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Republika ng Pilipinas
Department of Agriculture

p~ P~~ ~ P-VV'-"'
(NATIO AL IRRJGA TION ADMINISTRATION
Lungsod ng Quezon
fice Address: National Government Cemer
EDSA, Diliman, Quezon Cit)•, Phili ppines Telcfax No . (632) 928 -9343
TIN No. 000 -916-415
Telephone Nos. : (02 ) 929-6071 to 78
Website: www.nia.gov.ph

September 16, 2013

ATTY. ELENITA D . V. LUMONGSOD

State Au ditor V
Team Supervisor
COA, NIA Central Office
EDSA, Diliman, Quezon City

ATTN . M.S. MARlA LINDA C. DE,CE NA

State Auditor IV
Audit Team Leader
COA, NJA Centrp.l Office
EDSA, Diliman, Quezon City

MR. FRANCISCO C. VALENTINO , JR.

Special Investigator IV
CO -Team Leader
COA, NIA Central Office
EDSA, Di liman, Quezon City

SUBJECT AUDIT OBSERVATION MEMORANDUM HCAAP 2013-008, CONTRACT

NO. HCAAPI-C-1, CONSTRUCTION OF CATUBIG, BULAO, DIVERSION
DAMS, CANALS & APPURTENANT FACILITIES WITH SUPPLY, DELIVERY
AND INSTALLATIO N OF STEEL GATES FOR CATUBIG AGRICULTURAL
ADVANCEMEN T PROJECT

Dear Atty. Lumongsod,

This has reference to the AOM No . HCAAP 2013-008 elated July 10, 2013, regarding the issuance of
Termination of Contract' of the above -mentioned Contract. As we narrated in our earl ier rejoinder,
at t he very start of the construction phase of the project in year 2007, there were various
implementation problems encountered at site by our implementing unit, NIA HCAAP -PMO and the
Contractor. In response to your AOM 2013 -003 referring to the iss u ance of partial take over, we
have laid down all the factual data and the basis of action of the NIA Management to that decision,
foremost consideration of which is the realization of the objective of the project, to alleviate the
poverty of the constituents of the Northern Samar.

After the partial take -over of the Bulao and Hagbay areas, the construction activities of the portions
left for Hanjin went th~ough. During construction, still there are interventions in which both
parties, the NJA and the Contractor could no longer contain anymore. For clearer visualization and
idea, in a separate shE~et which we marked as ANNEX "A" is the tabulation of the rainfall summary
pertaining to the total workable· and unworkable days from year 2007 to year 2010, the series of
communications betvveen the Contractor and the NIA regarding the Safety Conce rns in the project
site, marked as ANNEX "8".

Analyzing those interventions, in the Catubig Damsite rainfall sumrnary from October 2007 to
Augus t 2010, the effective workable days had on ly an average of 29.74% and t he non workabl e
days at 70.26%. ln the series of communications regarding the safety concerns at the project site,
for almost two years, from 2009 up to 2010, the Contractor could not bear anymore the peace and
order situation in the peripheral area of their project.

Page ·l of ll

OC. ~IjJ .. ?C 1 ~"r..•J: o"t rf ·Jt ,·;~A .·' ·- ..... ~-.,.,, .. . ; /

PRELIMINARIES:

Sequ e nce o f Communications Re : Issuance of th e Terr:nin ation of Contract

1. On June 29, 20 10, a coordination meeting was held in Las Navas, Northern Samar and this
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was attended by; am ong our HCAAP -PMO Project manager and staffs, Project Consul tants,
and HHIC Pro je ct Manager and staff. On that meeting, Mr. Park, HHIC Project Manager
informed the body that they plan to complete th e first (1st) 15 km. of Catubig Right Main
Canal until Dece~ber 31, 2010 up to the revised expiration elate of their contract. He further
explained that they will be submitting a variation order with revised contract qu(;lntities and
costs excluding the quantities and cost for the remaining works of Pinipisakan Bridge
Flume, Catubig Left Main Canal including the Laterals and the CRMC Laterals. (Minutes of
Coordination meeting is in ANNEX "C") .

2. On September 17, 2010, NiA sent letter to HHJC Head Office to validate the comment of Mr.
Park that they on ly plan to complete the 1st 15 km of CRMC by December 2010. (See Annex
"D).

3. On October 1, 2010, in seven (7) pages letter, of the Director/ General Manager of HH IC, Mr.
Seung Jeong Kim replied the NIA's letter dated September 17, 2010, hereto attached as
ANNEX "D". Exce rpts from their letter, they deemed that their course of action is the best
way of preserving the funds of the pro ject and to maintain the cordial relations betwee n the
Contractor and the Client, without due reference of who is at fault. Further, the contents
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evolved on the ~heir decision not to further proceed with prosecution of the remaining
works citing the iCONTRACTOR'S RIGHT TO TERMINATE CONTRACT WORK under General
Condition-23 of the General Conditions of Contract resulting from the occurrence of Special
risk as provided under paragraph (d) of Genera l Condition-S (LIABILITY FOR SPECIAL
RISKS).

The three (3) major issues affecting the prosecution of the work disclosed in th eir letter and
prompted them to invoke the above-mentioned provisions are the following:

Firs t: UNSTAB LE WEAT HER CO NDITIO NS UNFAVORABLE FOR THE PROS ECUTIO N OF
THE WORK

In the provision of the Local Condition - 03 (Climatological Data of the Contract

Documents), the project area belongs to Type - II in the climate classification of the
Philippine Climatic Zone, which is characterized main ly by heavy rainfall during
November to ja nuary (northeast monsoon), while the other months, the rainfall is
equal ly distributed .

With this Local Condition, the Contractor can work for at least 75% every year for
the whole project duration since heavy rainfall occurs only in three months of every
year, wh;ile the rest of the 9 remaining months represents the equal rain
distribution.
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The actu~l local w eather condition is absolutely different with the climatological
data supp li ed in the Local Conditions of the Contract documents. This was
supported in the actual rainfa ll data in ANNEX"A" . There is a wide variance in the
average month ly rainfall, thereby affecting site wo rkability. The Contractor assumed
that the same scenario will be repeated in Catubig Left Main Canal. As stressed by
the Contractor, the two approved time extensions noted that the delays in
construction due to unfavorable weather condition beyond their control. (See
approved Time Extensions as Annexes "E" and "F")

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 The occurrence of heavy rainfall in those 9 months which is supposed to have an
even distribution of rainfall constitutes an operation of the forces of nature, and this
could not have been foreseen. The S mmjday or below rainfall measurement whi ch
is considered zero and not counted as rainy day. Under table LC-03 Monthly Rainy
Days more than 5 m m jday at Catubig (1996-2001) is totally irrelevant versus the
actual sit~ condition. Jn the LC -03, 20mmjday rainfall will affect the work activities
in the embankment works and for concreting works, 30mm rainfall depth/day or
higher, the Contractor cannot effectively undertake the normal activities.
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The soil 'conditions in the site are predominantly silty and clayey loa m and it is
different fr om what is stated in the local condition of the documents. Even with a
rainfall intensity of less than 20 mm, the ground becomes already unworkable. At a
continuous rain of below Smm reading the Contractor could no longer continue to
work. It needs 2-3 days drying pe r iod before the site become workab le.

Secondly, the DIFFICULTY OF TERRAIN in CLMC.

As cited in their letter, in the case of CRMC, it took almost two (2) years to develop
the temporary access road along the main canal. There will be a double handling of
earth materials and their unit cost estimate app lied for this project does not include
extra activity of saic;i magnitude of work. The actual joint survey of Catubig Left Main
Canal original alignment and realignment was observed meticulously to be very
difficult kind of terrain and mountainous wh ich is different t o what have b een
presented during the bidding period.

The Pinipisakan Bridge Flume, HHJC admitted that it is their responsibility to

undertake structure however they have difficulty of finding b ored pile Co ntractor
and Spedalis t and nobody wants t o accept because of the small volume of work.
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Lastly, consideration has been asked by the Contractor in view of the SAFETY
CONCERNS Ali.JD UNCOOPERATIVE MANPOWER AT THE PROJECT AREA as provided
for in GC-10 SAFETY- PREVENTION OF ACCIDENTS-RESPOSIBILTY of the Contract
Documents.

Based on the Contract Documents, the Contractor is answerable for the safety and
protecbon and security of perso nnel, materials and the public at large in the area.
However, the Contractor's arguments that the Contract provision should not be
treated that way if it is beyond its control. Eliminating the occurrence of safety
hazards during implementation of Contract Works is their priority matter and they
have employed sufficient number of security men and implemented a security pla n.
But, completely eliminating the loss or damage, particularly of the construction
materials, fuel, equipment, accessories was not achieved due to the hostile attitude
and uncooperative manpower at the project site. Thei r workers are subjected to
security threats especially during overtime hours and the security concern disturbs
the concentration of the workers of the project. The extended assistance of the
Philippine National Police (PNP) and the Philippine Army (PA) when requested is
not sufficient. These scenarios will be detrim ental to the Contractor and the Client in
the end as alleged by HHIC. ( se r ies of communica tions re: Safety Concerns is in
A EX"B,")
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The Con~ractor admitted that they are aware of the proviSion in the Contract
requiring the Contractor to take the necessary steps to sabsfy himself as to the
nature and location of the Contract Work and to which directive to have sufficiently
comp lied by participating in the on site visit prior to biddi ng as well as thru site
inspection prior to mobilization. Their vast experience as manifested in the
construction of dams and canals in the Philippines and other countries and t hey
have successfully completed the two (2) major dam and irrigabon projects for NIA,
the Malinao and Bayongan Dams in the province of Bohol. Nonetheless, familiarity
with the contract work is irrelevant in this situation since the problems lied in the
unstable weather conditions extrem~ly detrimental to the furthe r prosecution of
work as explained by the HHIC.

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4. On October 8, 2010, Coordination meeting was held in NIA Central Office . This was attended
by the Senior Deputy Admr., Mgr. Legal Services Department, Mgr. Eng'g Department and
staff Project Mgr. of HCCAP and members of the Project Consultants. As agreed Engr. Galvez
instructed Engr. Domingo to invite the Contractor and try to convince to do the remaining
works and this vJ,as greed by the body. (Minu tes of the Meeting is in ANNEX"G") .

