የደብዳቤ ቁጥር

Ref.No.________________
ቀን
Date___________________

Cambridge Industries Limited

China National Electric Engineering Company Limited

Addis Ababa,Ethiopia

Contract: Reppie Waste –to-Energy project

Subject: Re:- Losses incurred by suspension

1. Ref :- RWEP-EEP-A-20171211-720

Dear sir,

We have received your letter ref 1) with a subject losses incurred by suspension, we
herby reply as follows,

In your letter stated that “due to the employer failed to release contract
payments to the contractor as per the contract and failed to to fulfil relevant
contract liabilities to provide power back feeding to site”

Our reply is that:

As we have stated our stand in our different correspondences, the EPC contractor is
not ready for the performance test of the plant as stated in the Particular condition of
contract 7.4 Testing, therefore the EPC Contractor is solely responsible for the
cause of the delay and losses incurred by ref 1).

In addition to the above,In your letter ref 1) stated that you are not able to maintain
some equipment due to missing 132KV/ power back feeding. As stated in our
previous correspondences and NCN’s the 10KV switchgear is not ready for
operation. As stated all open NCN’s must be closed and a complete test must be
performed before any 10KV voltage can be applied to the switchgear, therefore the
situation is the same today as it was a months before.
1. Maintenance of equipment mentioned in your letter ref 1)

No equipment or
Problem Reason EEP/ER reply
. system
Rusty, axis of 1.The EPC
1 Primary Air fan rotation gets contractor shall
deformed bring his own means
Rusty, axis of of power supply as
Secondary air
2 rotation gets stated in the
supply
deformed contract
Rusty, axis of 2. For the Rust the
Induced draft EPC contractor as his
3 rotation gets
fan responsibility to
deformed
Rusty, axis of maintain those rust
Circulating items as per the
4 rotation gets
Water Pump instruction of the
deformed
manual, if conditions
are not fulfilled EEP
has the right to
Rusty, axis of reject for the rusty
Feed Pump rotation gets of such critical items
deformed and appropriate
contractual action
will be taken as per
the Contract.
For the Rust the EPC
contractor as his
responsibility to
maintain those rust
items as per the
instruction of the
Steel structure manual, if conditions
of the whole Rusty are not fulfilled EEP
plant has the right to
reject for the rusty
of such critical items
and appropriate
contractual action
will be taken as per
the Contract.

2. Additional costs are also incurred by suspension

 No. Materiaal Used quantity Reason
1 Lime
2 Rando HD46
Lubricating oil
3 Meropa 220 reduction
gears oil It will evaluated according to
4 S46 Hydraulic oil the Contract
5 Rando HD32
Lubricating oil
6 Albania Grease EP
lubricating grease
7 it will be evaluated in
accordance with the contract as
Diesel Oil you are using the newly supplied
permanent equipment of our
diesel Generator .
8 Power As you have been used energy
from the grid as you stated in
your letter and it will be
evaluated as per the contract

3. Personnel listed below for carrying of the project site supervision

3.1 Personnel on the project Management Office

No Position Foreigner Ethiopian Our reply

Project Manager 0 0
Operation Manger 0 2
Communication manger 0 1
Site Manager 1 0
Engineer 5 0
Interpreter 3 0
Accountant 0 1
Filling Mangement 1 0
-It will be
Reception 0 1 evaluated as
Assistant 0 1 per the
contract
House keeper 0 3
Security Guard in office 0 2
Car driver 0 3
 Subtotal 1 10 14
Security Guard on site 0 32
Federal police on site 0 28
Subtotal 2 0 60
Total =Subtotal1+2 10 74

The EPC contractor shall invite the Employer or Employer Representative for joint
inspection and as you have been requested in our earlier letter you have been
requested to submit the qualification and clearance who is left the site.

3.2 Personnel for civil work on Reppi site

No Type of worker Chinese Ethiopian

1 Mangement 8 0
2 Rebar Worker 0 0
3 Wood Worker and scaffolder 0 0
4 Plasterer 1 0
5 Concrete worker 0 0
6 Welder 1 0
7 Fitter 0 0
8 Erection Worker 0 0
9 operator 1 0
10 Decoration Worker 1 3
Others (Kitchen helper and
11 1 3
cleaner
Subtotal 13 6

as you have been requested in our earlier letter you have been requested to submit
the qualification and clearance who is left the site.

3.3 Personnel for M&E Erection work on Reppi Site

No Type of worker Chinese Ethiopian Our reply

1 Mangement 3 0
2 Fitter 1 0
-It will be
3 Security 1 0 evaluated as
4 Electrical Erection 1 0 per the
contract
5 Insulation 1 0
Subtotal 7 0
as you have been requested in our earlier letter you have been requested to submit
the qualification and clearance who is left the site.

