TA-143-D00-G-TD005 - 0 - Employer's Requirements PDF

National Iranian Steel Co.
Baft Steel Complex
DR and Material Handling Plant

Project
Employers Requirements
NISCO
Baft Steel Complex
DR & Material Handling Plant Project
TARA TARH
Engineering & Technological Co.
Page 1 of 1
EMPLOYERS REQUIREMENTS
Table of Contents
Page
General
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
3
Contractors Obligations
General
Supply of plant, equipment and material
Design
Drawings and technical information
Packing and consignment
Transport and delivery
Tests on completion
Civil works construction and erection
Training
Taxation
Quality control, inspection and testing
Technical services
Long term spare parts
The Employers Obligations
Battery Limits
Completion of Erection
Commissioning
Performance Guarantees
Direct reduction plant performance guarantee tests
Raw material handling plant performance guarantee tests
Non Attainment of the Guaranteed Figures
Design Data
Training
Manufacturers and Place of Manufacture
Single line Drawing
3
3
3
13
23
26
26
27
27
27
28
28
29
30
31
4
5
6
7
7.1
7.2
8
9
10
11
Table of Contents
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75
17-Sep-07
Rev 0
NISCO
TARA TARH
Baft Steel Complex
Page 1 of 75
1- GENERAL
National Iranian Steel Company (NISCO) intends to implement a direct reduction plant with
nominal capacity of 800,000 TPY +5 mm DRI (Direct Reduced Iron) and material handling plant
with the capacity of handling 2,500,000 TPY pellets and lump ore (by consideration of future
expansion). The required pellet or lump ore for above capacity of DRP shall be 1,250,000 TPY.
This Employers Requirements together with the documents referred to therein covers the
minimum requirements for construction of direct reduction plant and raw material handling plant
which shall be located in the Site of Baft Steel Company, close to Jamil abad village ,12
kilometers from Baft city , Kerman Province.
Direct reduction plant with nominal capacity of 800,000 TPY +5 mm DRI, a cold briquetting
plant with the capacity of 33,000 tonnes/y (12 t/h) and raw material handling plant with the
nominal capacity of 2,500,000 tonnes per year pellet and lump ore, shall be in the scope of
obligations of the Contractor.
Under this Contract the Plant and Material shall be designed, supplied and constructed and shall
be capable of unloading, stacking, reclaiming and handling pellet and lump ore at yearly rate of
2,500,000 TPY and producing screened plus 5mm metalized pellets at yearly rate of 800,000 T
with minimum average metallization of 92%. The metallization under 90% shall not be
considered in production rate calculation.
The provisions of this Employers Requirement and documents referred to therein shall, in no
way be considered as a limiting clause relieving the Contractor from any of his obligations to
deliver adequate Plant and Material to meet the direct reduction plant production rate and raw
material handling plant handling rate, specification and performance data.
In addition it should be noticed carefully that the specification of Plant and equipment, drawings,
etc. included in these documents reflects only the minimum requirements and the Contractor
shall make any upgrading of the Plant and equipment or the process deemed necessary to meet
the direct reduction plant production rate and raw material handling plant handling rate,
specification, guarantees and satisfactorily pass the performance tests. Detailed information and
justifications regarding suggested modifications, upgrading, etc. shall be included in the
proposal.
If the tenderer concludes that no modifications, upgrading, etc. are required in the content of
these documents, then it shall be considered as tenderers proposal and all the responsibilities of
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NISCO
Baft Steel Complex
TARA TARH
Page 2 of 75
completeness, fitness, correctness, etc. relies on the tenderer as a proposal made of scratch by
him.
Before any possible Contract signature, technical Contract Documents shall be modified to
reflect possible Contractor's modifications, upgrading, etc.
Any initial of the Contractor on the Contract Documents shall mean that the Contractors
suggested modifications, upgrading, etc. are implemented in those documents, drawings, etc.
In the signed Contract Documents none of information, documents, drawings, etc. contained in
the Contract Documents shall be considered as information, documents, drawings, etc. supplied
by the Employer except content of clause 9 (design data) of this Employers Requirements.
Tenderers are free to submit in addition to main tender an alternative tender, which according to
their opinion shall result in improving the performance and/or reliability of the direct reduction
plant and raw material handling plant or shall be of economical advantage to the Employer.
Direct reduction plant shall be based on one of the Midrex, HYL3 or PERED processes.
In these documents technical data is mostly based on Midrex process, if the tenderers intend to
select other mentioned process, the proposed technical specifications shall be accordingly
specified.
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Rev 0
NISCO
Baft Steel Complex
TARA TARH
Page 3 of 75
2- CONTRACTORS OBLIGATIONS
2.1- GENERAL
Contractors extent of responsibility shall cover process design, basic design, detailed design,
engineering, fabrication, testing, painting, protection, packing, marking and delivering of the
complete Plant, machinery, equipment, material and spare parts DDU Site delivery (as per
INCOTERM 2000) of Foreign Supply (including all its related customs formalities and risks
resulting there from) and DDP Site delivery (as per INCOTERM 2000) of Local Supply, proper
off loading and storage of both Foreign Supply and Local Supply at Site, civil works,
construction, erection, testing, tests on Completion and putting into operation the entire Plant on
Site as well as provision of training, licenses (construction and operation) and know-how to
operate the Plant properly and efficiently.
Supply of systems outside the Plant battery limits are outside Contractor's scope of supply but
Contractor shall have the obligation to review the drawing of designed systems and shall ensure
that the systems are adequate and fit for the service intended for.
2.2- SUPPLY OF PLANT, EQUIPMENT AND MATERIAL

Plant, equipment and material to be supplied shall comply with the requirements of all Contract
Documents including related specification. Scope of supply of Contractor shall consist of supply
of Plant, equipment and material for direct reduction plant and raw material handling plant.
Scope of supply shall include but not limited to the following:
2.2.1- Supply of plant, equipment and material for direct reduction plant
The following equipment and material shall be supplied:
-
Oxide pellet storage bin including continuous level indicators and vibrating feeder with a
capacity of at least 3600 tonnes.
Oxide pellet screens
Oxide pellet handling and shaft furnace charging system; complete with all necessary
machinery, equipment, belt conveyors, feeders, bins (under size bin and top of furnace
charging bin) , chutes, drives, hoists, scales, supporting steel structure, control and warning
devices. Collection systems of under size oxide material and means for transportation of
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Baft Steel Complex
TARA TARH
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the same to out side battery limits and open storage area for later transportation shall be
provided. Collection system for over size oxide material shall be supplied.
-
All machinery and equipment for coating of oxide pellets including receiving, storing and
handling of coating material and coating application systems.
Shaft furnace including reduction zone, transition zone and cooling zone with all necessary
equipment, oxide pellet distribution system, refractories, gas distribution system, seal legs,
slide gates, discharging system, platforms, stairways, supporting steel structure, passenger
and goods elevator, cladding and roofing for the required places, etc.
Burden feeders complete with all necessary hydraulic systems equipment, machinery and
control devices, instrumentation and control system, etc.
Reformer with all necessary systems, refractories, reformer tubes, catalysts, tube
supporting systems, piping, combustion air supply, fuel supply systems, combustion gas
discharge ducting, sampling facilities, both main and auxiliary burners, reformed gas
cooler, stairs, ladders, inspection openings, instrumentation and control system, etc.
Recuperators with all necessary equipment for preheating the combustion air, feed gas and
natural gas by using the waste gas heat from reformer combustion chamber flue gas.
Provision for future addition of feed gas desulphurization is included in design and supply
of recuperator system.
Ejector type stack complete with lining and fan.
Process gas system including scrubber, rotary lobe type blowers, silencers, mixers, mist
eliminators, piping, etc. and provision for future addition of feed gas desulphurization is
included in design and supply of compressors.
Cooling gas system including scrubber, rotary lobe type blowers, silencers, mist eliminator,
piping, etc.
Production of inert gas from flue gas, inert gas storage and distribution system consisting
of compressors (seal and purge gas), coolers, refrigerators, dryers, purge gas tanks, piping,
control and alarm devices system, etc. to meet total inert gas requirements of the direct
reduction plant for a safe and reliable operation of the Plant.
Inert gas generator with all necessary equipment and materials.
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Baft Steel Complex
TARA TARH
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Process water system including all necessary equipment and instrumentation for cooling,
clarifying, recycling, thickening, and removal of sludge to outside battery limits
(contaminated and clean process water shall have separate cycles).
Machinery cooling water system complete with heat exchangers, cooling towers, pumping
system, chemical injection systems, instrumentation and control system.
Rain water collecting and transferring up to battery limit. (considered part of civil
construction works)
Sewage system collection and transferring sewage up to battery limit. (considered part of
civil construction works)
Make up water treatment system including pumps, softeners, softeners regeneration system
and all necessary instrumentation and control system.
Cold briquetting plant complete with all necessary conveyors, bins, tanks, pipes, feeders,
mixers, cranes and hoists, roller press, electrical system, instrumentation and control
system, etc.
Metallized pellet discharge and handling system, complete with all necessary machinery,
equipment, belt conveyors, bins (DRI silos and other bins), feeders, screens, chutes, drives,
hoists, scales, control and warning devices. Feeders under storage silos are included in
scope of supply of the Contractor.
Complete sponge iron screen station after silos with all the necessary connecting conveyors
form silos to screen station, fine handling from screen station to fine bin and from fine bin
to the cold briquetting plant.
Grizzly feeder for separation of possible cluster.
Remet conveying system, complete with all necessary belt conveyors, hoppers, etc.
Dust collection system, for removing dust from all dust generating points within the plant,
complete with all necessary duct works, hoods, scrubbers, motors, fans, instrumentation
and control devices. The maximum dust laden in the discharge stack, shall comply with the
requirements set forth, in Clause 9-Design Data.
The Contractor shall provide all necessary equipment, machinery and piping for collecting
and transporting the dust to the plant thickener or equivalent means.
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Baft Steel Complex
TARA TARH
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The Contractor shall provide all necessary equipment and machinery for collecting and
handling metallized dust to use it for briquetting machine in case dry type dust collecting
system is used.
All necessary equipment and machinery for conveying, charging, storing, reclaiming and
separation of the off grade product of the direct reduction plant during testing and start-up.
Compressed air generation and distribution system required with all necessary equipment
and piping.
Instrument air system complete with compressors and all necessary equipment for pressure
regulation, cooling, filtering and drying of the compressed air, pipes, instruments and
control devices.
Natural gas receiving, pressure reducing, metering station, complete with all necessary
piping, pressure reducer, safety valves, ball valves upstream and downstream, filter and
instrumentation for recording the pressure, temperature, specific gravity and the net
calorific value.
Water separator equipment with sufficient capacity must be also provided, together with an
automatic shut off device to operate in case the supply pressure drops below design value.
Desulphurization system for natural gas ( if required) with all necessary equipment.(It is an
optional item and Contractor shall propose its optional price.)
All required piping, fitting, flanges, gaskets, bolts, nuts, strainers, valves, supports, etc.
required for the plant.
Centralized grease lubrication system.
All in plant sampling equipment
Complete direct reduction plant substation including transformers, switchgears, control

equipment, protection equipment, measuring equipment and accessory equipment, etc. 33
kV power shall be supplied by the Employer up to incoming of 33 kV switchgear in DRP
substation.(Refer to single line diagram No. TA-143-D00-E-LD001 attached)
All in plant 6.6 kV switchgears complete with protective, measuring, control and accessory
equipment.
All in plant low voltage AC and DC distribution systems including transformers, power
centers, motor control centers, lighting distribution boards, etc.
All 6.6 kV and low voltage AC and DC motors.
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TARA TARH
Baft Steel Complex
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Emergency power system.
Earthing and lightning protection systems.
Complete outdoor lighting, indoor lighting automatic emergency lighting for all required
rooms and areas and socket outlet systems.
All in plant cabling and wiring systems; including cable trays/ladders, conduits, etc.
In plant telephone system.
In plant intercommunication and paging system.
Power factor correction equipment.
All in plant electrical installation material needed for installation of electrical equipment.
Complete DC UPS system including battery chargers and batteries for supplying and
commanding the electrical switchgears and etc.
Color CCTV system.
Complete AC UPS system including batteries, battery chargers and inverters for control
and monitoring system.
All necessary equipment for further treatment of the supplied water at battery limit such as
R.O. unit, demineralization unit, etc.
All necessary lifts, hoists and cranes; The lifts shall be sized for normal maintenance work;
All required mobile equipment for handling of pellets, DRI, coating materials, etc. (in
battery limits).
Potable water treatment and distribution system and production of potable water from make
up water.
Air conditioning, heating and ventilating equipment and duct work for control rooms, low
and high voltage switchgear rooms, electronic equipment rooms, laboratory, office
buildings, showers and lockers, etc. (considered part of civil construction works)
All laboratory equipment for carrying out all required analyses and tests for servicing DR
plant and raw material handling plant.
All necessary field instrumentation and an advanced control system (DCS/PLC) including
all required hardware and software components to operate and control the process safely
from a central control room with all necessary accessories for shutting the reformer and
furnace promptly and safely in case of emergency and operators error.
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Baft Steel Complex
TARA TARH
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All I&C cables including control and network cables and all control panels including PLC,
remote I/O, local and remote panels and computer desks.
Alarm system to alert operators to malfunctioning of equipment and to operate interlocks