5. On October 14, 2010 NIA rep lied the October 1, 2010 letter of HHIC informing that a time
extension will be given to finish the remaining works. (Se~ attached ANNEX"H") .

6. On October 14, 2010, the Project Consultant in his letter to HCAAP Project Manager
submitted their evaluation on the basis of HHIC to terminate the Contract Works (See
attached ANNEX"!").

In verbatim, the conclusion of the Project Consultant to HHIC's three reasons does not fall under
Article GC-8 LIABILITY FOR SPECIAL RISK due to the following:

i) The NIA did not explicitly warrant that the Contractor can work for at least 75% every
year for the w)1ole project duration, since heavy rainfall occurs only in three months of
every year whil e the rest of the 9 remaining months was represented to have equal rain
distribution as provided in LC-03 of the Contract Documents.

ii) The average annual rainfall record in Catubig s tation (1973 -!977) and the average annual
rainfall reco rd in San jorge, LN (2007-2010) which have a distance of about 10 km is only
24% higher compared than the annual rainfall as provided in the Contract and it is also
higher by abou't 36% when compared with the average annual rainfall record in the dam
site in San Isidro, LN (2007-2010) which is about 30km apart and' not 45 km as stated by
HHIC.

iii) The uneven distribution of rainfall in the project area and the soil condition which is
described as predominantly silty and clayey loam with fine texture and high water
retention capacity are provided in LC -03 CLIMATOLOGICAL DATA and in LC-04
TOPOGRAPHY respectively, Vol. II of the Contract Do.cument.

iv) HHIC has accepted already that one of the causes of delay in the implementation of the
Contract WorkS is due to unfavorable weather condition when he requested for contract
time extension on two occasions, one on October 6, 2008 and the other on November 20,
2009 which lA approved for a total of 342 calendar days .

v) Based on the climatological data mentioned above, about 31-40% of typhoons struck the
project area ev:ery year. However, as per record ofPAGASA Catarman branch, only 1 out of
13 typhoons cross the area of Catarman, of Northern Samar on November 20-27, 2007 or
about 8%, 2 out of 21 typhoons on June 18-25 and September 29 - October 2, 2008 or
about 10 % , 2 out of 22 typhoons on May 1-5 and June 23-26, 2009 or about 9% and no
typhoons from January to September 2010. These typhoons bring minimal rain from 26
m l to 101 ml , only which have minimal effect in the construction activities of the
Contractor in c(mtrast to their claim that they were very much affected by climate change
phenomenon .

vi) Hanjin, being an experienced Contractor and having business in the Philippines for a long
time already must have known the El Nino and La ina weather pattern and must have
considered it in their construction planning and contract execution.

vii) Ordinary unfavorable weather condition as experienced in the project area from March
2007 to August 2010 does not fall under paragraph (d) of the GC-8 LIABILITY FOR
SPECIAL RISKS.
viii) It is presumptuous upon HHJC to say that CLMC is very difficult to undertake since they
have not yet started the construction. CRMC should not be a basis for this presumption

Page 4 of ll
 since the 20kn\ le ngth from Sta 0+000 to Sta 19+700 is situated in hilly portion while
CLMC, only the first 6 km is situated on hilly portion and the rest is located on moderate
slope. In any case, the Contract is a unit price basis and the cost of undertaking
construction works in such situation shou ld have been considered by the Contractor in
the preparation of his bid. And, any increase or decrease in the Contract quantities as a
result of re-alignment or changes in the works as provide under GC-15, the Contractor is
entitled to clai~n for time and money under GC -16 Variation Orders, Vol. 1of the Contract
Documents.

ix) HHIC should have familiarize themselves with the provisions of LC -02 LOCATION AND
ACCESSIBILITY, Vol. 11 of the Contract Documents which states, among others, that the
project sites such as the dam and canals need construction of temporary access roads in
order to reach the specific sites as there are no existing roads in most of these areas . At
that present time travel was by motorized banca ride (about 1-1/2 hours travel time) via
Catubig River from Catubig town up to Pinipisakan falls in Barangay San Isidro, Las Navas.
As an experienced Contractor, HHIC should have incorporated the cost of the access road
in the other items of work in the Contract and should have planned well the execution of
the works so that it will become an integral part of the main works thereby limiting extra
cost for the temporary access road, if not totally avoiding it.

x) Difficulty of terrain does not fall under paragraph (d),. Article GC -8 LIABILITY FOR
SPECIAL RISK, ;Vol. I of the Contract Documents.

xi) The premature announcement by HHIC on April 21, 2010 followed by the official
announcement during the coordination meeting on June 29, 2010 that they will pull out
from the project by the end of December 2010 is the reason why some employees of
Hanjin become insecure in their work and become fearful of losing their job. Meanwhile,
some resident~ of Las Navas who are the primary beneficiaries of this project started to
lose hope and become doubtful that they will enjoy the benefits of this project starting
2010, as committed by H)-liC.

xii) The hostile attitude and uncooperative manpower, as claim by Hanjin, are the result of
their untimely decision to pull out from the project by the end of December 2010 and
their failure to abide by their commitment to finish the project by December 2010 and is
therefore, controllable by Hanjin.

Digesting from the above, the NIA may take the following options:

1. Rescind the contract for failure of the Contractor to complete the Contract as agreed upon
and for unnecessary delay in the prosecution of the Contract Works, and rebid the
remaining works in accordance w ith Article GC-21 NIA's RIGHT TO TAKE OVER THE
CONTRACT WORK, Vall of the Contract Documents .

2. Take-Over or delete part of the Contract Work for failure of the Contractor to complete the
Contract as agreed upon and for unnecessary delay in the prosecution of the Contract
Works, and rebid the portion of the works which will be deleted in accordance with Article
GC-22 lA's RJGHT TO TAKE OVER OR DELETE PART OF THE CONTRACT WORK, Vol. 1 of
the Contract Documents. This option may involve another option and these are the
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following:

i) Take over or delete part of the Contract Work such as; all parts of CLMC and its
appurtenant structures, including the Pinipisakan bridge and negotiate with HHIC to
finish all the remaining works in CRMC, laterals canals and its appurtenant structures.
Th is will generate an area of about 1,540 ha when completed .

ii) Take over or delete part of the Contract Work such as; all part of CLMC and its
appurtenant structures, including the Pininpisakan bridge flume, and all the remaining
part of CRMC from Sta. 15+000 to Sta @1+691 and accept the proposal of HHIC to

Page 5 of 11
 complete only the works in CRMC from Sta 0+000 to Sta 15+000 . This will generate an
area of about 300 ha when completed.

7. On October 15, 2010, the NIA HCAAP Project Manager sent his recommendation on the
basis of HHIC intent to terminate the Contract. Basis of his analysis, is on to the
recommendation: of the Project Consultant. For clearer statement of facts, attached in
ANNEX 'Tis the copy of his letter.

8. On October 18, 2010, the Engineering sought the legal opinion in view of the conflicting
views from HHIC, Project Consultants and the NIA HCAAP PMO regarding the request of
HHIC for Contract Termination and at the same time they are the right person to render
such opinion since this involve legal issues. Copy of the letter to Legal Services Department
is in A NEX 'K" .

9. On October 22 , 2010, HHIC replied the letter of NIA dated October 14, 2010 appreciating the
decision of NIA to consider of giving time extension to finish the remaining works under
Contract HCAAPI-C-1. However, HHIC stand firmed on their proposal in the termination of
contract in which they find that the extension of contract duration is no longer a feasible
solution as per contact. Emphasis of their letter, NIA did not gave the 2 year extension of
what they have r,equested considering they anticipation of the on- set of the rainy season of
September -D ecember 2010. And on the initial stage of project implementation they already
discussed their predicaments and anticipated problems in the future of the project. Instead,
they have given only 158 calendar days and with their reiteration of giving 2 year extension
after the first approved time extension and facing the more adverse situation as the project
went through, ;they were only given another 128 calendar days. Giving such
inconsequential time extensions and prevalent occurrence of Special Risk, HHIC narrated
that they have shown their effort of maximizing resources resulting to a considerable
accomp lishment. With their intention to terminate the contract, as informed in this letter
they are anticipating the 95% accomplishment rate under the proposed 2nd revised
quantities up to the end of December 2010. They requested that final inspection and turn-
over of the contract works be conducted within the year. The remaining 5% and other
corrective works shall follow after they obtain the punch list from the NIA inspectorate
team 's preliminary inspection. This is in pursuant to GC -59 of the General Condition of the
Contract Document (FINAL INSPECTION, CONTRACT COMPLETIO , FI AL STATEMENT
A D FINAL PAYMENT). Copy of their letter is in ANNEX "L".

10. On October 26, 2010, a letter from the Manager of our Legal Services addressed to the
Manager, Engineering Department, submitted their opinion on the subject issue. In the copy
lega l opinion he\·eto attached as ANNEX "M", a vividly studied position on the issues have
been made by our lawyers. Point by point has been clarified. In line to the analysis made, it
was considered that the request of the Contractor to terminate the contract by reason of an
existence of a special risk has legal basis with condition that paragraph 2 of GC-23 should be
observed.

11. After thorough d~liberation of the Contractor's request, the NIA Top Management concurs
the legal opinion rendered by our Legal Services Department considering it is most
beneficial to NIA, since the Agency will not shoulder the costs accompanying the loss or
damages attendant thereof. On December 23, 2010 during the 873 rd Regular NIA Board
Meeting the termination of Contract has been approved per Board Resolution No .76-58-10
Series of 2010. Copy of the te rmination of Contract and Board Resolution is in ANNEXES "N"
&"0".
12 . On Decem.b er 28, 2010 NlA CO sent letters addressed to the NIA HCAAP Project Manager
and to Director/General Manager of HHIC informing the approval of the Contract

Page 6 of 11
 Termination . Fu,rther, the HCAAP-PMO was advised to conduct inventory of the actual
accomplishment:and the remaining works still to be done by HHIC.

13. On january 19, 2011, copy of the approved Termination of Contract has been forwarded to
JICA for their concurrence informing the indicative cost of the Second Revised Contract
Quantities and Costs ofP 542,628,370.47.

