16 / MSP / DRILEX MSP / DRILEX GOES WHEREVER OILFIELDS ARE

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1 July 2014 Issue 20 GO WEST P04 16 / MSP / DRILEX MSP / DRILEX GOES WHEREVER OILFIELDS ARE 19 / HUADIAN NEW ENERGY WIND FARM SAFETY COMES AS THE FIRST AND OUR WORK BEGINS WITH QUALITY SUPERVISION 22 / WESTERN POWER TEN YEARS OF RAPID DEVELOPMENT MAKES OUR STRENGTH ALMOST EQUAL TO THE THREE MAJOR BOILER COMPANIES

2 WITH BUREAU VERITAS BESIDE YOU, NOTHING IS LEFT TO CHANCE 61,600 Bureau Veritas

3 CONTENTS Go West 07 Bureau Veritas Will Strengthenthe Third Party Service Business on Oil & Gas Drilling Project in Western China 10 News in Brief Msp / Drilex: Msp / Drilex Goes Wherever Oilfields are 19 Huadian New Energy : Wind Farm Safety Comes as the First and Our Work Begins with Quality Supervision 22 Western Power: Ten Years of Rapid 16 Development Makes Our Strength Almost Equal to the Three Major Boiler Companies 26 Members of Bureau Veritas Who Walking in the Desert 30 Key Detection Technology for In-service Wind Turbine Generator Set Features of Large High - rise Pile Cap Construction 40 Bureau Veritas Actively Contributes to the Reconstruction after May 2008 Earthquake in Sichuan & Gansu CHIEF EDITOR Wenjiang LI, Jonas ZHANG EXECUTIVE EDITOR Jessie WAN ART EDITOR Polly TENG, Roy YE For free subscriptions to this magazine, Please contact us: MARKETING.IANDF.CN@CN.BUREAUVERITAS.COM +86 (21) Bureau Veritas - All rights reserved BUREAU VERITAS BV EXPRESS 03

4 GO WEST In the 2015 Strategic Plan of Bureau Veritas Industry & Facilities Division, geographic expansion has become an important measure to further accelerate the business development, and Go West is the main component. This strategy is not only a response to the adjustment of key accelerated development regions in China, which fits the National strategy Go West. It also comes with a deepseated reason in industrial structure change that brings about huge business potential. First of all, Western China, including Southwest and Northwest China, contains rich natural resources. Sichuan and Xinjiang are China's enrichment regions of inland natural gas and unconventional energy. Northwest China has the largest wind energy resources and is rich in coal and other mineral resources; Southwest China is the most important area for water resources which need to be developed, and also has abundant forest resources. Quality, environment, and safety challenges in the process of development, delivery and use of natural resources, provide Bureau Veritas with good opportunities to carry out specialized services in these areas. Secondly, a number of leading manufacturing industries are congregating in Western China, including electrical BV EXPRESS - BUREAU VERITAS

5 machinery, petroleum machinery, mining machinery, general equipment, rail transportation equipment, automobile manufacturing, etc. Bureau Veritas helps our customers advance their manufacturing enterprises to further improve competitiveness, and go out of China to participate in the global market. Bureau Veritas takes full advantage of our global network, providing customers with high value-added services throughout the world. Thirdly, the infrastructure which must be equipped to sustain the new development and construction of the vast western region. The new demand arising out of lifestyle changes, coupled with the extensive space for collaboration with domestic counterparts in western regions - all these have provided opportunities and challenges to our in-depth involvement in the construction of Western China. This in turn helps to our promotion of the development of modern service industry in the region, and to our improvement of the economic structure. This edition of BV EXPRESS shows several aspects Mr. Jishun Xing Senior Vice President, Industry Business Line Bureau Veritas, Industry & Facilities Division of our participation in Western China s economic construction and development in our Go West strategy. It introduces some stories of how we fought together with domestic and international customers through thick and thin under difficult conditions in many major construction projects. Bureau Veritas is increasing and accelerating -input in the West. Taking Chengdu and Chongqing as the axis, we will establish Western Operation Center to provide strong support to the big development of Bureau Veritas business in the western region. Taking advantage of market diversification and a broad customer base, Bureau Veritas is supplying industry, construction, in-service inspection, system certification services, hoping to make our contribution to the implementation of the National Strategy Go West. Bureau Veritas China s Go West strategy is realistic and has achieved initial success, let s keep moving forward to build and protect the vast, beautiful, and rich Western China. B V BUREAU VERITAS BV EXPRESS 05

6 Guangzhou 2-5F, No.1288, Waima Road, Huangpu District, Shanghai TEL + 86(21) FAX + 86(21) Room , 16 F, Heye Plaza, No.486, Kangwang Zhong Road, Guangzhou TEL + 86(20) FAX + 86(20) (20) Room C6,12F, Shangmao Century Plaza, No.49, South zhongshan Road, Baixia District, Nanjing TEL + 86(25) FAX + 86(25) Room 18D1, Kings Tower, No.1156, Binhe Road, New and Hi-tech Development District, Suzhou TEL + 86(512) FAX + 86(512) Hangzhou 22F, Tower B, Global Trade Center, No.36 North, Third Ring Road East, Dongcheng District, Beijing TEL + 86(10) FAX + 86(10) Room 603, Building C, HuaxingTimes Plaza,No.478, WensanRoad, Hangzhou TEL + 86(571) FAX + 86(571) Room 1315, Modern Interna Tower, No.115-1, Minzu Avenue Nanning TEL + 86(771) FAX + 86(771) F,Tianjin City Tower, No.35, Youyi Road, Hexi District, Tianjin TEL + 86(22) FAX + 86(22) Harbin Room 1906, Hong Lin International Building, No. 266, Sanduan of Furong Zhong Road, Changsha TEL + 86(731) FAX + 86(731) Room 512, Baoli Technological Building, No.93, Zhongshan Road, Xiangfang District, Harbin TEL + 86(451) / 3092 FAX + 86(451) Room1210, NO.1498, Jiangnan Road, Jingzhou Ningbo City, Zhejiang Province,P.R.C. Ningbo TEL +86 (574) FAX +86 (574) ~ Hong Kong Room 1501, A Block, Hailrun Complex,No.216 Down East Street, Jinjiang District, Chengdu TEL + 86(28) FAX + 86(28) Room 23-25, 10F, Pacific Trade Centre, No. 2, Kai Hing Road, Kowloon Bay, Kowloon, HongKong TEL + 86(852) FAX + 86(852) No., (BV-BOSUN) 33F, Tianjin City Tower, No.35, Youyi Road, Hexi District, Tianjin TEL + 86(22) FAX + 86(22) Lanzhou Room15-2, Building 2, One Central Midtown No.18, Jinshan Road, Chongqing TEL + 86(23) FAX + 86(23) Room 2605, No.116, Lanshi Business Building, Dunhuang Road, Lanzhou TEL + 86(931) FAX + 86(931) Room 1401, Fengtian Ginza, No. 19, Youhao Street, Shenyang TEL + 86(24) FAX + 86(24) Room 2301, A3 Building, Lingjiaohu Wanda Plaza, No.5, Tangjiadun Road, Jianghan District, Wuhan TEL + 86(27) FAX + 86(27) Luoyang Room 1905B, 19F, Senmao Building, No.147, Zhongshan Road, Dalian TEL + 86(411) /4450 FAX + 86(411) F, Luoyang Peony Hotel, No.15, West Zhongzhou Road, Luoyang TEL + 86(379) FAX + 86(379) Room 608, Block B, No.36, Oak block, Fenghui Road(S), High Tech District, Xi'an TEL + 86(29) FAX + 86(29) Nanchang Room 620, No.132 Wu Yi Zhong Road, Fuzhou TEL + 86(591) FAX + 86(591) Room 1408, Jiangxin International Plaza, No.88, West Beijing Road, Nanchang TEL + 86(791) FAX + 86(791) oo

7 BUREAU VERITAS WILL STRENGTHEN THE THIRD PARTY SERVICE BUSINESS ON OIL & GAS DRILLING PROJECT IN WESTERN CHINA With the establishment of Western Daqing, the energy giants transfer their attention to the western China. In the meanwhile, China is dedicated to set up new Silk Road with the Central Asian countries, a multitude of energy programs have been planed and developed in Kazakhstan, Turkmenistan and other countries. Line 1, Line 2 and Line 3 of West-East natural gas pipeline project are built in succession; West-east power transmission project, West-east coal transmission project and western non-conventional gas project are speed up to build; each energy service provider successively puts forward the strategy of Go west, Go west, Go west again. Bruce WEI Oil & Gas Director Industry & Facilities Division Bureau Veritas Greater China By virtue of nearly 20 years of rich industry experience in China oil and gas, the Oil & Gas Department of Bureau Veritas entered into the West gradually from the coastal region and into the onshore project from the offshore project, began to provide an increasing number of western customers and projects with the world's leading oil and gas project integration and customized one-stop service solution, including: provide the third-party quality service for Chevron CDB high sulfur natural gas project in the Northeast Sichuan, provide annual inspection service for CNPC Chuanqing Drilling Engineering Company Limited, provide the third-party inspection service for Schlumberger Sichuan base, provide the project management and support service for Chuanqing Tazhong s 4 million tons productivity construction project, provide the drilling toll inspection service for Baker Hughes Chongqing project, etc. Moreover, the Oil & Gas Department of Bureau Veritas established the fire-new Drilling Equipment Inspection Department at the end of 2013, and set up the operation base in Chengdu, Sichuan. We will start from this Drilling Equipment Inspection Department, strengthen the efforts to develop the third-party service business on oil & gas drilling project in western China and extend throughout the country step by step. We believe that it will arguably become the future new growth point of the Oil & Gas Department of Bureau Veritas! At the same time, in order to grasp the historic opportunity on national western oil & gas development and major project invested, the Oil & Gas Department provides the professional services which are in compliance with the laws, regulations, standards, specifications or related customers requirements, aiming at the onshore oil & gas field, LNG receiving station, long-distance pipeline, oil refining and chemical plant, and so on. The above-mentioned services include: design review, independent analysis and technical consultation, compliance inspection and certification, madatory certification and evaluation, supplier evaluation, shop inspection, asset integrity management, process safety management and consultation and NDT, etc. The Oil & Gas Department of Bureau Veritas will combine with the evolution of China s economic construction, keep carrying forward the regional expansion strategy regarding Go West and deepen the strategic development. B V BUREAU VERITAS BV EXPRESS 07

