1. Project

Upgrade and Expansion Project of Habac Nitrogenous Fertilizer Plant of Habac Nitrogenous Fertilizer and Chemicals Company Limited.

2. The Investor

Ha Bac Nitrogenous Fertilizer Plant of Ha Bac Nitrogenous Fertilizer and Chemicals Company Limited.

Address: Tho Xuong precinct, Bac Giang City, Bac Giang province, Vietnam.

3. Investment capital sources

- Owner’s owned capital.

- Loans from Bank for Development of Vietnam and other commercial banks.

4. Methods of Project management

To be directly managed by the Owner.

5. Project location, climate and hydrographical characteristics

5.1 Project location

- The Project shall be constructed in the Northern side of the existing Plant and one part of the upgrading shall be laid on the existing production line, the location is bounded by Thoxuong precinct of Bacgiang City and Xuanhuong Commune of Langgiang District, Bscgiang province, Vietnam.

- Total area: 29.353 ha, in which:

+ For expansion: 29.003 ha.

+ For revamping the existing plant: 0.35 ha

- The location surface is plain, highest level + 11.2 m, lowest level -2.8 m and the average level + 5.4 m. According to the geological investigation report, the project location having geological characteristics as follows: After the cover layer , muddy soil and layers 4th, 5th in the deep of more than 10 meters with load capacity from 2.1 to 2.8 kg/cm2. Steel cored concrete pills shall be proposed.

5.2 Climate and hydrographic conditions

5.2.1 Climate conditions

Bacgiang province is located in the tropical and temperate climate zone of the Northern Plain, temperature, humidity and rainfall indexes clearly change for months and seasons. Prevailing direction of wind in the summer is hot and dry south-west wind and cold and dry northern east wind in the winter. Yearly average temperature is 22.4 oC. Max. Temperatures 41oC, lowest temp. 13 oC , annual humidity 80%, average rainfall 1,953 mm, average wind velocity 2.1m/s , average atmosphere pressure 757.71 mmHg, average sunny hours per year 1,653 hours. Bacgiang is located far from East Sea so it is rarely affected by the hurricanes and storm. Whirlwind and hail sometime happened locally in some mountainous districts.

5.2.2 Hydrographs

Thuong River is adjacent to the new Plant in the west side. It is hardly affected by the flood, highest flow is 64.4 m3/s, and lowest flow is 12.9 m3/s. Highest water level +6m, lowest water level + 0.5m. Underground water being found mainly in loam and sand layers. Analysis report shows that the underground water is not corrosive to the normal and high density concretes with indexes HCO3-, PH and free CO2

6. Raw and fuel materials

The main raw and fuel materials for the project is fine coal from coal mines of Hangai, Campha, Quangninh, Vietnam

- Main coal materials for gasification is fine coal No. 4a

- Fuel materials for new boiler is fine coal No. 5

- Fuel materials for old boiler is fine coal No. 4b

Both kinds of fine coals are transported to the Plant by waterway from Campha, Quangninh. The port shall be expanded to the upper river of Thuong River in order to make the discharge raw materials more effectively.

7. Methods and investment scales

7.1 Designed capacity

- Urea product: 1,562.5 MTPD (500,000 MTPY), in which:

+ Existing plant after revamping 562.5 MTPD (180,000 MTPY)

+ New plant 1,000 MTPD (320,000 MTPY)

- Liquid ammonia: 937.5 MTPD (300,000 MTPY), in which

+ Existing plant after revamping 337.5 MTPD (108,000 MTPY)

+ New plant 600 MTPD (192,000 MTPY)

- Operation time: 320 days per years

- Boiler and generators: Supplying enough for the process requirements and powers (during the normal operation, without power from state electrical grid).

- Besides the main products, there are some others such as Argon produced within the air separation section and S recovered from the production line.

7.2 Product quality

- Urea product must be satisfied by the minimum level of Vietnam standard TCVN 2619:1994

- Ammonia product must be satisfied by the minimum level of Vietnam standard TCVN 2613:1993

Other products such as sulfur and argon wil be satisfied the equal standards.

8. Rules of Plant revamping and expansion

8.1 Investment a new production line

8.1.1 Air separation unit

It consists of air separation system to supply of the new production line and commercial liquid argon system with the oxygen, nitrogen and compressed control air.

The air separation unit uses the method of inner compression with the advanced technology of the world.

