dp0c1b - iic - workprogress nr 14_may 2014

5/20/2018 Dp0c1b - Iic - Workprogress Nr 14_may 2014

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DANIELI

IIC Steel For Steel Plant Management

PROJECT

NEW MINIMILL DANIELI (MI.DA)

FOR THE PRODUCTION OF 830,000 TPY LIQUID

STEEL AND 500,000 TPY REBARS

BENI SWEIF INDUSTRIAL ZONE - EGYPT

BUYER : IIC Steel14B Cleopatra St., Elkorba, Heliopolis, Cairo Egypt

SELLER : DANIELI & C. Officine Meccaniche S.p.A

SUMMARY OF WORK PROGRESS No. 14

CUT-OFF DATE 31 MAY 2014

REFERENCE CONTRACT No. DP0C1B01 - DP0FTE01 - DP0GS601


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DP0C1B - IIC - WORKPROGRESS NR 14_MAY 2014.docx

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TABLES OF CONTENTS

1 SAFETY, QUALITY & QM ................................................................................................................................... 3

1.1 Site Safety.......................................................................................................................................................... 3

2 MAJOR EVENTS ................................................................................................................................................ 3

3 OFFSHORE SUPPLY CONTRACT DP0C1B00........................................................................................................4

3.1 Engineering ....................................................................................................................................................... 4

3.2 Procurement & Manufacturing......................................................................................................................... 4

3.3 Inspections ........................................................................................................................................................4

3.4 Equipment Ready for Delivery ..........................................................................................................................6

3.5 Shipments Status............................................................................................................................................... 7

3.6 Contract Financial Status................................................................................................................................... 8

4 TURN KEY SERVICES CONTRACT DP0GS600...................................................................................................... 9

4.1 Engineering ....................................................................................................................................................... 9

4.2 Procurement & Manufacturing......................................................................................................................... 9

4.3 Inspection..........................................................................................................................................................9

4.4 Equipment Ready for Delivery ........................................................................................................................ 10

4.5 Shipments Status............................................................................................................................................. 12

4.6 Contract Financial Status................................................................................................................................. 13

5 CRANES AND COMPONENTS CONTRACT DP0FTE00 ....................................................................................... 14

5.1 Engineering ..................................................................................................................................................... 14

5.2 Procurement & Manufacturing....................................................................................................................... 14

5.3 Inspection........................................................................................................................................................ 14

5.4 Equipment Ready for Delivery ........................................................................................................................ 15

5.5 Shipments Status............................................................................................................................................. 15

5.6 Contract Financial Status................................................................................................................................. 166 VARIATION ORDERS (APPROVED) .................................................................................................................. 17

Make up water tank: .......................................................... .............................................................. ....................... 17

Weighting Bridge:.............................. ............................................................... ....................................................... 17

Substation: .............................................................. .............................................................. .................................. 17

7 DANIELI CONTRACTS FINANCIAL SUMMARY.................................................................................................. 18

8 WORKS EXECUTION & ERECTION ................................................................................................................... 19

8.1 Building Permits .............................................................................................................................................. 19

8.2 Construction Works.........................................................................................................................................19

9 OVERALL PROGRESS....................................................................................................................................... 59

9.1 Overall Engineering ......................................................................................................................................... 59

9.2 Engineering distribution and progress by discipline ....................................................................................... 59

9.3 Engineering progress by Plant Unit................................................................................................................. 60

9.4 Overall Progress Curve ....................................................................................................................................61


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1 SAFETY, QUALITY & QM

1.1 Site Safety

On 19/05/2014 has been held a Safety Audit on Site by DANIELI Safety Advisor Adam Giro.

See report R-455-01.02 in attachment

2 MAJOR EVENTS

13/03/2012 1st

Down Payment (2.322.970 ) Off Shore Contract;

24/04/2012 Kick off Meeting for DP0C1B Off Shore Heliopolis;

13/07/2012 2nd

Down Payment (6.974.755 ) Off Shore Contract;

05/09/2012 Signature of TKS DP0GS6 Technical Specification;

19/12/2012 Signature of TKS DP0GS6 commercial contract;

19/01/2013 1st

Down Payment (5.800.000 ) TKS Contract;

01/04/2013 1st

LC opened and Effectiveness date (8.903.483 ) Off Shore Contract;

01/04/2013 1st

LC opened and Effectiveness date (15.660.000 ) TKS Contract;

06/04/2013 Kick Off Meeting for TKS portion Buttrio;

14/05/2013 Kick Off Meeting with local execution contractor Hassan Allam Sons and start date of

contractor contract Cairo;

04/07/2013 EGYPTIAN ELECTRICITY TRANSMISSION COMPANY (EETC) allocation of 84.4 MW for IIC Beni

Sweif project;

15/09/2013 Effective Starting Date of Excavation;

25/09/2013 DAN/IIC/UNGER Joint visit to Unger Steel Factory Sharjah IIC inspection of the workshop;