8 BUREAU VERITAS THE WORLD S LEADING ONE-STOP SOLUTION SUPPLIER OF Quality Assurance Scheme Supplier Assessment Supplier Assessment is a decision tool for purchasers who are coping with suppliers qualification and their ability to manufacture specified industrial components or provide services Shop Inspection Shop Inspection involves inspecting items at their manufacturing location before delivery. Design Review Design Review is an independent assessment of the project engineering phase that can be supplemented with independent analyses, performed by our specialist engineers. Compliance Inspection/Certification Inspection or Certification of installations means the assurance that it has been designed, constructed, commissioned and is operating in compliance with a defined technical reference as far as safety is concerned. Independent Analysis and Technical Consulting Independent analysis and technical consulting is third party service provided to our client. Mandatory Services Some countries or zones have specific compliance criteria that are a challenge for all corporations. DRILLING OFFSHORE SUBSEA Shanghai Tel +86 (21) Fax +86 (21) Beijing Tel +86 (10) Fax +86 (10) Tianjin Tel +86 (22) EX.3810 Fax +86 (22)

9 OIL,GAS & PROCESS SERVICES Integrity Management AIM Asset Integrity Management (AIM) is based on the risk or reliability, optimizing the maintenance resources of the system, making resource management reasonable. Fugitive Emissions Fugitive emissions are generated by leaks from process equipment such as valves, flanges and piping. This can result in safety, health, environmental and reputation concerns. Cost implications can be significant. NDT Non Destructive Testing (NDT) covers the whole range of analysis techniques used in industry to evaluate the properties of a material, equipment or system without causing damage. Process Safety Management & Consulting Bureau Veritas HSE Team can provide various process safety management & consulting services, such as HAZOP, HAZID, SIL, QRA, FEA, FMEA, etc. LNG DOWNSTREAM Shenzhen Tel +86 (755) Fax +86 (755) Chengdu Tel +86 (28) Fax +86 (28)

10 JAN - MAR INDUSTRY & FACILITIES DIVISION Bureau Veritas was invited to attend the 5th Annual Nuclear New Build China Summit. This summit was focusing on these discussions on the global new projects, nuclear power standardization, advanced experience in quality control & supervision, development trend of nuclear technology route of China, localization process of the 3rd generation nuclear pump & valve. Dr. Jishun XING, as the Senior Vice President of Bureau Veritas Group Industry Business Line was awarded the honorary title the Outstanding Contribution of National Gold Award In High Quality Project due to his outstanding contribution to create excellence in the CNOOC Suizhong 36-1 phase one oil field / lvda 5-2 oil field adjustment and development project. Chery Jaguar Land Rover Automotive Co., Ltd. signed a cooperative agreement with Bureau Veritas in Changshu, Jiangsu and invited Bureau Veritas to provide the site safety management service with relation to processing equipment installation and debugging for automobile factory located in Changshu. JAN FEB The commendation conference of National Gold Award In High Quality Project held by China Association Of Construction Enterprise Management came to a successful end, CNOOC Suizhong 36-1 phase one oil field / lvda 5-2 oil field adjustment and development project, which Bureau Veritas participated in, won National Gold Award In High Quality Project. February 24, 2014, Macau Productivity and Technology Transfer Center, Legal Affairs Bureau and Civic and Municipal Affairs Bureau (IACM) co-sponsored the food safety trends seminar. Bureau Veritas was invited to attend the seminar, and delivered a speech on food safety management system standard ISO 22000, HACCP and food safety inspection and testing services BV EXPRESS - BUREAU VERITAS

11 Bureau Veritas audited and evaluated a number of domestic famous suppliers including Shenyang Yuanda Mechanical & Electrical Equipment, Taiyuan Heavy Industry and Baosteel Group for the copper mine company Codelco, which is the biggest in the world. Since became the sourcing partner of Codelco in 2012, Bureau Veritas had successfully completed 120 suppliers evaluation for Codelco. To clearly identify the difference of supplier power and scientifically evaluate each plant capability, Bureau Veritas firstly initiated the evaluation service for plant capability to build all-round star-level evaluation system. At present, Shenyang Yuanda Electrical Equipment Co., Ltd. and several domestic famous manufacturers are discussing and signing a relevant letter of intent with Bureau Veritas. Bureau Veritas established a new Business Unit of Drilling Equipment Inspection, which is based in Chengdu, Sichuan. Taking this as a starting point, Bureau Veritas will increase efforts to develop the third-party service on drilling and completion, and strive to make it one of the core businesses within three years. MAR An Europe independent analyst institution has announced the report of 2013 excellent service suppliers of sustainable verification / certification service, Bureau Veritas was elected again as the top six excellent CSR verification institutions (four of which are accounting firms). China Timber and Wood Products Association Annual Conference was held on March 18 to 19 in Guangzhou, under the theme of Industry Paradigm Shift and Social Responsibility. The event was participated by over one thousand professionals from China and globally. Bureau Veritas Asia Forestry Hub participated in the conference. BUREAU VERITAS BV EXPRESS 11

12 APR - JUN INDUSTRY & FACILITIES DIVISION New rules set forth by ISO / TS fourth edition has come into effect on April 1, Thus Bureau Veritas held a seminar with new and old domestic customers, discussing the new rules of ISO / TS new edition; the seminar went on both online and offline. Online Q & A and data download can be completed simultaneously. Bureau Veritas and Shandong Electric Power Construction Corporation (SEPCO1) have signed certification service contract of Kazakhstan Ust-Kamenogorsk project. Bureau Veritas will mainly provide Kazakhstan country clearance certification and functional certification to SEPCO1, specifically including CU-TR certification of turbine and booster station, measurement certification, fire prevention certification and technical passports. The APEC Experts Group on Illegal Logging and Associated Trade (EGILAT) Workshop on Developing Timber Legality Assurance Systems was held on May 5 in Qingdao, China. Bureau Veritas was invited to speak at the workshop and presented Bureau Veritas Due Diligence Solution (DDS) for EUTR. APR MAY Bureau Veritas and Shanghai Special Equipment Inspection (SSEI) signed a strategic cooperation framework agreement to jointly develop inspection, testing and counseling services on April 24, Including exchanges in special equipment entrusted inspection, exchange of experience, staff training and related areas such as authorization, and to promote cooperation in technical specification development, cooperative research and development of testing instruments. Bureau Veritas stood out from hundreds of suppliers of Rio Tinto, and won its 2013 Best Service Award Nomination. Bureau Veritas customer-centric services have won the recognition of Rio Tinto. Bureau Veritas started the cooperation with Rio Tinto in 2013, this award is also a good start for the cooperation between Rio Tinto and Bureau Veritas. Dr. Jishun XING, as the Senior Vice President of Bureau Veritas Group Industry Business Line was awarded the Science and Technology Cooperation Award by People's Government of Anhui Province due to his outstanding in the RBI cooperation project of HGMRI and Bureau Veritas in the past decades BV EXPRESS - BUREAU VERITAS

13 On May 29, 2014 Annual Meeting of Third Generation Nuclear AP / CAP Qualified Suppliers, jointly sponsored by State Nuclear Power Technology Corporation and Westinghouse Electric Company, was successfully held in Shanghai. As one of the important suppliers of domestic AP1000 nuclear power project and the only foreign inspection and certification agency, Bureau Veritas was invited to the annual meeting. On June 4, Bureau Veritas and Zhejiang Institute of Standardization conducted in-depth communication and negotiation on international cooperation projects. The two parties agreed that the cooperation in the relevant standards and certification systems in Zhejiang advanced manufacturing, standard database creation and sharing, e-commerce third-party audit standard & service innovation, smart city standards creation, management system certification, and other areas are endowed with a promising future. On June 6, Bureau Veritas successfully held the Webinar about Standard of ISO 9001:2015 New Version. Currently, ISO Technical Committee has officially released a CD draft text of ISO9001 new version, this revision has studied the latest trends in quality management, with major changes in form, structure and content, which is considered to be the quality management standard facing the next 25 years. JUN Bureau Veritas has reached agreement on the functional safety cooperation with Pentair Group, a world leading manufacturer and retailer in valves, actuators and control products. This cooperation is intended to help Pentair gain the secure foothold in domestic and international markets through Bureau Veritas certifications to valves and actuators produced in Pentair. 15th of June, VAMA (Valin- ArcelorMittal Automotive Steel Co.) officially declared its startof-production in Loudi city, Hunan province. Meanwhile, a new record of 6 million safety manhours was also set. VAMA contracted Bureau Veritas for project management assistant, especially site HSE management. On June 20, 2014, the highly anticipated 3rd China Finance Summit & Award come to an end in Beijing. Bureau Veritas was invited to attend the summit, and won the Award for the industry s most influential brands, Dr. Jishun XING, as the Senior Vice President of Bureau Veritas Group Industry Business Line has been assessed as The Industry s Most Influential People. B V BUREAU VERITAS BV EXPRESS 13

