SECTION PAGE

8. QUALITY PROGRAMME ...2 8.1. INTRODUCTION ...2 8.2. COMPANY QUALITY SYSTEMS ...2 8.3. COMPANY DIVISION OF QUALITY RESPONSIBILITIES and INTERFACES ...3 8.4. ORGANISATION ...7 8.5. VENDOR QUALITY ASSURANCE...7 8.6. QUALITY CONTROL FUNCTIONS (INSPECTION AND TEST) ...8 8.6.1. ALSTOM Power In House and Procurement ...8 8.6.2. ALSTOM Power Procurement...9 8.7. QUALITY AUDITING ...9

EAST SUSSEX – Q2150 sheet 1 of 9 December 2001

COMM 8-Quality Assurance

EAST SUSSEX – Q2150 sheet 2 of 9 December 2001 COMM 8-Quality Assurance

8. QUALITY PROGRAMME 8.1 INTRODUCTION

The Quality Assurance System of ALSTOM Power is Certified to BS EN ISO 9001 1994 and a copy of Lloyds Register Quality Assurance Accredited Certificates are attached.

8.2 COMPANY QUALITY SYSTEMS

ALSTOM Power has successfully implemented its Quality Assurance System for several years - in accordance with Accredited Third Party Certification by Lloyds Register Quality Assurance to BS EN ISO 9001. The manuals and procedures listed comprehensively detail the company's procedures in respect of project execution, procurement (purchasing), quality assurance, engineering, installation and commissioning etc., and are available for inspection at the company's offices.

As necessary Contract Specific Quality Plans will be drawn up and the ALSTOM Power Quality System caters for this. Examples of these are the Site Quality Plan, which references standard system procedures and Commissioning Procedures. The Company Quality System Manuals and Procedures cover all other activities. An example of an ALSTOM Power Site Quality Plan is given in the Attachments.

The policy of ALSTOM Power for power generation plants is based on the following principles:

y In meeting customer requirements the quality of the products and services provided by ALSTOM Power shall be at least equivalent and, whenever possible, superior to that provided by our competitors.

y Quality shall be defined and assured in accordance with economic principles.

y Quality assurance shall be regarded as a commitment on the part of management and an obligation for staff on all levels. Every employee shall be responsible for the quality of his work.

y The awareness of quality on the part of all employees is the fundamental prerequisite for preventing non-conformance.

y Quality assurance shall be a function integrated into all phases of operation from marketing to the processing of contract and to after-sales services.

EAST SUSSEX – Q2150 sheet 3 of 9 December 2001 COMM 8-Quality Assurance

8.3 COMPANY DIVISION OF QUALITY RESPONSIBILITIES and INTERFACES Group companies operate to the requirements of ISO 9001, and therefore, apart from certain organisational second and third tier operation procedures/differences (included computerised systems) the intent and basic systems of the ALSTOM Power Group are the same.

The actual division of quality assurance activities and interfaces between the two companies on the contract are addressed as follows:

The breakdown of the quality assurance activities and interface in accordance with the ISO 9001 quality assurance criteria is shown in the attached schedule and should be read in conjunction with the following notes:

i Contract Review

ALSTOM Power has overall responsibility and includes Project Co-ordination Procedure, Contract Documentation Review, Division of Work , Scheduling, Contract Quality Assurance/Quality Control, etc.

Thereafter overall Progress Monitoring and review of all aspects of the contract. ALSTOM Power are the client interface on all matters related to the contract.

ii Design Control

ALSTOM Power (UK) have overall technical responsibility, i.e. design authority and design control will be covered under their quality assurance system, including design change control, design verification and design review.

iii Documentation Control

Each participating company will be responsible for its own documentation control in accordance with its own quality assurance system. However, wherever possible, common systems/format will be used with an agreed common interface. No problem has been encountered as the two companies use a lot of common systems and format.

iv Purchasing

Each participating company will control its own sub-contract purchase in accordance with its own quality assurance systems. Each participating company will be responsible for its own vendor assessment/approved vendor list but each of the companies assessments will be accepted by the other.

EAST SUSSEX – Q2150 sheet 4 of 9 December 2001 COMM 8-Quality Assurance

v Manufacturing

Quality assurance/quality control systems applicable to participating companies only, who have significant manufacturing responsibility as against ALSTOM Power, who sub-contract all manufacture/construction services.

vi Site Quality Assurance/Quality control Services (including Commissioning)

Responsibility of ALSTOM Power but with the same technical input and approval responsibility as purchasing above. It is usual to have a separate civil quality assurance/quality control engineer seconded from the civil design contractor or consultant but functionally reporting to the ALSTOM Power Quality Manager.

Certain specialist erection functions may have a specialist quality assurance/quality control engineer seconded to site for the duration of a particular function again functionally responsible to ALSTOM Power Quality Department.

vii Quality Records

Each participating company will be responsible for its own quality assurance records. However, ALSTOM Power will be responsible for collating together, compiling and submitting quality assurance records to the client and maintaining the Quality Archive.

viii Management Review

Each participating company will be responsible for its own quality assurance system management review.

ix Internal Quality Audits

As per management review.

x Training

As per management review, however, there is an interchange of training between the participating companies.

xi Servicing

Overall project/contract responsibility including quality assurance/quality control at ALSTOM Power with technical responsibility and input from participating companies.