Quality Assurance of Nuclear Suppliers

1. Quality Assurance of Nuclear Suppliers Seminar on Nuclear New Build 30th April, 2010, Tallinn

2. Global expert in consulting and engineering We offer our clients in-depth industry expertise, innovative solutions and lifecycle engagement 17 000 projects annually 7 000 employees in 49 countries Project experience in more than 100 countries

3. Pöyry group - Five business groups Energy Forest Industry Transportation Water & Environment Construction Services (c) grafikdienst.com Core operations are based on five know-how clusters 3

4. Pöyry works as a global network company Pöyry’s office network - Competence centres for Nuclear Energy • Switzerland / Zurich (Headquarters – Nuclear Energy) • Energy markets • Project & company organisation • Project development • Infrastructure development • Major power plant technology & development • Finland / Helsinki • Project & company organisation • Project development • Information & communication technology • Environmental impact • Site evaluation • Major power plant technology & development • UK / Horsham • Reactor technology • Reprocessing technology • Waste management & decommissioning technology • Safety assessment & licensing • Germany / Mannheim • Reactor technology • Waste management & decommissioning technology • Safety review • Detailed engineering Pöyry offices Competence centre for nuclear energy

5. Sales and personnel according to the new business structure Personnel by business group* Net sales by business group* * Pro forma, 2009

6. Clear definition of technical interfaces and contractual limits are key for the management of Split Package/EPCM or Multiple package/AE structures Structure of nuclear power plant and interfaces Nuclear Island Thermal Power System Overall Generally contracted as single package to vendors Nuclear steam supply system(NSSS) Balance of Nuclear Island Rotating Equipment Balance of Thermal System OverallControl System Reactor Fuel systems SteamTurbine Cooling NSSS auxiliaries ContainmentStrcuture Generator Water/SteamCycle Main Steam System Wastesystems Other BOP Subject to splitting into several or multiple packages – Employment of EPCM Contractor or Architect Engineer Electrical Nuclear Island Emergency Diesel System Electrical Thermal PowerSystem Electrical (general) Civil & Steel Structures Thermal Power System Civil & Steel Structures Nuclear Island Civil & Steel Structures (general) 6

7. Differences between NPP and conventional plant projectsand related personal experiences What is specific to NPP projects? The main requirements concerning conventional and NPP projects deal with LICENSING, SAFETY and QUALITY matters in addition to PROJECT MGT. Conventional SAFETY requirements Project Management Convent. LICENSING requirements Nuclear QUALITY requirements CORPORATE & Project ORGANIZATION Conventional QUALITY requirements Nuclear Legislation and Contol Nuclear LICENSING requirements NOTE: Classifications set requirement levels for each NPP items. Nuclear SAFETY requirements ”There shall be utilized advanced quality management and advanced safety culture when implementing NPP plants”.

10. Permitting procedures for a nuclear plant in Finland Other clarifications to be appended to the decision-in-principle application EIA programme • LAND USE PLANNING • National Land Use Guidelines • Regional Land Use Plan • Local Master plan • Local Detailed plan EIA report • DECISION-IN-PRINCIPLE • Pursuant to the Nuclear Energy Act • Preliminary safety assessment from the Radiation and Nuclear Safety Authority • Approval from the location municipality • Decision-in-principle from the Government • Ratification from the Parliament Permits pursuant to the Environmental Protection Act Permits pursuant to the Water Act Construction license pursuant to the Nuclear Energy Act from the Government Building permit Construction of the plant and infrastructure Operation license pursuant to the Nuclear Energy Act from the Government Commissioning of the power plant Monitoring and potential renewal of permits 10

11. Quality Assurance of Nuclear Suppliers • Basis in legislation • Main requirements for quality management of NPP project participants are given in Finnish Legislation, Nuclear Energy Act, Nuclear Energy Decree and Decisions of the Council of State • Guide YVL 1.4 gives the general requirements for the management system linked with quality and safety management.

12. Quality Assurance of Nuclear Suppliers • Extract from Decision of the Council of State on the general regulations for the safety of nuclear power plants - Quality assurance • Advanced quality assurance programmes shall be employed in all activities which affect safety and relate to the design, construction and operation of a nuclear power plant.

13. Quality Assurance of Nuclear Suppliers QUALITY MANAGEMENT OF SUPPLIERS The basic principle is an advanced quality management system which contains also the nuclear quality requirements. The Owner and Vendor shall include the requirements of an advanced quality management to their subsuppliers in their contracts The plant Vendor, Owner and STUK will monitor the performance of quality system of suppliers and that their activities are according the set requirements.