03/10/2013 the 1st

memorandum of understanding for the project way forward has been signed by the

parties noting the condition precedents to the progress of the contract and project way forward;

09/10/2013 IIC obtain Work Permit from authorities;

17/12/2013 OFFSHORE and TKS contracts LG extension;

18/12/2013 1st

LC OFFSHORE modified and value incremented an amount of (20.774.792 )

to reach (29.678.275 ) Off Shore Contract, 1st

LC TKS modified and value incremented an amount of

(20.880.000 ) to reach (37.200.000 ) TKS Contract (missing 15M)

04/01/2014 First Major delivery to site;

26/01/2014 the 2nd

memorandum of understanding for the project way forward has been signed by the

parties noting the condition precedents to the progress of the contract and project way forward;

28/01/2014 Erection of first steel structure column;

19/02/2014 Safety Audit Onsite;

03/03/2014 1st

LC TKS modified and value incremented an amount of (5.000.000 ) to reach (42.200.000 )

TKS Contract (still outstanding 10M);

04/04/2014 Safety Audit Onsite;


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3 OFFSHORE SUPPLY CONTRACT DP0C1B00

3.1 Engineering

EVENT DESCRIPTION EVENT

STATUS

EVENT COMPLETION

DATE

PAYMENT

STATUS

PAYMENT

DATE

EQUIPMENT CIVIL

BASIC Complete 06/05/2013 Paid

10/12/2013

EQUIPMENT ASSEMBLY

DRAWINGS Complete 12/06/2013 Paid

10/12/2013

3.2 Procurement & Manufacturing

ALL LPL010

PLANT UNIT DAN JOB NO. PURCHASING &

MANUFACTURINGMELTSHOP FOR 500.000 TPY DP0C1B01 98%

NEW CONT. CAST MACHINE FOR

500.000 TPY DP0C1B02 94%

FTP FOR 500.000 TPY DP0C1B03 97%

ROLLING MILL FOR MIDA DP0C1B04 86%

PLANT TOTALS DP0C1B00 91%

3.3 Inspections

The inspections mentioned are those finally agreed during the meeting DP0C1B-DAB-IIC-M00009 held on 14th

November 2013.

Sec. Contr_Item Sub_Item Job TPC_pos Full_Description Plan / Exp.

Date

Inspection

Status

14.1b 14.1b.3.2.1.1 DP0C1B01 202 Furnace Tilting Platform 20/04/2014 Wavier

14.1b 14.1b.3.2.1.3 DP0C1B01 212 Upper Shell 20/04/2014 Wavier

14.1b 14.1b.3.2.1.4 DP0C1B01 213 Lower Shell 20/04/2014 Wavier

14.1b 14.1b.3.2.1.5 DP0C1B01 221 Watercooled Panels, Standard Type 20/04/2014 Wavier

14.1b 14.1b.3.2.1.11 DP0C1B01 242 Water Cooled Roof 20/04/2014 Wavier

14.1b 14.1b.3.2.1.13 DP0C1B01 261 Roof & Electrode Lifting & Rotation Unit 20/04/2014 Wavier

14.1b 14.1b.3.2.1.14 DP0C1B01 282 Electrode Arms for EAF, Conductive Type 20/04/2014 Wavier

14.1b 14.1b.3.2.1.15 DP0C1B01 291 Furnace Secondary Circuit for LF 20/04/2014 Wavier

14.1b 14.1b.3.2.1.17.A DP0C1B01 4151 Ladle Transfer Car 20/04/2014 Wavier

14.1b 14.1b.3.2.1.29.A DP0C1B01 6007 Upper Shell 20/04/2014 Wavier

14.1b 14.1b.3.2.1.29.B DP0C1B01 6008 Lower Shell 20/04/2014 Wavier

14.1b 14.1b.3.2.1.29.C DP0C1B01 6009 Watercooled Panels, Spare (*) 20/04/2014 Wavier

14.1b 14.1b.3.3.1.1 DP0C1B01 1611 Roof & Electrode Lifting System 20/04/2014 Wavier

14.1b 14.1b.3.3.1.2 DP0C1B01 1631 Ladle Furnace Roof, Inert Type 20/04/2014 Wavier


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14.1b 14.1b.3.3.1.4 DP0C1B01 1642 Electrode Arms for LF, Bus Bar Type 20/04/2014 Wavier

14.1b 14.1b.3.3.1.7.A DP0C1B01 4451 Ladle Transfer Car 20/04/2014 Wavier

14.1b 14.1b.3.5.1.1.A DP0C1B01 4601 Ladle 20/04/2014 Wavier

14.2 14.2.3.2.1.1.A DP0C1B03 2201 Primary fumes water-cooled ducts 20/04/2014 Wavier

