CS Energy is a government-owned electricity generator operating in Queensland.  CSE owns fixed assets worth in excess of 1.5B and spends $50-100M each year on capital upgrades and major maintenance.

CSE was looking to establish a long-term Asset Management contract arrangement to deliver overhauls and capital works across CSE's power stations, primarily at the Callide and Kogan Creek sites, the goal of which was to safely extend the life of existing generation assets, ensure consistent reliability in the National Electricity Market and achieve sustained cost reduction and efficiency improvements.  The scope of contract would cover major maintenance outages, statutory compliance inspections, control system upgrades and equipment rebuilds — work that is critical to keeping baseload power flowing to the grid, and where failure carries real consequences for network reliability.

PCI's role:

• Helped CS Energy define the ideal contracting arrangement, developing the procurement strategy and contracting model and securing senior executive approval

• Supported every phase of procurement to establish a 5-year pure alliance contract that to enable an optimal mix of CSE and contractor capability, systems and experience, best-for-CSE decision making and progressive development of best-practice outage management working in a unified integrated team environment.

• Developed the RFP and other market-facing documentation

• Supported drafting of the Project Alliance Agreement (PAA)

• Authored the compensation model in the contract

• Developed the KPI framework to drive alliance performance

• Prepared the Owner's Team to perform effectively during the selection process 

Outcomes:

• All published procurement dates and timelines were achieved, with the preferred partner appointed in August 2019

• The alliance continues to operate today, delivering consistent performance across CSE's generation fleet

• By 2026, the alliance had completed an $80 million overhaul of Callide Unit C3

• The alliance is currently delivering a major $60 million overhaul of Callide Unit C4