In previous Unit , you have learnt about the considerations, framework and tools for developing projects/schemes that deliver reliable quality power to consumers at optimum costs. In this unit, we discuss issues related to project/scheme execution. You know that the planning and execution of Distribution Networks are always linked to the demand from consumers and expected load growth in a defined area. Thus, the schemes in power distribution have so far usually been planned, awarded and executed by local officials. The concept of turnkey contract for project execution is relatively new and is now being encouraged in the power sector. It was primarily conceptualized to get system performance guarantees, timely execution, faster pace and small project authority to implement a large number of projects.
In this unit, we begin by explaining the concepts of unit rate contracts and turnkey contracts and comparing them. For example, the turnkey contract should work successfully for installing and commissioning a power plant since the performance parameters are well defined and penalties can be loaded based on auxiliary power consumption. But the situation is entirely different for the power distribution sector. Here the performance parameters of various components, say, 33kV / 11 kV power substations are not fixed. There are separate performance benchmarks for transformers, breakers, and so on.Therefore, we need to look at how best to make use of the turnkey concept in the distribution sector.
The discussion will also help you understand the merit of turnkey contracts in specific cases. You should then be able to draw up the specifications to harness the benefits of the new system for implementing projects at a faster pace as well as with a higher satisfaction level and small in-house institutional set up. Finally, we present studies of typical schemes and the responsibilities of utilities. In the next Unit, you will learn about the preparation and appraisal of the Detailed Project Report.
In this unit, we begin by explaining the concepts of unit rate contracts and turnkey contracts and comparing them. For example, the turnkey contract should work successfully for installing and commissioning a power plant since the performance parameters are well defined and penalties can be loaded based on auxiliary power consumption. But the situation is entirely different for the power distribution sector. Here the performance parameters of various components, say, 33kV / 11 kV power substations are not fixed. There are separate performance benchmarks for transformers, breakers, and so on.Therefore, we need to look at how best to make use of the turnkey concept in the distribution sector.
The discussion will also help you understand the merit of turnkey contracts in specific cases. You should then be able to draw up the specifications to harness the benefits of the new system for implementing projects at a faster pace as well as with a higher satisfaction level and small in-house institutional set up. Finally, we present studies of typical schemes and the responsibilities of utilities. In the next Unit, you will learn about the preparation and appraisal of the Detailed Project Report.
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