Ref.

HWI-BMEG -014

February 23, 2022

SAN MIGUEL FOODS, INC.

SMFI Feed Mill Plant
Brgy. Darong, Sta. Cruz, Davao del Sur

Attention: JOFFREY BERNABE R. TUQUERO

Grains Terminal National Project Manager

Thru: Jumar C. Heria

SMFI Project Manager

Jason S. Paquibulan
ATI-CM, ME

Project: Drilling of Deep Well No. 2 and Related Works

Subject: Request of Time Extension

Gentlemen,

With reference to the above-mentioned project and subject, we regret to inform you that we are not able
to finish the work as scheduled last December 29, 2021 due to the following reasons.

1. For Deep Well No. 2 Pump, due to change of pump design from submersible pump as
stipulated in BOQ to vertical in-line pump and then to end-suction centrifugal pump. Please
be informed that we have bought the submersible pump and its controls a couple of months
ago just to cope up the time schedule. But BWG advice to change the design due to the actual
conditions and hydraulic characteristics of the deep well.Unfortunately, the time needed for
approval, sourcing of the new pump and the alternative as well as actual preparation of the
pump manufacturer and delivery will take longer time that expected. Furthermore, due to the
changes in pump specifications, there is also changes in the local control panel, that needs a
lead time of another 4 weeks. Please be informed that Deep Well No. 2 is now operational.
 2. The availability of multicore wire is not immediately available in the local and in capital
marketplace. We need to make an order to the manufacturer for the multicore cablesfor it is a
made to order scheme.

3. Ordering of cable wire particularly feeder line cable was delayed for we anticipate that there
is an impact in change of pump design.

4. And due to the holiday season. Most of the manufacturers / suppliers will have holiday break
and cannot accommodate orders as needed by their customers.

5. For Deep Well No. 1 Pump, ordering of pump will take a minimum of 2 months and
maximum of 3 months even if is ex-stock plus preparation of control panel that needs a lead
time of 4 weeks as stated in item no. 1.

Because of the above reasons, may we request a time extension of 153 calendar days or to end on May 31,
2022 to enable us to finish / deliver the remaining works accordingly.

This request of EOT will supersede our previous request letter ref. HWI-BMEG-12 dated January 4,
2022.

Your favorable action on this matter will be highly appreciated.

Attached herewith are the supporting documents.

1. Revised Bar chart and S-Curve.

2. Justification for change of pump design.
3. Communication from supplier justifying multicore wire is not immediately available in the
local and in capital market place.
4. Quotation from Pump supplier.

Regards,

JULIET S. IGBALIC
Project Engineer/ In-Charge

Noted by:

ANGEL P. PUENTESPINA
Managing Director