14 BUREAU VERITAS THE WORLD S LEADING PROFESSIONAL QA / QC, SERVICES PROVIDE Tel: +86 (21) Fax: +86 (21) Mail: vicky.zhang@bureauveritas.com

15 FOR POWER GENERATION INDUSTRY Wind Power Wind turbine type certification (based on IEC series) In France, floating offshore wind turbine project certification and consulting services provided for Technip Factory audit & certification Audited and certified more than 64 suppliers Tower (including flange) inspection Provided inspection services for more than 11,009 wind towers Component inspection includes blades, drive chain, control system, yaw system, pitch system, gearboxes and generators Wind turbine whole process inspection & supervision Services provided for more than 379 wind turbines Civil engineering technical support Service provided for approximately 1,700 wind turbines Installation & commissioning inspection Service provided for more than 1,857 wind turbines In-service test for wind farms Service provided for more than 85 shafts by using patented ShafTest technology

16 MSP / DRILEX MSP / DRILEX GOES WHEREVER OILFIELDS ARE Interview with He HUANG, Chairman of MSP / DRILEX Co., Ltd As a national leader and an internationally renowned technology and service provider in oil and gas industry, MSP / DRILEX has made a range of achievements including complete PR2 testing capability and the manufacturing capacity for various equipment systems, such as subsea wellhead and Christmas tree, automatic control system, sealed connection system, and water-proof conductor. We possess the highest level of international industry credentials, and our market shares of key oil projects in domestic and overseas markets have been increasing annually. In recent years, MSP / DRILEX has been widely engaged in several landmark oil and gas projects developed by domestic and international oil companies especially in western China, including subsea projects. Bureau Veritas, as a rigorous thirdparty organization, has always been helping us increase our quality standards to better develop the markets in and out of China. During the process, Bureau Veritas has gradually and firmly become our strategic longterm partner. [BV EXPRESS]: Can you briefly describe the development of MSP / DRILEX? He HUANG: Over the past 20 years, MSP / DRILEX has been devoted to creating an international brand and adopting the internationalized management structure while focusing on developing our R&D capability. We apply the most advanced manufacturing technology into our products and implant them with our key service concept: "Be respectful and humble towards our clients, and care for their real needs timely. These strategies have eventually enhanced us as an international company with global market penetration. [BV EXPRESS]: What is the current market share of MSP / DRILEX? He HUANG: MSP / DRILEX has large market share in domestic and overseas landmark high-pressure and high anti-corrosion projects owned by three Chinese giants (i.e. CNPC, Sinopec and CNOOC), National Important City Gas Storage Projects, and National Science and Technology Projects, which renders us a vigorous competitor with Cameron, FMC, GE and other international peers. For example, MSP / DRILEX has been involved in Tarim Kela natural gas exploration of China West-East Natural Gas Transmission Project, BV EXPRESS - BUREAU VERITAS

17 Tarim Oilfield Dina 15000PSI and HH Christmas Tree Project, Tarim Lunnan Dual Tubing 10000PSI and Shell China Project, Total China Project, ConocoPhillips Gas Project, BP South China Sea Project, Chevron HH 10000PSI Gate Valve Project, Nigerien Oil and Gas Project, CNPC and Sinopec Overseas Oil and Gas Projects in Syria. [BV EXPRESS]: MSP / DRILEX has been claiming to be a leading technology and service provider for energy industry in China, are there any backup facts? He HUANG: MSP / DRILEX brand is an internationally well-known brand with high reputation in the industry. We are qualified global supplier of Shell, Total, and qualified supplier of BP, ConocoPhillips, Chevron and other international oil companies, as well as national oil companies in Middle East, Central Asia, South Asia, and Africa. Among all the global manufacturers in the industry, MSP / DRILEX is one of the very few companies that have passed extremely strict quality audits of all these international oil companies to become their qualified suppliers. In addition, MSP / DRILEX is also the one of the strongest supplier in large projects of CNPC, Sinopec, CNOOC in China and abroad. [BV EXPRESS]: What experience can MSP / DRILEX share in equipment quality control? Why choose to cooperate with Bureau Veritas? He HUANG: By adopting the world's most advanced high-pressure sealing and anti-corrosion technology, as well as making full use of China s low-cost resources, MSP / DRILEX produces the world's most advanced products including casing heads with large displacement that are endurable in high pressure, anti-corrosion and extreme temperatures, Christmas tree, gate valve, throttle valve, safety valve, ground production manifold, oilfield safety automatic control system and drilling equipment. MSP / DRILEX is also the only company in China that produces and installed subsea Christmas tree equipments and they have been successfully operating since. BUREAU VERITAS BV EXPRESS 17

18 MSP / DRILEX shares the same value with Bureau Veritas - to be at the forefront of the industry. So we chose Bureau Veritas as our inspection service provider long time ago to ensure our product quality. For example, in 2011 Bureau Veritas has provided inspection services for our drilling equipments for Total s Inner Mongolia South Sulige Gas Project, and currently for Shell s Northeast Sichuan Shale Gas Project. The cooperation between MSP / DRILEX and Bureau Veritas is in fact based on our common goal, which is to make real accomplishments with very high quality. We are confident that Bureau Veritas will help MSP / DRILEX to better explore and develop the domestic market. [BV EXPRESS]: What is the future development strategy of MSP / DRILEX? What kind of support do you expect from Bureau Veritas? He HUANG: With our rising international status and outstanding market performances, MSP / DRILEX is facing huge market demand both domestically and internationally. Therefore, we will invest more in R&D in the coming years, and further expand our market share by continuously improving our service quality. Bureau Veritas has its expertise and global network, and we hope that you can always provide us with valuable suggestions and services. B V ABOUT MSP / DRILEX CO., LTD. MSP / DRILEX Co. Ltd. is a leading technology and service provider for energy industry in China. The company is mainly engaged in manufacturing of oil and gas drilling and production equipment, automation control system and ground drilling equipment. With over 20-year history, MSP / DRILEX (SHANGHAI) Co., Ltd. has become one of the few companies with the highest level of international industry credentials including PR2 testing capability and subsea equipment manufacturing capability BV EXPRESS - BUREAU VERITAS

19 HUADIAN NEW ENERGY WIND FARM SAFETY COMES AS THE FIRST AND OUR WORK BEGINS WITH QUALITY SUPERVISION Interview with the Vice General Manager of Gansu Branch, Huadian New Energy Development Co.,Ltd., Shuguang QU After more than six years of rapid development, Huadian New Energy has directly or indirectly introduced thirdparty inspection and certification agency to ensure the quality of equipment and engineering in various wind power and photovoltaic projects, and received good results. In the interview by BV EXPRESS, Shuguang QU, vice general manager of Huadian New EnergyGansu branch, stressed: Quality supervision on our wind farms is very necessary. [BV EXPRESS]: Please briefly introduce the development of Huadian New Energy Gansu branch. Shuguang QU: In order to better develop clean energy in Gansu, China Huadian Corporation established Huadian New Energy Gansu Branch in March 2010, and established China Huadian Corporation Gansu Branch in May Built from zero capital, the company has made full efforts to promote project development, construction, production & operation with intensive and efficient concept. After a few years of leap-forward development, the capacity of wind-solar-electricity that has been put into production of 1.05 million kilowatts. Eleven project companies of Gansu Branch have erected the banner of Huadian along the ancient Silk Road, becoming a beautiful landscape. The company has also become a strong brand in the field of new energy in Gansu province. [BV EXPRESS]: What are the major projects Huadian New Energy Gansu Branch has done over the past few years? Shuguang QU: In recent years, we have built the first plateau demonstration wind farm in Gansu Province, the first hilly wind farm, the first mountainous wind farm, the power plant with the largest single installed capacity BUREAU VERITAS BV EXPRESS 19

20 and other new energy projects in Gansu Province. (Such as Gansu Aksai Dangjin Mountain wind farm project, Gansu Huan County Maojing wind farm project, etc.) In these projects, as the representative of OEMs, Bureau Veritas has provided inspection and advisory services for the construction of projects such as host of wind power, wind tower manufacturing supervision, civil construction technical support, erection inspection, and so on, indirectly providing quality assurance for the development of Huadian in the field of new energy. [BV EXPRESS]: Can you introduce Gansu Yumen Mahuangtan Wind Farm that is currently building by Huadian New Energy Gansu Branch? Shuguang QU: Gansu Yumen Mahuangtan 400MW Wind Farm Project started the construction preparation in October 2013, and was constructed and put into production in The project plans to install 200 wind turbines, and will adopt new intensive production management and control method: centralized monitoring, centralized maintenance, field visits, which will be a new energy project management and control method. Right now, the project has entered peak construction period. Over the past few years, Huadian Corporation and Bureau Veritas have maintained good cooperation; Huadian New Energy Gansu Branch also had indirect cooperation with Bureau Veritas in several important projects before, achieving good results. Therefore, in Yumen Mahuangtan Wind Farm, we directly invite Bureau Veritas as our third party inspection and certification agency for the first time, involving in wind turbine and blade manufacturing supervision. [BV EXPRESS]: Wind farm has high technology and quality requirements, how does Huadian New Energy Gansu Branch carry out quality supervision? Shuguang QU: Quality Supervision is very necessary for wind farms. In particular, as an emerging industry, all aspects are not mature enough, so the introduction of technical supervision is necessary. In the infrastructure and production process, we have set up our own supervision committee, to carry out quality supervision on metal, oil service, relay protection, and insulation BV EXPRESS - BUREAU VERITAS