14.3 14.3.3.1.A DP0C1B02 2811 Fixed ladle turret assembly 20/04/2014 Wavier

14.3 14.3.3.4 DP0C1B02 2825 Liftable tundish car 20/04/2014 Wavier

14.3 14.3.3.16 DP0C1B02 2936 Mould assembly 130x130 (including

14.3.10.2.d) 10/06/2014 Remaining

14.3 14.3.3.17 DP0C1B02 2978

Oscillating table (Fast Cast Cube)

hydraulically actuated (including

14.3.3.15, 14.3.10.2.c)

10/06/2014 Remaining

14.3 14.3.3.18 DP0C1B02 2973 Oscillating table assembly (including

14.3.10.2.e/f) 10/06/2014 Remaining

14.3 14.3.3.25 DP0C1B02 3151 Withdrawal and straightening unit

(including 14.3.10.2.k) 20/04/2014 Remaining

14.4 14.4.3.1.1.1.A DP0C1B04 112 Induction furnace 30/07/2014 Remaining

14.4 14.4.3.2.2.7.A DP0C1B04 2351 Roll cartridge 14/08/2014 Remaining

14.4 14.4.3.2.2.12.A DP0C1B04 2491 Roll cartridge 14/08/2014 Remaining

14.4 14.4.3.2.2.13.F DP0C1B04 2233 Gearbox / pinion stand (including

14.4.3.2.2.13.I) 14/08/2014 Remaining

14.4 14.4.3.2.2.14.D DP0C1B04 2414 Gearbox / pinion stand (including

14.3.2.2.14.F) 14/08/2014 Remaining

Inspection overview and status, the below chart is illustrative of the inspection classified into complete for the

equipment inspected, wavier for the inspection not performed and Remaining for equipment to be inspected.

Wavier

69%

Remaining

31%

Inspection Status


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3.4 Equipment Ready for Delivery

CSP017- forecast for the equipment ready to be shipped breakdown for the consecutive 3 months

Calculated Weight in Tons

PLANT UNIT JOB 2014/06 2014/07 2014/08

MELTSHOP FOR 500.000 TPY DP0C1B01 1492,7 121,2 95,8

NEW CONT. CAST MACHINE FOR

500.000 TPY DP0C1B02 149,7 246,3 209,3

FTP FOR 500.000 TPY DP0C1B03 600,5 81,2 2,4

ROLLING MILL FOR MIDA DP0C1B04 82,0 631,4

CSP017- forecast for the equipment ready to be shipped

CSP017- Equipment effectively packed, ready to be shipped and handling activities complete prior to shipping

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

0,0

0,5

1,0

1,5

2,0

2,5

2014/05

2014/06

2014/07

2014/08

2014/09

2014/10

2014/11

2014/12

2015/01

2015/02

2015/03

2015/04

ThousandsTONS

DP0C1B OFFSHORE

MONTHLY

DP0C1B OFFSHORE

CUMULATIVE MONTHLY

PROCESSED

12%

PENDING

88%

DP0C1B OFFSHORE SHIPMENT PROCESSING PROGRESS


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3.5 Shipments Status

TK010 the graph below is illustrative of the date of shipment vs. shipment weight (in tons weight axis on the right)

and cumulative weight (in tons weight axis on the left).

TK010 the graph below is illustrative of the date of shipment vs. shipment invoices (in millions of euros for each

shipment on the right) and cumulative invoices (in millions of euros for each shipment on the left). Please note these

values consider the various engineering and performances included in these invoices

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

5/31/2014

6/1/2014

6/2/2014

6/3/2014

6/4/2014

6/5/2014

6/6/2014

6/7/2014

6/8/2014

6/9/2014

6/10/2014

6/11/2014

6/12/2014

6/13/2014

6/14/2014

6/15/2014

6/16/2014

6/17/2014

6/18/2014

6/19/2014

Consignments Weights

Sum of Shipped Weight (Tons) Cumulative of Shipped Weight (Tons)

00,020,040,060,080,10,120,140,160,18

00,020,040,060,08

0,10,120,140,160,18

5

/31/2014

6

/1/2014

6

/2/2014

6

/3/2014

6

/4/2014

6

/5/2014

6

/6/2014

6

/7/2014

6

/8/2014

6

/9/2014

6

/10/2014

6

/11/2014

6

/12/2014

6

/13/2014

6

/14/2014

6

/15/2014

6

/16/2014

6

/17/2014

6

/18/2014

6

/19/2014

Millions

Millions

Consignments Value Invoiced

Sum EURO Cumulative of EURO


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3.6 Contract Financial Status

CONTRACTS IIC OFF % EURO TRANS DATE

38.976.0001st DP 6% 2.322.970 CASHED 13 MAR 2013

2nd DP 18% 6.974.755 CASHED 13 SEPT 2012

LC1 76% 29.678.275

28 FEB 2013

mod. 18 DEC 2013

BASIC CIVIL 1% 322.970 CASHED 10 DEC 2013

ASSEMBLY DWG 11% 4.322.970 CASHED 10 DEC 2013

GOODS 55% 21.613.362CASHED 94.643,86

REMAINING 21.518.718,14

PAC RM 2% 683.790PAC SMP 3% 1.025.697

FAC 4% 1.709.486

FINANCIAL SUMMARY

CURRENT LC BALANCE 24.937.691

TOTAL OUTSTANDING 0

TOTAL CASHED 14.038.309

CURRENT LC

BALANCE

64%

TOTAL

OUTSTANDING

0%

TOTAL CASHED

36%


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4 TURN KEY SERVICES CONTRACT DP0GS600