14. A fax message was received by NIA from JICA acknowledging the letters of NIA requesti ng
the concurrence of the Termination of Contract No . HCAAPI-C -1. JICA requested to submit
the details on both foreign and local currency and VAT portion to be adjusted from the
current amount: For the proposed repackaging, NIA Board approve:).] was asked to be
submitted first before issuance of concurrence. Copy of the Fax message is in ANNEX "P"

15. On February 22, 2011, NIA submitted the details on both foreign and local currency and
VAT portion to be adjusted in the Contract of HCAAPI-C -1. See attached ANNEX "Q".

16. On lYlay 16, 2012 jlCA's letter to NIA, informed that they have no objection on the request
for the Modification of Contract for HCAAPI-C-1 due to deletion of Civil Works at Catubig
Irrigation System, Final Firmed -Up .Quantities and Cost and Price Escalation No. 1. See
att~ched ANNEX;"R" .
i•
17. On [December 21, 2012 jlCA's letter to informed NIA that they have no objections on t)le
review and concurrence on the proposed Contract Packaging.

AUDIT OBSERVATIO NS,AND MANAGEMENT REJOINDER

AUDIT'S EVALUATION OF THE PROPRIETY

MANAGEMENT COMMENTS /REJOINDER
OF CONTRACT TERMINATION
1. The conditions set . by the GC 23 for the 1. Knowing the prov ision set under GC-23 for
Contractor's Right To Terminate Contract the Contractor's Right to Terminate Contract
Works were not satisfied, hence the Works, in which this has been also dissected
termination has no legal bas is. by our lawyers, before rendering their
opinion. As manifested in the letter of the
Contractor that there is an admission that
there was neither suspension of work or
complete stop of work for a continuous
period of more than 90 calendar days as a
resu lt of the three (3)issues posed by them.
Hence conditions 1 and 2 will not apply. Our
legal office in their opinion as regards the
weather data attached to the October 1,
2010 Jetter of HHIC, the PMO has confirmed
that the same are accurate in the October 6,
2010 meeting. In said w eather data, it indeed
appears that there w ere consistent
occurrences of heavy rainfa ll in the project
site making it difficult for the Contractor to
execute the contract works. Acknowledging
the unstable condition at site, the Contractor
was granted a total time extension of 342
calendar days. The contractor pointed out
that the occurrence of the heavy rainfall all
throughout th e year and not just on the

Page 7 of ll
 months of November, December and January
render it impossible for them to achieve the
targets in the construction schedule in a
normal manner. Considered also that
guaranteed in the Bidding documents that
the weather condition in the area will allow
the Contractor to do at least 75% of the
whole year as well as mentioned the type ~f
the soil in the location of the contract.
However, when the contract was
implemented it did no t appear that the
guarantee stipulated in the bidding
documents was present. Despite the exercise
of due diligence of the Contractor in
examining the location, including all
conditions that may affect the fulfillment of
the contract, the Contractor cannot in any
way fulfill its obliga tion due to the unst able
weather condition which is beyond their
control to prevent. And this is an instance of
"caso fortui to" as mentioned in the legal
opinion. This is primarily exemplified in the
case of LUZA SIA v. COURT OF APPEALS
AND SECURITY BANK AND TRUST
COMPANY, G. R. NO. 102970, May 13, 1993,
citing Servando v. Phil., Steam Navigation
Co., 117 SCRA 832 (1982), "In its dissertation
of the phrase 'coso fortuito" the Encyclopedia
]urisdicada Espano la says: 'in legal sense ancf
consequently, also in realtions to contracts, a
"caso fortuito" prevents [sic) the following
essential characteristics: 91) the cause of the
unforeseen and unexpected occurrence, or of
the failure of the debtor to comply with his
obligation, must be independent of the
human will; (2) it must be impossible to forsee
the event which constitutes the "caso
fortuito': or 1[ it can be foreseen, it must be
impossible to avoid; (3) the occurrence must
be such as to render it impossible for one
debtor to fulfill his obligation in a normal
manner; and {4) the obligor must be free from
any participation in the aggravation of the
injury resulting to the creditor." Because of
the unusual and uniqueness of the
problems encountered at site which are
unforeseen, the basis of the review and
study befo re the issuance of the Contract
Termination is not only limited to the
Contract provisions but also to the
existing Civil Laws pertaining to the
Contract Works.

Page 8 of 11
 2. NJA approved the termination of the 2. After thorough shtdy and series of
Contract in view of the legal opinion that consultations, NIA stand on the decision of
this is most beneficial to NJA since it wil not termination of Contract, first and foremost is
shou lder the costs accompanying the loss or to deliver the objectives of the project. It was
damages attendant to the occurrence of risk pointed out in our Reply to AOM dated July
although none w qs presented but no 30, 2013, that the primary objective of the
concern on the addJtional cost and longer project is for agricultural and economic
time of implementation that would result development in the Catubig Valley in the
from the terminati on and the sub packaging whole province of No rthern Samar that
of the deleted yvor k. would bring about the improvement in
quality of life of farming communities in the
be n efited barangays in the Catubig and Las
Navas. Secondly, the bid of Hanjin is below
13.91% of the Approved Budget for Contract
(ABC) . ln terms of cost, NJA knew and
determined already that repackaging these
two sub systems will resul t to a slight
increase in cost compare to the original
estimate. However, the big factor of
considering the termination is to realize the
delivery of the objectives of the project.
Further it is worthy to note that per letter of
HHJC dated October 1, 2010, while the
Con t ractor is entitled to claim from NIA for
any loss or damage attendant to the
occurrence of special risk, they are amenable
to forego this type of claim and instead
would on ly claim for cost of works already
performed but not yet bil led, variation order
and reasonable price escalation as provided
under the pertinent provisions of the
Contract. The said cost accompanying the
loss or damage was not presented
considering that HHIC itself waived its right
to claim such loss or damage . If "IA did not
accede to the proposed termination of
contract, not only will NIA face payment for
the said claim (loss or damage) but
additional expense for litigation as well and
eventually it will result to longer time
implementation to the prejudice of the
farmer beneficiaries.

3. The overrun amoun,ting P187, 960,946.61, 3 . There is no misplaced application of GC-23

equiva lent to 18. G02 % of the original considering that there is underrun in the
contract amount, issued under the Second Final Revised Contract Amount versus the
Revised Contract Quantities and Cost in line total Original Contract amount.
with the Termination of Contract is not only
invalid because of the misplaced application
of GC -23, but also violated the limit of
cumulative amount of variation orders of
ten percent of the original project cost
provided under GC -16 of the Contract and

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 the NIA Board of Directors approved the
Second Revised Contract Quantities and Cost
after December 31, 2010 revised expiration
date of Contract No . HCAAPI-C-1.
4. The Second Revised Contract Quantities and 4. NIA's action is always in good faith . With the
Costs covering the ,u nderrun and overrun voluminous attachment of the Rev ised
amounting to F400,090,893 .59 and Contract Quantities and considering the
P187,960,946.6 1 respectively was approved number of work items, it took so long to
by the NIA Board of Dire ctors aft er the complete and finish its review before
revised expiry date of the original Contract recommending it for approval. For the
No. HCAAPI -C- 1, casting doubt on the computed Second Revision of Contract
validity of the revised contract. Moreover, Quantities of Overrun, we would like to
the computed approved Second Revision of apologize for some corrections. Attached in a
Contract Quant; ties of Overrun is separate sheet is the corrected tabulation.
P 189,141,950. 97, ;showing a variance of
p 1,181,004.36.
5. In consideration of invalid termination of 5. The termination of the Cont ract has a valid
the contract, liquidated damages, estimated reasons and legal basis. Neither the
at P112,463,873, should have been imposed Contractor, and the NIA don't want to
against Hanjin pursuant to GC 61 of the experienced those circumstances which are
Contract for refusal to implement and beyond the control of both parties. To th e
satisfactory complete within the specified best interest and being the implementing
time p lus extension thereof, the agency, we have to choose what will be the
Construction of the remaining works of best among various options in order to
Pinipisakan Bridge ,Flume, CLMC including achieve the objectives of the project.
the Latera ls and tl:e CRMC Laterals.
6. NIA's Partial Take Over of Contract Work 6. Going back to our rejoinder in AOM HCAAP -
coupled with Hanjin's termination of 2013 -003, despite of NIA's and Hanjin's
Contract Work resulted to reduction of effort due to uncontrollable implementa tion
design irrigation area for Contract No. problems, it is the best decision by t he
HCAAPI -C-1 from 4550ha to 1100 hectares. management to take over and terminate
Moreover, the completed CRMC has only portions of the contract. In the list of NIA
irrigated j benefittt~d . an area of 160 hectares projects, in this area that the farmlands don' t
as of April 30, 2013. : have paddies. Social problem is the main
issue. The culture of the inhabit<;~nts of the
undeveloped provinces could not instantly
transform into a civilized way of life. This is
manifested in the attachment of this Jetter,
the safety concern in the project area
coupled with, the unforeseen weather
condition and other behind interventions in
the locality. Though the original Con tract
wi th Hanjin was Partially Take Over and
Terminated, the agency is committed to
develop the total service area of 4550 ha.
This is the very important reason of having
out that decision. Northern Samar is one of
the kinds, and incomparable to other
provinces, which is too slow to be civilized.
The investment of the agency including the
effo rt is more than enough to show the
sincerity of the agency to attain its
commitment to alleviate poverty in the

Page 10 of 11
 sincerity of the agency to attain its
commitment to alleviate poverty in the
undeveloped areas despite of various
hurdles in the imp lementation.

Considering the factua l pac kground of the request for termination presented to us as against the
appl icable laws and juri;sprudence on the matter, the request of th e Contractor to terminate the
contract by reason of an existence of special risk has legal basis. Eventually, the proposed
termination of the Contract with HHIC was approved by the N!A Board of Directors under
Resolution No. 7658-10, Series of 2010 upon recommendation of NIA Top Management. It is worthy
to note that the NIA requested the lend ing institution itself, Japan Bank for Interna ti onal
Cooperation, now Japan International Cooperation Agency (JICA), for concurrence of the contract
termination. In turn, JICA informed NIA that it has no objection on the request for the modification
of contract and on the proposed contract packaging.