21 throughout the whole process. On one hand, we will choose turbine manufacturers with more perfect quality management system; on the other hand, we have a fixed budget for quality supervision in each project, to invite the third party inspection and certification agency to ensure the quality, as the third party inspection is very objective and important in the process of a project. Of course, I also hope that the cooperation with Bureau Veritas will go on well. [BV EXPRESS]: What is the development plan of Huadian New Energy Gansu Branch in the coming years? What help can Bureau Veritas provide? Shuguang QU: In Twelfth Five-Year period, we plan to form Two power generation systems - wind power system and photovoltaic power system; two million kilowatts wind power bases - Jiuquan and Qingyang; six support areas - Aksai, Guazhou, Yumen, Huan County (Wind Power), Jiayuguan, Minqin (Photovoltaic); planning capacity of 2.5 million kilowatts wind power and 500,000 kilowatts solar power, form the energy structure and layout of Wind power and Hydropower together & Wind power and solar power complementary ; and form there source allocation pattern of Gas and electric develop together, gas goes first. To my knowledge, Bureau Veritas wind power business coverage is very wide, from supervision of equipment procurement period, to on site construction, erection, 240 commissioning, and to end of warranty, routine accident diagnosis, as well as CDM audit in operational phase. Taking equipment manufacturing supervision as an opportunity, we hope that our cooperation with Bureau Veritas will expand into on-site technical support, wind turbine in-service inspection and CDM audit, covering the full life cycle of wind power project. B V ABOUT GANSU BRANCH, HUADIAN NEW ENERGY DEVELOPMENT CO., LTD. In order to accelerate the energy project development in Gansu region, China Huadian Corporation has established Gansu Branch of Huadian New Energy Development Co., Ltd. in 5th, March 2010, and established China Huadian Corporation Gansu Branch in 25th, May The company is responsible for the new energy projects of Huadian Corporation in Gansu and Qinghai, including the investment, construction and production & operation of wind power, small hydro, distributed energy, solar energy and other renewable energy projects. Until now, 11 project companies were incorporated in Gansu Province. The assets were located in 9 cities in Gansu Province, the production capacity has reached 1.05 million kilowatts, and 1 million kilowatts of new energy projects are under construction. At the same time, there are about 2 million kilowatts subsequent development resources of wind power and photo electricity. In order to achieve scientific and rapid development in Gansu region, China Huadian has built 28 wind measuring and photometry measuring stations in Gansu for resource monitoring. We have about 2 million kilowatts subsequent fire, wind, photovoltaic and other development resources. By the end of 2015, the capacity of new energy production projects will reach 3 million kilowatts. BUREAU VERITAS BV EXPRESS 21

22 WESTERN POWER TEN YEARS OF RAPID DEVELOPMENT MAKES OUR STRENGTH ALMOST EQUAL TO THE THREE MAJOR BOILER COMPANIES Interview with the Technology and Quality Manager of Western Power Industrial Co., Ltd., Yingming XU Prior to 2004, Western Power was just a subsidiary company of Dongfang Boiler Factory, manufacturing small boilers. But now, with annual sales revenue of 3.13 billion RMB, Western Power has become a one-stop supplier of power plant system solutions, with the world s leading spam circulating fluidized bed boiler technology, biomass circulating fluidized bed boiler & Zhundong coal burning boiler technology and other special-type boiler manufacturing technology. After ten years of rapid development, the strength of the company is almost equal to the Three Major Boiler Companies. [BV EXPRESS]: Can you give us a brief introduction of the history and main business of Western Power? Yingming XU: Founded in 1983, Western Power was a subsidiary company of Dongfang Boiler Factory. Prior to 2004, our main business is the manufacture of boilers. After 2004, according to the national file about Separate state-owned enterprises main business and auxiliary business, restructure auxiliary business, we are restructured from Dongfang Boiler Factory as the largest auxiliary business, and became Dongfang Boiler Industry Group Co., Ltd.. In 2007, we reformed the joint stock system and officially changed our name into Western Power Industrial Co., Ltd.. In 2011, we are listed in the Shenzhen Stock Exchange and the stock code is Until now, our business has expanded from single boiler manufacturing into three businesses: equipment manufacturing, EPC (Engineering & Procurement & Construction) and investment operation. The number of employees has increased from 700 people in 2004 to nearly 2,000 people, with the annual sales revenue reaching 3.13 billion RMB by [BV EXPRESS]: What is the position of Western Power in the boiler market? Yingming XU: Currently, China s boiler manufacturers are divided into three classes, the first class includes BV EXPRESS - BUREAU VERITAS

23 Shanghai Boiler Works Ltd., Harbin Boiler Company Limited, Dongfang Boiler Industry Group Co., Ltd. (DBC), which is called the Three Major Boiler Companies ; the second class includes Western Power, Wuxi Huaguang, Hangzhou Boiler, Sichuan Boiler, etc.; the third class is the remaining small boiler factories. Western Power is the most powerful boiler manufacturer in the second class. We can manufacture 300MW subcritical boiler unit, which is among the best in China. In addition, we have very advanced technology in specialtype boilers, including alkali recovery boiler, biomass boiler, waste incineration boiler, oil sediment boiler, blast furnace gas boiler, and industrial boiler. [BV EXPRESS]: What major projects Western Power has done in recent years? Yingming XU: In recent years, we have done a number of major projects in boiler manufacturing, EPC (Engineering & Procurement & Construction) and investment operation. In domestic market, we have provided three sets of 300MW power plant boiler for Shandong Nanshan Power Plant, provided six sets of 300MW Zhundong coal burning boiler for Xinjiang Qiya, provided two sets of 210MW circulating fluidized bed boiler for Datong Coal Mine and Guodian, provided two sets of 50MW pure biomass burning circulating fluidized bed boiler for Guangdong Zhanjiang Power Plant, which is the largest biomass power plant in China, invested and built two sets of waste incineration circulating fluidized bed boiler processing 400 tons of waste daily in Sichuan, which was approved by Science & Technology Department of Sichuan Province this year on April 22, the appraisal shows that the project has reached international advanced level; in foreign market, we have provided four sets of 300MW power plant boiler for India Chennai Power Plant, as well as three sets of 360MW power plant boiler for the ongoing India MARUTI project and TRN project (BTG projects), we are working with Bureau Veritas in all the projects abroad. [BV EXPRESS]: Can you give us more details about the ongoing India MARUTI project and TRN project? Yingming XU: India MARUTI and TRN projects are BTG projects, which are in need of very large-scale boilers. Western Power attaches great importance to the projects, not only sets up a special lead agency, but also invites Bureau Veritas to provide technical services and inspection services. These two projects is a challenge for Western Power. Although we have done projects in India before and have come in contact with IBR certification, but the projects before are very small, there are a lot of things we have never encountered, so in the current projects, we still encountered many problems. For example, in terms of IBR approval, the approval scope that we know and the approval scope that Indian government has been requested is quite different, but fortunately, we finally completed the approval thanks to the guidance of Bureau Veritas. Another example is about the certificate of raw materials, due to different management systems, the raw materials warranty certificate recognized by China government has many inconsistencies with the warranty certificate required by the Indian government (FORM Certificate), with the great help of Bureau Veritas, we unified many inconsistencies. Bureau Veritas plays a very important role in the two India projects. During the project implementation process, Bureau Veritas has provided IBR quality standards training for our related technical support staff, management staff, and technical quality control personnel, pointing out the issues that need to be aware of in IBR approval process. Then we put these demands deep into our concrete work, Bureau Veritas has also given us strong support and help in concrete work, especially in drawing review, approval, testing of raw materials as well as process control, I believe we will do very well in the projects. BUREAU VERITAS BV EXPRESS 23

24 [BV EXPRESS]: What is the development strategy of Western Power in next few years, what kind of help do you expect from Bureau Veritas? Yingming XU: In terms of supporting the development of Western China, as a one-stop power plant system solution provider in Western China, promoting the development of Western China is the unshakable duty of Western Power. Until now, we have mastered the domestic leading and world advanced waste circulating fluidized bed boiler technology, as well as Zhundong coal burning boiler technology, we will apply these technology more often in the western construction, making our contribution to the development of the western region. In terms of market development, Western Power will vigorously develop the international market in the coming years, especially the European market. As an internationally renowned certification body, Bureau Veritas and Western Power can cooperate in project information sharing, project information development, and inspection of projects, thus we have a lot of possible cooperation in many aspects. In terms of product and service development, we will focus on the development of EPC (Engineering & Procurement & Construction) service, and has set up an engineering company that specializes in engineering project. We can provide one-stop services to our customers from upfront investment, system design, to equipment procurement, and to installation and operation. B V ABOUT WESTERN POWER INDUSTRIAL CO., LTD. Western Power Industrial Co., Ltd. (formerly Dongfang Boiler Industry Group Co., Ltd.) is located in Zigong, Sichuan, which is known as Age-old salt city, Light city in South China, Dinosaur town in the world and is one of the bases for China R&D manufacturers and one of the bases for export of large-scale boilers, large power station auxiliaries, and special-type boilers. With strong manufacturing capabilities, industry leading technology and rich experience in customer service, Western Power has had a profound impact in domestic and foreign power equipment market for a long time. Western Power has been focused on R&D, design and manufacturing of various types of large and medium sized power station boiler and world's advanced power technology, developed the domestic leading high-tech boiler technology using coal, coal gangue, coal slurry, oil shale, petroleum coke, oil and gas, blast furnace gas, industrial waste and domestic waste as the fuel. It has become a large-sized backbone enterprise in China specializing in R&D, design and manufacturing of power plant boiler, alkali recovery boiler, biomass boiler, waste incineration boiler, oil sediment boiler, blast furnace gas boiler, industrial boiler and other special-type boiler. Its marketing and service network is throughout China and its partners are around the world in dozens of countries and regions BV EXPRESS - BUREAU VERITAS