and all other safety devices.
First fill of oils and greases.
All required refractories.
Capital and two years operating spare parts of the plant, and commissioning spares.
All special tools and tackles for erection of the plant.
In plant roads and pavements. (considered part of civil construction works)
All foundation bolts, anchor bolts, base-plates, washers, nuts, and all necessary materials
under and with foundations such as tubes, casing, etc.
All necessary steel structures, bins, hoppers.
All structural steel buildings including cladding, roofing, ventilators and down pipes.
(considered part of civil construction works)
All required supporting steel structure for equipment (reduction furnace, reformer,
scrubbers, coolers, clarifiers, belt conveyors, screening stations, etc.), cabling, piping,
valves, etc. and also structural items like passage, gang ways, handrails, etc.
In plant maintenance shop for servicing both DR plant and raw material handling plant
including all required machinery and tools.
All necessary steel structure, civil work, etc. for construction of storage area for passivation
of DRI in case the operators cant send DRI to silos.
All special tools for routine maintenance of the plant.
All electrodes and other site fabrication and erection material.
All required painting material.
All civil materials including architectural items such as windows, doors, sanitary
equipment, etc. (considered part of civil construction works)
All required buildings including control room, switch gear room, laboratory building,
stores, office building, locker and shower building, etc. (considered part of civil
construction works.)
Fire detection fighting system including fire alarm panel, detectors(fire, smoke, heat,
explosion), fusible links, frangible bulbs, automatic valves, audible and visual alarms,
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Baft Steel Complex
TARA TARH
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sprinkler and emulsifier installations (if required), manual and automatic fire-extinguishers
and all other installations and equipment necessary to reduce fire risks and facilitate rapid
detection of fire, accurate transfer of fire alarm to fire alarm panel located in DR control
room and provision for sending signals to the main fire fighting station and rapid and
effective extinguishing of the fire .Fire fighting water ring is out of scope of Contractor
,but building internal pipelines and other facilities are included in the scope of Contractor.
-
All equipment, machinery, vessels, steel structures, civil materials, piping, pipe racks,
cabling, instruments and controls, alarms, measuring system, interlocking necessary for the
safe and satisfactory testing, setting to work, operation and maintenance of the plant and to
make the plant complete in all respects shall be supplied whether mentioned or specified in
this Employers Requirements or other Contract Documents or not ,free of charge to the
Employer, except those detailed in clause 3 of this Employers Requirements.
2.2.2- Supply of plant, equipment and material for raw material handling plant
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Truck unloading station including two hydraulic truck unloader (truck tipper) and three
substations for dump trucks , hoppers, feeders with all necessary equipment, electrical
system, instrumentation and control system, steel structure, civil work materials, etc.
Two truck weighing stations for trucks.
Screening station including screen decks, isolation frame, drive unit, etc.
A combined stacker-reclaimer machine complete with all belt conveyors, reclaiming

bucket wheel, rails, electrical system, instrumentation and control system, etc.
Provision of all necessary materials for pellet and lump ore storage area.
Pellet and lump ore handling system complete with all belt conveyors, diverters, chutes,
movable heads, drives, weighing systems, hoists, steel structures, control and warning
devices, etc.
Complete raw material handling substation including transformers, switchgears, control

equipment, protection and measuring equipment and accessory equipment, etc.
Dust collection system, for removing dust from all dust generating points within the plant,
complete with all necessary duct work, hoods, scrubbers, motors, fans, instrumentation and
control devices.
Water spray system for unloading stations and other points if required.
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Compressed air generation and distribution system within battery limits with all necessary
equipment and piping.
Instrument air system complete with compressors and all necessary equipment for pressure
regulation, cooling, filtering and drying of the compressed air, pipes, instruments and
control devices.
All necessary steel structure and civil work, etc for warehouse. (considered part of civil
construction works)
All the necessary roads and pavement inside battery limits. (considered part of civil
construction works)
Potable water distribution system and production of potable water from make up water.
Rain water collecting and transferring to the battery limit. (considered part of civil
construction works)
Sewage system for collecting and transferring to the battery limit. (considered part of civil
construction works)
Feeding the raw material handling plant substation shall be supplied from DRP substation
by 6.6 kV cables including all power cables, control cables and terminals.
All in plant low voltage AC and DC distribution systems including transformers, power
centers, motor control centers, lighting distribution boards, etc. The transformer(s) of MHP
shall have extra capacity for future car tippler.
All low voltage AC and DC motors.
Earthing and lightning protection systems
Complete outdoor lighting, indoor lighting, automatic emergency lighting for all required
rooms and areas, and socket outlet systems.
All in plant cabling and wiring systems; including cable trays/ladders, conduits, etc.
In plant telephone system.
In plant intercommunication and paging system.
Power factor correction equipment.
All in plant electrical installation material needed for installation of electrical equipment.
Complete DC UPS system including battery chargers and batteries for supplying and
commanding the electrical switchgears and etc. which are proposed in
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TARA TARH
Baft Steel Complex
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3.12 rectifier and batteries in Annex III to Employers Requirements, Engineering

Standard, Electrical.
-
Color CCTV system.
Complete AC UPS system including batteries, battery chargers and inverters for control
and monitoring system.
All required mobile equipment for handling of pellets and lump ore inside battery limit.
Air conditioning, heating and ventilation equipment and duct work for control rooms, low
and high voltage switchgear rooms, office building, etc.
All equipment and facilities for detection and fire fighting system for all buildings including
control room, administration and warehouse. Transfer of fire alarms to fire alarm panel
located in M.H.P. control room and provisions for sending signals to main fire fighting
station is in the scope of Work. Fire fighting water network is out of scope of Contractor but
buildings internal pipelines and other facilities are included in the scope of supply.
An advanced control system (PLC) including all required hardware and software components
to operate raw material handling equipment from local panels and control room.
All field instrumentation and measuring equipment including all necessary accessories.
All I&C cables including control and network cables and all control panels including PLC,
remote I/O, local and remote panels and control and computer desks.
All in plant sampling equipment (if required).
All necessary lifts, hoists and cranes.
The lift shall be size for normal maintenance work
First fill of oils and greases
Capital and two years operating spare parts of the plant, and commissioning spares.
All special tools and tackles for erection of the plant
All foundation bolts, anchor bolts, base-plates, washers, nuts and all necessary material
under and with foundations such as tubes, casing, etc.
All necessary steel structure, bins, hoppers.
All required structural steel building including cladding, roofing, ventilators and down
pipes. (considered part of civil construction works)
All required supporting steel structure for equipment (belt conveyors, transfer towers, etc.),
cabling, piping, valves, etc. and also structure items like passages, gang ways, handrails, etc.
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All special tools for day to day maintenance of the plant.
All civil materials including architectural items such as windows, doors, sanitary
equipment, etc. (considered part of civil construction works)
All required painting material.
All required buildings including control room, switch gear room, shower and locker and
office building. (considered part of civil construction works)
Steel Structure, plate work, mechanical, electrical, instrumentation and control system of
cooling tower, clarifier, bins, tanks (only civil work of cooling tower, clarifier and
foundation of bins and tanks is considered part of civil contraction works)
All equipment, machinery, steel structures, piping, pipe racks, cabling, instruments and
controls, alarms, measuring system, interlocking necessary for the safe and satisfactory
testing, setting to work, operation and maintenance of the plant and to make the plant
complete in all respects shall be supplied whether mentioned or specified in this
Employers Requirements or other Contract Documents or not, free of charge to The
Employer, except as detailed in Clause 3 of this Employers Requirements.
In addition to indicated items as part of civil contraction works, other item which consists of the
bellow mentioned activities and items are considered part of civil contraction works:
x Excavation and earthwork
x Formwork
x Back filling
x Landscaping, paving and green area
x Concrete work
x Grouting
x Reinforcement of concert work
x Underground network (excluding piping material, valves, and instruments)
x Civil portion of utility and electrical channels and tunnels
x All civil works activities bellow zero level of plant
x Anchor box
x Primary earthing (excluding earthing conductor and bar supply and erection)
x Soil and sub-soil investigation
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x Soil establishment
x Pilling, foundation
x Insulation for civil works
x Embedded parts in concrete and soil
x Drainage system
x Fencing (if any)
Any other items not expressly mentioned part of civil construction works shall only be
considered part of civil construction works upon approval of the Employer and/or Employers
Representative.
2.3 Design
2.3.1 Objective
The Contractor shall perform the design and engineering of the Works with the objective of
producing an efficiently operable Plant capable of meeting all guarantees and warranties stated in
the Contract. Furthermore the Contractor shall produce, obtain from third parties and/or make
available to the Employer all documents relevant to the Works and all technical documentation
required. The engineering of the Works shall fully cover conceptual design, basic design and
detailed design, supply of Plant and Materials, erection and construction, pre-commissioning and
commissioning, operation and maintenance for the Plant.
2.3.1.1. All engineering and design works shall be carried out both procedure-wise and qualitywise compatible with the best internationally available standards. The Contractor shall
provide all necessary design criteria for approval.
2.3.1.2. The Contractor shall during the engineering phase, do its utmost to select uniform
equipment to minimize spares.
2.3.1.3. The Contractor shall base its engineering and design on the information provided in
article 9 of this Employers Requirements [Design Data]. The Contractor may suggest
amendment to design data which shall have to be approved by the Employer before
adoption by the Contractor.
2.3.1.4. The Contractor shall provide full access for the Employer to all drawings, specifications,
calculations, standards, codes, vendor data and any documents relevant to the Works.
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2.3.1.5. The Contractor shall produce all original technical documentation in the name of the
Employer. The original of all such documents provided by the Contractor shall be the
property of the Employer and shall be handed ever to the Employer.
2.3.1.6. All weights and measures shall be given in the SI system of measurement. All written
Materials, software documentation and text on drawings shall be in English.
2.3.1.7. Manufacturers drawings and technical documentation shall be submitted for review and
approval by the Employer.
2.3.1.8. Contractor shall review all information and documents provided by the Employer to
better acquaint itself with the prevailing conditions and existing situation. It will
however be Contractor's full responsibility to utilize, amend, modify and/or adopt such
information and documents in order to meet the conditions and obligations set out in the
Contract. Any and all modifications and/or amendments shall be approved by the
Employer.
2.3.1.9. All engineering to be performed by the Contractor shall be tailor-made for this Contract.
Engineering based on rule of thumb or past experience alone without carrying out of the
calculations and simulations is not acceptable.
2.3.2 Basic and Detailed Design

