2006 Muttrah Incident Report - authority for electricity regulation, oman

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7 THE CONTRACT 7.1 Placing of the Contract As indicated in Section 4.2 above the contract for retrofitting at Muttrah was placed as a result of an Invitation to Tender issued by the Ministry of Housing, Electricity & Water in September 2004. Al Wadi Contracting Company submitted their offer on 24 October 2004. As noted above Al Wadi Contracting Company was not qualified to bid for the contract as it was a registered Class B/C contractor whereas the Invitation to Tender called for a Class D contractor. Al Wadi proposed to supply new VCB/trucks from ABB Arab and indicated so in their tender. The three bids received as a result of the Invitation to Tender were passed by the Tenders & Contracts Department of MHEW to the Transmission & Control Department for technical evaluation. To date the inquiry has not received a copy of the evaluation carried out by the Transmission & Control Department nor of the award of the Contract to Al Wadi. Indeed it is unclear whether the Contract was awarded by MHEW or was awarded by MEDC in their letter of 13 September 2005. The terms of the ‘sub-contract’ between Al Wadi and ABB Arab are unclear as both ABB Arab and Al Wadi were unwilling to release details to the inquiry for commercial reasons. ABB Arab has indicated that the agreement between them was in the form of a simple purchase order and the inquiry concludes that the relevant terms and conditions of the contract between MEDC and Al Wadi were not passed on to ABB Arab. In the period between the submission of the offer (October 2004) and the ‘award’ of Contract (September 2005) MHEW provided a Brush OCB truck to Al Wadi. This enabled ABB Arab to design and manufacture a prototype VCB/truck and to install it in the bus-coupler bay at Al Falaj substation around April 2005. Again the inquiry has been unable to obtain any written evidence of what took place in this period. 30
Subsequent to the incident it emerged that Al Wadi did not hold any insurance for the Contract even though it was an express requirement of the Contract. Discussions with MEDC have indicated that it was not the practice to require production of Insurance Certificates until the contractor requested the Advance Payment (normally 10%) under the contract. This practice has now been changed and contractors are required to produce such certificates on signing the contract. 7.2 The Contract – Conclusions Based on it’s analysis of the documentation available the inquiry concludes the following: • Al Wadi Contracting Company was not qualified to bid for the Muttrah retrofitting contract; • Al Wadi should not have been awarded the contract; • Al Wadi did not ensure that the relevant terms and conditions of their contract with MEDC were passed on to ABB Arab; 31
Page 1 and 2: REPORT INTO THE INCIDENT AT MUTTRAH
Page 3 and 4: GLOSSARY OF TERMS The terms defined
Page 5 and 6: 1 INTRODUCTION AND SUMMARY OF FINDI
Page 7 and 8: 2 SCOPE OF INVESTIGATION AND METHOD
Page 9 and 10: 2.3 Methodology In preparing its re
Page 11 and 12: outages on the distribution system
Page 13 and 14: FIGURE 2 Brush OCB Truck removed Mu
Page 15 and 16: contracts were subsequently awarded
Page 17 and 18: 5 SEQUENCE OF EVENTS The sequence i
Page 19 and 20: The protection relay indications fo
Page 21 and 22: BUSHING SHUTTER FIGURE 4 Reconstruc
Page 23 and 24: FIGURE 7 Truck - Cubicle Interface
Page 25 and 26: the shutter mechanism is mounted is
Page 27 and 28: 6.3 Cause of the Incident Based on
Page 29: shortcomings in the trucks supplied
Page 33 and 34: • That the design defects identif
Page 35: 10 RECOMMENDATIONS The inquiry make

2006 Muttrah Incident Report - authority for electricity regulation, oman

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