25 BUREAU VERITAS BEIJING HUAXIA SUPERVISION COMPANY Beijing Huaxia Supervision Company is one of the first batches of the supervision companies with Class A qualification approved in 1995 by Ministry of Construction. The company has Class A qualifications for Petro Chemical, Construction, Municipal Works, Electric Power Engineering and Equipment Supervision; and Class B qualifications for Mechanical & Electrical and Dock & Waterway Engineering. The company has a strong technical force with the staff of 660 and accumulatively finishes the project with investment amount of over 100 billion RMB. Housing Construction Supervision Petrochemical Engineering Supervision Electric Engineering Supervision Municipal Public Project Supervision CONTACT - Mail : bjhx@bj-hx.com - Tel : +86 (10) Fax : +86 (10)

26 MEMBERS OF BUREAU VERITAS WHO WALKING IN THE DESERT Bureau Veritas Oil & Gas Department, Qingshan QU Western China is a huge market for Bureau Veritas, and Xinjiang is a prime location of this huge market. Oil & gas resources and coal resources in Tarim Basin and Junggar Basin will provide abundant energy for western China and Xinjiang, and will also provide great performance for Bureau Veritas. In October 2012, when Zou Yonghong, manager of Bureau Veritas Project Management Assistance ( PMA ), first stepped into Taklimakan Desert, he was shocked by the endless desert and was infatuated with the beautiful Euphrates Poplars forest. On December 3, 2012, Bureau Veritas officially started to provide services to Middle Tarim Basin 4000x10³t/a crude purification project, and since then, Bureau Veritas has truly entered Xinjiang market, and embarked on PetroChina journey of Rebuilding Daqing. In desert work, the site environment is harsh, with high-temperature and severe cold. For mainland staff, they will feel fresh, romantic and very excited when first arrived in the desert, the Gobi and the foot of Tianshan Mountains. But almost everyone began to feel discomfort on the fourth day or fifth day, after 10 days, they would not want to get up, not want to work, and want to leave. On-site living conditions are bad, sand in food is normal and no drinking water sometimes is normal because the supplying car does not arrive on time. In this case, Bureau Veritas PMA team has tried its best to mitigate the psychological reactions of employees and improve living conditions through a variety of measures; the customer has recognized the support and services greatly BV EXPRESS - BUREAU VERITAS

27 As the agency to provide service and support to the ground construction of Middle Tarim Basin 4000x10³t/a crude purification project, Bureau Veritas has helped the ground construction office of Second Exploration Company of Tarim Petroleum Exploration and Development Headquarter with the supervision and inspection of project construction progress, quality and documentation, as well as management coordination. At the same time, Bureau Veritas has provided professional technology services for project in Tuzi area, which include: I. Construction Schedule and Control of Construction Progress Construction schedule reflects the time and space order of the construction activities in construction site. Reasonable construction schedule preparation must follow the laws of construction technology procedures, and organizing the construction works according to the construction plan and procedures can ensure close convergence and mutual promotion of various construction activities, make full use of resources, ensure project quality, speed up the construction speed, optimum period goals, reduce construction costs, and optimum investment benefit. In the project implementation process, we must carry out dynamic monitoring on the implementation. Monitor the progress of the project, collect the actual progress data, compare it with the schedule and analyze it, if there is any deviation, identify the causes and its impact on duration, take effective measures accordingly and make necessary adjustments, so that the project meets the predetermined schedule. The main work of Bureau Veritas PMA schedule engineer is to control the progress of project to ensure that the project will be finished in accordance with the predetermined schedule, or to shorten the construction period in the context of achieving the project objectives. According to the overall progress in the early stage and considering the geography, climate and other conditions in Xinjiang desert, Level One construction plan of ground construction is developed, which preliminary divides the project unit engineering. According to Level one construction plan, the engineer will supplement and inspect the construction units Level Two & Level Three construction plan and operational plan. Based on actual site progress and compared with Level One construction plan, the engineers will summarize and prepare Daily Report, Weekly Report, Weekly Progress Report, Monthly Report, and Monthly Progress Report, to report the project progress, they will analyze the progress deviation, put forward the problems need to be addressed, suggest the implementation of corrective measures and supervise it, so as to steadily advance the project progress. BUREAU VERITAS BV EXPRESS 27

28 II.Construction Project Quality Management Construction project quality management should be done through the whole process of project management, Plan-Do-Check- Action ( PDCA ) cycle should be followed, and the process quality management should be continuously improved. In construction projects, Bureau Veritas professional engineers in civil, electrical, instrumentation, moving equipment, static equipment, process piping, materials, and other fields will be responsible for making the project quality objectives, preparing and implementing the project quality plan, supervising and inspecting the implementing of the project quality plan, collecting, analyzing, and giving feedbacks on quality information and developing preventive and improvement measures. In the project, Bureau Veritas has prepared Quality Supervision and Management Manual for Middle Tarim Basin 4 Million Tons Project and Quality Supervision and Management Procedure Files, required all construction units to establish the appropriate Quality Management and Control Procedures, and formed a quality management department to supervise, check and guide the construction quality of the project. The engineer will supervise and inspect the personnel, equipment, and raw materials before they enter the construction site, approval of programs and measures, technical quality and safety disclosure, transferring, testing and inspection of working process, process data collection, and the BV EXPRESS - BUREAU VERITAS

29 inadequate on - site quality control, etc. We required the manufacturer to strengthen the management of the supervision unit, make improvements and ensure product quality and production schedule. III.Construction Project File Management and File Preparation Engineering data should be formed synchronously with building construction process and should be a true reflection of the construction and entity quality; engineering data management shall have sound system and clear job responsibilities, and should be incorporated into all aspects of construction management and into the responsibilities of all relevant personnel at all levels. whole project quality management process. For the nonconformities, the engineer will urge the correction and acceptance, and for the quality problems, they will organize a meeting to analyze the causes, identify problems, develop corrective measures, supervise and implement corrections, and draw lessons from the past, to avoid the recurrence of similar problems. From September 26, 2013 to November 4, 2013, Bureau Veritas PMA equipment engineer accompanied with the supervision & inspection team sent by construction project department of Middle Tarim Basin 4 Million Tons Project and carried out unannounced inspection on 11 equipment manufacturers including Chemical Machinery, we have inspected the production schedule, quality assurance system, incoming supervision, process control, site manufacturing and so on. And finally found out 77 problems about the manufacturers, such as poor weld appearance quality, super wide weld, pits, weld below the base metal, and insufficient weld depth, nine problems about varying quality of site supervision personnel, In this project, Bureau Veritas PMA document control engineer is responsible for designing the project document management system, making the document management requirements, and overseeing the implementation of the construction unit. They shall build and run the project document control system, unify the file encoding, define send and receive rules, and standardize document control system. Guide and train the document control personnel in construction project department to help improve their professional proficiency. Check the document control management of construction project department, identify problems, put forward correction opinions timely, and supervise the implementation. B V BUREAU VERITAS BV EXPRESS 29

30 KEY DETECTION TECHNOLOGY FOR IN-SERVICE WIND TURBINE GENERATOR SET Manager of Bureau Veritas Wind Power Technology Centre, Lei TIAN Wind resource reserve is huge in the Northwest of China, with unique developing conditions. Gansu Jiuquan million-kilowatt class wind power base is China s and even the world s first million-kilowatt class contiguously developed and grid-connected wind power model base, which is another landmark project in Western Development following China s west-to-east gas transmission, west-to-east oil transmission, west-to-east power transmission, and Qinghai-Tibet Railway. The construction of the base will enable Gansu Province to become one of the leading Provinces in Chinese wind power industry development. To serve the development of China s wind power market, in 2010, General Administration of Quality Supervision, Inspection and Quarantine of the People s Republic of China (AQSIQ) approved Bureau of Quality and Technical Supervision of Gansu Province to build National Wind Power Equipment Quality Supervision and Inspection Center (Gansu) (hereafter refers to as China Quality Inspection Center ), which is the first Chinese National Quality Supervision and Inspection Center of Wind Power Equipment, consisting of Gansu Inspection and Detection Base, Shanghai R&D Center, Jiuquan Laboratory and Testing Wind Farm. And there are six professional inspection laboratories under that. Bureau Veritas has actively participated in the development of Northwest wind power, providing strong quality assurance and technical services for the Northwest wind power project, and carrying BV EXPRESS - BUREAU VERITAS

31 out comprehensive and close cooperation with China Quality Inspection Center. In 2010, the two sides formally signed a strategic partnership agreement aimed to carry out in-depth cooperation in wind power equipment inspection, certification, standards, training, consulting and research on the platform of quality inspection center. Both sides have conducted cooperation in various projects in Gansu, and have set up R & D center in Bureau Veritas Shanghai Office. Since then, Bureau Veritas and China Quality Inspection Center began to implement the non-profit industry scientific research Research on key inspection and testing technology of wind power equipment based on Jiuquan million-kilowatt class wind power model base. As a direct participant in the research, Bureau Veritas is responsible for the research on overall inspection of wind turbine generator set and key inspection method of some components. Throughout the course of the project, Bureau Veritas overall inspection and evaluation ability of the in-service wind turbine generator, full detection solution for transmission chain and ShafTest patented detection technology has facilitated and speeded up the proceeding of the project. I. Overall Inspection and Evaluation of In-Service Wind Turbine Generator After experiencing a rapid growth in previous years, the capacity of wind turbine generator in China wind power market has continuously increased. With the increase in the number of wind farms, problems are constantly exposed to on-site wind turbines and other equipments. Especially in rapid development period, some of the wind turbines have quality problems in manufacturing, installation and operation, which planted potential risks for the wind farm operation. To troubleshoot the safety and quality problems of wind generator set, also to help owners and set manufacturers understand the status of wind turbine generator, Bureau Veritas has developed a package of inspection and evaluation methods targeting at wind turbine generator set. In 2011, Bureau Veritas together with China Quality Inspection Center have jointly drafted Gansu provincial standard DB 62 / T : Safety Inspection Specification of Wind Turbines. This standard made a detailed description of overall inspection of wind turbine, including personnel safety, structural safety, safety of mechanical components, control and security systems, safety of electrical components and so on, while a safety inspection list is made as reference. The standard gave a detailed description of the detection items, cycle, and precautions for each component. With its detection experience in inservice wind farm and experience in overseas projects, Bureau Veritas developed a detailed detection plan for the overall evaluation of the set s operating status. The standard clearly states that BUREAU VERITAS BV EXPRESS 31