Basic and detailed design of the Works shall include, but not be limited to, the following:
(All Contractors Documents related to items marked with sign () shall be subject to approval
by the Employer. Contractors Documents related to all other items shall be submitted to the
Employer for information.)
2.3.2.1 General
x Prepare plot plan and general arrangement drawings showing location of all equipment and
extent and type of structures; ()
x prepare all calculations, computer runs, etc; ()
x Prepare detailed and scaled layout of equipment; ()
x Prepare list of utilized raw materials, chemicals, and additives for production, test and
running of each unit in the Plant;
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x Provide quantity of lubricants, coolants and chemicals required for start-up, specifying
consumption per month of operation of each item;
x Prepare detailed list of upper and lower production/capacity limits of each unit in the
Plant;()
x Prepare detailed list of capital, commissioning and two years operating spare parts of the
Plant; ()
x Prepare detailed list of consumables for commissioning, start-up and one (1) year of normal
operation and maintenance of the Plant; ()
x Prepare spare part interchangeability record list for the Plant;
x Prepare loading data for transportation of equipment and vessels, structures, etc. in regard to
transportation limitation and regulations in Islamic Republic of Iran;
x Prepare final equipment data sheets; ()
x Provide all necessary installation specification and details for mechanical erection of the
Plant; ()
x Prepare material summery sheets and material quantity take-off for each work discipline,
per drawing, per unit and per Plant;
x Review and coordinate all manufacturers drawings for compliance with requirements and
standards of design, prior to start of manufacture;
x Prepare regular inspection report on manufacture of all equipment and materials of the
Plant.
2.3.2.2 Process
x Perform calculations and/or simulations and prepare final overall block flow diagram for the
Plant; ()
x Prepare process flow diagrams for each unit and perform detailed mass and energy balances
for each diagram. These diagrams shall clearly mark all streams and their numbers, plus the
characteristics of the fluids for each stream; ()
x Prepare fully developed Piping and Instrument Diagrams (P&ID) completely mechanized
indicating all line sizes and numbers, control elements and equipment characteristics and
instrument numbers; ()
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x Prepare final process descriptions for each unit outlining all important process variables and
process conditions; ()
x Prepare and fix design criteria for the Plant; ()
x Prepare the control philosophy for each flow diagram and the overall unit and the Plant; ()
x Perform detailed calculations, verification study and analysis on detailed sizing for
equipment carried-out by vendors; ()
x Perform calculations and/or simulations on mass transfer and storage systems such as
conveyors, bins and bunkers, where applicable; ()
x Perform calculations and/or simulations and determine the minimum, normal and maximum
capacities for each unit and the Plant as a whole; ()
x Prepare pre-commissioning, commissioning and start-up procedures for all units and the
Plant;
x Define the sparing policy on critical equipment, whether in the form of installed or capital
spares; ()
x Prepare tables for consumption of utilities and chemicals for each unit and the Plant.
x Establish environmental protection parameters and criteria, perform simulations and ensure
that Plant meets environmental protection standards; ()
x Establish laboratory testing and sampling criteria and quality control procedures and prepare
list of laboratory equipment and apparatus; ()
x Prepare fully detailed equipment list for all units and the Plant; ()
x Prepare hydro test P& IDs for all units as applicable.
2.3.2.3 Instrumentation
The Contractors services shall comprise the delivery of technical documentation for
instrumentation
and
control
system
necessary
for
installation,
pre-commissioning,
commissioning, operation and maintenance as specified hereinafter but not limited thereto.
x Instrumentation design criteria; ()
x Control and operational requirements; ()
x Instrument list; ()
x Instrumentation P&I diagrams; ()
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x Composite instrument manuals (description of control system and instrumentations,

interlocking systems and control rooms);
x System control diagrams complete with all instrumentation hardware, ranges, controller
setting, etc; ()
x Alarm list and trip settings with instruments ranges;
x Technical specifications for all instruments and valves;
x Complete technical data sheets for all instruments, valves and equipment; ()
x Flow elements, control valves and safety relief valves calculation sheets; ()
x Loop diagrams for electric and pneumatic analogue systems (if any) and logic functions; ()
x Layouts for control and rack rooms and any other auxiliary rooms; ()
x Equipment layouts and component lists; ()
x Instrument panel layouts, cutout and construction drawings;
x Instrument location layouts for all field instruments and junction boxes with exact location
and elevation for tapping points, instrument locations, cable routes and termination points;
x Outline drawings and wiring and tubing information for junction boxes;
x Cable tray and cable trunking requirements;
x Arrangement of pneumatic (if any) and electric signal lines; ()
x Trenches and trunking for instrument cables (if any);
x Layout for electrical supply cables;
x Annunciator system diagrams.
x Single line diagrams for instrument electricity supply; ()
x Instruments grounding diagrams; ()
x Instrument cable lists;
x Typical installation drawings; ()
x Specifications for instrumentation installation;
x Shutdown and sequence logic circuits diagrams & system description;
x Coordination of equipment manufacturers drawings, diagrams and data with project
drawings;
x Project bill of material and material take-off sheets;
x Concept of:
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o Digital (on-off) control systems (PLCs interlocks or DCS's interlocks) ; ()

o Plant safety systems (alarms, emergency shut-down systems) ; ()
x Detail a specification for computer systems (i.e. dedicated computers, PLCs, etc.) such as:
o Computer control (scope and function) ; ()
o General description and requirement for computer hardware and software;
o Software documents; ()
x All interface works in connection with various units;
x Detailed information required specifically for DCSs and PLCs, such as:
o Memory organization with maximum number of registers, timers, counters and other
features; ()
o Detailed description of I/O addressing scheme, physical arrangement of plants in racks,
terminal and cable connection arrangement on plants and restrictions if any on I/O
configuration; ()
o Cable types and installation requirements for I/O bus; ()
o Data highway and program bus; ()
o Description of documentation package;
o Equipment manual and programming manual;
o Detailed description of serial data highway communication protocol and interface
plants; ()
Plant. ()
2.3.2.4 Electrical
The Contractors services shall comprise the delivery of technical documentation for the detailed
design and requirements of manufacturing, installation, pre-commissioning, commissioning,
operation and maintenance as specified hereinafter but not limited thereto:
x Prepare all electrical technical specification for related systems; ()
x Prepare and finalize the electrical load list and identify type of load (main or stand-by) and
their supply (normal or emergency);
x Finalize the design of the electrical distribution system and the single line diagram; ()
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x Perform computational analysis and studies; ()

x Prepare detailed single line diagram(s), inclusive of all necessary protections, interlocks,
metering, instrumentation and alarms; ()
x Finalize power supply requirements and specify power demand load lists of electrical
switchgears and distribution boards and rating of electrical equipment such as switchgears,
transformers, UPS systems, etc. and also electrical load balance calculations; ()
x Prepare list of electrical consumers requiring emergency power, the duration within which
critical equipment should be started after power failure, total emergency power required;()
x Prepare earthing and lightning protection system including basic and detailed design
drawings and documents layout; ()
x Lighting system and socket outlet drawings; ()
x Prepare basic and detailed design drawings of AC and DC uninterrupted power supply
systems; ()
x Typical installation details of all electrical equipment and accessories; ()
x Basic and detailed design drawings of intercommunication and fire alarm system consisting
of:
o Preparation of block diagrams; ()
o Preparation of layouts; ()
o Preparation of installation details; ()
o Preparation of wiring diagrams;
o Preparation of cables routing;
x Preparation of control and interlock schemes for motor control circuit; ()
x Preparation of schematic and wiring diagrams;
x Prepare interconnection and terminal connection wiring diagrams;
x Prepare final technical data sheets for all electrical equipment; ()
x Prepare equipment layout drawings for all electrical substation buildings, indicating plan,
location and elevations of switchgears, transformers, bus ducts, neutral earthing resistors,
AC UPS, DC system(s), battery racks, control panels, auxiliary distribution boards, etc; ()
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x Develop underground and aboveground layouts and sections of control and power cables for
inside and outside of buildings (inclusive of process areas, electrical rooms, control rooms,
rack rooms, cable rooms, outdoor area and etc.) with indication of all user; ()
x Develop underground and aboveground layouts and sections of instrument cables for inside
and outside of buildings (inclusive of process areas, electrical rooms, control rooms, rack
rooms, cable rooms, etc.) with indication of all users; ()
x Prepare layouts of cable trays/ladders and trenches inside and outside of buildings (inclusive
of process areas, electrical rooms, control rooms, rack rooms, cable rooms, outdoor area,
etc.) with sections and elevations and with specific installation details; ()
x Perform cable sizing calculations; ()
x Prepare cable schedules;
x Perform checks for underground drawings of piping and civil and all other installations
where underground electrical cable is to be laid;
x Prepare relay coordination curves and settings for selective tripping and perform necessary
calculations; ()
x Prepare drawings showing layout of electrical heat tracing of pipes, vessels, tanks and other
equipment (if applicable);
x Prepare detail installation drawings for all electrical items including heat tracing
systems;()
x Prepare material summary sheets and bulk material take-off sheets for all electrical
commodities;
x Prepare drawings and Employers Representativeing information sufficiently detailed to
allow the Employer to design the incoming electrical power system; ()
x Prepare specifications for installation, inspection and test procedures for all electrical items
Plant; ()
x Prepare hazardous area classification layouts for hazard areas if necessary; ()
x Specification, drawings, catalogues and all documents related to emergency diesel
generators. ()
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2.3.2.5 Civil, Structural and Architectural Design

x basic design drawings; ()
x loading data (including forces and moments, in which all dynamic forces shall be converted
by the Contractor to their equivalent static forces); ()
x detailed design drawing (including bar bending schedules); ()
x calculation booklets; ()
x shop drawings
In design of civil works and structural items all Iranian design codes shall be followed.
In case there are items which are not covered by Iranian design codes American codes shall be
prevail.
2.3.2.6 Machinery
x Prepare general arrangement drawings of tanks, pressure vessels, and the like and perform
sizing and thickness calculations; ()
x Prepare detailed work shop drawings of tanks, vessels, and the like. For pressure containing
equipment maximum allowable working pressure, hydrostatic test pressure, stress relieving
procedure shall be indicated on the drawings; ()
x Prepare assembly, sub-assembly, and detailed cross-sectional drawings of all equipment
showing part numbers and materials; ()
x All principal dimensions, overall clearances, the method of operations, the relationship of
parts and critical assembly dimensions of the equipment, including the number and location
of welds subject to radiographic or ultrasonic tests, design and operating conditions, etc; ()
x Prepare
necessary
specifications
and
instructions,
Employers
Representativeing
information, bill of material, construction and erection drawing for all equipment being
supplied. These specifications and instructions will also include the general procedure for
the final alignment of the equipment and sequence of erection of various components;
x Prepare detailed workshop drawings of the spare parts subject to the provisions of the
General Conditions of the Contract;
x Obtain from the vendor and provide all vendor detailed design drawings;
x prepare detail design drawing and specification of all mobile equipment; ()
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x prepare detailed drawing and specification of all required cranes and hoists; ()
x prepare the activity networks for erection of major equipment at Site;
x Prepare equipment spare parts interchangeability records;
Plant. ()
2.3.2.7 Piping
x Prepare and finalize mechanical and material specification for all classes of piping; ()
x Prepare piping construction specification (fabrication, welding, welders qualification and
records, installation & erection, testing, inspection, etc.);
x Prepare line designation tables (piping line list);
x Finalize plot plans; ()
x Prepare foundation location plans; ()
x Prepare area key plans;
x Prepare final piping and equipment arrangement; ()
x Design piping systems and prepare all necessary arrangement and detail drawings; ()
x Prepare piping erection drawings and details of tie-in points;
x Prepare piping isometric drawings with suitable marking for prefabrication of piping spools
(for all pipes 2 and larger) ; ()
x Prepare details of piping and supports;
x Perform piping flexibility analysis and calculations for all lines of 2 inches and larger; ()
x Prepare piping material take-off including bill of material for each isometric drawing;
x Prepare shop fabrication drawings for all platforms, ladders, stairs;
Plant; ()
x Prepare drawings of equipment and terminal points of various units; ()
x Prepare drawings of equipment arrangement;
x Prepare single line diagram of structures including major equipment and loading data; ()
x Prepare technical specification for protective coating and painting for all classes;
x Prepare bill of material for protective coating and painting of piping and equipment.
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2.3.2.8 HVAC and Plumbing System

x Prepare basic design data; ()
x Prepare basic design drawing; ()
x Prepare detailed design drawing; ()
x Prepare specification of HVAC equipment; ()
x Prepare specification of HVAC control systems; ()
x Prepare plumbing system detailed design drawings;
x Prepare detailed list of capital, commissioning and two years spare part of HVAC and
plumbing system.
2.3.2.9 Fire Detection, Alarm and Fighting System

x Prepare a fire risk study for all areas of the Plant including process areas, control rooms,
electrical rooms, cable tunnels, etc; ()
x Prepare basic design drawings and report for fire detection and fighting systems suggested
for the Plant; ()
x After approval of basic design drawings and specifications of fire detection and fighting
system, the Contractor shall prepare detailed design drawings of the system. Step by step
erection procedures of the system shall be provided.
2.4 Drawings and Technical Information