14. Quality Assurance of Nuclear Suppliers REGULATORY BACKGROUND YVL GUIDE 1.4 (1991) REFERS TO: Advanced Quality Assurance (referring to IAEA Code 50- C-Q / IAEA safety standard GS-R-3) Safety culture (referring to IAEA No. 75-INSAG-4) QUALITY MANAGEMENT OF SUPPLIERS

15. Quality Assurance of Nuclear Suppliers REGULATORY BACKGROUND ACCORDING TO THE NUCLEAR ENERGY ACT 990/1987 The manufacturer, inspection organisation or testing organisation of pressure equipment shall have an advanced quality system. An advanced quality management system is required whenever the activities are connected to the products classified as safety class 1-3. QUALITY MANAGEMENT OF SUPPLIERS

16. Quality Assurance of Nuclear Suppliers REQUIREMENT ON SAFETY CULTURE The licensee and other organizations affecting the safety of the NPP shall documents their commitment to high safety culture. ISO 9001: Competence, awareness and training - the organization shall provide training IAEA Code 50-C-Q presents - that personnel shall be trained to understand the safety consequences of their activities According to guide YVL 1.4 - when designing and constructing a nuclear power plant an advanced safety culture shall be maintained QUALITY MANAGEMENT OF SUPPLIERS

17. Quality Assurance of Nuclear Suppliers REQUIREMENTS ON QUALITY MANAGEMENT Based on experiences, an example of an advanced quality management system might be based on the standard ISO 9001 supplemented with the requirements presented in IAEA’s Quality Code 50-C-Q (regulatory requirement in reg. guide YVL 1.4) and recommendations presented in Safety Guides 50-SG- Q1-Q14... QUALITY MANAGEMENT OF SUPPLIERS

18. Quality Assurance of Nuclear Suppliers QUALITY MANAGEMENT OF SUPPLIERS • QUALITY MANAGEMENT SYSTEMS • Quality management systems of conventional subcontractors are • generally based only on standard ISO 9001 or equivalent. • Therefore the systems do not meet the IAEA’s Safety Standards on • quality management for NPP relevant deleiveries.

19. Quality Assurance of Nuclear Suppliers PREPARING FOR NPP PROJECT When companies want to be prepared for coming NPP projects and develop their capabilities, one good assist could be the following: Study all the requirements for NPP licensing, permitting and approval in relevant international, national and local regulations. Conduct a self assesment or third party evaluation of your status against all the important matters and criteria. Perform a development program to improve your company’s processes, procedures, machinery and personnel to be good enough for NPP projects.

20. Quality Assurance of Nuclear Suppliers PREPARING FOR NPP PROJECT One aid for supporting development and self evaluation of Corporate quality management capabilities for a NPP project Is to use e.g. help of Guides of ISO 9001 Auditing Practices Group. Include nuclear quality and safety in your quality management system. International Organization for Standardization International Accreditation Forum Date: 5 June 2009 ISO 9001 Auditing Practices Group Guidance on: XXX

21. Assesment of Supplier’s NPP project capabilities Development of Supplier’s NPP project capabilities Quality Assurance of Nuclear Suppliers REGULATIONS & REQUIREMENTS READYNESS FOR QUALIFIED SUPPLIER NOW NPP PROJECT CONCLUSIONS & DECISIONS

22. SAFETY AUTHORITY OWNER VENDOR SUPPLIER SUBSUPPLIER Quality Assurance of Nuclear Suppliers REGULATIONS; DIRECTIVES, AGREEMENTS, LAWS, DEGREES, DECISIONS OF STATE COUNCIL, GUIDES, RULES, PERMITS, APPROVALS, ETC Supplier approval, Auditing & Control Test & Inspections, Doc’t approvals, Qualification req’s +PERMITS & APPROVALS +NORMS & STANDARDS +REQUIREMENTS & INSTRUCTIONS Markings: Contract/ Quality Mgt System/ Plans, etc Quality policy, programs, plans, procedures, systems, tools, etc Note: QMS shall be advanced and e.g specificly manage well all set requirements, Documentations and configuration.

23. Pöyry Finland Oy, Energy Process Map Continuous Improvement Processes Business Processes Advisory and Consulting Projects Marketing and Sales Proposal Process OE/AE Projects Nuclear Projects EPCM Projects EPC Projects Measurement Services Management Processes Strategy Process Competence Management Employment Process Financial Management Resource Management Document Management Risk and Quality Management

24. Pöyry‘s Consulting and Engineering Services cover the entire life-cycle of nuclear energy. Development & Pre-Construction Project implementation Assets Operation Decommissioning • Project Strategy &Organisation • Financial modelling • ICT studies & solutions • Stakeholder management & public consultation • Siting Studies • Reactor technology studies • Infrastructure studies & solutions • Decommissioning, waste management & fuel strategies • Environmental impact assessment • Fuel studies • (Pre- )Feasibility studies • Conceptual & Basic Engineering • Tender documentation & bid evaluation • Safety assessment & licensing support (to Owner’s and Regulators) • Consulting to Lenders • Project management • Project controlling • Design review • Supervision of construction & commissioning • Quality Assurance & Quality Control • Shop Inspections & Expediting • Site & Construction supervision • Commissioning supervision • Safety assessment & licensing support • Detailed and site engineering for vendors • Safety assessment for regulators • Consulting to Lenders • Engineering and supervision of back-fitting/upgrades • Power uprate studies • Organisation review and design • Operational optimization studies • Life extension studies • Alternative fuel studies • Waste characterisation & inventory studies • Decommissioning studies • Safety assessment & licensing support • Safety assessment for regulators • Consulting to Lenders • Detailed decommissioning studies & engineering • Supervision of decommissioning and dismantling operations • Waste treatment & packaging studies & engineering • Waste repository studies & engineering • Waste characterisation & inventory studies • Safety assessment & licensing support • Safety assessment for regulators