32 the safety inspection items of wind turbine include blade, hub, gearbox, generator, hydraulic system, main shaft and main bearing, highspeed brake, coupling, yaw system, pitch system, tower, foundation, nacelle cover, control system, mark and nameplate; main inspection methods include visual, acoustic, operation, plug gauge, calliper measurement, dial gage measurement, etc. Suspected cracks need to be further examined and determined by Ultrasound Testing (UT) (see Table 1). Main Items Specific Items Inspection Method Blade Inspection Hub Inspection Gearbox Inspection Generator Inspection Hydraulic System Inspection Table 1 Safety Inspection Schedule for Wind Turbine Generator Set 3 categories, 10 items: blade cover plate, lightning rod, blade bearing, lubrication system, hydraulic pitch system, blade apex pitch system etc. Bolt, surface crack, internal and external cleanliness, slip-ring test 3 categories, 10 items: gearbox s oil pipeline, sensor, lubrication pump, compression ring, damping system, etc. 10 items: appearance, cooling system, cable connection, carbon brush, collector ring, vibration noise, etc. Hydraulic pipeline leakage, accumulator pressure examination, driving motor and hydraulic pump Visual, operation of generator set, observation with a long-distance high-precision telescope, suspended platform examination, etc. Visual, NDT (MT/UT) Visual, acoustic, operation of generator set, plug gauge, oil analysis, endoscopy Visual, acoustic, operation of generator set, alignment detection, resistance detecting, etc. Visual, operation of generator set, oil analysis II. Complete Detection Solution for Wind Turbine Transmission Chain 1. Vibration Detection Inspection of Main Shaft and Main Bearing High-speed Brake Inspection Connecting bolt, oil nipple, wiring groove, sealing Brake disc appearance, Brake disc thickness, calliper, oil circuit, deflection degree Visual, oil analysis Visual, calliper measurement, dial gage measurement Bureau Veritas vibration detection Coupling Inspection Protection cover appearance, connecting bolt, torque mark Visual, alignment detection equipment is HET-P wind turbine generator set offline monitoring system. Vibration detection can Inspection of Yaw System and Pitch System Decelerator, sensor, oil nipple Visual, operation of generator set assess the current operating status of the device without removing it. By vibration detection and analysis, we can find out vane abnormal Tower Inspection Foundation Inspection 10 items: Tower cleanliness, grounding, bolt, weld joint, safety ladder stand, etc. Foundation grounding, foundation settlement, seal, cable Visual, NDT (MT/UT) Visual, ground resistance measurement vibration, cabin abnormal vibration, misalignment of main rotating parts, shaft bent, mechanical looseness, bearing failure, gear defect, resonance, poor lubrication and other issues, we can also discover Inspection of Nacelle Cover and Accessories Master Control System Inspection Navigational light, hoist, lighting, appearance, cleanliness, firefighting 10 items: control system operation, interior layout of control cabinet, wiring, etc. Visual, inspection of documents Visual, operation of generator set, thermal imaging analysis, etc. in time the early vibration signs of wind turbine generator set failure. Mark and Nameplate Inspection Caution mark for high pressure, climbing, evacuation Visual 2. Endoscope Analysis Gearbox engineers of Bureau Veritas use endoscope to check the main tooth surface of the gearbox, recording abnormal tooth surface and forming endoscopy reports. Inspection items include inspection of gear oil smell, foam, air filter, interior paint, which inspect if there are corrosion, indentation, pitting and other defects. 3. Alignment Measurement Use laser alignment system to BV EXPRESS - BUREAU VERITAS

33 check the alignment of shaft. The system simplifies the entire process of data reading, adjustment, reconfirmation of measuring results, and records the final results of alignment measurement. 4. Oil Analysis Bureau Veritas samples the gearbox oil, and sends it to laboratory for oil analysis within its shelf life. Conventional oil test items and standards are listed in Table 2. designed specifically for shaft and of main shaft starting from the shaft bar. It overcomes the weaknesses end, thereby determining whether of traditional ultrasonic detection: there are defects inside the main single signal, difficult evaluation, shaft and the size of the defects. and difficulty in storage of signal for review and comparison. Using fault ShafTest detection technology plane signal analysis technology, needs to complete the acquisition it analyzes the ultrasonic signal of signal through at least one full strength reflected from the internal end-face. The reflected type-a pulse Table 2 Conventional oil test items and standards Conventional Oil Test Items Reference Standard Kinematic Viscosity (40 Degree) ASTM D445 III. ShafTest Patented Detection Technology ShafTest detection technology is ultrasonic detection technology Moisture Content Total Acid Number (TAN) Spectrum Element Content Cleanliness (NAS Standard, ISO Standard) Foam Property ASTM D6304 ASTM D664 ASTM D5185 ISO 4406( NAS 1638 ) ASTM D892 BUREAU VERITAS BV EXPRESS 33

34 signals are collected through the grid-form ultrasonic signal detection at the end face of shaft, and an overall plane signal distribution diagram is formed by software integration. It will display the changes of signal strength according to hierarchical distance and judge the existence of defects and the defect size. ShafTest detection technology is mainly used for the detection and prevention of main shaft broken and other hazardous defects, the tracking of the development of suspicious defect, and the periodic testing and maintenance to main shaft. ShafTest detection technology has three aspects of significance for the detection of inservice main shaft: 1 Field signal acquisition, effective judgment can be made in the field; 2 Increase the detection probability of early cracks, and avoid shaft broken or other accidents; 3 After signal analysis, develop effective shaft maintenance plan. ShafTest detection technology is an advanced ultrasonic testing method for detection of hazardous defects such as shaft cracks; it is very sensitive to the cracks caused by the fatigue of in-service shaft and other hazardous defects. Its reliability and accuracy of the detection system is confirmed by field service, which has provided an effective data basis for the quality tracking and maintenance of the in-service shaft. IV. Epilogue Bureau Veritas has actively participated in China s wind power inspection market for many years, providing effective quality control and technical support services to owners, machine factories and suppliers. Especially for the large-scale wind power development in Northwest China, relying on non-profit national quality project, Bureau Veritas has cooperated with China Quality Inspection Center and applied full set of advanced detection solutions and patented technology to Jiuquan million-kilowatt class wind power base, helping the owners troubleshoot problems, which is highly recognized by the owners. In the future, Bureau Veritas will continue to apply the latest inspection technology to the domestic wind power industry, to push China s wind power industry to a higher level. B V BV EXPRESS - BUREAU VERITAS

35 FEATURES OF LARGE HIGH RISE PILE CAP CONSTRUCTION Bureau Veritas Chief Engineer of Beijing Huaxia Supervision Co., Ltd., Zhiping ZHANG Ordinary pile construction technology is very mature and widely used in the construction field. In this article, a special pile construction technology will be introduced, which is the high - rise pile cap used in the foundation of liquefied natural gas ( hereinafter referred to as LNG ) storage tanks, the type of pile is different with ordinary pile construction in many ways. We will combine with the construction characteristics of LNG tank pile construction of Guangxi LNG terminal project below to introduce, hoping to give some references for pile foundation construction units. I.Introduction to Large High-rise Pile Cap The LNG tanks pile of Guangxi LNG terminal project is large diameter high-rise reinforced concrete piles, with diameter of 1.2 meters, its underground part has two kinds of lengths: 45 meters for ZH-1 and 40 meters for ZH-2, its above ground part is 1.6 meters higher than the designed floor and is with dowels inside. The concrete used for C40, with impermeability grade of P8; there are no construction joints in the pile. The hole - boring construction is slurry hole - boring cast - in place pile, and the drilling equipment is rotary drilling rig ( see Figure 1 ). II.Features and Construction Measures of Large High - rise Pile Cap There are similarities between construction of large high - rise pile cap and construction of ordinary slurry hole - boring cast - in place pile: configuration and usage of slurry, fabrication of steel cage, pile measuring and positioning, laying of casing, casing repositioning, rotary drilling rig for hole - boring, measuring hole depth, hole bottom slag removal, laying of steel cage, underground concrete pouring, etc. These construction processes BUREAU VERITAS BV EXPRESS 35