2.4.1. All items indicated under Sub-Clause 2.3 [Design] of this Employers Requirements are
intended to define the minimum requirements for the Contractors Documents to be
prepared and issued for the Employers information and review.
2.4.2. The items indicated in this Employers Requirements shall not be deemed to be exhaustive
and any documents required within the frame of the Contract or necessary for the
execution of the Works shall be prepared by or caused to be prepared by the Contractor
and be made available for the Employers information, review and approval if so
requested by the Employer.
2.4.3. The Contractor shall provide within the scope of work free of charge two copies of
drawings, documents and data stored on Compact Disk (in the file formats required by the
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Employer) and six prints of all drawings, documents and technical information called for
in this Employers Requirements and other Contract Documents. The size of drawings
shall be 594mmu840mm or 297mmu420mm. For other sizes the Employer has to be
asked for approval.
Metric system shall be used for design and detailing the machinery and equipment. All
drawings, technical information, manuals, correspondence and any other data sheets and
information provided by the Contractor shall include the equipment item number. This
equipment item number shall be used throughout the duration of the Contract and shall be
the same for control, requisition, purchasing, fabrication, sub-contracting, shipment, etc.
All drawings and technical information provided by the Contractor shall become the
property of the Employer and will be used in any manner desired by the Employer for the
repair, maintenance and operation of the Plant, future expansion or revamp of the Plant, as
well as for the fabrication and procurement of the spare parts as and when required,
subject to provision of the Employers Requirements. All drawings and technical
information shall be in English language.
Drawings and information supplied for erection shall be sufficiently detailed such that an
Iranian contractor can carry out the erection without any further information.
All drawings and documents prepared as per Sub-Clause 2.3 of this Employers
Requirements shall be provided in the number and form stated hereinabove.
2.4.4. Six sets of operation and maintenance manuals six months before commencement of
commissioning of the Plant shall be provided. Further six sets of operating and
maintenance manuals including modifications and test data incorporated and recorded
during commissioning shall be provided not later than two months after the Plant first
goes into operation.
Operation and maintenance manuals shall contain all detailed descriptions and information
required to enable the Employer to assemble, test, start-up, maintain, repair, dismantle, reassemble and adjust all and every parts of the Plant, such as:
x Detailed description of the testing and start-up procedure for each Plant and
equipment item
x Detailed functional description of the Plant and equipment and the recommended
mode of operation
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x All normal sequential steps in the operating procedure must be identified and
sufficient explanation given such that operating and maintenance training can be
undertaken before testing and start-up commences.
x Sketches of control panels, simple control diagrams, typical pressures, loads, speeds
and other operating data should be included in this description.
x Identification of abnormal operating conditions accompanied by recommended listing
of corrective actions to be taken.
x Diagrams, sketches and explanations of abnormal function of electrical,
instrumentation and control, lubrication systems, hydraulic and pneumatic systems
together with a systemized fault-finding and fault-correcting procedure for each
system.
x Step by step procedure for dismantling and re-assembly of all equipment and
recommendation as to the methods for avoiding damage in handling.
x Recommended procedure for removal of the parts where shrink fits are employed.
x Full and detailed information regarding clearances and tolerances required for
satisfactory operation of the equipment.
x Procedure for the replacement of the wearing parts and lubrication recommendations
regarding the type and properties of the lubricants and frequency of their use
x Specification of system software
x Manual of programming language
x All maintenance and operations necessary to keep the Plant in good operational
condition, and shall include detailed schedules showing the frequency with which all
maintenance operations shall be carried out.
2.4.5. At the end of the erection the Contractor shall assemble and forward to the Employer asbuilt detailed drawings prepared by them for the Works and all the standard drawings of
the Contractor applicable to the Works as well as all drawings prepared and furnished by
Subcontractors on all mechanical, electrical and processing units. Two copies stored on
CD, and six prints of these Drawings shall be provided.
2.4.6. In addition to above any other information, Drawings or calculations that the Employer or
Employer may require shall be submitted upon request.
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2.4.7. The Contractor shall indicate in detail the latest date from the Effective Date of the
Contract that the above drawings and technical information will be supplied to the
Employer.
2.4.8. The Contractor shall provide the network sufficiently detailed (CPM or equivalent
technique) for monitoring the whole project including civil and erection activities within
four weeks after effectiveness of the Contract.
2.4.9. At that time the Employer and the Contractor shall discuss and agree upon the submitted
network diagram, subdivision of activities (tasks), and the content of the progress report,
to be provided by the Contractor.
2.4.10. Then the Contractor shall provide the finalized detailed network diagram (CPM or
equivalent technique) for all the activities related to his responsibilities in this Contract
eight weeks after effectiveness of the Contract.
2.4.11. He shall furthermore submit the necessary information together with computer system
input data in his scope of responsibilities in order to enable the Employer to update and
process the whole network. Any revision affecting the milestones defined in the detailed
network shall receive the written approval of the Employer, which shall not be
unreasonably withheld.
2.4.12. The software package together with user manual of the Contractors system shall be
submitted to the Employer after signature of the Contract.
2.5 Packing and Consignment
All Materials, equipment and machinery shall be carefully packed for sea and long land
transportation and extended storage at Site of at least 24 months under hot summer conditions
and cold conditions during winter. Packing, marking and forwarding shall be according to Annex
VII, Employers Representative standards, Packing, Marking and Forwarding.
Any packing not complying with the packing, marking and forwarding Standard shall be
rejected. The Contractor should also observe all the shipping instructions of the Employer as
described and specified in any Contract Document.
2.6 Transport and Delivery
The Contractor shall provide for transport and DDU Site delivery (as per INCOTERMS 2000) of
Foreign Supply and DDP Site delivery (as per INCOTERMS 2000) of Local Supply.
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2.7 Tests on Completion

The Contractor shall perform the tests on completion according to the Contract at presence of the
Employer.
2.8 Civil Works Construction and Erection

The Contractor shall carry out all civil construction works required for the Works. Whenever in
Contract Documents civil construction works is referred to it includes also architectural works
and sanitary services works. It also includes all demolishing work required for civil work,
architectural works and sanitary services works. Site preparation including soil and sub-soil
investigation, detailed topography, grading and fencing if required shall be in Contractors
obligation. Construction of roads inside battery limits shall be in the scope of obligations of the
Contractor. Provision of temporary electrical power distribution, water distribution and gas
distribution for construction period shall be in the Contractors scope of obligation. Construction
of storage facilities for storing Materials, machineries and equipment during construction shall
be in the scope of obligation of the Contractor. All buildings utility systems such as lighting and
socket outlets, telephone, domestic hot and cold water supply, sanitary sewage system,
ventilation and air conditioning system are also considered part of civil construction works.
Industrial ventilation and air conditioning system and hot and cold water systems are part of
supply of Plant. Supply of all required Materials, equipment, etc for civil works shall be in the
Contractor's scope of supply. Provision of construction equipment such as cranes, batching plant,
trucks, loaders, compressors, welding machines, formwork, etc. shall be in scope of obligation of
the Contractor, but it shall belong to the Contractor and will be removed from the Site at the end
of construction phase with the approval of the Employer.
The Contractor shall carry-out all erection works required for the Works. Whenever in Contract
Documents erection works is referred to it includes also all dismantling works required in the
Plant. In addition it includes also tests on completion as defined in clause 2.7. Final painting of
erected equipment shall also be part of erection and in the scope of obligation of the Contractor.
2.9 Training
The Contractor shall train the Employers operation and maintenance personnel as specified in
Clause 10 hereto.
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The training will be conducted in such a way that the trainees would be able to handle and
operate the plant in the most appropriate way.
2.10 Taxation
The Contractor shall pay any taxes, duties and charges to be paid by the Contractor as defined in
Sub-Clause 1.2.2 of the Particular Conditions.
2.11. Quality Control, Inspection and Testing

The Contractor shall carry out all tests mentioned in this Employers Requirements,
specifications and as directed by the Employer, whether mentioned in this Employers
Requirements and other Contract Documents or not, to ensure that all Materials, equipment,
machineries and other prefabricated components of the Works are manufactured, fabricated and
assembled in accordance with the drawings, specifications, and international standards, codes
and sound Employers Representative practice.
The Contractor and his Subcontractors shall provide free of charge for the Employer adequate
office space, secretarial assistance and telecommunication services during the execution of the
inspection activities.
During the erection, cold test run and commissioning of the Plant the Employer shall have free
access at any time to the Plant to check the progress of the Works and also he shall have
complete access to all inspection and test reports, records and data.
The documents required for the approval of the Materials, machineries and equipment, as set out
in the Contract, must be delivered to the Employer in four complete sets and in such time, as to
enable the Employer to perform the necessary review and checking. All Materials, instruments
and equipment for the tests shall be provided by the Contractor to the approval of the Employer.
If special tests are to be performed in the presence of the Employer, a set of approved working
drawings showing all modifications, as well as the necessary testing apparatus shall be prepared
and made available by the Contractor.
Special tests which can not be performed at the Contractors premises or with the equipment at
the Contractors laboratories shall be performed by qualified independent international
institutions approved by the Employer.
The Contractor shall retain responsibility for the quality control, inspection and testing activities
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carried out in the manufacturing works of Subcontractors.

If any equipment or a part of it shows defects of whatsoever nature that requires repairs, the
Contractor shall not proceed to make such repair without the prior approval of the Employer. In
all such cases a technical report on the repairs which need to be executed must be prepared by
the Contractor and submitted to the Employer. All defective areas shall be non-destructively
tested before and after repair.
The documents necessary for final inspection and release for packing shall be prepared as set out
in the Contract and shall be delivered to the Employer together with the pertinent technical
specifications. These documents will include but not limited to the following:
x Reports on tests performed.
x Casting certificates.
x Pressure testing certificate
x Certificates of the pertinent testing laboratories or institutional inspection authorities.
x Results of any non-destructive tests, together with the pertinent sketches and descriptions.
x Reports on welders qualifications.
x Specifications of welding electrodes and methods used.
x Assembly drawings of the machinery and equipment.
x Detailed workshop drawings of the spare parts.
x Catalogues.
x Erection Specifications and information.
x Maintenance and operating manuals of Subcontractors checked by the Contractor.
The inspections, tests, witnessing, verifications, acceptances, clearances, etc., carried out or
issued by the Employer shall neither relieve the Contractor of its responsibilities regarding
failures and defects, nor will it affect the guarantee assumed in the Contract.
This refers also to Contractors responsibility in connection with proper, effective and sound sea
worthy packing.
2.12. Technical Services

The technical services to be performed shall include the followings:
x construction management
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x supervision of civil construction works and erection works;

x start-up, Commissioning and performance guarantee tests;
x training
2.13 Long Term Spare Parts Supply

Contractor shall have the obligation to supply required spare parts for the Plant for at least 15
years after issuance of Performance Certificate. The price of spare parts for first 3 years after 1
year of issuance of Performance Certificate shall be as per price list of spare parts to be supplied
under the Contract.
Price of spare parts for the remaining period of 11 years shall be reasonable and can be
concluded from Contract spare parts price list, inflation rates applicable and also considering the
progress made in manufacturing processes leading to reduction in price.
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3. THE EMPLOYERS OBLIGATIONS

3.1. GENERAL
The Employer shall provide the items listed hereunder, but the Contractor shall supply
such information as is required to enable the Employer to provide such items as and when
required:
3.1.1. Provision of required utilities and services during construction such as electricity,
water and temporary sewer facilities (if required) up to battery limit. (Inside
battery limit is in the scope of obligation of Contractor). However the Employer
can not guarantee un-interruptible availability of such services. Provision of
temporary water storage tank is in the Contractor scope of works.
3.1.2. Provision of access roads to and from the Site.
3.1.3. Provision of water, electricity and natural gas, up to the battery limit, as defined in
clause 4 of this Employers Requirements (Battery Limits).
3.2. Payment of custom duties of Foreign Supply shall be made by the Employer but followup and all other activities in this respect are in the scope of the Contractor.
3.3. Any Plant operation personnel.
3.4. Commissioning and performance tests under the supervision and the responsibility of the
Contractor, by the Employers Personnel trained by the Contractor.
3.5. The Employer shall obtain import licenses for importing the Plant to Iran.
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4. BATTERY LIMITS
The interface points between Contractor's scope of obligation and the Employer scope of
obligation are as follows:
4.1. NATURAL GAS
The natural gas shall be supplied at absolute pressure of 21 bar. The Contractor's scope
of work shall start at the incoming flange of the take over point at the battery limit. All
interconnecting pipe work inside the plant including secondary reducing station will be
in the Contractor's scope of obligation.
4.2. WATER
4.2.1. Industrial water
Industrial water which is physically treated water will be delivered at relevant
T.O.P at pressure 2-3 bar G in the plant battery limit. Any further treatment of water
e.g. softening, R.O, demineralization, etc, in order to achieve a suitable analysis and
PH shall be in the scope of works of the Contractor. The exact delivery point will
be determined by the Employer according to the future design of the whole water
distribution system of the steel making complex.
All necessary water treatment units and interconnecting pipe work in the plant shall
be in the Contractor's scope of supply.
4.2.2. Fire Fighting Water
Fire fighting water will be delivered in nearest branch of main ring to buildings.
4.3. COMPRESSED AIR (FOR SERVICES & INSTRUMENTATION)
Required compressed air both plant air and instrument air shall be provided by the
Contractor. No compressed air will be provided by the Employer at battery limit.
4.4. INERT GAS
Inert gas shall be produced from flue gas of reformer combustion chamber in DRP or
by inert gas generator system during startup or emergency periods.
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4.5. OXIDE PELLETS