4.1 Engineering

The various engineering activities have been completed with the communication of transmittals DP0C1B-DAB-IIC-

T00043 for the civil basic engineering and the DP0C1B-DAB-IIC-T00052 for the equipment assembly drawings

EVENT DESCRIPTION EVENT

STATUS

EVENT COMPLETION

DATE

PAYMENT

STATUS

PAYMENT

DATE

EQUIPMENT CIVIL

BASIC Complete 21/05/2013 Paid

9/12/2013

EQUIPMENT DETAIL

BASIC

In

progress 30/08/2014

EQUIPMENT ASSEMBLY

DRAWINGS Complete 21/06/2013 Paid

9/12/2013


ALL LPL010


MANUFACTURING

AUX PLANTS FOR MINIMILL DP0GS601 65%

TURNKEY FOR MIDA MELTSHOP DP0GS602 73%

TURNKEY FOR MIDA CONT. CASTING

MACHINE DP0GS603 87%

TURNKEY FOR MIDA FUME

TREATMENT PLANT DP0GS604 89%

TURNKEY FOR MIDA ROLLING

MACHINE DP0GS605 94%

TURNKEY FOR MIDA CRANES DP0GS606 55%

PLANT TOTALS DP0GS600 78%

4.3 Inspection


November 2013.


Date

Inspection

Status

14.5T 14.5T.6.2.2.1 DP0GS601 6401 Air Compressors (including

14.5T.6.2.2.2/4/5/6) 20/05/2014 Complete

14.5T 14.5T.6.2.8.1 DP0GS601 7052 Mechanical Workshop Equipment (CNC

Equipment) 20/02/2014 Complete

14.5T 14.5T.6.2.12.C.1.4.A DP0GS601 7711

Main bldgs & secondary bldgs (including

14.5T - 6.2.12.C.1.1.A, 6.2.12.C.1.2.A,

6.2.12.C.1.3.A, 6.2.12.C.1.5.A,

6.2.12.C.1.6.A, 6.2.12.C.1.7.A,

6.2.12.C.1.8.A, 6.2.12.C.2.1.A,

6.2.12.C.2.2.A, 6.2.12.C.2.3.A,

6.2.12.C.2.5.A)

Complete

14.6 14.6.4.1.4.0.4.1.1.A DP0GS601 5703 Incoming Line Bay GIS type (including

14.6.4.1.4.0.4.1.1.C/B/D/E/(G)/F/(H)/(I)/(L)) 10/09/2014 Remaining

14.6 14.6.4.1.4.0.4.1.2 DP0GS601 5705 66/22 kV Transformer 10/09/2014 Remaining


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14.6 14.6.4.1.4.0.4.1.3.(C) DP0GS601 5704 Circuit Breaker for disconnecting SVC 10/09/2014 R emaining

14.6 14.6.4.3.4.0.4.1.5.2 DP0GS601 5710 LV Power Centre Switchboard (including

14.6.4.4.4.0.4.1.5.2, 14.6.4.5.4.0.4.1.5.2) 30/05/2014 Complete

Inspection overview and status, the below chart is illustrative of the inspection classified into complete for the

equipment inspected, wavier for the inspection not performed and Remaining for equipment to be inspected.




PLANT UNIT JOB 2014/06 2014/07 2014/08

AUX PLANTS FOR MINIMILL DP0GS601 658,2 2,6

TURNKEY FOR MIDA MELTSHOP DP0GS602 724,4 19,8 2,7

TURNKEY FOR MIDA CONT. CASTING

MACHINE DP0GS603

168,7 162,3 76,6

TURNKEY FOR MIDA FUME TREATMENT

PLANT DP0GS604

456,6 120,6

TURNKEY FOR MIDA ROLLING MACHINE DP0GS605 440,1 27,7

Complete

50%

Remaining

50%

Inspection Status


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CSP017- Equipment effectively packed, ready to be shipped and handling activities complete prior to shipping

0,0

1,0

2,0

3,0

4,0

5,0

6,0

0,0

0,5

1,0

1,5

2,0

2,5

2

014/05

2

014/06

2

014/07

2

014/08

2

014/09

2

014/10

2

014/11

2

014/12

2

015/01

2

015/02

2

015/03

2

015/04

Thousand

sTONS

DP0GS6 TURN KEY

SERVICES MONTHLY

DP0GS6 TURN KEY

SERVICES CUMULATIVE

MONTHLY

PROCESSED

-19%

PENDING

81%

DP0GS6 TURN KEY SERVICES SHIPMENT PROCESSING

PROGRESS


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TK010 the graph below is illustrative of the date of shipment vs. shipment invoices (in millions of euros for each

shipment on the right) and cumulative invoices (in millions of euros for each shipment on the left). Please note these

values consider the various engineering and performances included in these invoices.