8.1.2 Coal gasification

Shall coal gasification technology has been selected to supply synthesis gas for the new line and the existing production line after the revamping

8.1.3 NH3 synthesis plant

- Co conversion: Co-Mo sulful-tolenance catalyst shall be exploited, the conversion is divided into two stages:

+ First stage: All synthesis gas from Coal gasification. Enter into CO primary converter.

+ The second stage: Gas from the CO primary converter. Shall be divided into two parts: One part is continuously converted at the new line, the other shall be reduced its pressure and sent to the CO conversion place of the existing plant

- Acid gas removal section (CO2, H2S, COS): Rectisol technology from Linde or Lurgi shall be selected.

The removed gas product shall be divided into two parts: One part being sent to the NH3 synthesis section of the new line and the other shall be reduced its pressure and in combination with gas from CO primary conversion section sent to the CO conversion place of the existing plant.

- Gas purification: Liquid Nitrogen technology from Liquid or Air Liquid shall be selected.

- Sulfur recovery section: Three stages Clause technology shall be used.

- NH3 synthesis section: Topsoe technology from Denmark or Casale from Switzerland shall be exploited.

8.1.4 Urea synthesis plant

Smamprogetti (Italy) or Stamicarbon (Holland) technologies shall be used.

8.2. Upgrading the existing plant

8.2.1 Coal gasification

All coal gasification section, coal gas for the existing plant shall be taken for the new plant.

8.2.2 Sulfur removal in humid coal gas

Removal the whole section, only takes advantage of solution regeneration and solution containers.

8.2.3 CO shift section

Revamping the equipment of this section so as to be suitable for the technology after upgrade.

8.2.4 Sulfur removal in shift gas

Investment for 01 system similar the existing system ( 01 S-removal tower DN3,200 and two solution circulating pumps with capacity of 330 m3/h of each , the regenerating system shall be upgraded and expanded on the base of taking advantage of the existing system of the sulfur removal in shift gas) and shall be parallel operated with the existing system.

8.2.5 CO, CO2 removal section

Newly investment one methanolizing system to replace for the existing CO, CO2 micro-removal system.

8.2.6 Synthesis gas compression

Newly investment 04 piston H2-N2 compressors suitable for the revamping plant, satisfy compression capacity and compressed gas for the existing line after upgrading ( 03 in operation, 01 in standby), replacing for the 6 existing units.

8.2.7 NH3 synthesis section: No modification

8.2.8 NH3 product store

After revamping, the entire product from existing line shall be stored in the store s of the new plant, so the existing store shall be omitted.

8.2.9 Urea synthesis section: No modification

8.3 Utilities

8.3.1 Steam-power section

* Steam boiler:

- The existing boilers shall be used with fine coal 4b by two 75ton/hour boilers and five 35 ton/hour boilers. (03 in operation and 02 in standby).

- Newly installation 03 MP boilers using fine coal No.5, cap. 130 ton/hour per boiler

* Power supply and power generation system

- Power generation system: Using the existing generators (Two 12MW/unit and two 6 MW/unit). Newly investment for 02 generators driven by steam, cap. 15 MW/unit.

- Using the existing power supply and build one more 35 kV station. In the main 35 kV station includes one 6kV distribution room, 02 transformers cap. 16 MVA/6.3kV, UK=8% and the inlet 35kV line.

- Transformer station arrangement for sections, workshop shall be suitable for re requirements of the production.

8.3.2 Water supply and discharge system

8.3.2.1 Water supply

- Riverhead source water supply: Using the existing riverhead pumping station, newly installation one more pre-water treatment station with the proposed capacity 1,200 m3/h.

- Circulation water: Using the existing station, in which one station shall be revamped and expanded (Station No. 1) and newly installation one more water circulation station with capacity 48,000 m3/h to satisfying the need of water for the new plant and using the 02 existing generators (01 unit 6MW and one 12 MW) with one-way cooling water (The circulation water will be used after revamping).

- Desalt water: Using the existing desalt water station and newly build one more station with capacity 150 m3/h to satisfying the need of the new plant and the existing line after modification.

8.3.2.2 Water discharge system

- Waste water treatment system: Newly construction 01 waste water treatment system with advanced technology. Water discharge from this system shall be satisfied the Vietnam Standard (column A of TCVN 5945:2005).

