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Terasen International Revamps Energy Infrastructure in Eastern Europe
with World Bank Support
Over the past decade, Terasen International Inc. (formerly BC Gas International) has completed some 15 projects funded by the World Bank and the Canadian International Development Agency (CIDA), leading to a solid presence for the company in Eastern Europe. Among these assignments, TII was a key player in developing a strategy for environmental improvements in Russia's regional energy sector and in modernizing the natural gas network in Romania.
A subsidiary of Terasen Inc.—one of Canada's largest integrated energy companies—Terasen International Inc. (TII) provides its expertise in the natural gas sector to international clients that include municipal and national governments, private companies and financial institutions. The Vancouver-based company specializes in EPC (engineering, procurement and construction) projects, operation of natural gas distribution and transmission systems, multi-utility services (natural gas, electricity, water and telecommunications infrastructure), NGV/CNG (natural gas for vehicles/compressed natural gas), gas supply, tariff design, environmental consulting, and feasibility studies.
Restructuring Kamchatka's Energy Sector
In December, 2002, TII wrapped up a US$450,000 World Bank-funded project for the Russian Federation government and the Kamchatka Region Administration, for which the firm undertook a detailed study of the regional energy market.
As Project Manager, TII worked with Acres International and local company Progressor Audit & Consulting to develop an overall strategy for restructuring and regulating a number of power facilities and companies in the Kamchatka region—including thermal generating plants run by the joint stock company Kamchatskenergo. Roughly the size of Japan, Kamchatka is a pristine peninsula in the Russian Far East. Other components of this project were the creation of a framework for privately owned, independent power plants and an analysis of alternative energy sources, such as local natural gas reserves. In addition, a system was developed to regulate the regional energy market and to establish fair tariffs, including a plan for adapting rates to different consumer groups.
An Environmental Management System for Russia's Oil and Gas Sector
Currently, TII, with support from CIDA, is developing an environmental management system that will enable Russian officials and oil and gas companies to better manage environmental issues. The goal of this three-year, US$1.6 million project is to raise government and corporate understanding of environmental management policies and practices. It will also increase managerial and technical skills among participants from central, regional and local administration and enterprises. An important facet of this project will be the impact of improved environmental management on climate change, along with the identification of potential joint implementation projects. Local partners include the Russian Ministry of Fuel and Energy, the Gubkin Institute of Oil and Gas, Gazprom (Russia's largest gas company) and various other oil and gas companies. "By the end of the project there will be more Russian officials and industry representatives capable of addressing and managing environmental issues, through regulation, enforcement, consultation and environmentally responsible operations," says Ivana Safar, Terasen International's Business Development Manager.
Revamping Romania's Natural Gas Network
As part of an earlier World Bank project aimed at modernizing the natural gas network in Romania, TII provided engineering, management and supervision services to the National Gas Corporation, Romgaz R.A. This assignment involved the installation of a SCADA (Supervisory Control And Data Acquisition) system and telecommunications for the transmission system; conducting a distribution diagnostic study; and replacing more than 1000 kilometres of severely corroded steel pipelines with polyethylene pipes. This US$1.75 million consulting contract was carried out from 1996 to 1999.
A Kick Start from Canada's Trade Commissioners
Since its inception in 1991, Terasen International has completed more than 70 assignments in Asia, Central Europe, Latin America, North America, the Middle East and Russia. At the outset of these projects, Canada's trade commissioners have played a key role. "We get in touch with the embassies whenever we start to work in a new country," says Safar. "They are great sources of information about regional markets. In particular, we have had exceptionally good experiences with trade commissioners in the Central European region who helped us to identify key contacts and set up initial meetings."
How did the company go on to win—and keep winning—World Bank-funded contracts? "We submitted proposals through the regular tendering process and as projects were successfully completed, TII built up a strong reputation," says Safar. "This provided us with references that helped to get us involved in other IFI and CIDA-backed projects. "Maintaining a high profile with the funding agencies is key," adds Safar. "We make sure to keep in touch with the World Bank and other institutions and visit them on occasion."
For more information, contact:
Export Financing Division, DFAIT
Tel.: (613) 995-7251
E-mail: ifinet@international.gc.ca
or
Ivana Safar, Business Development Manager
Terasen International Inc.
Tel.: (604) 293-8350
E-mail: ivana.safar@terasen.com
Internet: www.terasen.com
Publication date: 2003/07/08
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