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中国石油天然气管道局国际事业部
CP
P I
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CPP
Construction Schedule Control &
Risk Management in BOT Pipeline
ProjectsChen XiangqiuCPP International
Presentation for
Algeria 2006
Africa Oil & Gas Trade & Finance
NOT AN OFFICIAL UNCTAD RECORD
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
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CPP
BOT Briefing … StructureBOT = Build, Operate and Transfer
BOO = Build, Operate and Own
BLT = Build, Lease and Transfer
Project company
Concession Agreement
Government
Creditor
Sponsor Customer Insurer
Operator
EPC Contractor Supplier
Association Agreement
Loan Contract
Take&Pay Agreement
Insurance Agreement
Operation Agreement
Construction Agreement
Supply Agreement
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中国石油天然气管道局国际事业部
CP
P I
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CPP
Happy with higher return
rates
Happy with lower tariff & long payback
term
Project Company
Government Developer
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
Lanzhou
Yinchuan
The Brief of Lanzhou to Yingchuan Gas Pipeline Project
Lanzhou to Yingchuan Gas Pipeline
• Total length : 360 km
• Pipe Diameter: 24”
• Design Pressure: 10 MPa
• Total investment: 150 million USD
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
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CPP
Influence of Construction Schedule on IRR
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Tariff 0.3985 0.3985 0.3985 0.3985IRR 0.1357 0.12 0.1126 0.1045
one year two years three years four years
Tariff : RMB/ m3 IRR—Internal return rate
Gover
nmen
t: H
appy
Dev
elop
er: N
ot h
appy
Proj
ect is n
ot fe
asib
le
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
Influence of Construction Schedule on Tariff
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
IRR 0.12 0.12 0.12 0.12Tariff 0.3582 0.3985 0.4233 0.4549
one year two years three years four years
Tariff : RMB/ m3 IRR—Internal return rate
Gover
nmen
t: N
ot h
appy
Dev
elop
er: H
appy
Proj
ect is n
ot fe
asib
le
neith
er
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
Design Risks
Construction Risks
Leasing Risks
Financing Risks
Construction
Contract Risk
Delay Risks
Laws/Regulation
variation/updated Risks
Cost-overspent
RisksEquipment
supply Risks
BOT Project
BOT Briefing … Risk
► Political/Legal
► Financial
►Construction
► Market
► Environmental
► Operation
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
Concession Agreement
Front end eng. study
Supply Agreement MOU
Cooperative negotiation
Pre-feasibility study
Take&Pay Agreement
Feasibility Study
Association Agreement
Project financing
Basic Engineering
EPC Phase
Operation Phase
Transfer
BOT Briefing … Executing
Procedure
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
One stop service
developer• Has its own resource to implement the EPC
• Offer a complete industrial chain
• Has a PMC team
• Has dual functions, investor &contractor
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
and good luck for your BOT project!
(though luck has nothing to do
with your skills!)
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
China West to East Pipeline ProjectChina West to East Pipeline Project• Total length : 4000 km
• Station Quatity: 13
• Pipe Diameter: 42”
• Design Pressure: 10MPa
• Completion Date: Dec, 2004
China West to East Gas Pipeline ProjectChina West to East Gas Pipeline Project
CPP took more than 75% work of
whole projects
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
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CPP
CPP’s Experience in Sudan
Muglad Basin Oil Development Project II• Total length : 314.8 km
• Pipe Diameter: 32”
• Design Pressure: 10/15/18MPa
• Completion Date: Ongoing
Muglad Basin Oil Development Project I• Total length : 1506 km
• Pipe Diameter: 28”
• Design Pressure: 9.7/14.8MPa
• Completion Date: April, 1999
Fula Field Oil Export Pipeline Project Total length : 723 km
Pipe Diameter: 24”
Design Pressure: 10MPa
Completion Date: April, 2004
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
CPP’s Experience in LibyaWestern Libyan Pipeline Project• Total length : 527 km (Gas), 527 (Oil)
• Pipe Diameter: 32” (Gas), 16” (Oil)
• Design Pressure: 9.8~14MPa
• Completion Date: May 16, 2004
EI Sharara to Mellitah Pipeline Project• Total length : 727 km
• Pipe Diameter: 30”
• Design Pressure: 8~13MPa
• Completion Date: August, 2005
103A Gas Transmission Pipeline Project• Total length : 207 km
• Pipe Diameter: 42”
• Design Pressure: 10MPa
• Completion Date:Ongoing
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中国石油天然气管道局国际事业部
CP
P I
nte
rnat
ion
al
CPP
CPP’s Experience in Kazakhstan
Kenkiyak – Zhanazhol Pipeline Project• Total length : 44 km (Gas)
• Pipe Diameter: 21”
• Design Pressure: 4MPa
• Completion Date: Nov., 2004
KC13 Natural Gas Pipeline Project• Total length : 164 km
• Pipe Diameter: 32”
• Design Pressure: 6.4MPa
• Completion Date: Oct, 2005
Kazakhstan - China Pipeline Project• Total length : 962 km
• Pipe Diameter: 32”
• Design Pressure: 6.4MPa
• Completion Date:Ongoing