3.4 Personnel for Test and Commissioning on Reppi site

No Type of worker Quantity Our reply

Test and Commissioning 3

as you have been requested in our earlier letter you have been requested to submit
the qualification and clearance who is left the site. Moreover EEP have never been
requested and informed by the EPC contractor for the such personnel.

4. Equipment listed in the table below is left idle due to care of the project under
supervision

4.1 Equipment for Civil Work

No Name Quantity Our reply

Concrete Mixing equipment

1 Concrete Mixing station (750l) 1
-It will be
2 Tanker (7M3) 1 evaluated as per
3 Loader (ZL50) 1 the contract

Lifting and Transportation Equipment

4 Mobile Crane (25T) 1

5 Platform Truck (10t) 1

6 Platform Truck (5T) 1 -It will be

evaluated as per
7 Chongqing Lifan trolley 1
the contract
8 Light truck (2.8T) 1

9 Pickup truck 1

Wood Working Equipment

10 Electric hand drill 10

Iron work Processing and installation equipment

11 AC welder (type 500) 4
12 DC welder (ZXS-630) 2
Other Equipment
13 Manual Pump (4D20Y-100/10 1
14 Water Pump (Head 120m) 1
15 Pressure Pump (head 50m) 1
16 Volt-ammeter (Various Ranges) 1 -It will be
Digital Multimeter (F-87) 2 evaluated as per
17 the contract
 the contract
Angle Grinder (100 and 180, 2 5
18
for 100 and 3 for 180)
19 Diesel Generator (200KW) 1

20 Submerged pump 1

The EPC contractor shall invite the Employer or Employer Representative for joint
inspection

4.2 Equipment for Mechanical and Erection and test

The EPC contractor shall invite the Employer or Employer Representative for joint
inspection.

No Name Quantity Our reply

Erection Equipment
1 Chain Hoist 1T 30 -It will be
evaluated as per
2 Chain Hoist 3T 30 the contract
3 Chain Hoist 5T 10
4 Chain Hoist 10T 4
lifting Equipment
DC welding machine 40 -It will be
5
ZX7-400s evaluated as per
6 Winch 5T 1 the contract

7 Winch 2T 1

Other Equipment
8 Angle Grinder (100 and 125) 10 -It will be
evaluated as per
9 Digital Multimeter (F-87) 1 the contract
volt-ammeter (all Kinds of 0
10
measurement range)
11 Diesel Generator (600KW) 1

Measuring/Electrical/Commissioning Testing Equipment

Inside Micrometer -It will be
12 1
(50-600mm) evaluated as per
13 Vernier Caliper (0-300) 1 the contract

14 outside micrometer(0-25) 1
Inside dial Indicator
15 1
(10-18mm)
16 Dial Indicator (0-10mm) 1
Automation interference
17 Precise Medium loss 2
measuring instrument(289c)
Direct Resistance Tester
18 1
(JYR-50A)
19 Digital Multimeter (289C) 1
 Switching Characteristic
20 1
tester (JYK-11)
Earth screen impedance
21 1
ground tester (HNDW-IV)
Loop resistance tester
22 1
(JYL-200)
Complete equipment of
frequency Conversion series
23 resonance alternating 1
current pressure-tight test
(DSVF300-250/300)
Full-automatic no load
24 voltage ratio tester (NXBC- 1
III)
Portable high direct voltage
25 1
tester (ZGS-200/2)
Mutual Inductor Tester
26 1
(CTC7808)
Power driven megger
27 2
(3007A,ZX114A)
28 Level Gage (DSZ3) 1
29 Theodolite (SET210K) 1
30 Tape (50m, 5m) 26

5. loss of Consumables already deliver to site

No. Chemical Name Product Type Unit Quantity Our reply

RO anti- sludging
1 25Kg/Barrel Barrel 18
agent
Corrosion and Scale
2 25Kg/Barrel Barrel 564
inhibitor
3 Trisodium Phosphate 25Kg/Bag Bag 48
It will
4 Flocculating agent 25Kg/Barrel Barrel 50 evaluated
RO cleaning Agent according to
5 25Kg/Barrel Barrel 20 the Contract
(citric acid)
Ultrafiltration and
6 Nao Filitration 25Kg/Barrel Barrel 20
cleaning agent
7 Calcium Oxide 25Kg/Bag Bag 13840

6. “The guarantee period of a large number of equipment will exceed the time
limit committed by manufacturers because the equipment has been supplied
a long time ago. Additional costs will be incurred if extension of guarantee
period is requested”,

It will be evaluated in accordance with the Contract

We,therefore, instruct the EPC contractor to fulfil his contractual obligation, the
losses incurred as stated in your letter ref 1) is solely is your responsibility as per the
EPC/t contract. Your claim is rejected in accordance with Particular Condition of
Contract Sub-clause 3.5 Determination.

Best Regards,

CC:

- Generation Program office

- Ramboll