVITY

FORMATION, TRAINING ANDAWARNESS of

PERSONNEL

There are annual programs for the external training and perfectioning of the personnel directly involved in the OHS (short period courses, post-graduate courses)

The company has available external authorized personnel

as per the legal provisions There are also internal traing programs for the personnel having responsibilities within the OHS field and for the

personnel performing very hazardous tasks

MANAGEMENT PROGRAMMANAGEMENT PROGRAM

Aspectele semnificative de mediu ale activitatilor

Specific objectives Specific objectives Specific objectives Specific objectives

PolicyObligations resulting from legal provisions and another nature

Significal OHS aspects

GENERAL OBJECTIVES

Identification of training needs

Annual training programs

Training:-internal-external

Training documentation and

evaluation

TRAINING

WHAT IS TAUGHT:WHAT IS TAUGHT:The system policy and documentsThe system policy and documentsPerformance documentation, technologic operations for the performance of Performance documentation, technologic operations for the performance of works as per the legal requirements and the clients’ onesworks as per the legal requirements and the clients’ ones;; The hazard identification activities, the risk evaluation and prevention for labor The hazard identification activities, the risk evaluation and prevention for labor casualtiescasualtiesUtilization of own tools and machinesUtilization of own tools and machinesActions in case of emergenciesActions in case of emergenciesThe negative consequences in case of failure to meet the performance technic The negative consequences in case of failure to meet the performance technic procedures and the procedures and the OOHS normsHS normsLegal provisionLegal provision

OPERATIONAL CONTROLOPERATIONAL CONTROL

Control of the organization processes for the OHS activities

Control of supply (purchase) of products and services (technic equipment, personal protective equipment (PPE), woking individual equipment , relevant materials for OHS

Control of specific OHS endowments

Control of processes through OHS plans

Control of subcontractorsControl of subcontractors

Control of production processes

INVESTMENTS HAVING A POSITIVE IMPACT INVESTMENTS HAVING A POSITIVE IMPACT ON SAFETYON SAFETY AT WORK AT WORK

Mixer trucks provided Mixer trucks provided with EURO 3 motorswith EURO 3 motors

Mobile gas stationsMobile gas stations (the (the storage and distribution storage and distribution modality of Diesel OIL modality of Diesel OIL semitransmissible „SM 14”semitransmissible „SM 14”

PREPARATION FOR PREPARATION FOR EMERGENCIESEMERGENCIES

Fire protection plans Civil protection plans;Catastrophy defence plansPlans for flood defence, against hazardous

meteorologic phenomena and damages caused to the hydrotechnic constructions

Provision of materials and of Provision of materials and of intervention equipmentintervention equipment

Training of involved personnelTraining of involved personnel

SimulationsSimulations

INTERNAL AUDIT

Audit commencement

Audit object

Document review

Audit carrying out

Audit preparation

Audit report

Questionnaire forms

Team executive

Audit plan

Opening meeting

Collection of audit proofs

Auditors’findings

Closing meeting

Issuing of audit report

Distribution of audit report

Keeping of documents

Audit completion

REVIEW BY THE MANAGEMENT

OUTPUT DATA:Establishment of management programs

for a short, medium and long term as per S.C. Hidroconstructia’s general policy

Evaluation of the management system compliance with the definite policy and objectives

Measure plans aiming at systemimprovement

INPUT DATA•Results of internal and external audits•Performance status of management programs and of perfomance indexes•received complaints•points of view of interested parties•solving status of measures taken upon previous review meetings•management systemadaptation to the occurred changes (legislation, science and technology, organizational structure, etc.)

Improvement of the company’s imageImprovement of the company’s imageImprovement of managerial practices;Improvement of managerial practices;Limitation of civil and penal responsibility by Limitation of civil and penal responsibility by meeting the legal regulations regarding the OHS meeting the legal regulations regarding the OHS and the other applicable requirements;and the other applicable requirements;Reduction of costs by decreasing the consumption Reduction of costs by decreasing the consumption of power and raw materials, by recyclicing the of power and raw materials, by recyclicing the products and their packages, etc.;products and their packages, etc.;Increase of our clients’ confidence;Increase of our clients’ confidence;Reduction of casualty risks by improving the Reduction of casualty risks by improving the working conditions;working conditions;Increase of the employees’ awarenessand of their Increase of the employees’ awarenessand of their responsibilities towards labor safety.responsibilities towards labor safety.The number of hazardous events incidents has The number of hazardous events incidents has decreased from 12 in 2002 to 4 in 2003 and to 2 decreased from 12 in 2002 to 4 in 2003 and to 2 events in the first 8 months of 2004events in the first 8 months of 2004The number of casualties has also decreased at The number of casualties has also decreased at the company level from 15 in 2001, to 13 in 2002, the company level from 15 in 2001, to 13 in 2002, to 15 in 2003 and to 9 in the first 9 months of 2004 to 15 in 2003 and to 9 in the first 9 months of 2004

OHS management system - ADVANTAGES

FREQUENCY INDEX (IF) CHARTFREQUENCY INDEX (IF) CHART1995 - 20041995 - 2004

IF = (Total no. Of casualties / average no. Of employees) x 1000IF = (Total no. Of casualties / average no. Of employees) x 1000

S.C. HIDROCONSTRUCTIA S.A.S.C. HIDROCONSTRUCTIA S.A.

THANK YOU FOR YOUR THANK YOU FOR YOUR ATTENTIONATTENTION ! !

www.hidroconstructia.comwww.hidroconstructia.com