Role, Power and Obligations of the Management Organization Parties for
Project Implementation
Reference is made to the enclosed tentative
Project Organization Chart, where the main contractual parties – beside the
financier, Sida/INCýEC are PEA, the Contractor and the Engineer.
The Palestinian
Energy Authority, PEA, will be the owner of the Project and as such the
“Employer” of the “Contractor” and the “Engineer” according to the
main contract for the project implementation (and a separate engineering
contract).
PEA will appoint
members of the Steering Committee and the Transmission Project Execution Team
and delegate to the latter appropriate part of its power of the contracts.
Decisions on major financial and contractual project matters should remain
with PEA Management.
Sida/INEC
Sida/INEC will
finance the project, i.e. provide the financing scheme and funds for payment
of contract execution, stipulate the related conditions, arrange loans and
approve the release of credits.
Sida/INEC will
monitor the project through requested reporting on progress of implementation
from PEA and the Engineer. Reports should cover project account, timely and
technical progress, quality matters and possible problems.
The
Contractor
The Contractor
is supposed to be assigned for turnkey supply of the entire transmission
system whereas the commissioning of plants as far as possible should coincide
with the power plant. This probably means that priority should be given first
of all to complete the substation at the power plant.
Most project
matters to be dealt with the Employer, the Contractor should communicate
through the Engineer.
The
Engineer
The Engineer is supposed to be contracted
according to FIDIC principles, i.e. to work and act in project management to
great extent on behalf of PEA, “the Engineer”. The assignment, however,
also means that he should act in a fair manner with regard to the interest of
the Contractor.
The Engineer
will be the formal counterpart of the Contractor regarding approval of
sub-contractors, suppliers, design, technical solution, material, apparatus,
installation etc. He will further be responsible for the certification of
payments to the Contractors.
In order to achieve full commitment of PEA
to all steps of the project and transfer of know-how, the Engineer shall
throughout the project work in close co-operation with PEA Execution Team and
always seek their (PEA,`s) consent to decisions taken. To facilitate the close
cooperation, the Engineer’s resident project team ought to share office site
with the PEA Execution Team.
The
Steering Committee
The Project Steering Committee (PSC) shall
be the management body to direct and monitor the project and the project
coordination on behalf of PEA. Members of the PSC shall be relevant
representatives of the PEA top management with a GEDCO manager and the
Engineer’s Project Manager as additional Members.
The PSC shall
meet regularly and on demand to keep informed on project implementation
progress, discuss and decide on major project events like:
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Selection
of Contractor
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Approval
of Contract
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Approval
of sub-contractors
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Approval
of important design matters
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Possible
major deviations from contract specifications, approved design or the time
schedule.
|
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Major
corrective actions
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Final
approval of major deliveries and plants.
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Approval
of major financial events.
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The Execution Team
The project Execution Team shall be the group of PEA managers/
specialists to be appointed – full time or part time – to be directly
responsible and engaged in the implementation of the transmission system.
The team shall work in close cooperation with the Engineer’s project
team and for this purpose preferably be located in the same office premises.
The tasks and responsibilities of the team shall include the following:
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monitor
project activities
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advice
and supervise on local conditions
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support
in authority contacts and permissions
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review
of design and specifications
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discuss
and agree on project matters
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inspection
of material supplied and installations made
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participate
in factory inspections and testing
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check
and approve of invoices
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keep
project accounting
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keep
project records and files
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The Engineer’s Project Team
The Engineer’s Project Team is the combined resident and home office
back-up team of managers/ specialists employed by the Engineer to execute his
duties in the project, headed by the Engineer’s Project Manager.
The Engineer’s Back-up Team shall be home
office specialists appointed to take on project duties on demand like review
of design and solutions, choice of materiel and equipment, factory and site
inspections and testing. As appropriate they shall work together with PEA
Execution Team members for the purpose of resource saving and transfer of
know-how.
The Engineer’s
Resident Team shall be a resident team of specialists headed by the resident
Project Manager and appointed full-time or part-time to execute the
Engineer’s duties on site including the close cooperation with and transfer
of know-how to the PEA Execution Team.
Hence, the
resident Team shall preferably share office premises with PEA Execution Team.
Most of the
Engineer’s authority of power of the Project will be delegated to the
Resident Project Manager.
Palestinian Energy Authority: