Showing posts with label bitumen paint. Show all posts
Showing posts with label bitumen paint. Show all posts

August 14, 2019

South Africa Spends on Road

Multi-billion rand upgrade programme planned KZN N2 and N3 interchanges

ECONOMY /  / 
The project which will take eight to ten years to complete is set to increase road safety, ease traffic flows as well as access to and from industrial areas. Photo: Supplied
DURBAN - President Cyril Ramaphosa has announced that tenders to the value of R8.3bn for construction work in KwaZulu-Natal will be issued within the current financial year.
These tenders include seven major tenders on the N3 which will go out in the next three months once regulatory approvals have been received and land acquisition finalised.
The massive project which take eight to ten years to complete is set to increase road safety, ease traffic flows as well as access to and from industrial areas between these two major cities in KwaZulu-Natal.
It is part of a R40 billion two to three-year investment programme by the roads agency announced last week.
Some of the N2 interchanges that will be upgraded include Kingsway, Adams Road, The Higginson, Edwin Swales and Sibaya while the N3 interchanges that will upgraded include EB CLoete, Spine Road, Hammarsdale, Cato Ridge amongst others. 

The upgrade programme has been designed with the needs of road users in mind. The upgrades will make use of geometric design to optimise efficiency and safety. 
A total of 12 projects is expected for the N3 and N2 upgrades which will create around 23 500 direct job opportunities. 
Direct job opportunities are actual individuals per ID number on site based on SANRAL averages over time of 262 jobs per R100m project value. In the case of community projects, of which two (consisting of multiple packages) are planned in the province, 290 jobs on average.
"This excludes SANRAL’s continuous routine road maintenance as part of our robust preventative maintenance strategy aimed at taking care of the road assets we have," said Dumisani Nkabinde, SANRAL’s Eastern Region manager.
Treasury has allocated about R21.5 billion per year for the maintenance and improvement of SANRAL’s 19 262km non-toll network, including the national road network in KwaZulu-Natal.
A growing share of contracts will be allocated to black-owned construction companies and enterprises owned by women, the youth and the disabled. 
SANRAL has committed itself to the transformation of the construction and engineering sectors through the allocation of tenders to new entrants in these sectors.
Over the past six months SANRAL has brokered memorandums of understanding between emerging companies and major suppliers of construction equipment and machinery to give black-owned companies greater access to financing, expertise and the sophisticated equipment required to tender for larger contracts.
Dumisani Nkabinde, Regional Manager of SANRAL Eastern region, said: “The upgrades are part of Government’s rollout of Strategic Infrastructure Projects in line with the National Development Plan, specifically the Strategic Integrated Projects, of which the N2 and N3 upgrades are within the SIP2 program.  
"The N2 and N3 are not just roads - they are the epitome of empowerment and are essentially South Africa’s lifelines for the transportation of freight from Durban to Gauteng, the economic hub of the country," he added. 
According to SANRAL, the upgrade programme will have a traffic management plan that will protect construction workers and road users by safely conducting traffic around or through the areas where the construction will be taking place. 

May 30, 2019

Value for Money

Enhancing value for money in public procurement of Northern Ireland construction projects


29 May 2019
Gary McArdle and Gerard Gunning evaluate public procurement in Northern Ireland - specifically, the achievement of value for money in public construction projects; they also assess other factors detrimental to creating value, such as sub-economic tendering and the potential impact of Brexit
Civil

Abstract


The purpose of this article was to evaluate public procurement in Northern Ireland (NI) – more specifically, the achievement of value for money (VfM) in public construction projects. Other areas assessed were factors detrimental to creating VfM; sub-economic tendering; and the potential impact of Brexit in NI.
The methodology included primary and secondary data collection. The qualitative research involved six semi-structured interviews to collate the data and use of Decision Explorer to analyse it. Quantitative research was in the form of 81 questionnaire responses, analysed using SPSS.
The findings highlight influences which create VfM in public procurement, along with barriers to achieving VfM. Direct and indirect factors which contribute to public value are also established. Additionally, the potential impact of Brexit on VfM was ascertained.
The article identifies clear implications for practice, with a view of increasing VfM through public procurement procedures. An insight is provided into public procurement in NI from the perspective of both vendor (public bodies) and purchaser (contractors) – an area which appears to be under-represented in current literature.

Introduction


Procurement is the acquisition of resources required for the realisation of a project. These resources include contractors, consultants, subcontractors, suppliers and the client’s own resources.
Public procurement must be based on VfM, which is defined as ‘the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services bought’.
This should be achieved through competition. Public procurement is subject to a legal framework which encourages free and open competition and VfM, in line with international and national agreed obligations and regulations.
There are sufficient strategic plans provided by NI public bodies on the delivery of infrastructure projects in an efficient manner while also providing VfM. There are a number of ways in which the procurement activities of public bodies can achieve VfM.
However, there appears to be a level of uncertainty as to the most suitable procurement approach. Additionally, there are factors inhibiting the creation of VfM such as lack of funding and long-term perspective; sub-economic tendering; and a claims culture.

Research methodology


The study used a mixed methods research approach by collecting primary and secondary data, utilising both qualitative and quantitative methods to collect, collate and analyse data. Figure 1 demonstrates the research process.
Figure 1 Research methodology
The qualitative research involved six face-to-face, semi-structured interviews with senior individuals currently working in the construction industry.
Four of the individuals work for public sector organisations, providing a range of perspectives from different specialisms.
Two of the individuals are senior managers within contracting companies currently involved in public sector projects in NI – one civil engineer and one quantity surveyor.
It should be noted that the interviewees appeared cautious with their responses due to the sensitive nature of the subject. Details of the interviews are illustrated in Table 1.
The analysis of the interviews also identified areas where further research would be required within the topic.
This was used to aid the development of a questionnaire which formed the basis of the quantitative research.
Table 1 Interview details
A total of 81 individuals working across various sectors of the construction industry completed the questionnaire.

Research outcomes


This section identifies the main outcomes of the research and provides reasoning to the main themes established. Contradictions between different aspects of research in addition are also discussed. The main themes identified include:
1. Creating public value
Public sector organisations not only create public value through the services they provide; they also create value by their approach to the provision of services including:
• Creating employment;
• Supporting the local economy;
• Helping socially deprived areas;
• Support of SMEs; and
• Consideration and protection of the environment.
The main areas requiring improvement in NI include:
• Improvements to the road network;
• Greater employment opportunities;
• Improvements to the health facilities; and
• Improvements to the water and sewerage services.
Although it did appear that VfM was being achieved, the concept of measuring public value would provide a more appropriate assessment of the delivery of public procurement policies.
2. Factors which result in less VfM and have a damaging effect on NI’s construction industry
There are various factors and practices which are detrimental to the objective of achieving VfM through public procurement.
The ‘vicious circle’ in figure 2, illustrates the main causes which are damaging the construction industry in NI. It should be noted that this is more relevant for less complex projects.
Water and roads projects are less complex projects, whereas education and health are more concerned with large complex projects. The rationale is that a new road, water main or sewer may need to be constructed to a required specification; there is less impetus for innovation, whereas the construction of a new hospital or school may be considered complex and more open to radical innovation.
Figure 2 The vicious circle damaging the construction industry in NI
The three main causes of sub-economic tendering in NI are:
a.) The client’s aim to gain VfM places increased pressure on contractors to reduce costs;
b.) The attitude of contractors. Some contractors submit low tenders simply to win the work and offset losses by drawing on more profitable sections of the business. Additionally, legal challenges prior to contract award from unsuccessful tenderers are time consuming, costly and lead to delays in the contract start date.
c.) Lack of work in NI.
During the construction phase, contractors seek claims as an approach to increase income. The increase in claims is forcing the client to ‘fight back’ and apply the contract in a more stringent manner regardless of the contractor or tender price.
Therefore, contractors are not making enough profit or possibly losing money leading to a breakdown in relationships. There is no process improvement on defining the key aspects of the tender evaluation by the client, as contractors will continue to submit sub-economic tenders to win work – resulting in the cycle starting again.
This vicious circle is proving to have a damaging impact on the construction industry in NI for both contractors and clients. The competitive industry, lack of construction contracts and unsustainable rates are proving to be a dis-incentive to larger contractors who are focusing on expanding their geographical spread to gain profitable work.
In an attempt to break this cycle, a starting point would be to obligate public-sector clients to reassess their interpretation of VfM. It is apparent that they can confuse VfM with lowest price and their current approach to place more emphasis on cost is resulting in a ‘race to the bottom’ in relation to tendered rates. Clients must realise that the lowest price will not necessarily mean the lowest outturn cost.
Current regulations have a procedure in place to assess sub-economic tenders. However, clients are happy to receive reassurance rather than exclude them to avoid potential legal challenges.
As demonstrated in the case of DRD v BBMC (2016), BBMC were awarded damages because of DRD excluding them from the tender process based on their abnormally low tender (ALT). A potential change in regulations would give clients more authority to deal with ALTs without risking the backlash of a legal challenge.
Additionally, a reduction in funding provided by the government for capital works projects is resulting in greater operational and maintenance cost. Factors such as restrictions on expenditure along with a reluctance to incur higher capital costs are resulting in greater maintenance cost, suggesting a lack of long-term perspective by public bodies. This is providing a major problem to sustainable construction procurement.
3. Factors which create VfM and proposals for improvement
Figure 3 summarises what creates VfM, based on the qualitative and quantitative research.
Figure 3 Elements that create VfM in NI public procurement
There are certain differences within the findings of the research, particularly in relation to contract strategy for large complex projects. Health and education sectors have adopted a traditional approach for the large complex works such as the new critical care unit at Royal Victoria Hospital (RVH) or the relocation of Ulster University, Jordanstown (UUJ). In each case, the design and construction stages are completed and procured separately.
However, one question in the questionnaire focused on this area for large complex projects. Two-thirds of the responses indicated that design and build would provide the best opportunity to create VfM for the client. Possible reasons for this difference in results include:
• The details provided by health and education sector representatives divulge the procurement approaches for both the consultants who complete the design and specification and the contractors. The procurement of the consultants focuses more on quality with less emphasis on price. Design competitions and ‘narrow average approaches to the cost assessments avoid low cost tenders and ensure that the best consultant is awarded the contract.
• In contrast, contractors are ultimately procured on lowest price. Following a most economically advantageous tender (MEAT) process to determine suitable contractors, the client is confident that the contract is so well defined with necessary risk allocation, that they can accept the lowest bid.
There were several suggestions for improving procurement procedures within the public sector in NI including:
• It is apparent that there is greater emphasis towards price in the price/quality (PQ) combination with an almost default position of 60/40 or 80/20 PQ ratio. However, the client is not aligning projects with adequate PQ combinations. An improved balance in the assessment between cost and non-cost criteria at tender stage is required, depending on project complexity, risks, contractor availability and client’s objectives.
• Proposed changes to the current PQQ process. Figure 4 illustrates possible suggestions for improvement in the current process.
Figure 4 Suggested improvements to the PQQ process
• It is recognised that quality responses are generic. However, clients are not willing to put emphasis on quality since it is more subjective in nature compared to cost. Ultimately, this will result in a ‘race to the bottom’ in terms of cost.
• Frameworks are accepted as an approach to gain VfM as well as reducing the adverse nature of construction procurement, but they are not utilised enough. Frameworks lend themselves to greater specialism and better workmanship, further enhancing the VfM initiative. Additionally, they provide an opportunity to save on tendering costs; form long-term trusting relationships; and improved design and delivery. Benefits to the contractor include a greater security of work through long-term programmes. However, it is acknowledged that frameworks may not be beneficial to SMEs.
• Greater leadership and planning are required to ensure procurement approaches are fair and reasonable and to reduce procurement turnaround times.
4. Brexit
Following the June 2016 referendum and triggering of Article 50, Brexit and its potential impacts is a very current topic. One of the most significant concepts is that Brexit will have a detrimental impact on public works in NI.
This includes fewer foreign contractors coming to NI for work following Brexit. Most of those who responded to the questionnaire were concerned about the potential impact of Brexit on their current work.
To support this, the main outcome from the research was ‘great uncertainty’ over future budgets a result of Brexit. NI already receives a low level of funding from the government. This is not likely to improve following Brexit.
Contrary to this, health sector personnel believe that they could potentially receive more funding in the future. However, they could not make this claim with any certainty.
Public bodies receive a certain level of funding for capital works projects and this is likely to continue following Brexit. However, current funding provided for by the EU for projects involving both NI and ROI is not likely to continue.
Another potential project at risk is the proposed York Street interchange project. The £165 million project is part of a Euroroute E01. A substantial EU contribution of up to 40 per cent could now jeopardise the project.
The consensus is that procurement policies will not change apart from how work is advertised. If it does change, the principles of competition and transparency will remain since the WTO principles would apply.
Depending on the new agreement on how the UK will operate within the EU market, a forum to advertise public works may still be required following Brexit. It is noted that the current approach to advertising in OJEU can be time consuming for little benefit.
It is recommended that the threshold levels for public works are reviewed. In several cases, the values are deemed too low. Although certain works are advertised in the EU market, ultimately it will result in local contractors only tendering for the work.
5. Future funding recommendations along with proposals for year-end flexibility
The current process for funding provided by the government is an annual budget. To create better VfM along with greater security to companies, a better foresight of budget is called for. This would allow companies to improve measures such as more permanent staff and improved training.
Year-end flexibility would be a benefit to clients and contractors. The current process of an annual budget is putting the client under pressure to spend money, particularly towards the end of the financial year.
A lack of planning on the client’s behalf is ultimately putting increased pressure on the contractor to complete the work in tighter time frames.

Recommendations


The study undertaken has potential applications to industrial practice. An insight was gained into the area of public procurement in NI.
The outcomes should be considered by the public sector to enhance VfM from the services that they deliver, in a clear and transparent process.
Due to the sensitive nature of the subject and the cautious responses received through the interviews. Further study could include Freedom of Information Requests for more objective data on relevant public bodies and projects.
The impact of Brexit on public procurement in NI and the wider United Kingdom could be further examined as the current process is based on the EU directive on public procurement.
Public bodies must realise that in order to enhance VfM, more rational thinking at an early stage into aspects such as their objectives, project complexities, project briefs, and budget forecasts, will be required.
Greater leadership and planning by the government and public sector organisations would remove pressures which lead to unsustainable tendering and would help maximise VfM for clients.
In addition to this, it would encourage more cost-effective working practices, greater innovation, better supply chain engagement and improved security to contractors.
Authors: Gary McArdle, BSc MSc, MCIWEM, CWEM MIEI, senior design engineer, Atkins Ireland Ltd; Joseph Gerard Gunning BSc, MSc, PhD, FICE, FCIOB, FIEI, FCQI, honorary senior lecturer, Department of Natural and Built Environment, Queen’s University, Belfast
http://www.engineersjournal.ie/wp-content/uploads/2019/05/a1-34.jpghttp://www.engineersjournal.ie/wp-content/uploads/2019/05/a1-34-300x300.jpgDavid O'RiordanCivilAtkins,construction,Queen's University Belfast
Abstract The purpose of this article was to evaluate public procurement in Northern Ireland (NI) - more specifically, the achievement of value for money (VfM) in public construction projects. Other areas assessed were factors detrimental to creating VfM; sub-economic tendering; and the potential impact of Brexit in NI. The methodology included...

March 1, 2019

Road Delays

Mutorwa concerned over road projects delays

by Sakeus Iikela

John Mutorwa
WORKS minister John Mutorwa is concerned over unnecessary delays in implementing national road projects, including tenders worth more than N$1,4 billion.
Mutorwa told the Roads Authority (RA) in a letter sent to chief executive Conrad Lutombi on 14 February 2019 to avoid bureaucratic bottlenecks that were delaying the implementation of road projects.

He was responding to Lutombi's letter sent on 14 February 2019, in which the RA CEO explained the issues that are delaying the implementation of two prioritised road projects under the Harambee Prosperity Plan.

The projects in question include the last phase of the Windhoek-Okahandja road, which is 21 kilometres and requires N$1 billion, and the last eight-kilometre part of the Swakopmund-Walvis Bay road that needs N$435 million to complete.

In the letter, Lutombi said the two tenders for these projects were not advertised because they had asked the ministry to exempt the two projects from the “general government moratorium, which stipulates that no new government project should be commenced without the necessary approval”.

Only after that permission was granted would the tenders be advertised for bids, as per the Public Procurement Act, he said.

When approached for clarity on Monday, Lutombi said they requested permission to start the new projects to avoid perceptions that they were doing things under the carpet.

He said the two projects will thus be advertised after they get permission.

In his letter, Mutorwa said he is expected to report to Cabinet on progress made on road projects in all 14 regions, based not only on “glossy narrative reports, but concretely and visibly indicating the actual projects that were successfully and practically implemented”.

The minister said on Monday that the moratorium referred to by Lutombi does not exist, hence his advice to the RA to avoid unnecessary delays.

“I don't even know what you are talking about. This issue was discussed on Friday [last week], and I advised them as per my notes on the letter that was sent to them,” he stated.

The Namibian reported last year that the RA wanted to give the contractors on site extensions to work on the extra kilometres to avoid advertising the tenders.

Lutombi at the time argued that the projects would be delayed, and it would cost the government more money if the contracts are re-advertised.

According to him, extending the contracts of the companies currently on site would be cheaper, and save up to N$251 million.

This move was, however, blocked by the Central Procurement Board, which ordered the parastatal to advertise the tenders.

Works executive director Willem Goeiemann yesterday said although proposals were submitted to the government on how to handle the new tenders for these projects, a final decision was yet to be made.

He said the ministry was still busy with consultations, which include options on whether or not to advertise the new tenders.

The spokesperson of the works ministry, Julius Ngweda, confirmed to The Namibian that the parties were still divided on this matter, but the ministry wants the tenders to be advertised.

“They (RA) wanted to proceed with the companies already on site. But when we looked at the amount, we saw that it would not work, and it would also not be in compliance with the Procurement Act.

“The ministry wants the tenders to be advertised because there are people who wanted things to be done under the carpet. The current minister wants things to be done procedurally,” he stated.

February 25, 2019

Namibia's Road Crisis

THE Roads Authority has appealed for an urgent government bailout after complaining that their budget for national road projects this year is short by N$1,3 billion.

Roads Authority (RA) chief executive officer Conrad Lutombi made this appeal in a letter to the transport ministry's executive director, Willem Goeiemann, on Monday.

Even though Lutombi downplayed the crisis by claiming that the state roads agency has secured funding and will start paying as from today, his letter paints a picture of a desperate man.

In the wake of Lutombi's letter, finance minister Calle Schlettwein confirmed that he will hold a crisis meeting today with top government officials to discuss whether the state will pay N$500 million owed to the road construction companies.

Lutombi told Goeiemann that the Roads Authority currently faces a serious problem because of the government's failure to pay road contractors and consultants.

“This dire state of affairs is posting a huge financial and reputational risk to the government and the Roads Authority. All but one Roads Authority contractor have suspended works primarily due to the lack of funds to buy required supplies and construction material needed for the ongoing construction works,” Lutombi explained.

He said the challenge of the lack of funds to pay outstanding invoices could be attributed to the reduced Roads Authority budget.

The Roads Authority initially proposed a N$2,5 billion budget for the 2018/19 financial year to fund the ongoing roads projects.

“However, only an amount of N$1,2 million was made available. This resulted in a shortfall/underfunding of N$1,3 billion,” Lutombi added.

He said to make matters worse, the national budget review in October last year reduced the transport sector's budget by N$344 million, which added pressure on the availability of funds.

“The dire consequences of the continued non-payment of invoices means that both the government and the Roads Authority are in default of contractual obligations,” he stated.

The chief executive said unless all outstanding invoices are fully paid, the government and the Roads Authority are obliged to pay for idle equipment and site fees for no work done until work restarts.

“The current daily compounded losses due to the suspension of work as a result of invoices will translate into millions of dollars, estimated to be ranging between N$15 million and N$30 million per month per project, depending on the size,” he continued.

A senior official involved in the payments talks said some companies had not been paid since September or October last year, forcing some of them to stop work.

CRISIS TALKS

The Roads Authority has been knocking on Schlettwein's door, asking for N$500 million to pay for several roads projects.

A person familiar with this matter said the Roads Authority wanted Schlettwein to approve a plan to borrow N$500 million from Standard Bank to fund the projects.

The loan was supposed to be taken out by the state-owned Road Fund Administration, but the finance minister blocked it, saying there was need for more consultations.

“The matter was brought to me, and I have referred it back for further consultations,” Schlettwein told The Namibian on Wednesday.

“To commit to significant payments that are not funded under the budget needs careful and thorough investigations. That is what I have instructed involved stakeholders to do and come back with comprehensive information,” he said.

Schlettwein said a solution could be found today when he meets officials and parastatal bosses to discuss the outstanding payments.

Today's meeting follows another meeting held at State House, where road parastatal chiefs tried to convince the government's top leadership to pay the companies.

According to Schlettwein, “the minister of finance cannot just be confronted with an invoice from a parastatal [Roads Authority]. Some procedures need to be followed,” he stressed.

Transport ministry officials believe that the road projects could cost as high as N$800 million by the end of next month if the outstanding amounts are not paid since the companies are charging interest on unpaid amounts and standing fees.

“We must avoid unnecessary penalties, but I cannot just commit to paying things that are not budgeted for,” Schlettwein said.

Sources said finance officials fumed about the N$500 million loan proposal, to the extent that one of them allegedly tossed away the documents outlining this plan and shouted: “We did not create this mess” during a recent meeting.

Schlettwein has for years criticised the Roads Authority for committing the government to contracts of more than N$2 billion without following procedures and claiming that they were made a priority by “the highest offices”.

ENGAGING

Lutombi told The Namibian on Tuesday that they are consulting the government to fast-track the payments.

“The RA is not at liberty to reveal the amount of money owed to contractors for work done on the road projects. However, we can confirm that we do have outstanding invoices on some of our projects,” he said.

Lutombi added that the parastatal engaged affected consultants and contractors about the lack of payments.

“I can confirm that we have managed to settle some outstanding invoices on our government-funded capital projects in the past few weeks, for example the Windhoek-Hosea Kutako International Airport road upgrade. Works on this project are progressing well,” he said.

Confidénte reported yesterday that the government owes five companies around N$98 million.

This includes the N$25 million owed to the joint venture between Italian civil construction CMC and Otesa for the Windhoek-Okahandja two-way road, and the N$22 million owed to Unik/Thohi for the Swakopmund-Walvis Bay dual carriageway.

According to the newspaper, Nexus is owed N$28 million for the Isize-Luhonono road in the Zambezi region.

Chinese firm Zhong Mei is allegedly owed N$18,8 million for the ongoing work on the Swakopmund-Henties Bay road.

January 10, 2019

Bitumen Plant for Azerbaijan

the most modern bitumen production plant in the world: socar and pörner commission the new biturox® plant in baku

On December 21, 2018 Azerbaijan´s state energy company SOCAR invited to the festive opening ceremony for the new Biturox® plant in the Heydar Aliyev Refinery outside of Baku’s urban area. EPCM-Engineering Partner Pörner and SOCAR are pleased about a successful commissioning as first part of the refinery reconstruction.
SEE A MOVIE OF THE PLANT HERE
THE BITUROX REACTOR
TANK STORAGE
FILLING STATION FOR 6 TRUCKS
Since the beginning of operation of the existing Biturox® plant at the Aszerneftiag refinery in 1995, the face of Baku has changed dramatically: The capital of Azerbaijan - famous for its unique historical core - is now characterized by modern buildings along the coast of the Caspian Sea, such as the Flame Towers.
The urban development was taken into account and decided to close the old refinery, now located within the city, and in return to expand the northern lying Haydar Aliyev refinery of the national oil company SOCAR to highly efficient oil processing at the latest international standard.
The first subproject of this ambitious project represented the bitumen plant operating with the worldwide proven Biturox® process of the Austrian technology company Pörner. The EPCM contract of Pörner included licensing, pilot testing, basic and detail engineering, supply of main components as well as site supervision, commissioning and start up assistance for the process plant and ancillary plants.
By using the Biturox® process, high-quality bitumen can be produced from the Azerbaijani crude oils by oxidation of refinery feedstock. The further improvement of the national road network of the 86,600 km2 large country is an urgent issue of the government.
On the 21st of December, the opening ceremony of the SOCAR bitumen plant was held by President Ilham Aliyev.
See the official video here.

The new Biturox® plant
Using the latest off-gas treatment system, and designed for an annual capacity of 400,000 tons road paving bitumen grade 40/60, this plant meets the high demand for quality bitumen for the further expansion of the road network of Azerbaijan. It optimizes operating costs for the Heydar Aliyev refinery and significantly improves the ecological situation of Baku region.
The project consists of two areas. The first area includes the Biturox® Plant, where the reactor produces road grade bitumen according to international standards. The second area consists of 6 storage tanks and a loading station with six truck loading points.

Pörner Biturox® Technology a substantial solution for IMO 2020 regulation
The IMO 2020 Regulation reduces the global limit for sulfur in bunker oils from the current 3.5% to 0.5%. So from 2020 refineries will no longer be able to sell their unrefined residues as bunker oils or as marine fuel.
"The Pörner Biturox® technology with high yield and low investment costs is an ideal solution for the expected IMO regulations. With Biturox®, our customers produce the best bitumen qualities from a wide variety of crude oils and use the residues of the distillation economically," says Andreas Pörner, Managing Partner of the Pörner Group.
With more than 50 licensed Biturox® bitumen plants, the Pörner Group is the world leader in bitumen oxidation technology and realizes turnkey bitumen plants, including all infrastructures, from a single source. About 15% of the world's bitumen production comes from Pörner Biturox® plants. In India, the total designated capacity of all eleven Biturox® plants built is equivalent to about 80% of the national annual demand.
Since 1994, the Pörner Group has realized 34 projects in the CIS states, including nine Biturox® plants.

Modernization of the Heydar Aliyev Refinery
The Heydar Aliyev Baku Oil Refinery is located near the capital Baku and is currently undergoing extensive modernization. The annual processing capacity will increase from six million tons to seven and a half million tons. All grades of fuel produced, will comply with Euro 5 standards and are quality feed materials for the Azerkimya downstream plant, such as ethylene, propylene and butylene.
Source- Porner