0

200

400

600

800

1000

1200

1400

1600

0

1000

2000

3000

4000

5000

6000

7000

8000

11/20/2013

11/27/2013

12/4/2013

12/11/2013

12/18/2013

12/25/2013

1/1/2014

1/8/2014

1/15/2014

1/22/2014

1/29/2014

2/5/2014

2/12/2014

2/19/2014

2/26/2014

3/5/2014

3/12/2014

3/19/2014

3/26/2014

4/2/2014

4/9/2014

4/16/2014

4/23/2014

4/30/2014

5/7/2014

5/14/2014

5/21/2014

Consignments Weights

Sum of Shipped Weight (Tons) Cumulative of Shipped Weight (Tons)

0

0,5

1

1,5

2

2,5

3

0

2

4

6

8

10

12

14

16

11/20/2013

12/4/2013

12/18/2013

1/1/2014

1/15/2014

1/29/2014

2/12/2014

2/26/2014

3/12/2014

3/26/2014

4/9/2014

4/23/2014

5/7/2014

5/21/2014

Millions

Millions

Consignments Invoiced Value

Sum EURO Cumulative of EURO


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CONTRACTS IIC TKS % TRANS DATE

58.000.000

1st DP 10% 5.800.000 CASHED 19 JAN 2013

LC1 73% 42.200.000

28 FEB 2013

mod. (1) 18 DEC 2013

mod. (2) 05 MAR 2014

BASIC CIVIL 3% 1.450.000 CASHED 09 DEC 2013

DETAILS CIVILS 3% 1.450.000 FORECAST 30 AUG 2014

ASSEMBLY DWG 3% 1.450.000 CASHED 09 DEC 2013

GOODS 62% 35.743.651CASHED 11.814.007,78

REMAINING 23.929.643,23

PAC RM 1% 631.905

PAC SMP 1% 631.905

FAC 1% 842.540

LC1 Modified #2 (Pending) 17% 10.000.000

GOODS 16% 9.206.349

PAC RM 0,41% 238.095

PAC SMP 0,41% 238.095

FAC 1% 317.460

FINANCIAL SUMMARY


TOTAL OUTSTANDING 10.000.000


CURRENT LC

BALANCE

48%

TOTAL

OUTSTANDING

17%

TOTAL CASHED

35%


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5 CRANES AND COMPONENTS CONTRACT DP0FTE00

5.1 Engineering

The definition is pending of the spare parts list need to be defined within and no later the end of the November 2014.


ALL LPL010


MANUFACTURING

CRANES FOR MELTSHOP DP0FTE01 89%

1 YEAR SPARES FOR MELTSHOP DP0FTE02 NA

1 YEAR SPARES FOR CONT.

CASTING MACHINE DP0FTE03 NA

1 YEAR SPARES FOR FUME

TREATMENT PLANT DP0FTE04 NA

1 YEAR SPARES FOR ROLLINGMILL

DP0FTE05 NA

PLANT TOTALS DP0FTE00 NA

5.3 Inspection


November 2013.


Date

Inspection

Status

14.5L 14.5L.3.5.1.1.2.B DP0FTE01 6132 Main & Auxiliary

Hoist Gearboxes 15/07/2014 Remaining

14.5L 14.5L.3.5.1.1.2.D DP0FTE01 6146 Electrical Control

panel & Drives 15/07/2014 Remaining

Remaining

100%

Inspection Status


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PLANT UNIT JOB 2014/06 2014/07 2014/08

CRANES FOR MELTSHOP DP0FTE01 NA NA NA

1 YEAR SPARES FOR MELTSHOP DP0FTE02 NA NA NA

1 YEAR SPARES FOR CONT. CASTING

MACHINE DP0FTE03 NA NA NA

1 YEAR SPARES FOR FUME TREATMENT

PLANT DP0FTE04 NA NA NA

1 YEAR SPARES FOR ROLLING MILL DP0FTE05 NA NA NA


Note: this section is under development, awaiting the confirmation of the replacement agreement of the cranes





TK010 the graph below is illustrative of the date of shipment vs. shipment invoices (in millions of euros for eachshipment on the right) and cumulative invoices (in millions of euros for each shipment on the left). Please note these

values consider the various engineering and performances included in these invoices.



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CONTRACTS IIC CRANES / SPARES % TRANS DATE

5.250.0001st Lot 19% 1.000.000 FORECAST 30 JUN 2014

2nd Lot 19% 1.000.000 FORECAST 30 SEPT 2014

3rd Lot LC 62% 3.250.000CASHED 0,00

REMAINING 3.250.000,00

FINANCIAL SUMMARY

CURRENT LC BALANCE 0


TOTAL CASHED 0

CURRENT LC

BALANCE

0%

TOTAL

OUTSTANDING

100%

TOTAL CASHED

0%


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6 VARIATION ORDERS (APPROVED)

Make up water tank:

The parties agreed for the Automatic solution modification of the Makeup water tank of 30.000.