Oxide pellets and lump ore shall be delivered by trucks up to the truck unloading
station by the Employer.
4.6. METALIZED PELLETS

The Contractor limit of supply will terminate at the discharge of silos screen station. It
is worth to say that discharge fine conveyors from screen station to the fine bin, fine bin
and fine bin discharge conveyors to the cold briquetting plant shall be in the scope of
Work of the Contractor.
4.7. PROCESS EFFLUENT

The Contractor's scope of supply shall include the collection of the liquid process
effluents as dewatered sludge at a single point at the battery limit for disposal by the
Employer.
4.8. SANITARY AND INDUSTRIAL WASTE WATER

Collection of sanitary and industrial waste water inside the battery limit up to the
relevant T.O.P in plant battery limit shall be in the scope of Contractors obligations.
Take over point will be fixed by Employer depending on general design of sanitary and
industrial waste water of steel making Plant and the Contractor shall be bound to
deliver the waste at take over point so defined.
4.9. ELECTRIC POWER

Incoming of 33kV switchgears in DRP substation will be battery limit of electrical
equipment installation.
For earthing system, battery limit ends to shortest point of the Employer plant earthing
network (if available).
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4.10. OXIDE COATING MATERIAL

Contractor shall provide all required facilities for receiving of oxide coating material at
a point located at plant boundary limit to be fixed after finalizing oxide coating material
selection together with the Employer.
4.11. SURFACE WATER

The surface water of Plant shall be collected by the Contractor and shall be connected
at one point to general surface water collection network of the Employer. The
connection point will be fixed by Employer and the Contractor shall be bound to follow
the Employer requirements.
4.12. DR BOUNDARY AND MHP BOUNDARY

Approximate distance between DR boundary and MHP boundary for proposal
preparation shall be 150 meters.
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5. COMPLETION OF ERECTION
5.1. GENERAL
For the purposes of the Contract the erection shall be deemed to be completed after the
following inspections and tests have been carried out by Contractor at presence of the
Employers Representative.
5.1.1. Visual Inspection

Each and every Plant item shall be visually inspected to insure that they are
complete and all equipment incorporated into them conforms to the Specifications
and is ready for no-load testing.
5.1.2. No-Load Tests

Each and every Plant item shall be no-load tested with a view to checking that:
5.1.2.1. All cleaning operations have been performed.
5.1.2.2. All operations of filling of lubricants have been performed.
5.1.2.3. All motors and related shafts are running at the design speed and have a
correct direction of rotation and all movement mechanisms are functioning
correctly.
5.1.2.4. All auxiliary electrical and related services are operating under no-load
conditions;
5.1.2.5. All fluid networks filled with water or other fluids under the standard
overpressure specified in the specification are correctly installed and
without leakage.
5.1.2.6. All other no-load tests necessary to ensure safe and satisfactory setting to
work of the Plant are performed.
5.1.3. NO-LOAD TESTS IN SEQUENCE

Each and every Plant item shall be no-load tested to check that:
5.1.3.1. All instruments, sequences, interlocks, control systems, automation systems
and safety devices are properly connected and operating within the limits
imposed by the characteristics of the equipment and installation.
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5.1.3.2. All mechanical parts are operating and running at the design speed without
overheating.
5.1.3.3. All other required no-load tests in sequence are performed.
5.2. After the successful completion of the no-load tests of the Plant or any portion thereof,
the representatives of Employers Representative and of the Contractor shall sign a
protocol. This protocol shall confirm that erection of Plant or portion thereof is
completed and Plant or portion thereof is therefore prepared for commissioning.
This protocol shall state all detailed work still to be done, which however will not
influence the start of commissioning. It will also state who is to carry out these works
and at what time they are to be effected.
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6. COMMISSIONING
6.1. COMMISSIONING PERIOD
Commissioning period of the Plant according to the Time Schedule (hereinafter called
commissioning period) shall mean the period calculated from the date of the relevant
protocol of completion of erection as under Sub-Clause 5.2 herewith, or from any other
date agreed upon in Writing by the Parties hereto as under Sub-Clause 6.2 hereunder, and
during which related setting to work (including load runs) and performance tests shall take
place under the responsibility of the Contractor as specified in this Contract.
6.2. COMMENCEMENT OF THE COMMISIONING PERIOD

As soon as the relevant completion of erection under Sub-Clause 5.2 herewith has taken
place for the Plant the Contractor shall notify to the Employer in Writing of:
- The date after which the Contractor shall be ready to commence the supervision of
commissioning and load runs of the Plant; and
- Its time schedule.
Such date proposed by the Contractor shall not be later than 30 (thirty) days following the
completion of erection unless so approved in Writing by the Employer
6.3. CONTRACTOR FAILS TO START COMMISSIONING

If the Contractor shall fail to start the commissioning according to Sub-Clause 6.2 hereof,
without having given any reasonable justification to the Employer, the Employer shall be
entitled to proceed in the absence of the Contractor and the commissioning shall be deemed
to have been made in the presence of the Contractor.
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7. PERFORMANCE GUARANTEES
7.1. DIRECT REDUCTION PLANT PERFORMANCE GUARANTEE TEST
7.1.1. General
Tests shall be carried out following commencement of commissioning of the plant,
as per Clause 6.2, hereof to demonstrate that the performance of the plant is in
accordance with the Specification and Data Sheets. The Contractor shall perform
such tests to demonstrate that the operation is of the standard guaranteed and
according to Clause 7.1.2 hereof. The guaranteed performance with regard to
production includes also the consumption of electric energy, gas and water.
Separate test shall be carried out on cold briquetting plant.
The tests shall be based on reference oxide pellets, water, electricity and natural gas
as specified in Clause 9-Design Data of this Employers Requirements. However,
the plant shall operate on oxide pellets produced from indigenous ore and some
imported pellets.
The Contractor guarantees that hourly production and metallization which shall be
obtained from the furnace using these oxide pellets shall be very much comparable
to the results obtained by using reference oxide pellets.
Direct reduction plant performance guarantee test shall be done without using of
oxide pellet coating system. Design, supply, erection and start up of coating system
is in the Contractors scope of work but the Employer will use of it in operation
stage for increasing the production as and when deemed necessary.
The Contractor shall, in particular, demonstrate:
7.1.2. Performance Data for DR plant

7.1.2.1. Average Hourly Production Rate
Average output of metallized pellets at the discharge conveyor of the plant
during test period shall be at least 100 tonnes/h of +5 mm sponge iron
with average metallization not less than 92% when using reference oxide
pellets as described above.
(sponge iron with metallization less than 90 percent shall not be
considered in the production rate calculation).
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7.1.2.2. Metallization
The metallization of the product shall, on an average, be at least 92%
during the test period.
Metallization shall be expressed as
Fe
total
Fe
oxide
Fe total
u 100(%)
or
Fe met
u100(%)
Fe total
7.1.2.3. Carbon Content

The average carbon content of the product during the test period shall be
preset around 1.5%. The standard deviation of the carbon content shall not
be greater than 0.25% over the period of the test.
7.1.2.4. Natural Gas Consumption
The average natural gas consumption during the test period based on the
gas analysis as specified in Clause 9-design data of this Employers
Requirements, shall not exceed Gcal per tonne of product (+5mm
sponge iron) for reference oxide pellets as per Clause 9- Design Data.
7.1.2.5. Water Consumption
The average industrial water consumption during the test period shall not
exceed m3/ tonne of product (+5mm sponge iron) for DR Plant.
7.1.2.6. Electrical Energy consumption
The average electrical energy consumption during the test period shall not
exceed . kWh/tonne of product (+5mm sponge iron) for the DR plant
including the material handling system starting with day bin discharge
feeder and ending with storage bin discharge feeders and all auxiliary
systems such as water treatment, circulation and cooling, inert gas
generation and distribution system, compressed air generation and
distribution and in brief all electrical power consuming items of the DR
plant shall be considered in above consumption.
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7.1.2.7. Performance data for cold briquetting plant

7.1.2.7.1. Average Hourly Production Rate.
Average output of briquettes at the discharge of the briquettes stock pile
conveyor of the cold briquetting plant during test period shall be at least
12 t/h briquettes only the briquettes with crushing strength minimum 400
kg/piece will be accepted.
7.1.2.7.2. Electrical energy consumption
The average electrical energy consumption during the test period shall not
exceed . kWh/tonnes of briquettes.
7.1.3. Conditions for Performance Tests

7.1.3.1. The plant shall be erected by the Contractor and plant shall be
commissioned under supervision of the Contractors supervision
personnel.
7.1.3.2. The Contractor shall envisage adequate provisions for measurement of
various parameters required for such tests during development of P&I
diagrams and detailed engineering and shall supply all such items
required.
7.1.3.3. The Contractor shall prepare the detailed procedures for performance
guarantee tests and shall submit them for Employers Representatives
review, comment and approval at least four months prior to scheduled date
for commencement of performance guarantee tests.
7.1.3.4. The plant shall be operated, maintained and tested according to the
instructions given by the Contractor to the Employer personnel in
sufficient number having sufficient skill and familiarity to operate and
maintain the plant. The Employer personnel trained by Contractor are
considered to be sufficient in number and have sufficient skill and
familiarity to operate and maintain the plant. All parts of the plant subject
to normal wear and tear must be checked by both parties and, if necessary,
replaced at the Employers cost, prior to commencement of Performance
Tests.
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7.1.3.5. The Employer shall furnish in due time and in quantity and in quality
defined in contract the raw materials, fluids, and services which are
stipulated in the Contract as the Employers obligation. However the
Contractor shall prepare and submit to the Employer at least six months in
advance the list and quantity of raw materials, chemicals, lubricating oil,
grease and other materials which may be necessary during the tests.
7.1.3.6. The Employer shall provide all necessary test equipment and shall make
available, the necessary laboratory facilities and staff to run the analysis
required.
All measuring instruments and devices shall be calibrated and shall
guarantee
reproducible
results.
The
Contractor
and
Employers
Representative shall jointly witness their calibration for measurement of

performance parameters such as capacities and consumptions.
7.1.3.7. Commissioning spare parts supplied by Contractor (which are part of
Contractors obligation) shall be available for use by Contractor during
commissioning period of the plant. But Contractor shall replace them at
the earliest opportunity free of charge to the Employer
7.1.3.8. If any tests are interrupted due to reasons attributable to the the Employer
then plant and equipment shall be started again as soon as possible and
when reaching the normal operating conditions, the tests shall continue.
The duration of the tests shall be extended by duration of such
interruptions and the tests shall be deemed to have been performed
continuously.
7.1.3.9. In the event of plant stoppages during the test period, the Employer shall
support Contractor expediently in remedying the cause of stoppage.
7.1.4. Performance Test

Contractor and the Employer shall agree on the timing of the tests in accordance
with the provision of clause 6.2 of Employers Requirements.
The tests shall take place after adequate initial time (approx. three days) of
continuous operation under Contractors supervision.
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7.1.4.1. Test Period

The performance test shall last for a period of ten consecutive days=240 hours
for DR plant to prove that performance data stipulated herein can be reached
simultaneously.
The performance test shall last for a period of two(2) consecutive shifts=16
hours, for cold briquetting plant.
7.1.4.2. Repetitions of Performance Test

7.1.4.2.1. If after two repetitions a successful performance test cannot be
achieved for reasons attributable to the Contractor, the Contractor
shall carry out at his expense such modifications and/or
improvements to the plant as shall be deemed necessary to pass the
Performance Test. The Employer shall grant the time and
opportunity for such modifications stipulated in the Contract. Which
however shall not exceed three months from the start of
commissioning period.
7.1.4.2.2. Should during the test periods a period of reduced performance occur
for reasons not attributable to the Contractor, such as reduced
availability of natural gas or electrical power the period shall be
extended by the duration of any such occurrence, i.e. from the
beginning of such occurrence until normal production has again been
achieved. The production during these periods or reduced
performance shall not be considered part of the test.
If more than two such occurrences happen or any of such
occurrences have a duration of more than five days, the test shall be
repeated.
7.1.5. Test Procedures for DR plant

