Reficar Cartagena Refinery Expansion, Colombia - EKN

� Primary treatment, including oil removal (e.g., API separators) and storage,
1101335.000 04F1 0611 MJ21
equalization, neutralization, coagulation, flocculation, and fluidized aeration
(DAF)
� Secondary treatment, including denitrification, oxidation-reduction, final
clarification
� Tertiary treatment, including disinfection, filtration (sand and carbon)
� Sludge treatment.
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June 21, 2011
The system described in the EIA is being replaced by a Siemens designed system. Siemens’s
technical proposal to supply raw water and wastewater treatment equipment and services, which
includes two process performance guarantees to meet IFC guidelines for effluent criteria, and
covers all above-mentioned wastewater impacts, was accepted by Reficar under their Purchase
Order No. 42166001-PO-1311154001 dated March 23, 2011 (the Purchase Order). Siemens
will provide the basic engineering and the major equipment, and construction will be performed
by CB&I.
The process performance guarantees are in the form of make good warranties up to a limit of
1) US$10.0 million for impaired performance of the wastewater treatment system and
2) US$2.295 million for impaired performance of the raw water treatment system, for failure of
the systems to achieve the guarantees in accordance with the terms and conditions of the
guarantees as set forth in the Purchase Order. The process performance guarantees may be
drawn once the plant is constructed and confirmatory sampling has taken place (see Table 8).
In addition to the process performance guarantees, Siemens will provide an Irrevocable Standby
Letter of Credit (Standby L/C) in favor of Reficar in an amount equal to 15% of the Purchase
Order price (US$35.31 million). Such Standby L/C shall be opened as condition precedent to
the first milestone payment and shall remain in full force and effect until full delivery of the
goods under the Purchase Order to Reficar, at which time such Standby L/C shall be reduced to
an amount equal to 5% of the Purchase Order price. The reduced Standby L/C shall remain in
full force and effect until the expiry of the Base Warranty Period.