In v iew of the foregoing, :we hope that the above r ejoinder will clear all the issues mentioned in the
audit observation . The rationale and the deciding factor of rendering decision for termi!}ating the ---------
Contract is for the best: of interest in attaining th e objectives of project. Thus, w e believe,~ . that to file /
charges against those responsible personnel and officials in recommending its approval is unjust.

Very tru ly yours,

/l~
RO pt§_R-rC'su GU ITAN
Acffng Deputy Administrator
Engineerjp f'xand Operations
"' rA
rQ o_ .~v~ rl' :
r

l..Si= -~f/ \
Bi f - 1-'
C.c..({.- 4 j,_. .
( Sc-v(<- tv c...~;s - CJY\ P, Pis.)

Page 11 of 11
 1. On November 6, 2009 Dra. Melodia R. Nerida, Chief of Hospital 1, of the Provincial Health Office, Catubig District
Hospital conducted the Post Mortem Examination of the body of Mr. Henry Capay Alfonso, excavator operator of
Hanjin who was stab for a number of times at Brgy. Dapdap, Las Navas, N. Samar.

2. November 7, 2009, the Project Manager of Hanjin, Mr. Kyu Hyu Yeom informed the NIA HCAAP Project Manager
regarding the incident November 6, 2009 at Brgy. Dapdap, Las Navas where Mr. Henry Capay Alfonso, excavator
operator of Hanjin was stabbed for a number of times.

3. On December 16, 2009, Sgt. Tito Gabway executed his affidavit at the Las Navas Police Station regarding the arrest
of Alvin Mikunug who was apprehended by the military personnel on December 16, 2009 inside the compound of
I
HHIC in the act of stealing twenty one containers of crude oil owned by the said company.

4. On December 16, 2009, Brgy. Captain Marion Pialago executed his affidavit at the Las Navas Police Station regarding
the turn over of Alvin Mikunug.

5. On December 16, 2009, P03 Ariel Baldoza executed his affidavit at the Las Navas Police Station regarding the arrival
and turn over of Alvin Mikunug.

6. On December 16, 2009, Mr. Balanquit sent a letter to the provincial Director of NSPPO, Catarman, N. Samar,
informing the theft incident that transpired inside the HHIC Compound on December 16, 2009.

7. On December 16, 2009, Mr. Moises S. Balanquit Officer in Charge, PNP- Las Navas Police Station, certified the
excerpt from the Police Blotter at the Las Navas Police Station on December 16, 2009 regarding Alvin Mikunug.

8. On December 17, 2009, Mr. Mario Abucejo, safety supervisor, HHIC, filed a formal complaint to Alvin Mikunug, Bilo
Quilbio, Jury Golondrina, Corona Pastor and Mayron Pialago for qualified theft.

9. January 12, 2010, Mrs. Gloria C. Alfonso, the mother of the victim Mr. Henry Capay Alfonso, issued an Affidavit to 1

attest the veracity of the incident that happened to her son . This was subscribed and sworn in the Officer in Charge,
Asst. Provincial Prosecutor, Mr. Antonio p. Hermosilla.

10. On January 12, 2010, Francisco Gutaba Delmore in his sworn statement at the Las Navas Police Station testified
what he has seen during the incident. Hence, a letter of complaint was filed by Police investigator, P02 Hannibal Roy
Balando Rodriguez and accused Mr. Luis Caca Y Tafalli:i alias Bonone for the crime of murder.

11. On May 26, 2010, Mr. Junvichero 0. Gudgad, safety assistant, HHIC sent a letter to Mr. Kyong Moon Kim informing
the incident that happened on May 23, 2010 at the house of Jonathan Rasco where Marion Pialogo, Brgy. Captain of
San Jorge along with two members of the 52nd IB Phil. Army recovered two containers of Hydro oil and three liters of
Diesel oil which was stolen in front of the Crawler Crane located at the siphon area.

12. On June 19, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim, Admin Manager, HHIC, informing the incident
that happened on June 18, 2010 at Sta. 10+300 CRMC area where the 63'd IB Phil. Army was able to arrest Ronel Lim
and Clarence Tendedo on the act of stealing two containers of crude oil and eleven empty containers.

13. On June 19, 2010, Mr. Moises S. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police
Station on June 18, 2010 regarding the incident that happened on June 18, 2010 at Brgy. Dapdap, Las Navas where 1

the 63'd IB Phil. Army was able to arrest Ronel Lim and Clarence Tendedo on the act of stealing two containers of
crude oil and eleven empty containers.

14. On June 22, 2010, Mr. Moises S. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police
Station on May 26, 2013 regarding Remel Lim who revealed his companions who ran away while being arrested
namely Juan Tenedero, Lelli Ambon, Jerry Ambon, Domingo Rolea, Edlie Olarte, Marcos Quilbio, Manuel Danque,
Tonyo Rebadulla, Candido Olarte, Mesito Olarte, Roble Lim, Nona Ramos and Nonoy Ornada on June 18, 2010 at the
Las Navas Police Station.
 15. On July 5, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that happened on
July 4, 2013 at NIA Office where three suspects namely Jorito Golondrina, Milo Quilbio and Miron Celajes were
caught stealing diesel from REX 10 but unfortunately have ran away when the guards have caught their attention .

16. On July 8, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that happened on
July 7, 2010 at Sta. 10+500 where Mr. Gudgad along with Las Navas Police recovered one plastic bag used as a top
cover of the container with an estimated 80 liters of diesel brought out by an unidentified suspect from the
equipment REX 02.

17. On July 8, 2010, Mr. Vicente 0. Gudgad, OIC for Operation, COMCEN sent a letter to Mr. Kyong Moon Kim informing
the incident that happened on July 7, 2010 at Sta. 10+500 where Jusan Olinan has seen unidentified persons armed'
with deadly weapons attacking rental equipments operators.

18. On July 9, 2010, Mr. Junvichero 0. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that
happened at the supply office where intentionally ransacked by still unidentified perpetrators along with the
following items being allegedly taken/stolen namely two units of chain saw and seven units of Led torch flash light.

19. On July 12, 2010, Mr. Kyong Moon Kim sent a memorandum letter for the. information of all Hanjin Employees
encouraging everyone to report any information gathered outside regarding the lost/stolen company Chain Saw and
Flash Light inside the administrative office with a monetary reward of P10, 000.

20. On July 14, 2010, Mr. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police Station on May
26, 2010 regarding the incident that happened on May 23, 2010 at the house of Jonathan Rosco.

21. On July 14, 2010, Mr. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police Station on July
13, 2010 regarding the incident that happened on July 7, 2013 at Sta. 10+500 where Mr. Gudgad along with Las
Navas Police recovered one plastic bag used as a top cover of the container with an estimated 80 liters of diesel
brought out by an unidentified suspect from the equipment REX 02.

22. On July 14, 2010, Mr. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police Station on July 7,
2010 regarding the incident that happened on July 5, 2010 at NIA Office where three suspects namely Jorito
Golondrina, Milo Quilbio and Miron Celajes were caught stealing diesel from REX 10 but unfortunately have ran
away when the guards have caught their attention.

23 . On July 15, 2010, Mr. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police Station on July
10, 2010 regarding the incident that happened at Supply Office where intentionally ransacked by still unidentified
perpetrators along with the following items being allegedly taken/stolen namely two units of chain saw and seven
units of Led torch flash light.

24. On July 23, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that happened on July 22,
2010 at Sta. 12+000 where Engr. Donald Garcia, HHIC, personally saw the operators of REX 07 and 08 backhoe
named Ricky Monterola and Manny Ocmer sucking through a hose from the tanks o their respective units the diesel
oil to a container and when he tried to get their attention, the suspects ran away bringing with them two plastic
containers filled with diesel oil.

25 . On July 27, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that happened on July 26, ,
2010 at Sta. 12+000 where Mr. Ronald Mariano, equipment operator of REX 02, noticed that two batteries from his
unit were lost/stolen.

26. On July 28, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that happened on July 26,
2010 at the house of Mr. Roque lruma where said resident was threatened by the Baldostamo Brothers that if Mr.
lruma will report to his duty, something will happen to him.

27. On July 28, 2010, Mr. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police Station on July
10, 2010 regarding the incident that happened on July 26, 2010 at the house of Mr. Roque lruma.
28. On July 30, 2010, Mr. Pan Geun Park, Project Manager, HHIC sent a letter to Engr. Reinero lrinco, Project Manager,
HCAAP, informing the consecutive and simultaneous incidents happening at CRMC in connection to the relentless
stealing of the construction resources. Hence, the condition at the site is extremely dangerous for the safety of the
construction equ ipments and workers.

29. On August 4, 2010, Mr. Balanquit certified the excerpt from the Police Blotter at the Las Navas Police Station on July
23, 2010 regarding the incident that happened on July 22, 2010 at Sta. 12+000 where Engr. Donald Garcia personally
saw the operators of REX 07 and 08 backhoe named Ricky Monterola and Manny Ocmer suc king through a hose
from the tanks o their respective units the diesel oil to a container and when he tried to get their attention, the
suspects ran away bringing with them two plastic containers filled with diesel oil.

30. On August 4, 2010, Engr. lrinco sent a letter to Pssupt. Brigido Unay, Provincial Director, NSSPPO Camp Delgado,
requesting for office security assistance that will eradicate illegal activities and prevent possible loss of life and
damage equipment.

31. On August 4, 2010, Engr. lrinco sent a letter to Col. Oscar Lopez, Commander, Camp Somoroy, requesting for office
security ass istance that will eradicate illegal activities and prevent possible loss of life and damage equipment.
32. On August 24, 2010, Mr. Gudgad sent a letter to Mr. Kyong Moon Kim informing the incident that happened on
August 24, 2010 at Sta. 13+700 where four batteries and one steering wheel of the three equipments (WL 72, VR 23,
and RVR 01) were found out to be lost/stolen.

33. On September 1, 2010, Mr. Balanquit issued a certification that based of the records on his office, there were
several reported incidents of crime against person and property that transpired since March 2007 within the
area of the Municipality of Las Navas.