The detailed test procedures shall be agreed between the parties before start of
commissioning in accordance with the following:
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7.1.5.1. Gas Consumption

The average gas consumption will be determined during test by means of
standardized orifice plate mounted in gas supply line of the direct reduction
plant. A tolerance of 2% shall be accepted on the gas consumption measuring
and indicating instrument. Determination of the gas consumption shall be done
in connection with a preset value of the carbon content of 1.5% of the
metallized product. Heat consumption shall be calculated by using the net
calorific value of gas. The hourly readings of the gas consumption shall be
recorded.
7.1.5.2. Electric Energy Consumption

The average electric energy consumption shall be determined by means of kWh
measuring devices installed in the main incoming feeder cubicle of the plant. A
measuring tolerance of 1.5% of the nominal rating of the kWh measuring
device shall be accepted. The hourly readings of the electric energy
consumption shall be recorded.
7.1.5.3. Average Hourly Production

The average hourly production shall be determined by means of belt scale
mounted on furnace discharge conveyor located beneath the discharge device of
the reduction furnace. Fines content of the product shall be determined by
screening approximately 1 t sample which shall be directed to the remet chute
from the furnace discharge conveyor every 1 h. The screening shall take place
immediately at the remet chute by appropriate screen. A measuring tolerance of
1% of the nominal rating of the scale shall be accepted. Calibrating of the belt
scale has to be performed once a shift, hourly readings of the totalizer of the
scale and fines contents shall be recorded.
For the purpose of calculating consumption figures and for determining
metallization and carbon content, only+5mm fraction of produced sponge iron
shall be used.
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7.1.5.4. Sampling
For the purpose of establishing the performance of the plant with regard to SubClause (7.1.2.2) Metallization and (7.1.2.3) Carbon content sampling shall be
conducted as follows:
Samples of approx. 48 kg shall be collected from the discharge end of the
furnace discharge conveyor every one hour by the automatic sampler.
This sample shall be crushed and reduced in stages to an approx. 1 kg sample,
entirely representative to the primary sample by the sampler.
The 1 kg sample shall be ground in a ball mill for three minutes, then further
tapered to approx. 100 gr. This reduced sample quantity shall be ground in a
ball mill for 3 to 5 minutes, and, if necessary, finally by hand to less than 0. 2
mm.
7.1.5.5. Chemical Analyses

The material finer than 0.2 mm which shall be prepared in accordance to item
7.1.4.4 hereof, shall be used for the analysis:
-
Determination of Fe content shall be done titrimetrically using K2Cr2O7.
Determination of Femet shall be done by the bromine methanol process

according
to
the
instructions
of
the
Handbuch
fr
das
Eisenhttenlaboratorium,Vol.5.
-
Dtermination of the carbon content shall be done calorimetrically.

Chemical analysis shall be conducted by the Employer and Contractor shall
be bound by the results. However, the Contractor may elect at his own cost
an independent analyst acceptable to the Employer in order to get a
confirmation of results of the Employers test. Such results of the
independent analyst shall be accepted by the parties.
7.1.6. Test procedures for cold briquetting palnt

7.1.6.1. Average Hourly Production Rate
The average hourly production rate shall be determined by means of integrated
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belt scale mounted on briquette collecting conveyor.

A measuring tolerance of r 1% of the nominal rating of the scale shall be
accepted. Calibrating of the scale has to be performed prior and after the
performance test. Hourly readings of the totalizer of the scale shall be recorded.
7.1.6.2. Electric Energy Consumption

measuring devices installed in the main incoming feeder cubicle of the cold
briquetting plant. A measuring tolerance of r 1.5% of the nominal rating of the
kWh measuring device shall be accepted. The hourly readings of the electric
energy consumption shall be recorded.
7.2. RAW MATERIAL HANDLING PLANT PERFORMANCE GUARANTEE TEST
7.2.1. General
Tests shall be carried out following commencement of commissioning of the
material handling plant, as per Clause 6.2, hereof to demonstrate that the
performance of the plant is in accordance with the Annex I to Employers
Requirements; Specification and Data Sheets. The Contractor shall perform such
tests to demonstrate that the operation is of the standard guaranteed and according
to Clause 7.2.2 hereof. The guaranteed performance with regard to production
includes also the consumption of electrical energy.
The tests shall be based on normal oxide pellets and lump ore that usually used in
iron making plant. However, the plant shall operate on oxide pellets produced from
indigenous ore and some imported pellets.
The Contractor shall, in particular, demonstrate:
7.2.2. Performance Data for Raw Material Handling Plant

7.2.2.1. Average Hourly Handling Rate
Average hourly handling rate of complete raw material handling plant
shall be minimum 600 tonnes/h raw material (pellet or lump ore).
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7.2.2.2. Hydraulic Truck unloader capacity.

Hydraulic truck unloader shall unload min 6 truck per hour.
The test shall be performed in two(2) consecutive days.
7.2.2.3. Average Hourly stacking and reclaiming Rate of combined stacker
reclaimer.
Average hourly stacking rate shall be minimum 1500 tonnes/h and
average hourly reclaiming rate shall be minimum 600 tonnes/h, when
using raw material pellet or lump ore.
The combined stacker reclaimer shall be tested in two(2) consecutive days
for stacking and two(2) consecutive day for reclaiming, at preset
guaranteed rate.
7.2.2.4. Electrical energy consumption the average electrical energy consumption
during the test period of complete raw material handling plant (ending to
oxide bin of DR plant) shall not exceed .. kWh/tonne of handled raw
material.
7.2.3. Conditions for Performance Tests

7.2.3.1. The raw material handling plant shall be erected by the Contractor and
plant shall be commissioned under supervision of the Contractors
supervision personnel.
7.2.3.2. The Contractor shall envisage adequate provisions for measurement of
various parameters required for such tests during development of P&I
diagrams and detailed engineering and shall supply all such items
required.
7.2.3.3. The Contractor shall prepare the detailed procedures for performance
guarantee tests and shall submit them for Employers Representatives
review, comment and approval at least four months prior to scheduled
date for commencement of performance guarantee tests.
7.2.3.4. The plant shall be operated, maintained and tested according to the
instructions given by the Contractor to the Employer personnel in
sufficient number having sufficient skill and familiarity to operate and
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maintain the plant. The Employer personnel trained by Contractor are

considered to be sufficient in number and have sufficient skill and
familiarity to operate and maintain the plant. All parts of the plant subject
to normal wear and tear must be checked by both parties and, if necessary,
replaced at the Employers cost, prior to commencement of Performance
Tests.
7.2.3.5. The Employer shall furnish in due time and in quantity and in quality
defined in contract the raw materials, electrical energy, and services which
are stipulated in the Contract as the Employers obligation. However the
Contractor shall prepare and submit to the Employer at least six months in
advance the list and quantity of raw materials, lubricating oil, grease and
other materials which may be necessary during the tests.
7.2.3.6. All measuring instruments and devices shall be calibrated and shall
guarantee
reproducible
results.
The
Contractor
and
Employers
Representative shall jointly witness their calibration for measurement of

performance parameters such as capacities and consumptions.
7.2.3.7. Commissioning spare parts supplied by Contractor (which are part of
Contractors obligation) shall be available for use by Contractor during
commissioning period of the plant. But Contractor shall replace them at
the earliest opportunity free of charge to the Employer
7.2.3.8. If any tests are interrupted due to reasons attributable to the the Employer
then plant and equipment shall be started again as soon as possible and
when reaching the normal operating conditions, the tests shall continue.
The duration of the tests shall be extended by duration of such
interruptions and the tests shall be deemed to have been performed
continuously.
7.2.3.9. In the event of plant stoppages during the test period, the Employer shall
support Contractor expediently in remedying the cause of stoppage.
7.2.4. Performance Test

Contractor and the Employer shall agree on the timing of the tests in accordance
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with the provision of clause 6.2 of Particular Conditions of Contract.

The tests shall take place after adequate initial time (approx. three days) of
continuous operation under Contractors supervision.
7.2.4.1. Test Period

The Performance Test shall last for a period of six consecutive hours to prove
that average hourly handling rate performance data stipulated herein can be
reached simultaneously.
7.2.4.2. Repetitions of Performance Test

7.2.4.2.1. If after two repetitions a successful performance test cannot be
achieved for reasons attributable to the Contractor, the Contractor
shall carry out at his expense such modifications and/or
improvements to the plant as shall be deemed necessary to pass the
Performance Test. The Employer shall grant the time and
opportunity for such modifications stipulated in the Contract. Which
however shall not exceed three months from the start of
commissioning period.
7.2.4.2.2. Should during the test periods a period of reduced performance occur
for reasons not attributable to the Contractor, such as reduced
availability of electrical power, the period shall be extended by the
duration of any such occurrence, i.e. from the beginning of such
occurrence until normal handling rate has again been achieved. The
material handling during these periods or reduced performance shall
not be considered part of the test.
If more than two such occurrences happen or any of such
occurrences have a duration of more than five hours, the test shall be
repeated.
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7.2.5. Test Procedures

The detailed test procedures shall be agreed between the parties before start of
commissioning in accordance with the following:
7.2.5.1. Average Hourly Transporting rate
The average hourly transporting rate shall be determined by means of belt scale
mounted on discharge conveyors (day bin charging conveyor). A measuring
tolerance of r 1% of the nominal rating of the scale shall be accepted.
Calibrating of the belt scale has to be performed once a shift, hourly readings of
the totalizer of the scale shall be recorded.
7.2.5.2. Electric energy consumption
measuring devices installed in the main incoming feeder cubicle of the plant. A
measuring tolerance of 1.5 % of the nominal rating of the kWh measuring
device shall be accepted.
The hourly readings of the electric energy consumptions shall be recorded.
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8. Non Attainment of the Guaranteed Figures

8.1. Should for any reason not attributable to the Employer, after the first performance test
and repeated attempts and any other effort and endeavor that the Contractor shall have
made within three months after start of commissioning period, if any performance test
can not be passed successfully then provisions of Clause 8.2 shall apply.
8.2. Penalties
8.2.1. Penalties for the direct reduction plant

8.2.1.1. Average hourly production rate
The Contractor shall pay to the Employer a compensation of one and half (1.5)
percent of the Contract Price of direct reduction plant for each complete percent
that actual hourly production rate falls short of guaranteed hourly production rate.
If actual average hourly production rate falls below ninety five (95) percent of
guaranteed hourly production rate of the plant, then if any proposal of
compensation made by Contractor proves not acceptable to the the Employer, the
Employer shall have the right to invoke breach of the Contract.
8.2.1.2. Metallization
The Contractor shall pay to the Employer a compensation of two (2) percent of
Contract Price of the direct reduction plant for each complete percent the average
metallization at preset carbon content and guaranteed average hourly production
rate falls below ninety two (92) percent. If the average metallization at preset
carbon content and guaranteed production rate, falls below ninety(90) percent,
then if any proposal of compensation made by Contractor proves not acceptable
to the the Employer, the Employer shall have the right to invoke breach of the
Contract.
8.2.1.3. Natural Gas

The Contractor shall pay to the Employer a compensation of point twenty
five(0.25) percent of the Contract Price of direct reduction plant for each
complete percent the natural gas consumption exceeds one hundred two (102)
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percent of guaranteed natural gas consumption. If natural gas consumption

exceeds one hundred twelve (112) percent of guaranteed natural gas consumption,
then if any proposal of compensation made by Contractor proves not acceptable
to the the Employer, the Employer shall have the right to invoke breach of
Contract.
8.2.1.4. Electrical Energy

The Contractor shall pay to the Employer a compensation of point twenty five
(0.25) percent of the Contract Price of direct reduction plant for each complete
percent the electrical energy consumption exceeds one hundred two (102) percent
of guaranteed electrical energy consumption. If electrical energy consumption
exceeds one hundred twelve (112) percent of guaranteed electrical energy
consumption, then if any proposal of compensation made by Contractor proves
not acceptable to the the Employer, the Employer shall have the right to invoke
breach of Contract.
8.2.1.5. Water Consumption

