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March 26, 2024

To : Danny Lai (Guy Carpenter)

From : Gali Y. Ledesma (ERM Phils)

cc : Dan Jules Jorolan (AVP, ERM Phils)

Subject : AGUS 1,2,4,5,6, 7 & Pulangi 4 Hydro Power Plant Survey & Risk
Assessment

Sir:

In preparation for our upcoming risk survey on captioned subject (various Agus & Pulangi
4 hydro power plants). The survey will result in two (2) deliverables; 1. Survey Report (for
insurance/re-insurance purposes), 2. Loss Control Recommendation (addressed to Guy
Carpenter and the insured).

Both reports will be based on the verbal information, documentation review and the
physical walk through of the entire facility with the intention of providing an overview of
risk in relation to plant operations, current conditions and issues that may impact overall
business objectives of above captioned hydro power plant’s management.

The survey and assessment will be conducted by ERM team. Each property survey starts
with a discussion/presentation about each unique plant system, controls and procedures
in place followed by a tour around each facility and concludes with an exit meeting to
discuss findings and propose risk reduction recommendations, if there are any.

Should you approve, below is the proposed survey schedule with designated surveyor
assigned for each hydro power plant. The entire duration of the survey is estimated to be
at least 3 days per hydro power plant including close out meeting provided all information
requested is available. The proposed schedule will be updated once we receive the pre
audit documents and we can fine tune the logistics, as well as the duration per segment of
the audit/risk survey. f

Propose Survey Schedules:

Plant Address Built Commissioned No. Capacity TTL Survey

Date of (MW) Capacity Date
Units (MW)
Agus 1 Marawi City 1991 1 40 80 May 7-
HPP (ARMM) 1 40 9, 2024
Agus 2 Saguiaran, 1975 1979 1 60 180 May 7-
HPP Lanao del 1 60 9, 2024
Sur 1 60
Agus 4 Balo-I, 1979 1985 1 52.7 158.1 May 7-
HPP Lanao del 1 52.7 9, 2024
Norte 1 52.7
Agus 5 Ditucalan, 1980 1985 1 27.5 55 May 14-
HPP Iligan City 1 27.5 16,
2024
Agus 6 Fuentes, 1953 1 25 200 May 14-
HPP Iligan City 1 25 16,
1 50 2024
1 50
1 50
Agus 7 Fuentes, 1979 1982 1 27 54 May 14-
HPP Iligan City 1983 1 27 16,
2024
Pulangi Pulangi 1982 1985 1 85 255 May 21-
4 HPP River, 1986 1 85 23,
Maramag, 1986 1 85 2024
Bukidnon

Survey Schedule Itineraries:

(May 6, 2024/Mon) - 3 teams leave from Cebu to Cagayan de Oro enroute to Iligan
City

Day 1 (May 7, 2024/Tue) - simultaneous in 3 different plants (Agus HPP 1, 2 & 4)

0800-0830 Arrive Site (specified plant): Introduction (about us, purpose of

visit, what we intend to achieve)

0830-0900 Discuss plant documentary requirements availability

 0900-1200 Discussion with Plant building Admin & Operation Team, PPT
Presentations from plant O & M team would be appreciated
(Please refer to discussion points below)

1200-1300 Lunch

1300- 1700 Continue discussions (Safety, security, Instrumentation &

control, fire protection, emergency response team, etc)

Day 2 (May 8, 2024/Wed):

0800-1000 Remaining topic discussion (if there’s any)

1000-1200 Plant risk assessment/site tour

1200-1300 Lunch

1300-1700 Continue plant tour

Day 3 (May 9, 2024/Thu):

0900-1200 Close out meeting with plant admin, O & M, safety and
security team/ handing out findings & recommendations

1200-1700 Travel to Cagayan de Oro

Day 4 (May 10, 2024/Fri) : Leave CDO to Cebu

(May 13, 2024/Mon) - 3 teams leave from Cebu to Cagayan de Oro enroute to Iligan
City

Day 5 (May 14, 2024/Tue) - simultaneous in 3 different plants (Agus HPP 5, 6 & 7)

0800-0830 Arrive Site (specified plant): Introduction (about us, purpose of

visit, what we intend to achieve)

0830-0900 Discuss plant documentary requirements availability

 0900-1200 Discussion with Plant building Admin & Operation Team, PPT
Presentations from plant O & M team would be appreciated
(Please refer to discussion points below)

1200-1300 Lunch

1300- 1700 Continue discussions (Safety, security, Instrumentation &

control, fire protection, emergency response team, etc)

