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10 Point Check List Foam System Rev 02

This document is a request for capital investment to install a foam suppression fire protection system at the Guatire Plant in Venezuela. The current systems do not adequately protect the areas storing flammable chemicals like alcohol. The proposal is to install sprinklers and foam systems at the Enamel Plant and around the alcohol storage tanks to quickly control and extinguish potential fires. Quotes were obtained from four suppliers with Walco Industrial providing the lowest estimated cost of BsF 2,300,997.47 or $535,115.69 for supply and installation. The system is expected to satisfy fire protection requirements for 15 years in accordance with governmental and Avon standards.

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621 views7 pages

10 Point Check List Foam System Rev 02

This document is a request for capital investment to install a foam suppression fire protection system at the Guatire Plant in Venezuela. The current systems do not adequately protect the areas storing flammable chemicals like alcohol. The proposal is to install sprinklers and foam systems at the Enamel Plant and around the alcohol storage tanks to quickly control and extinguish potential fires. Quotes were obtained from four suppliers with Walco Industrial providing the lowest estimated cost of BsF 2,300,997.47 or $535,115.69 for supply and installation. The system is expected to satisfy fire protection requirements for 15 years in accordance with governmental and Avon standards.

Uploaded by

jackson
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© © All Rights Reserved
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APPENDIX 1B


CAPITAL INVESTMENT REQUEST
10-POINT CHECKLIST

PROJECT NAME: FOAM SUPRESSION SYSTEM


(FIRE PROTECTION)
CIR NUMBER:

OBU: LATIN AMERICA

COUNTRY: VENEZUELA

LOCATION: GUATIRE

SUBMITTED BY Raymelí Centeno Ordaz EHS Engineer


Name Title

________________________ __________
Signature Date

REVIEWED BY ________________________ ____________________


Name Title

________________________ __________
Signature Date
1. CURRENT SITUATION AND FUTURE OUTLOOK

The area of storage and handling of hazardous chemicals Guatire


Plant is located on the east boundary and consists primarily of: Enamel Plant
(warehousing and manufacturing), storage tanks bulk of corn alcohol and
reception of alcohol.

Currently, the area of alcohol tanks does not have any fire protection,
just are located just next to them, fire extinguishers, while in the Enamel
Plant area, has a system the extinction based on carbon dioxide, which
consists of nineteen (19) cylinders of 150 lbs each one.

Fire Protection System Existing to


Enamels Plant (Extinguisher Agent: CO2)

Alcohol Tanks. Nowadays, this


area don´t have fire protection
system, only portable fire
extinguisher
Due to the chemical characteristics of the substances stored, among
which the risk of flammability is high, it is necessary to adequate protect the
area in which they are stored.

For Enamel Plant is required adapt the current protection system, in


order to have a highly effective extinguishing agent but that does not
compromise the life of one of the partners who occasionally works in that
area and can be trapped during a download of system, accidental or
emergency.

For alcohol´s tanks, in necessary meet the requirements and


recommendation issued by Zurich CA, during the audit of fire risk of the
property, held on 03 November 2010, which set as shown the image, the
need to incorporate a foam system, in order to mitigate the potential
spread of flames in case of fire generated.

Source: Fire Risk Report Property: Property-Fire / Business Interruption


Avon Cosmetics de Venezuela. Evaluation Date: 03/11/2010. Date of Issue: 19/11/2010

For these reasons, it is necessary adapt the system to protect the said
areas through this project, which aims at quick control and extinguish a fire
caused by a spill of a flammable product in the areas described above.
Foam System Installation Diagram - Alcohol Tanks
Foam System Installation Diagram - Enamel Plant

2. DETAILS/BENEFITS OF SPECIFIC PROPOSAL

The investment consists of replacing the current system installed


on Enamel Plant and the incorporation of protection for
the tank area. Thus, it is intended that the system is basically composed by:

• Foam sprinklers system (AR-AFFF) to Enamels Plant.

• System inundation foam to levees where are alcohol storage tanks.


• Hose of type no collapsible to extinguish a fire in the reception of
alcohol.

• Two (02) hose stations, one near the tank dike area of alcohol and other
to the Enamel Plant respectively.

• Proportioner system foam pressure type balanced line.

3. REASON FOR PROPOSAL

- Comply with provisions governmental and international organizations


regarding fire protection (COVENIN NFPA).

- Adapt the systems installed in the plant Guatire with corporate standards
Avon Global.

4. FINANCIAL JUSTIFICATION

Not having an effective and appropriate system in the areas of


chemicals management as Warehouse Enamel Plant and Alcohol Tanks,
that responding quickly and effectively in case an emergency by fire,
would cause significant losses and would put at risk of associated safety
and manufacturing plant.

The project has no financial justification beyond the program’s main


objective, which is compliance with government rules and regulations, as
well as aligns with corporate EHS standards to ensure the safety of human
resources and assets of the company.

5. HOW LONG WILL PROPOSAL SATISFY REQUIREMENTS?


The expected life of the investment is 15 years.

6. LOCATION OF INVESTMENT
Planta Guatire. Estado Miranda, Venezuela.
7. ALTERNATIVE SOLUTIONS CONSIDERED
For the preparation of this project will consider the alternative
presented in the Detail Engineering Company presented by Lozano &
Asociados CA
According to the specifications, the project will consist of the
purchase and installation of devices that make up the foam extinguishing
system in quantities that are required and with the right characteristics to
operate in the areas covered by the scope.

8. QUOTATIONS/TENDERS CONSIDERED

INVESTMENT DETAILS

N° SUPPLIER DESCRIPTION PRICE (BsF) PRICE ($)


1 GANB Inspectores de Riesgos Supply and Installation of 1.932.682,76 449,461.11
2 WALCO Industrial C.A foam extinguishing system 2.300.997,47 535,115.69
for Enamel Plant, Alcohol
3 I.P.D Ingeniería C.A Tanks and Alcohol 1.222.633,00 284,333.26
4 B&V Ingeniería y Servicios C.A receiving 3.318.221,50 771,679.42
Official exchange rate: 1 $ X BSF. 4.3

DESCRIPCION CTD WALCO Industrial S.A

Supply and installation of sprinklers system 1 Bs. 367.843,05 $ 85,544.89

Supply and installation of foam system 1 Bs. 312.326, 71 $ 72,634.12

Supply and installation of dispenser´s foam


1 Bs.1.313.381,31 $ 305,437.51
system
Supply and installation of foam hoses
1 Bs. 307.446,39 $ 71,499.16
system
Sub - Total Bs. 2.300.997,46 $ 535,115.68

Contingency (10%) Bs 230.099,746 $ 53,511.57

TOTAL Bs 2.531.097,206 $ 588,627.25

9. AMOUNT INCLUDED IN PROFIT PLAN (WITH ANALYSIS OF VARIANCE TO PLAN)


This investment it is included in the 2012 Profit Plan.
10. DETAILS OF INVESTMENT TO BE DISPOSED OF (IF ANY)

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