RADOSLAV MILOJEVIC, REGIONAL

MANAGER, CIS COUNTRIES, LUDWIG

PFEIFFER HOG –UND TIEFBAU GmbH

Subject: Regarding to construction works

Due to the implementation of the Main Contractor's construction work program was not
fulfilled approved by the Project Steering Committee meeting on 10 September 2019, the
updated work program was reviewed and approved by Project Steering Committee meeting on
23 December 2019. Unfortunately, the updated work program still has not been implemented.

Construction manager who is in a charge of carrying out the construction work according
to the approved plan, supervising on the works and making right organizations, has not worked
at the project site since June 2019, which is one of the main reasons of unsatisfactory
implementation of work. Moreover, the Deputy Construction Manager has not been working at
construction site since December of last year.

Therefore, we request that Construction Manager and Deputy Construction Manager to

arrive at the construction site promptly and complete the delaying and intensify the construction
works. Also, provide us with specific information for exact arrival date of these Managers.

Also, your request for employing staffs from abroad for next construction season was sent
to the Ministry of Labor and Social Protection through the Ministry of Construction and Urban
Development. The Ministry of Labor and Social Protection solves this issue as united by
submitting it to Government meeting, it takes time and does not depend on Project Management
Unit and Employer activities. The Employer will focus on solve this issue without affecting the
construction work process.

Darkhan Us Suvag JSC has complained regarding to the smell from the WWTP
previously, and provided a comment by LIC letter No 1318-55/2019 dated 24 September 2019.
This time, we have received a letter from the Deputy Governor of Darkhan soum, Darkhan-Uul
aimag about complaint from local residents regarding to the smell of the WWTP.

Professional organizations and specialists have claimed that the smell was caused by the
demolishing of an old Grease Removal Chamber building. The Client and Employer side have
given appropriate approval considering that the construction of new Grease
Removal Chamber planned to complete by the 23 April 2019 according to approved plan of April
2018. At present, construction process of this facility is 52 percent as now.

If the delaying of works continues in the further, the technological operation loss will be
increased of WWTP as well as the public health of local residents of Darkhan-Uul aimag and
their living conditions will be deteriorated.

Therefore, we kindly ask you to provide Employer with clear information on how to take
an action to remove the smell and work according to the technological operation in case of
WWTP would not put in operation on time.

Attached the letter No 2/1752 dated 24 December 2019 from the Deputy Governor of
Darkhan soum, Darkhan-Uul aimag with translation.
Cc: Ministry of Construction and Urban development
T.Ganbold, Deputy governor of Darkhan-Uul aimag
Darkhan Us Suvag Joint Stock Company
MNRM, Asian Development Bank,
Loan Implementation Consultants
Governor’s office of DAG

B.BAASAN
PROJECT COORDINATOR