34. On September 17, 2010, the then NIA Acting Administrator Antonio S. Na:ngel sent a letter to Mr. Seung Jeong
Kim, Director/General Manager, Hanjin, Head Office, Taguig, Metro Manila, asking their comments and final
decision on the aforesaid information conveyed by Mr. Park in the coordination meeting.

35. On October 1, 2010 in reply thereon, Director Kim confirmed that they intend not to proceed further the
prosecution of the Contract Work specifically the CLMC and its appurtenant structures and facilities, CRMC
laterals and its appurtenant structures and facilities and other remaining works as indicated in the First (1•t)
Revised Contract Quantities and Costs approved by the NIA board of Directors on March 22, 2010

36. On October 8, 2010 in the coordination meeting held at NIA Central Office, the Position of NIA on Hanjin's
intention to terminate the remaining works of Contract No. HCAAPI-C-1 was discussed
 r,~:::~-,
~ AA~~: J~A~~_,~ D - ij
Republic of thePhi~-,~~~J
National Police Commission
Philippine National Police
Norhtern Samar Police Provincial Ofiice
LAS NAVAS POLICE STATION
Las Navas, Northern Samar

LNPSC-

CERTIFICATION

TO Wl-IOM IT MAY CONCERN:

This is to certify that based on the records of this office; there were several
reported incidents of crime against person and crime against property that tTanspired
since March 2007 until to date within the area of responsibility of the Municipality of
Las Navas. Several reported incident were transpired at the project site of the
Construction of Catubig Diversion Dam, Irrigation and Drainage Canals and
Appurtenant Facilities/Stmctures Including Supply, Delivery of Steel Gates under
Help for Catubig Agricultural Advancement Project (HCAAtT)) that allegedly
1 perpetrated with conspiracy between some construction workers and private
individuals of nearby barangays .

As a result of which, there were cases (grave threat, murder, theft) filed by this
office before the Regional Trial Court, Branch 21 and 22, Laocmg, Northern Samar for
appropriate dispositive legal action.

Attached hereto are the excerpt extracted from Police Blotter of the reported
incidents ~or reference purposes.

Issued this 1 st day of September 2010 upon request of the interested party.