The Contractor shall pay to the Employer a compensation of point twenty five
(0.25) percent of the Contract Price of direct reduction plant for each complete
percent the industrial water consumption exceeds one hundred two (102) percent
of guaranteed industrial water consumption. If industrial water consumption
exceeds one hundred twenty (120) percent of guaranteed industrial water
consumption, then if any proposal of compensation made by Contractor proves
not acceptable to the Employer, the Employer shall have the right to invoke
breach of Contract.
8.2.1.6. Penalties for cold briquetting plant

8.2.1.6.1. Average Hourly Production Rate
The contactor shall pay to the Employer a compensation of two(2)
percent of the Contract Price of cold briquetting plant for each complete
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percent that actual hourly production rate falls short of guaranteed

hourly production rate.
If actual average hourly production rate falls below ninety (90) percent
of guaranteed hourly production rate of the plant, then if any proposal of
compensation made by the Contractor proves not acceptable to the
Employer, the Employer shall have the right to invoke breach of the
Contract.
8.2.1.6.2. Electrical Energy

The Contactor shall pay to the Employer a compensation of half(0.5)
percent of the Contact Price of cold briquetting plant for each complete
percent the electrical energy consumption exceeds on hundred two(102)
percent of guaranteed electrical energy consumption. If electrical energy
consumption exceeds one hundred twelve(112) percent of guaranteed
electrical energy consumption, then if any proposal of compensation made
by Contractor proves not acceptable to the the Employer , the Employer
shall have the right to invoke breach of Contact.
8.2.1.7. Maximum amount payable by Contractor under Sub-Clause 8.2.1 shall not
exceed 10 percent of Contract Price related to direct reduction plant.
If the amount to be recovered from the Contractor under Sub-Clause 8.2.1
exceeds 10 percent of Contract Price of direct reduction plant, then if any
proposal of compensation made by Contractor not acceptable to the
Employer, the Employer shall have the right to invoke breach of Contract.
8.2.2. Penalties for raw material handling plant

8.2.2.1. Average hourly handling rate
The Contractor shall pay to the Employer a compensation of two(2) percent of
the Contract Price of complete raw material handling plant for each complete
percent that actual hourly handling rate falls short of guaranteed hourly
handling rate. If actual average hourly handling rate falls below ninety(90)
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percent of guaranteed hourly handling rate of the plant, then if any proposal of
compensation made by Contractor Proves not acceptable to the Employer , the
Employer shall have the right to invoke breach of the Contract.
8.2.2.2. Average hourly stacking and reclaiming rate of combined stacker reclaimer
The Contractor shall pay to the Employer a compensation of two(2) percent of
the price of complete material handling plant for each complete percent that
actual hourly stacking or reclaiming rate of combined stacker reclaimer falls
short of guaranteed hourly stacking or reclaiming rate of combined stacker
reclaimer. If actual average hourly stacking or reclaiming rate of combined
stacker reclaimer falls below ninety (90) percent of guaranteed hourly stacking
and reclaiming rate of combined stacker reclaimer, then if any proposal of
compensation made by Contractor proves not acceptable to the Employer, the
Employer shall have the right to invoke to breach of the Contract.
8.2.2.3. Electrical Energy

The Contractor shall pay to the Employer a compensation of point twenty
five(0.25) percent of the Contract Price of raw material handling plant for each
complete percent the electrical energy consumption exceeds one hundred
two(102) percent of guaranteed electrical energy consumption. If electrical
energy consumption exceeds one hundred twelve(112) percent of guaranteed
electrical energy consumption, then if any proposal of compensation made by
contactor proves not acceptable to the Employer, the Employer shall have the
right to invoke breach of the contract.
8.2.2.4. Maximum amount payable by Contactor under Sub-Clause 8.2.2 shall not
exceed 10 percent of Contract Price related to complete raw material handling
plant.
If the amount to be recovered from the contractor under Sub-Clause 8.2.2
exceeds 10 percent of Contract Price of raw material handling plant, then if any
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proposal of compensation made by Contractor not acceptable to the Employer,

the Employer shall have the right to invoke breach of Contract.
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9. DESIGN DATA
The basic design data necessary for the design and engineering of Plant are given below. If any
additional information is required, such reasonable further technical information will be supplied
upon request.
9.1. PLANT LOCATION
The direct reduction and raw material handling site is located near the city of Baft, with
approximate co-ordinates of:
Latitude
29q 17'
North
Longitude
56q 36'
East
The regions elevation is about 2250 meters above mean sea level (M.S.L.).
The nearest airport is Sirjan airport.
9.2. CLIMATIC CONDITIONS
The meteorological information of the Site is based on the data obtained from Baft
meteorological station, since 1996. The station elevation is 2280 meters above mean sea level
(M.S.L.).
Average maximum air temperature in the summer ranges within 29 to 33.5 q. Observed
absolute maximum air temperature is equal to 36.5q and observed absolute minimum air
temperature is equal to minus 16q.
Prevailing wind directions are west and north east winds. The following wind velocities will be
considered for design purposes:
For the elevation of zero to 10 m:
125 km/h
For the elevation of 10 to 20 m:
148 km/h
Design Atmospheric pressure should be assumed as 0.77 bar.

Average annual amount of precipitation: 265 mm
Maximum annual amount of precipitation: 376 mm
In the autumn and spring precipitation falls in the form of convective showers, accompanied by
thunderstorms and lightning. Precipitation in any form is very rare within the summer, due to
extremely high water absorbing capacity of the environment.
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The figures of relative humidity during winter and summer have been given in the following
pages.
9.3. SEISMIC CONDITIONS
For supplied plant and equipments, all calculations referring to seismic conditions shall be based
on third version of Iranian National Code number 2800. According to this code, design base
acceleration shall be considered 0.25 g.
9.4. SOIL CHARACTERISTICS
The Contractor shall perform soil investigation by itself.
9.5. INDUSTRIAL SEWAGE SPECIFICATIONS
Treatment plant is out of contractor's obligation but the exact industrial sewage specifications at
battery limits shall be specified by contractor in next stage.
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T E M P E RATURE (DE C.,JAN.)

5.0
0.0
-5.0
-10.0
-15.0
-20.0
1996
1997
1998
AVE. Min.(C) DEC
1999
2000
YEAR
ABS. Min.(C) DEC
2001
2002
AVE. Min.(C) JAN
2003
2004
ABS. Min.(C) JAN
2005
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TE M P E RATURE (JUNE ,JULY )

39.0
37.0
35.0
33.0
31.0
29.0
27.0
25.0
1996
1997
AVE. Max.(C) JUNE
1998
1999
2000
YEAR
ABS. Max.(C) JUNE
2001
2002
AVE. Max.(C) JULY
2003
2004
2005
ABS. Max.(C) JULY
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M E A N S O F R E L A T IV E H U M ID IT Y (D E C .,JA N .)
85
80
75
70
65
60
55
50
45
40
35
1996
1997
1998
1999
2000
YEAR
AT(03:00)DEC
2001
2002
AT(03:00)JAN
2003
2004
2005
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MEANS OF RELATIVE HUMIDITY(JUNE,JULY)

41
36
31
26
21
16
11
1996
1997
1998
1999
2000
YEAR
AT(15:00)JUNE
2001
2002
AT(15:00)JULY
2003
2004
2005
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9.6. WATER SPECIFICATIONS
The water shall be supplied to the Direct Reduction Plant at battery limits. Design of Plant shall
be based on the following water analysis.
9.6.1 Water Analysis

The Industrial water will be supplied from Baft river after physical treatment (if required). The
specification of the industrial water will be:
Parameter
Unit
Normal value
PH
9.99
Electrical Conductivity
Ps/Cm
957
Total Dissolved Solids
mg/l
600
Total Suspended Solids
ppm
Max.50
Sodium Absorbtion Rate
3.87
meq/l
3.8
meq/l
2.1
meq/l
5.7
Co3- -
meq/l
0.4
Ca++
meq/l
3.2
Mg++
meq/l
3.5
Na+
meq/l
4.9
K+
meq/l
0.02
So4
Cl
--
HCo3
9.7. AIR POLLUTION
9.7.1. General
The following standards are applicable:
Section 9
IEPO
: Environmental Protection Agency of Iran
WHO
: World Health Organization
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: American Public Health Association
In case of any contradiction, IEPO standard prevails.

At any point involving a discharge which may cause potential hazard as dust or fumes,
provisions shall be made to collect and remove such dust and fumes from the operating area and
to clean them before they are discharged into the atmosphere.
Following the recommendation issued by the Environmental Protection Agency of IRAN as
for as Miscellaneous Industries (applicable to the Plant) is concerned, the standards will limit the
emission into the atmosphere as hereinafter:
Particulate matter, no more than 100 mg/Nm3 of exit gas at standard and dry
conditions.
H2S, no more than 7.2 mg/Nm3 of exit gas at standard and dry conditions.
So2, no more than 800ppm of exit gas at standard and dry conditions.
Co no more than 350 mg/Nm3 of exit gas at standard and dry conditions.
Fluorides (as F2), no more than 6.4 mg/Nm3 of exit gas at standard and dry
conditions.
Non visibility, no more than 20%.
9.7.2. Air Quality

Ground level concentration is final result of the above said pollution on the surrounding countryside.
Here enclosed table 1 is showing air quality standards which must be compared with ground
level concentration and the ground level concentration should not exceed limits mentioned in this
table.
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Table 1
Ambient Air Standard

Pollutant
Primary
Secondary
- Annual geometric mean
75
60
- Max.24-hr. conc. b
260
150
- Annual arithmetic mean
80 (0.03)
60 (0.02)
- Max. 24-hr. conc. b
365 (0.14)
260 (0.1)
Particulate matter
Sulfur oxides
1,300 (0.5)
Carbon monoxide
10 (9)
40 (35)
Same as Primary
160 (0.08)
Same as Primary
160 (0.24)
Same as Primary
100 (0.05)
Same as Primary
Photochemical
Oxidants
- Max. 1- hr. conc. B
Hydrocarbons
- Max. 3-hr. (6-9 A.M.) conc.b
Nitrogen oxides
- Annual arithmetic mean
a: All measurements are expressed in g/m3 except for carbon monoxide, which is expressed
in mg/m3.
Equivalent measurements in ppm are given in parentheses for the gaseous pollutants.
b: Not to be exceeded more than once a year.
9.7.3. Stack Height

When discharging fumes into the atmosphere is involving inter particular matter or gaseous
pollutants passing through stacks, the height of these stacks shall be designed so that to
guarantee the maximum ground level concentration as mentioned in table 1.
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9.8. SOUND POLLUTION
9.8.1. General
The best practicable working environment shall be achieved by selection of machinery and noise
reduction to acceptable limits.
When it is determined that the noise level of a machine exceeds the stated noise level, an
approved means of noise reduction shall be provided.
According to environment protection organization of Iran, in industrial area, sound level shall
not exceed from 75dB at 7AM to 10PM and 65dB at 10PM to 7AM.
9.8.2. Limited Noise Levels

Where persons are exposed to continuous noise generated by machinery for 8 hours in any one
day the sound level shall not exceed 85 dBA.
Where persons are exposed to noise generated by machinery for a period of less than 8 hours, or
where the sound level is fluctuating, an equivalent continuous sound level shall be calculated and
should not exceed 85 dBA.
The permissible noise level for duration 8 hour per day and shorter periods are shown on the
following table.
The sound level indicated in this table is on the basis of slow meter measurement.
Duration Per Day
Sound Level dBA
Hr.
(Slow)
85
92
95
97
100
102
105
110
or less
115
Noise in the following places shall not exceed 35 dBA:
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Offices, rest rooms, computer rooms.

