Dear Sirs,

We write with reference to AAGC-LETTER-020539 dated 14 October 2019 and

respond as follows:
1- The Contractor's response was received 53 days after the Engineer's letter,
which is not acceptable considering the criticality of the activities in question.
2- In October 19 Update submitted through AAGC-TRANSMIT-029737 dated 21
October 2019 the major Rail System Key Dates have moved significantly
again. The start of SODT, start of Trial Run and the Dynamic Test Whole Line
Complete (including Test Report Approved) are shifted from 2 January, 1
February and 11 February 2020 as per the Programme Rev.G to 29 January,
28 February 2020 and 9 March 2020. This is a delay of 27 days for all above-
mentioned milestones.
3- In October 2019 Update, a lot of Rail System Activities has turned to be
critical with negative floats despite a lot of reminder issued by the Engineer
since August 2019 (e.g. PSJV-LETTER-020687, 020973, 021906 related to
ATC; 021099, 021579 related to OCS; 021021, 021227, 021905, 022369
related to RSK, 021006, 020692, 021908 related to AFC, 021095, 021096,
021925, 022011 related to COM – this list is not exhaustive). The number of
RSY activities with negative float now reaches to 687 compared to 0 as at
September Update.
4- To date, some Rail System Activities’ float still remain positive as reported by
the Contractor in the October 2019 Update, however, the Engineer consider
these activities as critical due to continuous delay and the clear impact on
the start of SODT and the Revenue Service.
5- The details of the critical Rail System Activities are as follows:
a. AFC: The installation of Gates/ TVM at Area 1 is planned to be
completed by 3 October 2019 as per the Programme Rev.G, however
Contractor just start the installation with a very slow progress due to
the bad coordination with tiling and ceiling activities. The installation of
Gates/ TVM at Area 2 is planned to be completed by 23 October 2019,
however, the installation has not yet started to date. Especially, the
delay in installation at R74 and Expo (which have negative float now)
is negatively impacting the AFC System Integration Test and the start
of SODT.
b. ATC: The delay in Build 6 software has already exceeded the available
float in both the Programme Rev.G and the October 2019 Update. This
critical delay is now impacting the completion of testing on Extension
from TOCC, the development of Revenue Service Version Build 7.0 and
consequently the start of SODT and Revenue Service. The auto mode
test at Area 1 is still ongoing despite it is planned to be completed by
10 September 2019 as per Programme G, which now impede the VCC
7/2 border testing between legacy and new extension line.
Consequently, the start of SODT is now impacted.
c. OCS: Despite the OCS V2 Software Development is planned to be
completed by the end of June 2019 with final FAT on 21 June 2019 as
per Programme Rev.G, the OCS V2 SW is still under development.
Contractor just has recently carried out the FAT of OCS V2.3 (SCADA
Part 2nd Session) at Dubai from 23 October 19 to 30 October 2019.
The recent FAT OCS V2 has not yet been the final version with
complete required functionality. The OCS V2 for Revenue Service with
PCR correction and completed SCADA configuration is subject to be
developed based on the result of the recent FAT. This delay now has a
serious impact on the start and the implementation of SODT if no
proper mitigation is taken.
d. Walkway: The rectification is nearly finished however the grouting is
scheduled to be finished at the end of November 19. The delay in
completion of walkway is one of the factors affecting the available time
for the train movement on the extension line under testing phase.
e. Power Supply: to date, the continuous failure of HESOP transformers
(one in legacy and 4 in extension stations) is now exposing the Time
for Completion of the Project at high risk of failure. Despite a lot of
request from Employer/ Engineer, the Contractor has not yet provided
a complete root – cause investigation report nor solution proposal
together with evidence assurance. The manufacturing, delivery,
replacement and testing of the new items are long lead sequence
which seriously impact the start of SODT and the Time for Completion
of the Project. This issue should be treated as high priority by the
Contractor.
f. RSK: The delay in train manufacturing and several technical issues
during the manufacturing are affecting the sequenced activities
including train delivery, trainset assembly & commissioning, Burn-In
Test and the start of SODT. The gap between actual and as-plan is
always high (please refer to the above-mentioned delay record). Due
to the delay in manufacturing, the OBS and VOBC testing must be now
carried out in Dubai, which are continuously experiencing several
delays impeding the auto movement of the new manufactured rolling
stock. The maximum 25 days allocated to the Assembly &
Commissioning of one train as per the Programme Rev.G is totally not
enough according the experience gained from the already delivered
trains to Dubai. Consequently, the start of Burn-In Test has been
shifted after each Programe Monthly Update without any fixed target
to be followed strictly. Even, the new proposed date of starting Burn-
In Test on 16 November 2019 in the October Update seems to be
shifted again due to the unfulfillment of the prerequired conditions to
date such as only VOBC commissioning at Train 05 is completed to
date, the Burn-In Test procedure has not yet been resubmitted. The
Contractor was requested to provide the integrated plan for train
 commissioning including all interface tests RSK-ATC, RSK-OBS, RSK-
OCS through different occasions, however this integrated plan has not
yet been communicated to date. This delay is surely affecting the start
of SODT on 2 January 2020 as per Programme Rev.G.
g. COM:
COM/ MSN: The completion of the MSN E2E tests at Area 1 and Area 2
are on 19 September 2019 and 21 September 2019 as per Programme
Rev.G respectively, however the MSN SIT at Area 1 has just recently
started and MSN SAT at Area 2 has not yet started to date. This delay
could have impact on other COMs sub-systems SAT/ SIT/ E2E tests
and consequently the start of SODT.
Other COMs sub-system: The installation of field devices at both Area
1 and Area 2 is planned to be completed by 9 October 19 as per
Programme Rev.G, however the installation of field devices is still
ongoing with very slow progress specially at entrance pods area due to
the bad progress from MEP and ceiling activities. This delay is
impacting the sequent testing activities, the integration with OCS and
Rail System Level testing, leading to the delay in the start of SODT.

At this critical point of Project, the commencement of SODT and Revenue Service
are now seriously jeopardized by the Contractor’s continuous failure to achieve the
planned progress.

You are therefore required to immediately address this unacceptable situation

and submit your detailed recovery plan responding to each point raised in the
above in order to maintain the start of SODT and Revenue Service as per the
Programme Rev.G.

We record that any delays or costs incurred as a consequence of the

Contractor’s delays and his failure to progress in line with the programme Rev. G
are totally the Contractor's responsibility.