- Water discharge system: All water discharge of the two lines (including rainfall) shall be discharged by the existing pumping station.

8.3.3 Control system

General specifications of the control system for the Project (including but not limited).

- General data for measuring and control, the newest standards and rules shall be applied.

Measuring and control include: The plant automation system (safety and central control), measuring protection, common measuring equipment (programmed digital control set, paging set etc.), specialized meter (analysis units) and spare parts for the new and existing plants.

- The supervision and control for the Project shall be carried out at center room and control room at each workshop. The specific equipment are used to connect the automatic system of the Plant via connecting boxes

- The central control shall be used, the system DCS, ESD.AMS and ITCC are exploited for the operation. Measuring-automation- DCS standard net shall be Hart+FF (Foundation Fieldbus). Main metering equipment, important valves etc. shall be purchased by request of licenser

- Communication system include the production managing and controlling telephone, firefighting alarm, handheld telephone set at the main production places.

8.3.4 Port system

The existing port shall be used and newly build one more berth and port adjacent to the existing ones at the headriver side and the conveyor for transport raw coal to the new stores.

8.3.5 Store system

- Raw coal store: Newly build stores to have capacity of storing materials for 40 common production days (about 64,000 tons).

- Fuel coal store: Upgrade the existing store so as to have capacity of storing capacity for 30 common production days.

8.3.6 Product store

- Urea product store: Using the existing store system and newly build stores to have capacity of storing packed urea bags (30,000 tons).

- Urea bagging system: Continuous baging, and semi-mechanical loading.

- NH3 product store: Newly investment 02 NH3 stores with atmosphere pressure, 5,000 m3 volume of each.

8.3.7 Fire fighting system and environmental protection

8.3.8 Central laboratory, center control building, compression station, methanol store, flare.

8.3.9 Slag dumps; lighting system for equipment, on the road, for building; the inner transportation road on the whole plant; administrative building for each factory; central analysis, analysis room for the thermal workshop and the coal sample analysis room.

9. Requirements for technology and equipment for the Project.

9.1 Requirements for technology

The technology should be matured, advanced and proven on the world over with low consumption of energy, fuel and material and protect the environment.

9.1 Requirements for equipment supply

- The licensed equipment should be selected by the request of the licensor. Main equipment should be imported from EU, G7 (details shall be stated during the bid process); the remains shall be manufactured in Vietnam or countries.

- All equipment should be newest, most advanced, new 100%, and manufactured from 2007 up to present.

10. Requirements for fire fighting and environmental treatment

10.1 Requirements for fire fighting

The design and construction of fire fighting system for the plant should comply with the newest standard on fire fighting of Vietnam.

10.2 Requirements for environmental treatment

- All solid. Liquid, gas wastes shall be treated by the newest standards of Vietnam before discharging (For the industrious waste water should be satisfied of column A TCVN 5945:2005, for waste gas as in column B TCVN 5939:2005).

- Others such as noise, light, poisonous gas etc. must be treated and satisfied by the newest standards of Vietnam.

11. Applied rules, standards

The Project shall use the rules, standards of Vietnam, China and other equal rules, standards for the architecture design, structural calculation, and use material for construction items on the following bases:

- Design must be satisfied all rules, standards, synchronous material within the industry architectures

- Design must be satisfied the capacity, efficiency, economy, beutiful looking under the possible capacity

- Using local materials, environmental protection and ecological balance, safe energy and anti corrosion in the chemical condition should be taken into account for the Project.

- Architecture solutions should be satisfied for the process of the chemical plants, anti-corrosion, anti fire, safety and sanitary conditions

Building, workshop item shall have steel concrete structure and steel frame. All foundation and base of the construction items should be treated.

11.1 The Vietnamese mandatory applied standards

- Standards on climate

- Standards on geography and hydrograph

- Standards on healthy safety

- Standards on fire-fighting and explosion

- Standards on environment

- Standards on labor safety

- Standards on project design on earthquake

11.2 Rules, standards relating to the technology transfer contract requested by the licensor with agreement given by the Owner

11.3 The national rules, standards of some countries such as America, Germany, Japan, UK, China etc. and international rules, standards may be applied in plant design, manufacture, test, check of equipment, material, techniques-design for electrical equipment, manufacture and test of metering units etc.

11.4 When such rules, standards are not agreed, the more stringent rules shall be applied.