~ '
MOISE~.I siE'R!vOilLANQUIT
I ~
~~~
Police Inspectm1,
Officer In-charge
.,··
 '.

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NATIONAL pOLICE CCJl\1lVIISSIUN
PHILIPPINE NATIUNAL PuLICE
Northern .Samcn-: l0 0lioe Prnvincia1 \'ffice
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Las Nav2s, N"rthortl 38m.ur
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Muni ciiDali ty "i' LCJ.Ei No vas
.Pr"vince. nf Nnrthern Samar
Fo.ge Number 1 255
Entry~Numb~r ·I 131+2LILj
:IDa te "f Entry 1 ® July 2®1 ®
Time 0 f Entry
- - - -
INCIBENTS/EVENTS t
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Mr , Ma rianit 0 0linan y O~g 3~ yrs 9f ag~, married cDMCEN

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Entcrc@ By ; 1"03 JuGJ.ithC\ T G<alit .
- - - - - - - - - - - - - Nnthi~g Frll 0 ws - - - - - - - - - - -

Paid Uncl~t u .R Number ~ 15~4667 .

Paid ~t 1 LGs Nnvas N . Sc:1.m~r
Pcd<ll On : July 12, 2®1 ®
Amnunt Pni~ : P45.A&
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NATIC'NAL lv0LICE: o01VJr.1ISSION
PHILIPPINE NATIUJ\JA1 pULJ:CE
N 1..lrtht:?Jrn Smmar· J?Ol:Loe J?rOv:i:no.Li:l.l O:f:Llce
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dcnnt an.411 Wl:iH'® a~l@ to J:'@COv®r (2) tw 0 container 0£ hydrO l ...l.tJ.at
th e. ·houso: Of cert&liB. J0n,J,tthaHI! PU\$co to inclucr1co; 3 li-tsr.s D£ c;:ruilc
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tw0 susp®cts · u1sk J!)t::r·misa;JO.H ft·C'm tl:w twn s ('ldiers nnd th® Brgy
Captain t:::' e.Rt their lLil:Jch 8J,'l@l tbey w®r£ lJ)ormittcn~l and the t;r
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~een anym0rm mt Ergy . San Isi~ r 0 , Las NavGts N. Samar "
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L0s Navms N . Samar
Faicl '~· : July 14 , 2 ®1®
Amount Paid ~ p45 . ®®
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I , ALVIN MIKUNUG y G®NZALES , 26 ye~rs old , sin g l~ , fili -

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) crude ~~il 'il•Wneel hy th!l: ;;>Clid ctDl'llpm:.ty ; ·
Th<'l t my C !iJI1l1ntni~:,nJ. .s WG'\8 Bil~J Quilbj.G'J , Jury G<P..•lc;,'l'J.G1rix<l.ct , "CGl -
P<ilf.i'l:.®r u.md we agr~ed t@ lao8d thC\t fuel t© theJ m®tr;n~]D£D8't
rf1,11@>
®f certailu f"JAYR\'l'N PI!\ lAG® mad t1w J.:c>.t®r wets utlsm i11V'i'Jl VC'!d iF\
pl&~ .l\H'li .mg s;;Licl · j_ rncid~ .Elt .,

I NTRUTI-:1 I-IEHEWF I h Gtvm hEJrr:nmt© <:~ffi.xad my sigitioltun:D thj_s

16tfu dny gf D®cC'!m~~r 2®•9 at Luts Nav~s Palic® Statigm in the
pres~mc~ • f Brgy . Capt . Mmr l am Pial8gm 8\'J.d samm ®th~r& .
S.::GD . l•'J./.lli.LG N Pll\ Ll\.GCi , ,scm . ALVlN JVJlKUl\TUG .
- - - ... ·- ' - - - - .lr'H~th i h!g fCtJJ ti:lW ,?.i - X - - - - - - - - - - - -

CERTIFIED CCmRECT :
. .. ~·.

Fl\P

Paid Und~r
Q. R . Nm . 1468832 .
: Lns N.!!VC\S., N ::.~nmGr
IssUtl<!l o.·t
Ismll!.'d em : 16 De1c0mhtn· 2!-il\·ig
AmG u~t Pnid : r3m , n0 -

' - - ····· · ··- - -·- ·- - - -··· ··- --· ·--- -· . - --- -- -- -- --------·- - ·- --- - - - - - - -
 ..-

Hon. Asst. Provincial Prosecutor

Provincial Prosecutors Office, L<lOCinfl Orandt
Laoang, Northern Samc1r

Si r :

The undersigned sCifety superv isot· of Hanjin Heavy lndustt·ies CmpmCition, Ltd., Las

N<was, Northern Sam<1r accuses ALVIN 1\ilii<UNUG, BILO QUIU310, JUf\Y GOLONDRINA, <:llld

CORONO PASTOR worke rs of that company as pt·incip;:11 <tnd l\llAYRON PIALACiO as

accessory all resident of Barang<tY San Isidro, Las Nuv<ts, Nonhcrn Setmar ol Lhc crinw o f

Qualified Theft, committed as follows:

111
ThCit on ot· Clbout 16 ciCiy of December 2009 Cit 1:35 O'clock midnight inside !he
compound of 1-iCinjin Heavy Industries Cot·poration Ltd., situated Cit LiCII"Cingay San isidro, Las
Navas, northern Sam<tr, Philippines, within the pt·elin1in<try jurisdiction of this f·lonot<11Jie
Office, the aiJove-nCimed Clccused being t hen and there workers of HHIC Las Na velS ilncl as
such workers had access to that companies compound, did then and there willrully,
unlawfully ancl feloniously, with grave ab.usc of confidence, with intent of g<)in and w ithout
the consent of the owner and ot· any employee thereof, t<tke, steal, and wa~ cu ught on the
act of stealing frorn the said company, the following described property: twenty one (21)
containers (420 liters) of fuel w ith C1 tot:CII value of fifteen thous<tnd five hund t·ecl rorty
pesos (15,540 .00) to the damage Clnd prejudiCe of the said constn.1ction comp<lny (HHIC).

Contra t·y to law

Laoang, Northern Sam<~r

Very tt·uly yout·s,

Witnesses:

:1.. Sgt. Tito S. Gabwc1y - Brgy. San is idro, Las Newils, NSctll'lCir
2. [}rgy. Capt. Marlon 0 . l)ialago - -do -
3. l\llCit·io G. Abucejo - Pobl., Lets Navas, NSamat·
4. P03 Ariel P Baldoza - -do -
5. Others reserved

Exhibits:

1. t:xce rpt from police blotter

2. Affidavit of Clrresl
3. AfficiCivit of tu'rn over
4. Inv estigation Heporl
5. Pictu1·e taken from the scene showing tl1e 21 cont:cliner~ of stole tl fue l
G. Others reservt~d
',_
:: ':
. •'

Republic of the Philippines)

PROVINCE OF NORTHERI\1 SAMAR) S S
Municip<ility of L<:~s Nava s)

1\ F r I D A \1 I T

I, MAFUO ABUCEJO y .GALl MBA, of legal age, married, Filipino, safety supervisor of

Hanjin Heavy Industries Corporation, Ltd., based at I_<:J s Nav01s, Nonhern Sa111ar ami <1lso"

resident of said M unicipa li ty al'tcr having been duly sworn to in accordance with IJw

hereby depose and s<:1y:

That on December lG, 2009 I was informed by my administrative officer that tile
Philippine Army was 'able to app1·ehend certain ALVIN MIKUNUG ou1· fuel mCin in Bar<1ngay
SCJn isidro clump site compound who was on the <Jet of steJ iing crude o'il in the fuel t<1nk
with sorne others conspirator who was able to escCipe;

That I wa s instructed by my aclministr<ltive officer to file fom1al complaint agc1in~;t lh<~

suspects at LCis 1\lavas police station a.nd there, I met Garcll'lgay Captain Ma1:lon Pi;"li.lt;o who
tum over the suspect to the Police Jncl then when the suspect was interrogated by t.IJ<"
police in v estig at or I witnessed when he confessed <Jncl revealed the name of his
conspirator namely BILO QUILBIO, JUR Y GOLONDHINA, COHONO PASTOR ;:~ncl even the
owner of molorboCit supposed to be usecl in tr<msporting tile st olen crude oil IVI/\YIION
PIALAGO was mentioned as involved in pl<:~nning of said incident;

That I <:~m executing this affidavit to attest under oath to l:h<" veracity of my forc!going
statement and to ~;upport. for the filing of criminal complaint against the suspects.

IN TRUTH HEf\EOF I h<Jve hereunto 01ffixecl rny ~;ignature this 17 'dily of Decr~ml.1er
111

2009 at Las 1\I<Jvas, northern S<Jmar, Philippines .

SUBSC/~IB.ED
AND SWORN to IJefore m'e this ll clilY ol' Decernber 2009 at Lao~n~,
Northern Samar, Philippines. ·

Cf.:-cEJ-8 /~
P!WS ·CUTUH ~
~- ~ Ji I_Lf_l_ ~--~-T J_Q _N.

I HEREBY CERTI I: Y that I h<Jcl jJersonally elc<Jminecl the <1ffi<1nt <Jnc/ Lhat 1 am Set sficcl
the he voluntarily executed and fully unclerstoocl <11/ t11e contents hereof.
! . ·'.

Rep u blic of the Philipp ine s)

P.ROVINC [ OF NORTHI:RN SAfVIAR) S.S .
Mun icipality of Las Navas)

A FF IDAV IT OF AHI< EST

I, Sgt. TI TO GABWAY y SAYASA, of legal uge, married, Filipino, meml~er of br;.1vo

co(Tlpany, 52 "d IB, BID, PA, designated as as sistant detachment commc111cler, based at

Barangay San Isidro, Las Nava s, Noc·thern Samar Clftec· having been duly sworn to in

accordance with ICIW here,by depos e ancl sCiy:

. Tha t on December 1 6, 2009 at about 1:35 O' cl ock in the moming more or less while
we were having a roving patrol within our area of responsibility and inside the compound or
HanJin Heavy industries Corporation Ltcl., I saw four (LJ) person at the fuel tank t<Jkinl~ l'uel
and be~aus e we have already received and informCJtion that suspects wec·e po ssessing
fi re.arm s I immediately fir ed my gun as warning shot foe· them to st.m·end er but instead thc:y
all r an away;

That we were able to capture one of the suspect ALVIN MII<UNUG wl.1o hC1ppe1iecl to
be a fuel man of that corporation and we were also recoven=d from the scene twentv one
(21) contain e rs about four hund re d tw enty (420) lite rs of cc·ucle oil ancl immecli<1tely tum
over it to the office of th3t co mpany including the suspect who was ,·eceivecl !Jy Bar<JI1GilY
Captain Marlon Pialago of that Barangay;

Th at I am executing t h is affidavit to CJttest undec· oath, ·to the veracity of rny

foregoing statement and to support the f iling of cr iminal complaint against the suspects.

IN TRUTH HEREOF I have hereunto affixed my signccture this 17tt' clay of DecClrnber
2009 at Las Navas, NorthernSam<:11· .

n· .. ·

SUBSCRIBED Af\ID SWORN to before me this

f
.SGT. TITO S. . · MWJW
Affiar t

·~7- clay of December 2009 at LciO

Northern Samar, Philippines. .

I HEREBY CEIITIFY that I had peJSOilc1ily examined the clfficcnt <md th,ct I am SCJtisfied
the1t he voluntarily executed and fully understood all the contents hereof.
 hcpu bltc ~d tho i hiJ.j.[Jl.ij.no.t>)
l-HUV J.NCE; GF N"i.JF{'J'i JEHl\! Si\Hitil. )
l"'Jl.luicip;;dity cvf L8s lk\V(tS )

AFFIDAVIT QF 'l'l.1El.N ~ ~WEH

- ·· ·· - - -- ~··- -- -··- - -~--- - -· - -··- -·- ··--· .. ··-

I , I:lJ.\F:.I\ l\TGi\Y CAP'J'J.\lN Hi-\l·lLU.N PIJ.\LAGO y Ul.JC!HHU , 39 yoclr8