Weighting Bridge:

The parties agreed for the increased capacity of the plant weighting bridge.

Substation:

Substation of 220 KV in Air with Double Bus Bar respect to contractual one GIS 66 KV

The parties agree that 1.7M will be taken out from the DAN scope as an exchange for the improvement of Gate Weighting

Stations of 100 ton, automation of the Makeup water tank of 30.000 m3 and changes required to accommodate the

substation 220kV technical specification and relocation DPOC1B-YB01-E9100-ES108 .Rev04.

The takeout positions from DAN Scope of Supply under the TKS contract DP0GS600 have been agreed by the parties and are

as follows:

5720 - INDOOR LIGHTING SYSTEMS (NORMAL/EMERG.)

5721 - OUTDOOR LIGHTING SYSTEMS(PERIPH./SHEDS)

5725 - LIGHTNING PROTECTION SYSTEMS

5726 - MV ELECTRIC CABLES

5730 - ELECTRIC CABLES FOR SUBSIDIARY SYSTEMS

7131 - MS LABORATORY (Spectrometer equipment only)

5734 - AUXILIARIES ELECTRICAL INSTALLATION MATERIALS


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7 DANIELI CONTRACTS FINANCIAL SUMMARY

OVERALL CONTRACTS % TRANS STATUS

DOWN PAYMENTS 15.097.725 PAID

CRANE GOODS AGAINST CASH 2.000.000CASHED 0,00

REMAINING 2.000.000,00

TOTAL LC OPEN 71.878.275 EFFECTIVE

TOTAL BASIC CIVIL 1.772.970 PAID

TOTAL DETAIL CIVIL 1.450.000

TOTAL ASSEMBLY DRAWINGS 5.772.970 PAID

GOODS AGAINST OPEN LC 57.357.013CASHED 11.908.651,63

REMAINING 45.448.361,37

PAC RM OPEN LC 1.315.695

PAC SMP OPEN LC 1.657.602FAC OPEN LC 2.552.026

TOTAL OUTSTANDING LC 13.250.000

GOODS AGAINST OUTSTANDING LC 12.456.349

PAC RM OUTSTANDING LC 238.095

PAC SMP OUTSTANDING LC 238.095

FAC OUTSTANDING LC 317.460

OVERALL FINANCIAL SUMMARY




CURRENT LC

BALANCE

51%

TOTAL

OUTSTANDING

15%

TOTAL CASHED

34%


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8 WORKS EXECUTION & ERECTION

8.1 Building Permits

The permits issuing is ongoing and permits currently enables the site works to proceed according to the schedule.

8.2 Construction Works

8.2.1 Mobilization

The Commencement Date of the Works relevant to the Contract Misr Sons Development S.A.E. (Hassan Allam

Construction) is the 14th May 2013.

The parties agreed to follow the breakdown submitted by HAC ref. DP0C1B-HAC-ENG-L0022 for Interim Payment.

Subject to monthly verification by ENG.

Internet connection already established by 01/12/2013. ENG requires HAC to guarantee 24 hour, 7 days continuous

power supply of servers and guarantee continuous internet operation.

8.2.2 Shop Drawings

ENG evidenced that HAC accumulated a strong delay with the shop drawings submission which impacted on the

Works schedule.

ENG specified that shop drawing submission was critical and could delay the start date of related construction

activities. The Technical Office team was not adequate to the Works to be performed and has been requested to

increase in order to do not jeopardize the agreed schedule.

No quantity are recognized without approved shop drawings and related BOQs.

8.2.3 Permanent Works

Site Works Chronology Actual Date Planned Date

Effective Starting Date of Excavation (JA01_F01-F02) 15.09.2013 15.09.2013

Issuing Date of Excavation Work Permit 09.10.2013 11.09.2013

First Blinding Concrete Casting (XB11_F01) 23.10.2013 02.10.2013

Rebars Cutting & Bending Starting Date 30.10.2013 -

First R.C. Foundation Casting (JA01_F01-F02) 11.11.2013 12.10.2013

First R.C. Pedestal Casting (XB11_F01) 08.12.2013 28.10.2013

Starting of Steel Structures Arrival at Site 04.01.2014 16.11.2013

Starting of Steel Structures Preassembling on Ground 21.01.2014 10.12.2013

Starting of Steel Structures Erection (JA01_F01-F02, Lot A4, Lot B4) 28.01.2014 10.12.2013

Starting of Steel Structures Erection (GA01_F01-F02, Lot A1) 30.01.2014 03.02.2013


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8.2.3.1 Civil Works

The Progress of the Works during May 2014 is behind the schedule

The following chart explain in detail the actual progress of the concrete works performed with cut off 29/05/14,

Actual vs Planned quantities according to the target concrete casting curve (including blinding).

