POWER

Yeka Sub City

POWERCON Private Limited CompanY

Woreda 09, House No.B44-4 Tel. 0911-526656 Addis Ababa, Ethiopia

Ref. No.: -PYIAKKI02/0044/15
Date: August 23, 2023
To: -G&Y Engineering Consult PLC.
Addis Ababa, Ethiopia

Ref:- Dabat - Keraker - Ketema Nigus Road Project; Contract 2:- Ajire - Keraker -
Ketema Nigus
Subject:- Claim for Extension of Time (EOT 04) and Recoveryof Additional Costs
Encl:- Extension of Time and Recovery of Additional Cost Claim Report.

Dear Sir,
You are aware that, in connection with the execution of the works of the above regarded
project, the Contractor have been experiencing and continue to experience delays to the
progress of the works because of various reasons which neither has been his own
making nor could he avoid the consequences thereof. The causes of the delays include,
belated payment of certified amounts, delays and disruptions experienced at various
times, delayed possession of the site, severe shortage of cement, inability to mobilize
resources because and in connection with the security situation in and around the
project area. As a consequence of these delays, the works would not be completed
within the time stated under Sub Clause 1.1.3.4 of the Appendix to Tender.
In recogntion of the various rights and remedies the Contractor is entitled under the
terms of the Contract associated with the delays, the Contractor hereby request the
formalization of the revised completion date of the works to the 08th January, 2025
effectively introducing a total of 1,206.0 calendar days extension of time to the original
completion date which was 20th September, 2021.
Moreover, the Contractor claims for recovery of additional costs incurred/reasonably to
be incurred over the extended period of Contract, idle costs of resources at various
periods of disruptions/delays and payment against the continued provision, maintenance
and services of the Employer's Representative facilities amounting ETB 402,847,040.10
(ETB Four Hundred Two Million Eight Hundred Forty Seven Thousand Forty and 10/100)
(excluding VAT) the summaries of which are presented hereunder.
Additional costs arising out of idleness of resources of equipment amounts ETB
67,141,840.0 computed considering 8.0 working hours per day and 6.0 working days
per week (excluding VAT) which is payable on lump sum basis at once,
Additional costs arising out of idleness of human resources (labor) amounts ETB
5,168,645.0 computed considering the actual payroll sheets (excluding VAT) which is
payable on lump sum basis at once,
Payment for the extended provisions, service and maintenances of the Enpe
Representative facilities amounts ETB 106,475,796.82 payable on lupp.sum bas
for the provision of the facilities and on monthly basis for the maiDiefances And.
services over the remaining time for completion to the works as Elai
Contractor,
Tel-251-011-662-50-98/251-0930-01-40-43- Fax. 251-011-662-50-80 RCO
 The additional cost arising out of extending the time for completion of the works is
ETB 199,742,874.04 in total (excluding VAT) payable on monthly basis over the
remaining time for completion of the works as claimed by the Contractor.
Please note that the detailed report particularizing the justification and substantiation of
this claim is enclosed with this letter for your further verification or determination as
appropriate. Please also note that this claim shall not jeopardize the Contractor's right to
pursue a similar or other laim retrospectively pursuant to the stipulations of the
Contract.
Hoping that you shall find our submission justified under the terms of the Contract,
substantiated with appropriate documents and reasonably computed with fair and
acceptable method; we would like to request you to agree to the requested extension of
time and recovery of additional costs as per the stipulation of Sub Clause 3.5 of the
General Conditions of Contract.
Sincerely yours,
1.7un
VAfevcrk Bciate
$ahs
Gen.clianager

Ow

CC.
+ Ethiopian Roads Administration,
North Construction Projects Management Program directorate.(without encl)
Addis Ababa
t Ethiopian Roads Administration,
Gondar Area Construction Projects Management Office.(without enc)
Gondar
+ Engineering Department, Powercon Plc.