mld , married , filipinm
I .u~lu.strics C®rJl(J,r0.tim.n ,' I.;t<:.l~ , lJn:;;;ocl <:lt JJ<.'Ir<:t>·l@PY ::.> .:1 t·l lsj.dr~,,

Ln::; N~lVC\Ii3 , NGJ;rtbon:l oGl'flii'\r oncl n resident lf>f s<tmo pL1co etftcr
rw viJ.'>lg Goon duly swer.t'l tCD j_n ncc0rd;;mco with l1:1w hero by dcpr;>sc
cmd s;;,y :

Thot @n DucuJni.K.-r ·16, 2,_,(_ c:; <.l t ~tiJ<,,ut 2 ~ )l..- l: 1 cL•.,cl·; j _1.1 tho
1n0r·uiug n Ct:! :r-tctin J.I.LVB!\! JV! I!(Ul\iUU y GCA~Zll. U~:s n :rue l nun nJ' .~:ct id
Ct~:mp ctny '-'l8fi turn"" vvor t ~;l 1no by tho mil:i.t~u·y lll.'cccl by ~~;gt Lj_'Co
G<.!bWGY ot 52ncl IF.I , f:iiD , F'I\ who W8S CC!Ught on the ~·.ct ,,:['stealing
t\'Jonty. ®nc ( ?··1) cc-ntc!j.ners of cruclo c;;d_l with s;omt) f:ltJwr .s cons -
pir~tnr but nll~g0dly wns ~blo t o o&ce!pc ;

clt nb9ut 9 : 3t:OJ OU.Gcl\ (!'-f .'::C'\111(0 cbto l tur\1 - f)V(:) Y' snicl.
rl1 h~t
suspect Alvin Mikuu ug t@ L~s NnVQS P•li6c statiwn ~CCQmpnnyirig
·with me wC\s sr,llno se>curity guE.~rcl .:mc1 eroploiyoe (!)f thnt inst.i.tu-
t i 0>.1'1 ;

Th"1t I oxccutod th:i.s uff:Ld(tvj. i: to clttt"e£>·t under ~~nth , -b~

t.l:w vcrucity 01' my :L'Il•rgG~ing stnt0mcnt C\ncl fr.)r whntovcr J.cgol
~urp0se this mny servo.
hc:tve:: hC:!re::uFlt~.~ c"\fJ'j_xecl my ,<:.;j.g"".r.tturc thj_s
1 1\f 'l'HUTI-1 I-IEHE0F I
16th cloy 0f Doccmbor 2l!HJ9 ctt La !iii Nctvns , Ntn' thorn SomC\r,

(:~UB::>CiUDE;JJ J.\.ND 8\v'UHJ\i tf!.,uiJefer<:: mo thi .s fl clcly <d' Dc•cc'I;J -

!Jl'r 2 t·,(tJ9 .::tt L;;,t:•nng, Ii/CJ>rthorn Sctmctr , Pl'd.lippii:/iii:fs~·

CE R T l V I CAT I 0 N
_ , - ·- - ·-· - ·- · -- ·-- • ¥- -·- - · -

I 1-IER.EflY CEFl.T'Ifo'Y Uwt I h,:wo pcrf::~) r:tG\Ily CL'XC\lllinccl tho ,.tffiGnt

C\nill thnt I mrn smtisfi~d thnt he vmluntnrilly 0~ccutcct this nf-
:f:i.cl.C'l vit <m el :fulJ.y ur:tclcro;tr:HiJCl n11 thr~ C0T·l tc.t1'ts bore r!lf.

PfWSf l. UTOH ~

. ··- - -· -· - - -- - - - ------ _ _ _ ______ _ ___ _,....,__.~..=.::... · -- -- ="="·-= -·• ... ;;;=::: =-·-::o-;-; ~·.;..: -:=...~-~-:-:c..__ _ -=:-===-:.....::::..:___::=..:..:.·..::..-::::-- · · - ·- - - - -
--·'
 .J

Hepublic of the Philippines)

PROVINCE OF NORTHERN SAMAR)S.S.
~lunicipality of Las Navels)

1\ f'f'I D/\V IT

I, P03 ARIEl_ BALDO ZA y PLAT EJA, 3LI ycoars olcl, lllcl!Tiecl, 1-ilipirw, duty investieC~tor of

Las Navas police station, Las Navas, Northern SamCJr after hzwing been .cluly sworn to in

<:1ccorclance with law hereby depose and sC~y:

That on December 16, 2009 at about 9:15 O'clock in the morning while I was
rendcoring my police duty as investigator at Las Navas IJolice stCJtion Las Navas, Nonlwrn
SamM, Barangc1y Capt. IVIarlon Pialago of 8rr:;y. Si1ll Isidro arrived and tum-over one /\l.VI!\1
IVIII<UNUG a fuel man of l-l<llljin Heavy Industries Corporation , Ltd., who was aJTcstc:d IJy ;1
Philippine Army on December 16, 2009 at about 1:35 O'clock midnight in the act of stc<J iing
twenty one (2.1) cont<1iners of fuel from the compound of said compe1ny with others
conspirator who was able to escc1pe;

The1t during the interroge1lion said suspect Alvin Mikunug in the p1·esencco of Brgy.
Capt . Pialago and some others confesscod and 1·evee1led the llClllle of his conspirato r ne1111ely
n11.0 QUILI310, JURY GOLONDRIN/\, COJ10NO f1/\STOII CIIHI M/\YRON PI/\1/\GO :!II rcsic.ICIIt or
Drgy. San Isidro, L<Js navas, Northern Samar;

The1t his confession . was put into police blottcor allCI he signed it Jfter it was explained
to him in the presence of some witnesses;

That I executed this affidavit to attest uncler oath, to the veracity of my foregoing
statement and for whatcover lcogal purpose th is may se rv e.

IN TRUTH HEREOI- I he1ve hereunto affixed rny ~;ignature this Hi

111
day of Decr:mher
)
2009 at Las Navas, 1101·thern SamM .
'\.
I
.JI.
'\ Lvh,,
!
\
r 13~~LflzA
I
'\

SUBSCRIBED AND SWORN to before me this{_)__til dC:ly of Decembe 12009 ;Jt Laoclllg,
Norlhern Sarnar, Philippines. ·

C E R TII-IC A T IOI\J
 Republic of the Ph ilippines
NATIONAL POLICI: COMMISSION
PHILIPPIN E NATIO NA L PO LICE
Northern Samcll- po li ce provinci<il ofrice
Las nava s Police Station
Las N01vas, Northem Samar

M EfvlOI~AN DU IVl

FOR : Provincial Din:cto1·

NSPPO, Catarman, N. Samar
(Attn: Opn/PIDMB)

FI~OJ\11 :Officer In -Charge

SUBJECT :Investigation Report re -Theft incident th <l t transpin:d inside the

compound of HHIC, Ltd.

DATE : 16 December 2009

I -- f{Ef'ERENCE:
l. 01. SO.P Oil investig;jtiOil
11 - BACI<GROUND :
02. That on or about 1601351-1 December 2009 at Barangay SCln isiclm Le1s
Navas, Northern S<11nar while the Philippine MillY Team led by .Sgt.
Ti t o Gab way o f 52"" IB, 81B, PA based at said place having a rovi11g
patrol within their AOI\ they sa w four (tJ) person t<:1king fuel f1·om i:he
tank inside the compound or Hanjin Construction Comp<l ny e1ncl when
the team leader Sgt. Gabwa y fired his gun in orcJN to the suspects to
surrender. Instead, they all ran away but they wer e able to captured
one ALVIN MII<UNUG and reco ver ed from the scene twe11tv one (21)
containers of crude oil and immecli<Jtely turn over it to the office of
that companv including the suspect which was 1·cceivc:cl by Brgv.
Capt. M arion Pi<:1lago.
03 . That th e re we1·e thr ee security guarcl on duly all iliTned with sllol gun
and ca l .3 8 revolver respectively.
Ill - CO MMENTS :
04. T he Ullclersigr1ecl investigator bc:lieved that t ile incident was being
planned by the suspecl:s witl1 the knowledge of the ~.ccurity
personnel because it is impossible rol· them not to see the suspr~cls
while entering into the compound with such number~ of containr~rs
<:1nd having so many pe1·imr.ters light at the1t pi<Jce.

IV - RECOMMENDATION :
05. A case or qualified theft be file against the suspect:; ancl further
investig<ltion to the security personnel on duty.
V - 1\TT ACI-IfVIENT:
06 . Affid avits of the witnesses .

PIIVI~E~~S\sf\iJAN"i~IT PI\JP
Office1· IJ~}.chc~rge
 (
' ..

R0p u l_. 1 j_ c <-d t.l="~ j_ J 1:L Jj_Ll i1. tc· .~,

i\lj\'J' J . -Ni\.:C r I_' l. H: (•: C(.Ji''IJ'.'il ;:; ;:~ Iul\1
H ·II :U.J: j :t ]\!!'!·: h'!\'J'hJI\!J-\J. J:·L·LJC!:·:
il•~).rtlwrr. t ;_:; Ctli!~U· l .;11:i. Ct·-' Frovj_nc.i.ctl (_;J'fj_ c(:.'
LGt 0 i<!etvns t.-'G:1icL: [.-.{ tc\ tj_~~r!
L~.t~ r<!c'"l v.:t;:; , N:'•r tJ·10rn ;::.:tli! CT
·- @l.·f),. · "

Exc~'J:'i_-,t :t.'rm1:1 F,.)J. j_ce.· l:•J.1cl i..cr

S tc1 t j _1-;m L0.\'; l\iuv<il.S P!z,J.j_ct) ~~.tr.tti:H l
l'-'lm:tid_p[!lity o.>f Lc1 s l\ToWL"H>
I\1::l'JVince 6lf Nt\lrthc- r m :::01mcu·
t:ntry NUm ber 133686
D.:-tte gf Entry 16 D~ccmbr;.•r 2Ci•C9
T irr1r,: Gf Entry tT<9 '15I-I

I, ALVIN MIKUNUG y G0NZALES , 26 yenrs old , sin g lo , fili -

pino , fum l mQ~ of H8njiu H~~vy lndustri0s C~r~0r~ i i on l~ d . ,
b~s~d 2t Bar2ng8y 82n lsidrw , L2s H8V8s , Nmrtherti Somor 0fter
h2v i mg beeR duly i Rf©rmed ~±x my CQmstitutiG~Cl.l rights h~r~by
d~p o s~ 0nd st2te :
~C'l wt I wc;._s e1. ppndtc.~ndt::d b t t he i'"l:i. :l..i.tnry pe rs mm!I'l c..>l_'l Dcc~T!I ­
hc: r '16 , 2 l'•i'·9 C\t ctb(.>Lrt 1.:'35 ' '''cJ. r;.c l<: midnigbt irw ido tht::. C:';llillJ0LUlcl
~·,f J-ll-TJ C :i. n th·~ .:: ct r~ f f.d:t!!'-~Jj _l_1 g twe1~ ty r.> nr~ ( 2 1) c?ntcthler·s G'J./
) cru de Pi 1 ~wned by th~ snJcl ccr;•111p nny ;
'f h2t my C<;Jii1p.:-mions w~1s B.ilr:.1 Qu.-L lhi Gl , Jury G\!•l l11l'ldr i n8 , ·cG> -
r !nn ~' Pn s t.Gllr .;cnd. w·e •• gre:-ecl t ;c lQl2cl thct t fuaJ. t~,, ·th10 mr,d ;CJrlDI!>cct
m:f ceJrt.:~ira l"IAYH.GN l-'11-\L!\.GO and the l ;;<b~r WC\~J 0 l sr,-' :L.nv •F, lv0d i n
lJl.:\1.'-!Y.l i l'lg sn:i.d j_lnc i d@Bt .
I NTRUTI-1 I-JBREUF I hovrJ hi:JI'ou.nt@ 8ffixc1 cl F11Y .sig nG ttun.-~ th is
'16 th cl«y GJ Dec~ll!liHH' 2 l'V~V9 <tt Lm; I:-J2vns F'oJ.j_c® :3tnti01:). j_l'" the
presence 0f Brgy . Capt . M 2rl~m Pialngm n nd s® m@ others •
•~~:(;)) . l•'J./U~LGN l.Jli\LAGU , ,'3 CD . 1-\LV J N JVJlKUl'JUG .
- - - ·· ·- ~ -- ·- -· - - t=l~:JthtJ..lf.< f£~'JJ..~Y't1Vf; - x -· - ·- - . .. ~-· - .. ~ --

P ctid Ur1dex· Gl . H . Nr;·, . 'JL/.68>'332

I.o;:;sLwd nt : Lns l~8V C!.S , 1\1:3~\l:Ic·u·
I~suvd on : 16 D~ccmbur ?0~9
Amoun t Pc\id : P3 C! , C!G> .

··-------- ·-·-···- ··----·-··----- ----- ---· --------------------·

 Repub lic of the Philippines
· Depal'tment ofAgriculture
Nationallrrigat ionAdministmtict.~:.~""""""""".._=e~=~~~
Help for Catubig Agriculi:und Advancmnont Project
Catannan, N orthel'n Sarna/' ·

August 4, 2010
.%i011~~,!·:'. ' H C f-..A P - !D C · .

:~:al~::n, No:::J:::::;STANCE IN THE ~~~~E~~AI1EI\ Of -1~!~~:0~~ ..' HC/\1\:

/111-{,j-e~.-</rc"
Dear Sir, BY: ------ --------- -----
eo ;. .t<.1 urk1-h .c <111" r , o~

t\ This refers to the herein attached letter of our Corrtractor, 1-ia pjin Hea vy Indu stries and
Construction Corp. Inc., (HHIC) together w ith other documents supporting the m entioned
inc ident at the project area -of the Help for Catubig Ag ricu lt urall\clvancement Proj ect particula rly
at the vic inity of Brgy. Dapdap and San Is idro of Las NC1VCIS to w n.
r-····

The incident of stealirlg of construction resources like diesel fuel from t he proj ect site of 1-11-iiC has
been not ed long before and this became rampant to the point that H!-IIC j)ersonnel Clre no w
recei vin g de(lth treats from ·ident if ied person do ing t he steuling. This sc enario i'.lcl versc::l y affects