NOTE:

REAL PERFORMED = Approved quantities included in Monthly Statement

PHYSICAL PERFORMED = Quantities casted but not yet approved

The Contractor is issuing a recovery plan in the next Monthly Report will be revised all the targets

accordingly.

Layout with Progress 29.05.2014 (in annex)


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PU KEYPLAN UNIT DESCRIPTION PROGRESS %

GA01 GA01-F01 Meltshop Building - Foundation 100,0%

GA01 GA01-F01 Meltshop Building - Slab on grade 0,0%

GB11 GB11-F01 Scrap Yard - Foundation 100,0%

GB11 GB11-C01 Scrap Yard - Electrical Cabin 0,0%

GB11 GB11-F01 Scrap Yard - Technological Foundation 0,0%

GB11 GB11-F01 Scrap Yard - Walls 68,8%

GB51 GB51-F01 Slag Disposal Area 100,0%

GC11 GC11-F01 Ferroalloy - Foundation 100,0%

GC11 GC11-F01 Ferroalloy - Slab on grade 0,0%

GC11 GC11-F02 Alloy Raw Material Handling 48,3%

GC21 GC21-F01 Carbon Powder Injection 0,0%

GC51 GC51-F01 Consteel 62,5%

GD11 GD11-F01 EAF - Technological Foundation 0,0%GD11 GD11-F01 EAF - Platform 0,0%

GE11 GE11-E01 LF - Electrical Cabin & Pulpit 0,0%

GE11 GE11-F01 LF - Technological Foundation 100,0%

GE11 GE11-F02 LF - Platform 0,0%

GS51 GS51-E01 FTP - Electrical Cabin 0,0%

GS51 GS51-F01 Fume Treatement Plant 0,0%

GS51 GS51-F02 Settling Chamber Foundation 0,0%

GY11 GY11-F01 Temporary Shell Parking Station 100,0%

GY11 GY11-F02 Shell Maintenance Station Foundation 86,8%

GY11 GY11-F03 Ladle Horizontal Reheating Foundation 0,0%

GY11 GY11-F04 Ladle Deslagging Area 0,0%

GY11 GY11-F05 Emergency Pit Foundation 0,0%

GY11 GY11-F06 Ladle Relining Station Foundation 0,0%

GY11 GY11-F07 Ladle Wrecking Station Foundation 0,0%

GY11 GY11-F08 Full Ladle Stand Foundation 0,0%

GY11 GY11-F09 Ladle Drying Station Foundation 0,0%

HC11 HC11-E01 CCM - Electrical Cabin & Pulpit 0,0%

HC11 HC11-F01 CCM - Foundation 0,0%

HY11 HY11-F01 Tundish Relining Station Foundation 0,0%

HY11 HY11-F02 Tundish Drying Station Foundation 0,0%

HY11 HY11-F03 Tundish Wrecking Station Foundation 0,0%

HY11 HY11-F04 Mould Maintenance Area Foundation 0,0%

JA01 JA01-F01 Bar Mill General Area 100,0%

JA01 JA01-F01 Bar Mill - Slab on grade 0,0%

JA01 JA01-E01 Bar Mill Electrical Cabin 8,0%

JD21 JD21-F01 Roughing Rolling Mill Area 55,0%

JD31 JD31-F01 Intermediate Rolling Mill Area 35,5%

JD41 JD41-F01 Finishing Rolling Mill Area 26,8%

JD51 JD51-F01 Rolling Mill Exit Area 14,2%


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JL21 JL21-F01 Cutting To Length 0,0%