Day 6 (May 15, 2024/Wed):

0800-1000 Remaining topic discussion (if there’s any)

1000-1200 Plant risk assessment/site tour

1200-1300 Lunch

1300-1700 Continue plant tour

Day 7 (May 16, 2024/Thu) :

0900-1200 Close out meeting with plant admin, O & M, safety and
security team/ handing out findings & recommendations

1200-1700 Travel to Cagayan de Oro

Day 8 (May 17, 2024/Fri) : Leave CDO to Cebu

(May 20, 2024/Mon) - 1 team leave from Cebu to Cagayan de Oro enroute to
Bukidnon

Day 9 (May 21, 2024/Tue) - survey Pulangi 4 hydro plant

0800-0830 Arrive Site (specified plant): Introduction (about us, purpose of

visit, what we intend to achieve)

0830-0900 Discuss plant documentary requirements availability

 0900-1200 Discussion with Plant building Admin & Operation Team, PPT
Presentations from plant O & M team would be appreciated
(Please refer to discussion points below)

1200-1300 Lunch

1300- 1700 Continue discussions (Safety, security, Instrumentation &

control, fire protection, emergency response team, etc)

Day 10 (May 22, 2024/Wed):

0800-1000 Remaining topic discussion (if there’s any)

1000-1200 Plant risk assessment/site tour

1200-1300 Lunch

1300-1700 Continue plant tour

Day 11 (May 23, 2024/Thu):

0900-1200 Close out meeting with plant admin, O & M, safety and
security team/ handing out findings & recommendations

1200-1700 Travel to Cagayan de Oro

Day 12 (May 24, 2024/Fri) : Leave CDO to Cebu

The inspection agenda includes an initial discussion with the respective plant personnel to
be followed by a plant tour and an exit meeting at the end of the visit to discuss survey
findings and risk mitigation recommendations if there are any. We appreciate that the
requested documents (if there’s any) will be prepared prior to the visit as time is critical
during insurance placement.

Below is the list of discussion points. Please note that these are sent in advance to the
representatives of the insured (PSALM) for the latter to prepare/compile to save time
during the site visit. PPT Presentations from each plant team would be appreciated.
 1. Company profile/plant history/ milestone
2. On-going projects/short term plan
3. Major Equipment Particulars: Suppliers name, rating, brand and country of
origin (turbine, generator, transformers, etc)
4. Plant staffing/organization
5. Plant general maintenance/ spare parts inventory control
6. Plant auxiliaries and other utilities
7. Available fire protection system
8. Calibration on protection system sensors & relays
9. Plant Key Performance Indicators
10. Infrastructure seismic and wind design parameters
11. Slope protection and drainage (protection against slides, rock fall, etc)
12. Flood mitigation
13. Quality system/certifications
14. OHSS/environmental, security, contingency plan
15. Social responsibility
16. Fire Layout Separation (Control Room/turbine
hall/switchgear/Transformers)
17. Previous 5-year loss history, causes and mitigation
18. Regulatory clearances/permits

Miscellaneous Information:

• Major Loss History

• Long and Short Term Plans
• Any major operation & maintenance problems encountered including
incidents resulted in an insurance claim.
• Any latest equipment supplier issues
• Service contractors’ issues
• Community issues/ External threats
• Govt. regulatory issues

Plant Tour Sequence:

• Dam Structures/ weir

• Water intake system/Penstocks
• Powerhouse (T-G assembly and auxiliary equipment)
• Instrumentation & Control System
 • Warehouses/motorpool/fabrication shops
• Main transformers (including service transformers units)
• Switchgear (main distribution system)
• Switchyard/tapping point
• Tailrace
• Utilities/Back-up power system
• Fire protection system
• Security systems

Documents Needed per plant (should be sent to ERM a week prior survey date for
advance review)

• Site development plan/ site map

• Building layout plans
• List of machineries and equipment/specifications
• Property appraisal report – detailed TIV
• 3-year plant performance indicators (generation, outage, utilization, etc)
• Preventive Maintenance Plan
• Major Equipment Preventive Maintenance Report (test and inspection of
Turbine, Generator, Transformers, fire protection, etc)
• Protection System Calibration Reports
• Vibration & overspeed monitoring
• Electrical single line diagram
• List of ongoing projects, improvement/rehabilitation or modification plan
• Building wind and seismic design criteria
• Management (organizational structure)
• Employee Training program
• OSHS Program
• Threats & vulnerability assessment
• Spare parts inventory & management
• Regulatory clearances /permits and or certifications