36 Threaded Closure Stiffened Stirrup 1 20 Stiffened Stirrup 1 20 Stiffened Stirrup Figure 1: Upper Structure of Large High - rise Pile Cap are relatively mature, we will not introduce in detail. We will focus on the differences between large high - rise pile cap and ordinary slurry hole - boring cast - in place pile. lower section 24 meters. The 14 main reinforcements in segmented position are Φ25 and HRB400E reinforcements; the connection is designed as mechanical connection. Now the difficulty 1.Mechanical Connection of Steel Cage Orifice encountered in construction is: the structure of straight thread mechanical connection is Left and Because of the length of steel cage is very long, whose designed length for two different piles are 42.9 meters for ZH-2 and 47.9 meters for ZH-1 ( including 1.5 meters above the ground and 1.4 meters of dowels ), and because the weight of individual steel cage is more than 6 tons, the steel cage shall be fabricated and lifted in segments. The Segmented positions are: Right threaded connector, while hanging the steel cages with a crane, the 14 rebars need to be connected with the orifices at the same time, however, due to the steel cage machining error and lifting deformation, it is very difficult to connect them simultaneously and is time-consuming. In order to overcome the construction difficulty, two measures are taken: ZH-2: upper section 19.9 meters and lower section 23 meters, ZH- 1: upper section 23.9 meters and 1 Changing the structure of straight thread connection, using 1500 Spiral Stirrup 18e100 Spiral Stirrup one - way threaded connector. For the two connected rebar, one end is long thread and one end is short thread. Firstly, screw the sleeve onto one rebar with long thread, then aligning the two rebars, finally tightening the sleeve. This connection is feasible, the designers agreed with it; 2 Steel cage is inevitable to deform in the lifting process. Although, the connections modes is changed, it is difficult to successfully connect 14 rebars with 25mm diameter in actual operation. Thus, pre - assembly is adopted, which means to pre - assemble the upper and lower sections when they are horizontal. After pre - assembly, marking every rebar, so that it matches the orifice during connection, making the connection more convenient. By taking these two measures, work efficiency is greatly improved in the actual operation; orifice connection can be completed within 20 minutes generally. 2.Construction Method of High - rise Pile Without Leaving Construction Joints High - rise pile structure is commonly used in LNG storage tank pile foundation, but most of the construction will be completed in two steps, the underground part is constructed as ordinary cast - in - place pile, after completion of quality testing to pile, pile head will be chipped; then steel cage is BV EXPRESS - BUREAU VERITAS

37 connected and template is erected to complete the construction of aboveground part. This kind of construction will leave construction joints, which is not conducive to the pile structure and function. No construction joints shall be left in the construction of pile foundation of Guangxi LNG storage tanks according to design requirements. We took the following measure: the steel cage is one complete part without second time connection, after laying the steel cage, pour underground concrete first, considering that the concrete on the top of the pile is in contact with the slurry and contains laitance, mud and other impurities, therefore, after pouring the concrete to the ground level, continuing to pour until the concrete containing impurities is ejected out of orifice directly, cleaning it with manpower until all of the concrete on the top of the pile is fresh concrete. All quality control personnel shall witness whether the concrete is fresh, if laitance is not cleaned up, it is also easy to form construction joint. Then erect template right away and complete the pouring of aboveground part before the initial setting of the underground part. This construction method is an innovation of construction technology. 3.Vibration of Steel Cage Dense Part Five Meters Underground The rebars of the large high - rise pile cap are densely distributed 5 meters underground, main reinforcements consist of 28 HRB400E rebars with diameter of Φ25 and Φ32; stirrups consist of Φ18 spiral stirrups with 100 spacing ( see Figure 2 ). Hence, the spacing of main reinforcements is less than 50mm by theoretical calculation, some main reinforcement spacing may be much smaller in practice. When pouring the concrete five meters underground, concrete is difficult to flow outside the steel cage, causing the pile necking BUREAU VERITAS BV EXPRESS 37

38 center of the aboveground template, also with total station and steel ruler for measurement. After four times of calibration, to make sure the position deviation of the pile above the ground can be controlled within 50mm. 20e2000 Stiffened Stirrup 5.Erection of Aboveground Template and Pouring of Concrete Spiral Stirrup Wires Bind The Stiffened Stirrups 3 Sonic Transmission Tubes ID=50 mm Figure 2: The Arrangement of Main Reinforcement in Steel Cage The most important feature of large high - rise pile cap is high above the ground without leaving construction joints at the same time, which requires quick erection of template, no slurry leakage in the contact surface of template and ground, and solid template without displacement in vibration. which will bring great risk to pile quality. To this end, two measures will be adopted: 1 Requirements of concrete quality: Maximum aggregate size is 25mm; concrete slump is 200 ± 20, to meet the requirements of the workability of the concrete in the pouring process; 2 Increase vibration of concrete within 5 meters underground, to ensure uniformity of concrete in pile hole. 4.Four Times of Pile Center Calibration In ordinary slurry hole - boring cast - in place pile construction, the pile center shall be positioned twice, the first time is the measurement and positioning of pile, and the second time is to calibrate the center of the casing after it is planted, if there is any deviation, readjusting casing, the location of the casing plays a key role in the accuracy of the pile hole position. However the large high - rise pile cap is above the ground, the pile position deviation is controlled by the deviation of concrete structural column, which means that coordinate positions should be controlled within 50mm. The pile deviation of slurry hole - boring cast - in place ( D > 1000 mm ) is H. Therefore, large highrise pile cap construction has two more times of calibration. 1 The third calibration of pile is to calibrate the position of the aboveground part of steel cage after it is planted using total station and steel ruler for measurement; 2 The fourth calibration of pile position is to recalibrate the In order to achieve the above three requirements, the construction unit conducted several tests to improve the template structure. It is a semicircular special - shaped steel template, the bottom ring board has been expanded, skirt were increased at the place contacting with the ground, the installation of the template is not only faster and more solid, but also makes sure that the concrete will not change into slurry at the place contacting with the ground. This template structure is an innovation. In actual operation, the erection of aboveground template together with reinforcement only takes about 50 minutes, which fully meets the requirement of Complete the pouring of aboveground part before the initial setting of the underground part without leaving construction joints ( concrete BV EXPRESS - BUREAU VERITAS

39 initial setting time is designed to be 8 hours ). At the same time, template should be reinforced to make it solid, which cannot displace during concrete vibration. Reinforcement of template is to increase a buckle structure on the template to integrate it with the steel cage, so as to prevent template floating; at the same time there are four anchors around the template to adjust the verticality. The concrete amount of aboveground pile is about 2 cubic meters, using a large hopper to pour. In order to ensure the appearance quality of the concrete structure above the ground and to prevent honeycomb, pockmark, porosity and other defects, the cleaning of template surface is more frequent and the vibration of concrete is strengthened in the construction process, and at the same time the aboveground concrete slump is adjusting from 200mm to about 165mm, ensuring the appearance quality of the concrete surface. 6.Differences in Vertical Static Load Test on Single Pile For testing of large high - rise pile cap, four kinds of testing are required by design requirement: low strain testing, ultrasonic testing, vertical static load testing and lateral static load testing, among which, low strain testing, ultrasonic testing and lateral static load are basically the same with ordinary pile. However, owing to the high - rise pile is above the ground, its testing method has special features. The vertical static load test on single ordinary cast in - place pile uses weight platform counterforce device, while due to the high - rise pile is high above the ground, hence it uses anchor - pile beam counter force device and anchor - pile weight combined counterforce device. III.Conclusion The construction method of one - time pouring molding for large high - rise pile is the first creation in China. In its construction process, there are many differences from ordinary pile, including the orifice mechanical connection of steel cage, the construction method of high - rise pile without leaving construction joints, vibration of steel cage dense part 5 meters underground, aboveground framework erection and concrete pouring, vertical static load test on single pile, etc. But through the joint efforts of all parties, these difficulties are addressed by a series of effective measures in the construction process. At the time, the quality of pile has passed the inspection and testing and has fully met the requirements of the design and specifications. It indicates that these measures taken in the construction process were successful innovation, adding new construction technology to the construction of pile. B V BUREAU VERITAS BV EXPRESS 39

40 BUREAU VERITAS ACTIVELY CONTRIBUTES TO THE RECONSTRUCTION AFTER MAY 2008 EARTHQUAKE IN SICHUAN & GANSU Bureau Veritas Construction Business Line, Gilbert BACHELIER & Yici WANG I.The Wenchuan Earthquake Recovery Project (WERP) At 2:28 pm on May 12th 2008, an earthquake of 8.0 Richter magnitudes and 11-degree intensity devastatingly struck the Wenchuan of Sichuan in southwest China, followed by more than 20,000 times obvious aftershocks. During the earthquake, 69,000 people were dead, 374,000 injured and 18,000 missing. The earthquake destroyed 340,000 km highways and damaged 1,263 reservoirs. Total 7,444 schools, 11,028 hospitals and clinics were collapsed and 5.5 million rural houses and 860,000 urban houses were destroyed or severely damaged. The earthquake affected a total of six provinces within China: Sichuan, Gansu, Shanxi, Henan, Yunnan and Hubei among which Sichuan, Gansu and Shaanxi were most severely damaged. Of 51 nearly destroyed or severely damaged counties, 39 are located in Sichuan. To assist the earthquake-affected people to carry out the postdisaster reconstruction, and to follow the Wenchuan Earthquake Reconstruction Master Plan, the Chinese government has borrowed USD $710 million of the World Bank (the Bank) Preferential Emergency Loan to finance the implementation of the WERP. On March 20th 2009, the Chinese government and the Bank signed the Loan Agreement and Project Agreement. The Bank s loan came into effect on June 17th The objectives of the WERP are to restore the key infrastructures at least to the level before Wenchuan Earthquake; expand the scale of service facilities while reducing the vulnerability of earthquakes and floods; and strengthen the capabilities of the local governments BV EXPRESS - BUREAU VERITAS

