ELT-ENADOM-PEC-L-220042

Santo Domingo, D. N.
July 1st, 2022

To: Mr. Jong Min Oh / Project Manager

POSCO Engineering & Construction Co. Ltd.
POSCO E&C Tower 1, 241, Incheon tower-daero, Yeonsu-gu,
Incheon, Republic of Korea

Subject: Project HV Cable specification and design (splice) deviation from Technical
Specifications requirements.

YOUR REF. N°: N/A.

OUR REF. N°: June 29, 2022, meeting to discuss this matter; SB-02995; SB-02846; NC-0024;
referent email about the topic.

Dear Sirs:

With reference to the above referred subject, according to Article 18.1 of the Contract, and under the
assumption that they do not affect the Project Schedule or Cost, Contract Milestones, Payment Schedule,
Guaranteed Performance, Emissions or Environmental compliance of the Project and/or Facilities.

As result of Contractor delivery of submittal SB-02995 created on May 12, 2022, Owner becomes aware
that Contractor is proposing a design for Project HV Cable considering a splice point contradicting Contract
Annex 1 – Technical Specification requirements, to which Owner rejects the implementation and
construction of such.

Based on the above, Owner has the following comments:

1.1. Owner reject’s Contractor request for spliced HV Cable

1.1.1.Contractor provided late and incomplete information to Owner.

1.1.1.1. Owner would like to remark from the start that only by May 12, 2022, by uploading
submittal SB-02995 when Contractor provides design and engineering information with
limited supporting information specifying that Project 138kV HV Cable is considered to
have a buried splice. Information that became available to Owner after the
manufacturing process of the cable was complete and under transportation, departing
from Busan Port on April 11, 2022, with an actual arrival for May 16, 2022. Therefore,
Owner was not timely informed about a noncompliance condition in the procurement of
a Project Good.

1.1.2.Contractor acknowledgement of splicing need and late sharing to Owner.

1.1.2.1. In addition to the above, as per Unpriced Copy of Contract with

Subcontractor/Vendor, information of splicing kits is considered as part of the document
Purchase order with Vendor as per the “Bill of Material”, a document shared with Owner
in November 2021, but not shared as an Engineering and Design Document. Only in
May 2022 was that information is shared with Owner.

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ENERGIA NATURAL DOMINICANA ENADOM, S.R.L., RNC: 1-31-99187-4 . Edificio Robles, piso 5, Santo Domingo, Santo Domingo, DN, República Dominicana
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1.2. Technical specification requirement clarification.

1.2.1.Notwithstanding the above, as part of EPC Contract Annex 1 – Technical Specifications, that
under Section 7 for Construction Works as is clearly specified in article 7.12, page 149:

1.2.2.With this requirement, splicing points were not be considered from the start.

2. Technical arguments of non-acceptance of proposed cable philosophy.

2.1. Vendor corroboration that cable can be manufactured in longer distances.

2.1.1.As discussed during the Monday June 20, 2022, meeting between the Parties, Vendor
personnel that participated in the call confirmed that longer versions of HV Cable can be
manufactured, but the need of splice responds to a result of stress calculation and analysis
based on Project conditions.

2.2. Installation philosophy and cable drums position improvement.

2.2.1.Taking into consideration Contractor submitted documentation named as Attachment: #1.

Calculation Report of Pulling tension for 138kV 300SQ, the position of the Drums is
considered not the best position for the cable laying Works. This logic is only acceptable when
a conduit or close trench condition is considered, this is not Project condition. Open trench is
Project consideration for the 98% of the cable route so an end-to-end Cable pulling Work
could be improved by relocating Cable drums and philosophy of laying Works for the cable.

2.2.2.By locating the cable drum on intermedium positions, for example between PS2 and PS3,
unrolling cable could be considered in the following sequence:

2.2.2.1. Locate drum between PS2 and PS3 and unroll the cable to the west as this is the
maximum length. Preferable near PS2.
2.2.2.2. Unroll enough cable with distance from PS2 to PS3 and to preview installation of
PS3 to PS4 distance.
2.2.2.3. Next step you could either:
2.2.2.3.1. Continue to unroll cable drum to the east to unfold remaining PS2 to PS1
length,
2.2.2.3.2. Or consider repeating this operation with rollers outside of the trench to
improve cable management and later slide the cable in the trench.

2.2.3.In all scenarios, cable pulling directly from P1 or P4 are considered not to be the best
technique to install the cable. As avoiding pulling the cable through P1, P2 and P3 are the
higher mechanical stress points. Owner requests Contractor to answer why sectional
installation was not considered and instead such unrealistic and unfeasible methodology was
applied within the calculation memory.

Contractor is requested to repeat the calculation of tension for power cable laying, considering a different
position of the Cable Drums.

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ENERGIA NATURAL DOMINICANA ENADOM, S.R.L., RNC: 1-31-99187-4 . Edificio Robles, piso 5, Santo Domingo, Santo Domingo, DN, República Dominicana
 ELT-ENADOM-PEC-L-220042

Contractor is requested to share formally a new calculation with the launch method proposed by the
construction team, since the proposal by Contractor from the extremes is not reasonable. In any case, given
the feedback from TE, Contractor should, in parallel, request the technical detail of the splicing to review
the construction plan and reinforce SAT, since in other projects this has been a point of failure due to poor
storage of materials, supervision and SAT tests.

Finally, Owner remarks that Contractor provided scenario calculations for HV Cable installation has not
been officially shared to Owner. It was not included on document ELT-01-EE-DWG-0006_Main Cable
Route Drawing_R2. Formal submission of Engineering Design shall be provided at the shortest.

In addition to the above, its important to remark that, as with this case, continuous and unexpected design
changes to Project Design are the main reason of delay in the approval from ETED to Project Design. Same
as reported delay in the Construction License Process. Changes like this unilateral decision to not comply
with Technical Specification and propose, procure and deliver a spliced HV Cable and Electrical Control
Building dimension and location Design, without considering existing interferences on Existing Plant.

Owner reserves all rights under the contract, by law and in equity.

Yours faithfully,

PEREZ Firmado digitalmente

PEREZ JOSE por PEREZ PEREZ JOSE
MANUEL - 44499019E
MANUEL - Fecha: 2022.07.04
By: __________________________
44499019E
16:17:54 -04'00'

Name: Jose Manuel Perez

Title: Project Director

Attachments: No.
Reply Required: Yes.

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ENERGIA NATURAL DOMINICANA ENADOM, S.R.L., RNC: 1-31-99187-4 . Edificio Robles, piso 5, Santo Domingo, Santo Domingo, DN, República Dominicana