JL41 JL41-F01 Bundles Forming - Cooling Bed 0,0%

JL61 JL61-F01 Bundles Evacuation 0,0%

JY11 JY11-F01 Workshop Area 0,0%

WC11 WC11 Roads 0,0%

WC81 WC81 Sewerage and Drainage Network 0,0%

WD41 WD41-F01 Weighing Station 0,0%

WD42 WD42-F01 Weighing Station 0,0%

WE11 WE11-F01 Rolling Mill Laboratory 72,4%

WE11 WE11-F02 Meltshop Laboratory 33,3%

WG11 WG11-F01 General Warehouse & Workshop 100,0%

WG11 WG11-F01-F02 General Warehouse - Slab on grade & Perimetral Walls 50,0%

WG11 WG11-C01 Central Maintenance Workshop Cabin 72,3%

WG11 WG11-C01-S01 Central Maintenance Workshop Office S1 77,4%

WG11 WG11-C01-S02 Central Maintenance Workshop Office S2 68,8%

XA00 XA00-F01 Pipe Racks - Foundation 70,0%

XB11 XB11-E01 WTP - Electrical Cabin 0,0%

XB11 XB11-F01 WTP - Pump Room 100,0%

XB11 XB11-F01 WTP - Slab on grade 0,0%

XB11 XB11-F01 WTP - Cooling Towers 5,0%

XB11 XB11-F02 Sand Filters and Drain Collecting Tank 97,2%

XB11 XB11-F03 Longitudinal Settling Basin 20,0%

XB11 XB11-F04 Scale Pit 87,8%

XB11 XB11-F05 Sludge Thickener 20,0%

XB11 XB11-F06 Drying Beds 99,7%XB11 XB11-F07 Make-up Water System 24,9%

XB11 XB11-F08 Emergency Tower 100,0%

XC81 XC81-F01 CAP - Foundation 100,0%

XC81 XC81-F01 CAP - Slab on grade 0,0%

XC81 XC81-F01 CAP - Technological Foundation 0,0%

YA00 YA00-F01 Diesel Generator Room 0,0%

YA00 YA00-F01 Electrical Underground General System 0,0%

YB01 YB01-C01 Electrical Substation Cabin 0,0%

YB01 YB01-C02 Electrical Substation Cabin 0,0%


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8.2.3.2 Steel Structures Progress

The cumulative physical and real progress quantities for Steel Structures Erection Works as of 29.05.2014

are as follows:

BUILDING TARGET

[ton]

DELIVERED

[ton]

PHICALY

PROGRESS

[ton]

REAL

PROGRESS

[ton]

GA01 - MELTSHOP LOT A1 1276 1276 904 690

GA01 - MELTSHOP LOT B1 1316 1316 97 129

GB11 SCRAP YARD LOT A2 479 479 340 257

GB11 SCRAP YARD LOT B2 418 418 199 153

GC11 FERRO ALLOY LOT A3 114 114 74 61

JA01 - ROLLING MILL LOT A4 882 882 808 612

JA01 - ROLLING MILL LOT B4 787 787 581 442

WG11 WAREHOUSE LOT A5 543 543 523 427

XB11 PUMP ROOM LOT A6 58 58 55 44

XB11 PUMP ROOM LOT B6 17 17 0 0,80

XC81 CAP LOT A7 28 28 27 22

TOTAL 5918 5918

100%

3608

61,0%

2838

47,9%

For more details please refer to

STEEL BUILDINGS SUMMARY OF WORK PROGRESS CUT-OFF 29 MAY 2014 in annex.


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NOTE:

REAL PERFORMED = Approved quantities included in Monthly Statement

PHYSICAL PERFORMED = Quantities erected (tightening/alignment/touch-up to be completed)


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8.2.4 Permanent Works Overall Progress & Cost Control

EGP 56.701.490

EGP -

EGP -

EGP -

EGP -

EGP -

EGP -

EGP -

EGP 656.734

EGP 6.837.909

EGP -

EGP 36.938.616

EGP -

EGP 15.163.523

EGP -

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TOTAL WORK PERFORMED

OPTIONS

16 ELECTRICAL

15 MECHANICAL

11 EQUPMENT

10 SPECIALTIES

09 FINISHES

08 DOORS AND WINDOWS

07 THERMAL AND MOISTURE

05 METALS

04 MASONRY

03 CONCRETE

02-2 ROADS WORK

02-1 SITE CONSTRUCTION

01 BUILDINGS

ACWPvs BCWPWORK PERFORMED, Status as of 29.05.2014


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8.2.5 Critical issues

1. Construction Works Delay

ENG evidences a deceleration of the civil works and the underperformances during the month of May 2014

which is mainly due to:

Workshop drawings submission delays (under recovery)

Lack of resources in technical office team

Lack of resources on field considering the increase of the civil works (in elevation),

Increasing demand of temporary facilities (scaffolding, formworks) and equipment (mobile cranes,

roller compactors, plate compactors) and increase of overlapping activities in several plant units.

ENG highlights that RC casting is under the revised planned quantities to be performed increasing the delay

instead to recover the variance .

ENG evidences that the Construction Time Schedule Level 3 is definitely a critical task and must be

completed immediately in order to drive through an adequate level of detail the Works on site.Moreover, HAC is requested to build up the Recovery Plan in compliance with the end of erection milestones.

In addition HAC is requested to submit the manpower and equipment resourcing in compliance with the

Recovery Plan.

Dedicate workshops has been held on May 2014 between the Parties (IIC/HAC/ENG) in order to issue a

Recovery Plan including the Lev. 3 of MEP erection, with the target to allow to cast the first billet within the

1st

of July 2015.

Within June 2014 will be revised the new targets to be monitored; meanwhile the works has been driven by a

short term look ahead plan focused on the first phases of the recovery.


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9 OVERALL PROGRESS

9.1 Overall Engineering

9.2 Engineering distribution and progress by discipline


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9.3 Engineering progress by Plant Unit


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9.4 Overall Progress Curve

dp0c1b - iic - workprogress nr 14_may 2014

Documents

contract financial status

workprogress nr

reference contract

shipments status

261dp0c1b iic

dp0gs6015202018 dp0c1b

iic steel14b cleopatra

equipment ready