Laboratory, control rooms.
Electrical rooms, motor rooms, substations.
9.8.3. Method of Measurement

1- Noise levels shall be measured by a precision sound level meter approved by the
Employer of the self calibrating type.
2- The noise level of a machine shall be generally measured by the near field method.
3- The machine under test shall be installed on normal foundations in the Employer
premises and/or the Contractors works, where agreed, and operated under (a) full
load and (b) part load conditions. The noise level shall be measured in dBA or
octave bands at a minimum of 5 locations equispaced on a prescribed path, one
meter from the vertically projected plan of the machine at a height of 1.5 meters,
additional measurements shall be made at the location on the prescribed path
giving the highest sound level reading and at every location likely to be occupied
by an employee for a substantial part of the working day.
It is also desirable that the dimensions of the test area in the specified directions
shall be at least three times those of the equipment under test.
4- Before the machine is tested, the background noise levels must be determined
using the same sound level meter and filters and the same locations as the test.
If the reading of the background noise level is within 10 dB of the machine test
reading, the necessary corrections are to be applied.
5- The final noise levels in the working environment must be measured on site at
locations which employees will occupy.
6- The noise levels in the offices, control rooms and amenity areas will be measured
in the working environment at site at locations which employees will occupy.
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9.9. INDURATED OXIDE PELLETS, LUMP ORE AND LIME SPECIFICATION
9.9.1. Reference Oxide Pellets

For the purposes of performance guarantee tests and guaranteed consumption figures, pellets
with following characteristics shall be used.
9.9.1.1. Chemical Analysis

Fe
67
PCT.MIN.
SiO2+AL2O3
2.2
PCT.MAX.
SiO2
1.7
PCT.MAX.
0.010 PCT.MAX.
0.04
PCT.MAX.
Cu
0.01
PCT.MAX.
TiO2
0.150 PCT.MAX.
Basicity
1.0
MAX.
(CaO+MgO/SiO2+A12O3)
Moisture
PCT.MAX.
9.9.1.2. Physical and Metallurgical Characteristics

9-16 MM
85 PCT.MIN.
-6.3 MM
1 PCT.MAX.
JIS TUMBLE INDEX

+6.3 mm
94 PCT.MIN.
-1 mm
3 PCT.MAX.
Porosity
20-30 PCT.
Bulk Density (KG/M3)
2000 MIN.
LINDER (760C)
Section 9
Metallization
92 PCT.MIN.
Tumble Index
90 PCT.MIN.
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(+6.3 MM)
Fragmentation
3 PCT.MAX.
(-3.3 MM)
Compression (kg/P)
50
MIN.
STATIC BED REDUCTION (815C)

Bulk Density (kg/M3)
1500
Sulphur Liberation
30 PCT.MAX.
Clustering Tendency
MIN.
9.9.2. - The Plant Will Operate With Gol gohar Mine Pellet As Specified Below:
A. Chemical analysis
Fe (total)
67.1
PCT MIN
SIO2+AL2O3
2.27
PCT MAX
Cao+Mgo
1.81
PCT MAX
0.008
PCT MAX
0.5
PCT MAX
93
PCT MIN
Feo
LINDER (760C)
Metallization
B: Physical analysis
Pellet Size:
8 -16 mm
95
PCT MIN
Tumble Index (T.I)
94
PCT MAX
Abrasion Index (A.I)
4.5
PCT MAX
Compression (kg/p)
270
MIN
Of course DR plant shall be capable to use other indigenous or imported oxide pellets.
9.9.3- Lump ore Specification
Size
Section 9
+31.8mm
Max.
5%
-6.3mm
Max.
8%
-3.2mm
Max.
2%
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Impact index
(%+6.3 mm)
Min.
90%
Tumbler index
(%+6.3 mm)
Min.
90%
9.9.4- Lime Specification

Particle size
0-40 mm
Specific gravity
1.1
Moisture content
5%
Angle of repose
38o
9.10- NATURAL GAS SPECIFICATION
Gas
Composition
Percent
CH4
Methane
88.24
C2H6
Ethane
3.48
C3H8
Propane
1.33
I-C4H10
Iso Butane
0.29
N-C4H10
Normal Butane
0.41
I-C5H12
Iso Pentane
0.14
N-C5H12
Normal Pentane
0.10
Hexane
0.12
CO2
Carbon Dioxide
0.26
N2
Nitrogen
5.63
Total
Hydrogen Sulphur
(as PPm)
Net heat Value
Kcal/Nm3
Specific Gravity
100
0.6272
Molecular Weight
18.17 gr/mol
Water Dewpoint
Hydtocarbon
Dewpoint
-15C
C6
H2S
Section 9
2.7
8675.8
-9C
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Normal deviation from above specification shall not relieve Contractor from any of his
obligations.
9.11- ELECTRICAL DESIGN DATA:
9.11.1- Voltage Levels Characteristics

The voltage levels standardized for the plant are the following:
- 33 kV, 50 Hz for incoming cables and switch gear

- 6.6 kV, 50 Hz for main users, plant distribution and MV motors (> 200kW)
- 400V, 50 Hz for low voltage distribution
- 400-230 V 50Hz for lighting distribution
- 110V, 50 Hz for auxiliary and control voltages
- 110V DC for auxiliary and control voltages
- 24V DC for signal lamps and PLC I/O
Voltage variation shall be considered as 10%.

Power factor of the system shall be kept as 0.95 by power correction equipment provided by
Contractor. Flickers shall be kept below the standard limits as per international standards.
9.11.2- System Rating

- 33 kV System
- rated system voltage 33 kV
- Phase 3
- Frequency 50 Hz
- Grounded by utility
- Basic insulation level (BIL) 170 kV
- one second current rating ... 31.5 kA
- 6.6 kV System
- rated system voltage 6.6 kV
- Phase 3
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- Frequency 50 Hz
- Grounded neutral through resistor
- Basic insulation level (BIL)
60 kV
- one second short current rating 31.5 kA

- 400 V system
- Rated system voltage .. 400 V
- Phase ... 3
- Frequency 50Hz
- Solidly grounded neutral
- Short circuit level at rated voltage .. 50 kA
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10. TRAINING
10.1 General Provision
The training program will be divided into three phases according to the geographical areas in
which they are carried out:
(1) First phase to be held in a similar plant in Iran after selection of the employees involved
in future operation and maintenance of Plant. In this first phase the key personnel who
will travel abroad for the second phase shall be selected by the Employer based on
competency of employees and will be given the basic preparation of the project.
(2) second phase which is held abroad in Contractors or Subcontractors offices, operating
steel complex which shall contains plant units of the size and complexity which shall be
provided under this Contract and in sub-suppliers plants as specific job training.
(3) third phase which is held in Baft together with the key personnel coming from the abroad
training in order to extend training to all the personnel to be involved in the operation and
maintenance of the Plant.
10.2 Training Program Implementation
The project approach shall be based on the principle of restricting the content of the training
program to only the subjects, techniques and skills that the employee will need to carry out his
own particular job.
Moreover, all the workers should be trained together with their foremen, supervisors and
managers. They should know each other, receive similar orientation and learn to work as a team.
The training program, therefore, shall include a large amount of joint training of people at
different levels. Additional skills and knowledge required by each person, depending on his level
of responsibility or authority, will be the object of specific training programs.
With this approach the foremen and supervisors will act as trainers, a function which they will
assume later, when the Plant will start to operate.
10.2.1 First Training Phase in a Similar Plant in Iran

This phase covers mainly the preparation necessary to assume the correct background
knowledge, essential to receive the proper industrial training. Therefore this preparation shall
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include the detailed explanation of the technologies to be applied in the Plant, of the production
operating practices, of the production facilities and their operating methods.
This phase includes the preliminary training in English language for the key personnel selected
for the abroad training (second phase).
All the material necessary to develop this first training phase (reference texts, diagrams,
manuals, drawings, software, plant descriptions, etc.) shall be supplied by the Contractor in
English language. The Employer will be responsible for the translation.
The detailed settlement of the courses (number of training courses, methodology and contents for
each one, number of participants, instructions) will be carried out by the Employers training
manager with Contractors training manager and Contractors technical assistance and
supervision staff at Site.
10.2.2 Second Phase- Abroad (Outside Iran)

The second phase shall take place abroad, outside Iran, in Contractors or Subcontractors
offices, in operating plant or at machinery suppliers installations.
This phase is a specific training program on a job basis and shall be carried out to selected
people assigned to important technological and operational positions, including foremen and
operators.
Contractors or Subcontractors offices shall be used to provide for the involved key personnel
all the necessary knowledge about the original design, development of engineering,
specifications, procurement, pre-assembling and testing of machinery and equipment.
Civil works, building plans, mechanical, electrical, electromechanical and hydraulic
drawings/specifications shall be prepared in these offices and it is intended that selected
individuals (especially in maintenance area) should actually work alongside Contractors or
Subcontractors personnel participate in the development of the Project.
A successful steel complex shall be selected for the on the job training of engineers, foremen and
key operators and maintenance personnel for production planning quality control and
maintenance.
In the particular case of automation training, it shall be foreseen an introductory
theoretical/practical course for the automation personnel. Successively hardware and software
specific training shall be carried out by the involved sub-suppliers.
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In this second phase of training, after introductory courses the involved maintenance people shall
follow the machinery shop assembling and testing in the sub-suppliers plants.
English language shall be used for all training activities and documents including verbal
instructions.
10.3 Duties of the Contractor
Duties of the Contractor shall include but not limited to the following:
(a) to prepare a detailed training program for all training phases proposed in the tender
documents which shall be approved by the Employer.
(b) to train Employers Personnel as indicated.
(c) to prepare the necessary training hand-outs for the training in order to ensure effective
training.
(d) the Contractor shall bear all expenses during the training abroad for:
(i)
medical, accident and liability insurances.
(ii) safety clothing and equipment.

(iii) provision of all the documentation regarding the training subject.
(iv) the trainees stay abroad (accommodation including full board and lodging, local
transportation, flight tickets except Iran-first destination abroad and return), living
allowance.
10.4 Duties of the Employer
The Employer, subject to the provision of training service, shall:

(a) arrange all visa, entry and travel formalities with the assistance of the Contractor.
(b) pay for flight tickets Iran-first destination abroad and return.
(c) pay salaries, pocket money and personnel expenses.
(d) pay for interpreters (if required)
10.5 Control of learning progress
Control of the learning progress shall be carried out by the Contractor by means of some tests
(written and/or verbal) during the training in order to keep track of the general progress.
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The Employer in order to control the effect of all the training phases shall carry out final
evaluation of training program.
10.6 Course Timetable
The course shall run 5 days per week, eight hours per day (excluding lunch time). Traveling
hours to or from the hosting plant shall not be considered working hours.
In case of specific needs or according to special requirements for practical training, part of the
courses can be held during night shifts in hosting plants.
10.7 General Rules
For the total training period of the Employers operating and maintenance personnel, the
Employer will designate a group leader with supervisory functions. The supervisory group leader
of the Employer and the Contractor instructors shall closely cooperate.
The Employers Personnel to be trained abroad shall observe working times, accident prevention
instructions and factory regulations in force at each individual plant.
During training, if the trainees skill-set, conduct or dedication to the program is not satisfactory,
the Contractor shall inform the Employers group leader. If both parties agree, the training of the
individual will be terminated.
All the medical and hospitalization expenses for Employers trainees for the whole training
period will be at the Employers charge, except for first aid, which shall be administered by the
hosting plants doctor.
Note: After receipt of information called for in the Employers Requirements, terms and
conditions of training shall be defined and agreed by parties before signature of Contract.
However the above general terms shall be applied.
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11. MANUFACTURERS AND PLACE OF MANUFACTURE
Only manufacturers and place of manufacture from European countries, Japan and Canada
are acceptable in this Contract for Foreign Supply.
For approval of manufacturers not approved in the Contract or new manufacturers requested
by the Contractor, manufacture's documentation required by the Employer's Representative
shall be submitted and if required, visit to the manufacturing shop shall be arranged by the
Contractor.
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National Iranian Steel Co.

Baft Steel Complex

DR and Material Handling Plant

DR & Material Handling Plant Project

Engineering & Technological Co.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Baft Steel Complex

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

2.2- SUPPLY OF PLANT, EQUIPMENT AND MATERIAL

Oxide pellet screens

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Ejector type stack complete with lining and fan.

Inert gas generator with all necessary equipment and materials.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Baft Steel Complex

Grizzly feeder for separation of possible cluster.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Centralized grease lubrication system.

All in plant sampling equipment

Complete direct reduction plant substation including transformers, switchgears, control

All 6.6 kV and low voltage AC and DC motors.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Baft Steel Complex

Emergency power system.

Earthing and lightning protection systems.

In plant telephone system.

In plant intercommunication and paging system.

Power factor correction equipment.

Color CCTV system.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Baft Steel Complex

Alarm system to alert operators to malfunctioning of equipment and to operate interlocks

First fill of oils and greases.

All required refractories.

All special tools and tackles for erection of the plant.

In plant roads and pavements. (considered part of civil construction works)

All necessary steel structures, bins, hoppers.

All special tools for routine maintenance of the plant.

All electrodes and other site fabrication and erection material.

All required painting material.

Doc No.: TA-143-D00-G-TD005

DR & Material Handling Plant Project

Engineering & Technological Co.

Two truck weighing stations for trucks.

A combined stacker-reclaimer machine complete with all belt conveyors, reclaiming