Requirements and Benefits of Programmatic vs. Project Driven Approach to New Build Jay Brister, Vice President, Business Development, Power April 23, 2015
AECOM Overview Page 2
AECOM Overview AECOM is a leading global provider of professional technical and management support services. 2014 ENR Rankings 150+ Countries #1 Top 150 Global Design Firms #1 Top 500 Design Firms #1 Pure Design #1 Transportation #1 General Building Serving clients in more than 150 countries around the world 100K Employees Nearly 100,000 dedicated Professionals globally $19.5 Billion $27.4 $19.1 ~$19.5 billion in pro-forma revenue LTM ended 9-30-14* * figures include pro-forma estimates for URS & Hunt Construction $12.1 $11.1 $11.0 $9.5 $8.1 $7.4 $6.2 $3.3 $3.3 Fluor Corp. AECOM + URS Jacobs Chicago Engineering Bridge & Iron URS AMEC + FWLT AECOM KBR AMEC + FWLT Foster Wheeler Babcock & Wilcox CY 2013 Revenue Page 3
Executing on the AECOM vision Our new organization as of January 2015 DESIGN & CONSULTING SERVICES CONSTRUCTION SERVICES AECOM CAPITAL MANAGEMENT SERVICES END MARKET GROUP AMERICAS EMEA APAC Building Construction EIC U.S. Global Commercial Global Sectors & Practices 5 AME Regions 4 EMEA Regions 3 APAC Regions Oil & Gas Power Industrial / Process Civil, Construction, Mining Nuclear New Build Nuclear O&M Fossil T&D Renewables Hydro Nuclear & Environment Global Field Services Mission Readiness Systems Engineering & Information Solutions Buildings & Places Civil & Infrastructure Oil, Gas & Chemical Power Industrial National Governments AECOM is organized in five Business Groups that consist of Operating Groups and Strategic Business Units Page 4
Nuclear Market Focus NEW BUILD ENGINEERING SERVICES DECONTAMINATION & DEMOLITION (Generation Program) EPC/EPCM/OE/PM OEM Support Program Development Site Selection Characterization Consents and Permits Localization Engineer of Choice Specialty Engineering Services License Extension Asset Enhancements Long Term Fleet Partner Tier 1 Service Provider Program Management Viable Alternative to OEM Global Market Focus Page 5
AECOM A Rich Nuclear Heritage Company Engineer of Record Constructor of Record 38 units 23 units Engineered and/or constructed first nuclear facilities in Italy, Japan, Mexico, Switzerland, Brazil, Spain, and Taiwan Page 6
Challenges Entities Face in Establishing a New Nuclear Program Page 7
Complexity: Parties Involved in a Nuclear Power Project Export Credit Agencies Government Government Financial Commitments Commercial Banks Financing Entities Government Treaty Commitments Multilateral Banks Subcontractors NSSS Suppliers Used Fuel Management Offtakers Decommissioning Nuclear Project Operators Fuel Supply Human Capital Public National Law Equipment Suppliers EPC Contractor Owners Labor Consultants Page 8
Challenges Distilled into Four Major Categories Human Resources Development Financing Infrastructure Delivery: Multi $ Billion Program Page 9
Human Resource Development 1200 1000 800 600 400 200 0 Present + 5yrs Present + 10yrs Present + 15yrs Present + 20yrs Present + 25yrs Academic and Research Related Admin / Business / Support Nuclear Regulator NPP Technical Research Reactor Operator NEPIO Staff Page 10
Infrastructure Area Development Needed Infrastructure Examples Nuclear Law & Treaties Education Legal Framework Nuclear Liability Nuclear Regulations Higher Education Research and Development Vocational/Technical Education National Nuclear Law International Treaties Licensing Requirements Engineering Programs Research Reactor Nuclear Technician Training Nuclear Operator Nuclear Power Expertise Very Large Capital Projects Portfolio Integration Construction to Operations Physical Power Plant Siting Electricity Grid Siting Alternatives Grid Compatibility Page 11
Financing Page 12
Delivery: Multi $Billion Program Program Setup & Commissioning Complex set of high risk, high impact activities over 10-15 years with huge financial implications Program Delivery Investment & Financing Licensing & Permitting Page 13
A Programmatic Approach to Mitigate Risk Page 14
IAEA Guidance Page 15
Program Management to Develop Proper Framework Public Outreach Develop Operating Organization Vendor Technology Selection Nuclear Legislation Site Characterization Coordination Agreements with IAEA New Nuclear Program Supply Chain Development Risk Management Infrastructure Planning Regulatory Framework Capacity Building Nuclear New Build AECOM ANBP 2015 April 23, 2015 Page 16
Human Resource Development Example: Capacity Building Strategy Market Drivers Delivery Capacity Building Creates Talent Pool for the Nuclear Industry NEPIO Corporate Staff Nuclear Operator Plant Staff Regulator Staff Education Staff Local Nuclear Industry Technical Competencies Specific Industry Needs Timing of Resource Needs Country Education System Capacity Local Labor Market Accredited University Partnerships Development of Nuclear Training Institute Global Nuclear Business Relationships Universities Labs & Research Recruiting, Staffing, and Talent Pipeline Fill the Talent Pipeline with Technically Qualified Local Expertise Page 17
Implementing a Successful Program and Lessons Learned Page 18
Implementing a Successful Nuclear Power Program International and bilateral agreements Stable, Independent independent and reliable nuclear generation regulation Technical skills and infrastructure Development development Proven Delivery delivery program Role of Government is Key key to success Success Fuel cycle Backend backend management Decommissioning Electricity and Water market regulation Page 19
Program Development Lessons Learned Start with right Partners Implement Nuclear Safety Culture early Overall task extremely complex Manage as a Program A well managed program is a safe program and most cost efficient Requires major national commitment and alignment Engage with the global nuclear industry Page 20
Questions? Jay Brister Vice President, Business Development, Power Page 21