41 on managing the WERP. II.Bureau Veritas Was Committed to the Werp Bureau Veritas was committed to WERP immediately after the Wenchuan earthquake occurred and Construction Business Line successfully signed several restoration and reconstruction project management and construction supervision and consulting contracts after central government raising the concessional and emergency loan with BW, mainly involved projects are as follows: 1.One Contract Signed with Sichuan & Gansu Province Represented by Their Project Management Office (Pmo) The French Government has awarded a grant of million Euros to finance technical assistance services, in the infrastructure, health and education sectors, to the Government of China. It was called the FASEP. This grant s dedicated use was for the appointment of 3 consulting Companies including AREP, Sogreah and Bureau Veritas as the project leader during a period of 20 months. (Feb., 2009-Oct., 2010) The scope of work was to provide consultancy services during all re-construction projects cycles from Preliminary Design, Feasibility Studies, Environmental Impact and Social Assessments, Procurement (From Bidding review to Construction Contracts awards), to Construction including Final Project Assessment, in addition Capacity Building and training schemes were also developed as a recommendation. Those Consultancy Services applied to the Sichuan Urban Infrastructure, the Sichuan Health and Gansu Infrastructure, Education and Health. 2.One Contract Signed with the Heath Department of Sichuan Provincial Government The Work Bank loan included a part of US$ 60 million for the construction and rehabilitation of 60 sub-projects including county-level hospitals, maternal and child health clinics and township-level health facilities, procurement of equipment and goods in 19 counties / districts in 7 municipalities, including: Chengdu, Deyang, Mianyang, Guangyuan, Ya an, Nanchong and Bazhong. Also a provision to appoint International Consultants Companies was included in the World Bank loan. Through the World Bank procurement Process Quality and Cost Based Selection, (QCBS) a contract was awarded and signed between Sichuan Health Project Management Office (SCHPMO) and Bureau Veritas (Aug., 2011-Sep., 2012) BUREAU VERITAS BV EXPRESS 41

42 Bureau Veritas s main tasks are to provide project quality control and supervision, project progress and schedule, project variation review, financial management, monitoring and guidance on the Environmental Management Plan implementation, monitoring& guidance on Resettlement Action Plan implementation, capacity building including the improvement of the project management organization, monitoring and supervision on site. 3.One Contract Signed with the Construction Department of Sichuan Provincial Government The Work Bank loan included a part of US$ 450 million for the construction and rehabilitation of 31 sub-projects including county-level roads, bridges, water supply plant, wastewater treatment plant, pipeline networks, flood embankments, embankment protection, slop protection, solid waste disposal and canal restoration. The WERP has been designed for implementation in two batches - the first batch involving 15 subprojects with the Bank s loan of USD$ 208 million and the second batch involving another 15 counties/ districts subprojects with the Bank s loan of USD $243million. The second batch of WERP includes 24 subprojects located in 15 counties / districts of 5 municipalities (Mianyang, Nanchong, Guangyuan, Ya an and Bazhong). Also a provision to appoint International Consultants Companies was included in the World Bank loan. Through the World Bank procurement Process Quality and Cost Based Selection, (QCBS) on March 20th 2012, the World Bank issued a Non Objection Letter (NOL) and consequently PPMO awarded the consulting services contract to the Consortium of Bureau Veritas Hong Kong Limited and China Chengda Engineering Co., Ltd for providing technical assistance for project management and construction supervision for the second batch of subprojects under WERP (March 2012 March 2015). The BV EXPRESS - BUREAU VERITAS

43 staff mobilisation, Management and Supervision, started officially on March the 15th, Bureau Veritas plays the role of an international consultant to provide general supervision and management in project management and construction supervision, while Chengda is responsible for the daily construction supervision on site under the guidance of Bureau Veritas. The 15 project sites will be assigned with adequate resident supervisors to supervise the project quality, progress and cost under the guidance of the chief resident supervisor in accordance with the contract terms. The consulting team will assist PPMO in managing the project and will work closely with each of the project clients for implementation of each of the subprojects to ensure a successful implementation of the WERP. In addition, the consulting team will report the project-related progress and issues to PPMO and the Bank in a timely manner and provide relevant reports as required by the contract. III.Characteristics and Difficulties of the Project Different from the ordinary infrastructure project, the WERP is one of the most important reconstruction urban infrastructure projects which facing the natural, economic, and social constraint and difficulties. 1.Project Management Contrary to domestic projects, WERP shall follow the World Bank international rules; therefore, local owners and contractors shall pay more attention to the project preparation and implementation. (Environment and social issues, land acquisition & demolition, approval process for the variations ) 2.Schedule Due to people needs after the earthquake and the development of local economy and social stabilization the WERP have to be completed very quickly, this does not leave any room for unforeseen situation nor for non-conformities. 3.Complexity The distribution of the affected areas by the earthquake is very extensive. In Batch II of WERP, it involves 24 construction contracts of 15 counties located in 5 municipalities with different level of implementation capacities of the local Owners and different Contractors, and other local authorities involves in the main construction such as development and reform committee, quality inspection bureau and audit bureau, so the coordination is more difficult and tasks are arduous. 4.Finance As this is an emergency loaned project with short loan preparation time, the geological survey and design drawings are prepared in a limited period, there are many uncertain detailed factors happened during the construction phase which results in many variations. Those variations shall be documented and the cost estimations are very often the cause of many discussions. 5.Contractors & Owners Some of the Contractors undertake the project task, which seem beyond their own capacity and qualification. Some of them use many subcontractors and cannot control them properly; other subcontractors did not put the appropriate management, human resources and equipment on place. IV.Targets of Bureau Veritas Project Management Based upon the above challenges and difficulties, Bureau Veritas Project Management team devoted their efforts to assist the Sichuan government project Management Office in the construction preliminary phase to further improve the communication and coordination with the Owners, to speed up the land acquisition and house demolition works either by site visits, tel-conversation and issuance of official letters. BUREAU VERITAS BV EXPRESS 43

44 Bureau Veritas management team regularly organized meeting with all the Chief Supervisors in order they can receive management support and training; one of the meeting objective is to keep the consistency of supervision quality for the 24 contracts as well as emphasizing the standard supervision codes and professional integrity. Regarding the variation and cost control, Bureau Veritas organized the Jianli team in order to adhere to the principles set by World Bank & PPMO, that all the variations shall have valid reason in line with WERP principles, shall be requested and validated by the project owner, shall be in line with the legal procedure, shall be properly documentation, the cost shall be under control and they shall be review and approve by the Budget Engineer and the deputy Project Manager. The Targets of Bureau Veritas Project management team is striving to keep a high quality level and consistency for all 24 construction contracts; to abide by the construction schedule and progress; to set up and maintain a high communication level among all parties; to have a smooth implementation of all projects for the satisfaction of the PPMO and the owners and to respect all the requirements applicable to those construction contract (Quality, Safety, Environmental and Social); control the whole and individual budget of each subproject. V.Advantage and Experiences Gained from the Werp Based upon official and non official statement from Government Provincial Project Management Office (Sichuan Urban PPMO, Sichuan Health PPMO, Gansu Health, education & Urban, we are proud to say that our image is very satisfactory and both the World Bank, the Project Management office expressed their satisfaction about the Bureau Veritas services. All parties form the government recognised the ability of Bureau Veritas to handle and manage such project and generally speaking, they acknowledge the evidence that Bureau Veritas fulfil their needs either contractual or not. Meanwhile, Bureau Veritas also got strengths and Experiences from the WERP. 1.Management Commitments During the project implementation, Bureau Veritas adheres to the PMO concept of keeping the disasteraffected-area-oriented faith and made the commitments of excellent construction quality, rapid construction progress, low expenditure and cost, good consulting services. Based on these commitments, the consultant performed the professional project management and construction supervision, in accordance with the international and national rules and standards. 2.Consortium Management Style The Consortium of both Chinese and foreign consultant works as a unified team for PMO. The internal responsibilities, rights and responsibilities of the Consortium are clearly defined, with a clear distribution of the tasks and a unified cooperation; which enables the positive combination of the professional management by the foreign consultant and the standard supervision from the domestic consultant. The consultant utilized the professional project management and construction supervision, to help the project achieve effects of saved cost, reasonable progress, and good quality. Therefore, selecting the Consortium of Chinese and foreign consultant is a very positive project management style in terms of controlling and assessing the construction quality, the cost, the construction progress, the safety, the environmental protection. 3.Risk Management The risk management is one of the major innovations for the WERP project management. After having agreed on a certain numbers of appropriate indicators, BV EXPRESS - BUREAU VERITAS

45 thus performing a regular monitoring (Weekly and or monthly) of those indicators, the reporting of the results enables the management to know quickly and on an accurate manners which are the activities in one project or which project are at risks. As a consequence the said management can take the appropriate corrective and preventive actions on time. The potential risky events could be eliminated or mitigated. 4.Variation Management The variation management is also one of the important activities in project management of WERP Batch II Sub-projects. From the very beginning of project execution, the Project Management Office established five-party review mechanism, i.e.: PMO, clients, design institutes, consortium, and contractors that shall review the variations together and follow the principles of sufficient reasons, legal procedure, complete formality, and controllable investment to approve the major variations. This mechanism provided organizational guarantee for scientific and appropriate decision-making on the variations, and the total variation amount could be effectively be controlled within 15% 5Above 15% needs a prior review from The World Bank. projects by a mixed International/ national consultant team are beneficial for the consultant himself, the clients, the contractors because it enlarge the spectrum of possibilities for finding solutions to any problem. At present, the progress of WERP Batch II is on a sound track. Although some projects are definitely behind the schedule, with the strong leadership of PPMO and great help and the recommendations of Bureau Veritas and Chengda Management and Supervision Consortium, the completion for most of the 24 subprojects contracts can be achieved soon before the 2014 annual account closing date. It can be clearly stated that the overall implementation of the 24 projects are well under control, thanks to the timely and professional monitoring of the PPMO, of the Consortium consultant and also to the high contribution of all the WERP Batch II actors and members. B V VI.Conclusion Management and supervision of those BUREAU VERITAS BV EXPRESS 45