the smooth implementation of the proj ect since the w orki ng si te!> Li r e no w ex tremel y d<lll gerous
for the safety of the equipment and w orkers.

In vie w of this, we would like to reque st from your office security <Jsslstance thElt w ill tota lly
eradicate this illegal act ivities and prevent the possible loss of life and damaged equipment.

Your fa vorable action is highly anticipal<ed, Thi'.ln l< you and more po w er.

Very t ru ly y ours,

\
~~
Project lVI an age r
d f • . ,.1 .

;'!jJi ,. :· !"
! '· · •' ;··.'

•·
E:it~ H
:.u. ''
..
' .i
\'•~ ~,I
w· H. ,!r
:;:
n.
Cc: Gov. Paul Daza
Cha irman, HCAAP -Proje ct St ee rin g Comrniltee
: n ·i ·• •. :
. ····.•·1 J 1...
z) -.-c - c. 1
·····-- · " ·- ·· · ·· · ····· ·· ···· · ... _ .
. I

Nl r. //Hoshi Tolw
Tea m l.ea d er, JV of Constth anl"s

Mr. Pan Geun Park

{
Project Man ag e t ~ !-IHI C
\

·.;., .. .. \, •" ... .., , ,, ,

'.:... · ... .. ~ ; ·:.; ~- :_ .' ,· '
 Republic ofthe Philippines ~%.K~'-~
Department ofAgricu!ture ~··~~
National Irrigation Administmtion
H e lp f o r C atub ig A gricultural Ad v an c em e nt PTffi!~'F'·~~
-- ·- - -
...

Catarman, No rthern Samar

Fax No. (055) 500-911 8 email add:.hcaap n l a@y~ h oo .com.ph Website: www.nla.da.gov.ph Tel. No .. (0552500-91 50

August 4, 2010 · . . . ·~r'

COL. OSCA R P. LOPEZ, I NF (

Commander, 803 Brigade

8 Y: /~tf,-'"">_(!;;c
Dear Sir,
cofii 0i-i Ai0-i~-- 'Drf~ 4
c--.. This n:i'fers to the herein attached letter of our Contractor, Hanjin Heavy Industries and
Construction Corp. Inc., (HHJC) together with other documents supporting the mentioned
incident at the project area of the Help for Catubig Agricultural Advancement Project particularly
at·the vici nity of Brgy. Dapdap and San Isidro of Las Navas to w n·. .

The incident of steuling of construction resourc es li ke diesel fu el from the project site of HHIC has
been noted long before and this became rampant to the point that HHIC personnel are now
recei ving deuth treats from identified person doing the· stealing, .This scenario ad versely affect the .
smooth implementatio n of the project since the working sites are now extremel y d;mgerous for
the sa f ety of the equip m ent and worke rs.

In vi ew of this, we. would like to request from your office· security assistance th at wil l tota lly
eradicate th is illega l activities and prevent th ·e possible loss of life and damaged eq uip ment.
. (~--
Yo ur fa vo rable action is highly antic ipatecj. Than k you and more po w er.

Very tru ly you rs,

"'
~~0
Project Manager ·

Cc: Gov. Paul R. Daza

Chairman, NCAAP-Project Steering Comm ittee
. .. ~ . ~~
?.> -s - Jo
Mr. J-fitoshi Toku
Team Lea de r, JV of Consultants

Mr. Pa n Geun Park

Project Manager, HHIC

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HEAVY INDUS!s ~D ~S~UG~~Q~OMP'MiY'L'ffi""""'"' _ _ _ """"""

Help for Catubig Agricultural Advancement Project, Contract No. HCAAPI·C·1
Brgy. San Jorge, Las Navas, N. Samar, Philippines
Mobile: 09173025398 Fax: 09209370053

July 30, 2010

Ref. no . HCAAPI- l ~~ /
REINERIO E. IRINCO
· Project Manager
' Help for Catubig Ag6culL-ural Advancement P roject (HCAAPI-C-1)
. National Irrigation Administration
: NIA Compound, Dalalcit, Catarman N. Samar

·. sUBJECT INCIDENT REPORT

Sir:

We are wntJ_ng again to officially .i.nfotn1 you the consecutive and sum.Jltaneous incident
l~:appened on July 25-27, 2010 at the Catubig Right Main Canal (CRMC) in connection to the
r~lentlessstealing of om construction resow:ces.

On July 26, 2010, lwo battccics of Rental Excavato.t: #02 wc.t:e found stolel1 while it was parked
at Catubig Right Main Canal (CRMC) at Station 12+000. On the same day, our watclunan M.t:.
Roque Ynuua did not 1:eport to his duty at night in CRMC Station 7+200 due to death threats he
received from brothers lvir. Arlito Baldostamo and Mr. Nolan Baldostamo. lvir. Arlito
Baldostarno and certain Env:i.t1 Floca.tencia p:reviously Q'uly 25, 201 0) treated to kill M.r. Roque
Ynrma if he will not aUow them to get d.iesel fuel fwm the construction equipment on his
wa,tched. On the following day }t1ly 27, 2010, the same people, the Baldostamo brothers warned
and treated to kill Mr. Roque Y1U111a if he ret1.uned to his wo.rk station at CRMC. For dctai.ls,
copies of safety assistant report is att'lchecl and the police blotter.

C(~·:;:. l-Ienee, the condition at site is now extremely dangerous for the safety of our
construction equipment and workers.

in view of the above, we are reitemting agai.n our request fron1 you.r end to p.r ovide 1.1s more
assistance from Philippine Army and ational Police 01 whatever possible ;;olution from your
1 office the soonest possible ti.tne.

·· ·:.· \
.. .. ~ ! •. ,

:i 'Very tmly yours,

r:i\
,, •)
·\'. ' ••. t • L',·•.·:•

~-
·~·. PAN GEUN PARK
~ - -.

...·.... -J<·· .·:·.·. ... . ....,. ._:,.·

f ' ' ' • ,o:; o.!,.',t!:IO.It .VIf':.,_>ol '

' \; Project Manager

CC: Gov. Paul R . Daza

Chninnan, HCAAP Steeriog Committee

Hitoshi Tolm
Team Lefl der, Consul t;lnt .·•
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HANJIN HEAVY INDUSTRIES

& CONSTRUCTIO~ CO. , l TDo
Help for Catubig Agricultural Advancement Project c-·1 Tel: (09"17-3025398)
Brgy. San Jorge, Las Navas N. Sar.n ar ·

DATE: JULY 28, 2010

T 0 : KYONG MOON IQM
ADMINMANAGER · <-
FROM: JlJNVICHERO 0. GUDGAD
SAFETY ASSISTANT . .
SUBJECT: DEATH THREAT

On July 26, 2010 at around 4:45 0' clock in the aflerno,on, Mrs. Norce Yruma,
:·n. .
\
wife of Mr. Roque Yruma, our night watchman assigned at Cat;ubig Right Main Canal
(CRMC) station 7+200 informed our staiT in b<1se 2, Barm1gay Sm1 Isidro, Le1s Navels N .
Samar, that her husband will ·n ot repor t to his duty at night because of the dectth threat he
received earlier on that . clay from Mr. Arlito Be1lclostamo and his brother Mr. Nolan
Balclostamo both resident of Barangay Dapclap, Le1s Navas N. Samar. The Baldostamo
brother arrived armed with long bulo's infront of his house shouting & chalcnging his
husband Mr. Roque Yruma to fight with them and said " Roque get down here because
we will cut you into pieces, if you still go back to your work station, '~'C will kill you
there." Luckily, it was pacified by the Barangay offici<d ofBara.ngay Dapclap.
On the following clay, Tuesday July 27, 2010 Mr. Roque Yruma received same
death threat from the very same persons lhat "If he will report & perform his duty at nigl1t
there's something to happen on him." Mr. Roqtie Yruma immediately & personally
informed our site coordinator Mr. Mmlon 0. Pi8lago (also the Bamngay Captain of
Bamngay S8n Isidro, Lns Navas N. Samm) regmding i.he dangerous threats to his life and
-, nskccl help 1o put on the blotter of Borcmgay Dapclap, Lns NavCls N. Samar for his safety
I ( ( •,
and security. He also said that. he's willing to Jile a case in a proper court to help end this
wrong doing at the project site, if the Hanjin Compnny will nssist him iinnncially.

Prepared by:

Safety As >L tant

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,.,. .i.~.t;r:;u!Jlf' 1~ J.i.))l:!: I~a'i'l li~AL.i F l L:L ~1:.;
liJ'PrttJ.er.m. ,~cun~rr r"' 0 iti:ec J.IDr 0 ,v tncd'al' C:t1'~'G8
ttai.S ''·Na,V:a:s P'<H·eo · · stati 0 n
Las 1\Ja,vas, 1\1 Ortllier:r.l Sa..i!\ar

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EX <D·q ;r'b' t fi~r 0 .m ,~ P 0J:i:L ee .i£~ 0 -t:thr

stati·G.ul 01'- ~: L<.'t £. Na~Va s J.ID o,: H GY.8
Munitb·±~ a.C t.·.t.t y O_t: ,f Lam l'il r;:[email protected] .
.,-~ It.~rO.viNe'e 01· v: NOrithGrrr Sama:r
Pa~e N't:J.m.)IOJ~ ~% 26:5·
En--tr:sr- Nmm -:e'8r ,, 1342 :5~
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u$ HanjJ::m · HGa.V.y;.. lr1d~stP..i.es ~na u;,Pn:t:t:mo't i;·0 n.s a11c1. a re sicient . O:f
.B,r~ .. ·:.£Japda~ .,- Las 1\Ja.va~:, ·, l\J 0r :~l>lc:n;:n ~a~ar ~Gr:~s 0nal'l·yr: a~'t':.(?ar.·e d thi·s
I.:!Jt~ i~-0~ and requ~s~ed :t 8 .1lm ~t. :1nt 0 p 0 l -:u:m 1trJ! 0 ttc:r [email protected] uy,l w-·uity L5·;
201.0 at a®O't:'Jlt ~;:oo o~· c::t· 0 tilk! in i:;.he · e ,veili·H~ m 0 r.G 0 r .J..i?ss whilo he
was On duty 8.8 watchmGtl~ a ,r 0 U1J O,f ~ .crs 0n namGly' .[\'Jr :.(\ . .ArJ.'it 0
~a·ld Ostam 0 o.nd · Erwin i\'.:t: 0 ~L'\r'f:H1Q>i·a 8°th 0 £ them rc:isident 0 J saw8 ~:St~&.
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'll>l:aa;·e as.FG h i m ta~~ t 0 ·tal<le ctij'sm'effi· •ut th8 rb,OrtG~e ans viG~ed ·1
'
wi'l!i> not ·r.·ive· y.ou dGs:i®J~ then th'Gi sutspec·t went 0 f said l!''l ·ac·G
·lut thr:Qa tr?r:lGcl hi:m ctnd smy: in v0'r naohl1illfiui' · Gliale c·t 11.Pa,dlr6n .H1ami

-· maraaft' t')la$ dG,SiG:J.:' [email protected]; (~ nam 0 @. watebmaB 11. rGJ).' 0 rtG:.G fmrthor added
that On ·a'u ·l .y 26; .20'10 at a'$ 0 u ·t 3 <t 00 0'1 a:::L'oc1~ in th.G afternO~
wl'li•l~ .h8 was insid~. tht¢i'r . li!.'~F.(@ : t 0 ~cth~r wi'i:;h n ·.i:s t 'amiilly· thiG·Y.
sai!d susJ)eo:t ln<!i ·l1.:1di'n~ lYlr .• l\f 0 ·l 'an .ier.d'dOs·t·amO 1'il.. res .t dent atTs 0 o-r;
same l" ill'aoc aTl a xm1ed witm \ik On~ ·lturlO came ili·n;t?r 0nt 0 .t mis nohl-80 and
G:t.tl~TJi·~Hg.'.:\!n.( ti!.i !<lave a ·:fj;~ht;l.duee~l' and stay· i 'lfl ,v-~rna0'1ltlaJ? diaJ).;~t
nn. 0 tq.l!ltP 1~,wad na ngailiG. may am 0 .I:IYa 1'lam ~ 'a:;:t&l,ttadi?iiilr en '.{ '1Huna0;j:'Jc-
.K-a."F~a nagcttO s anim :~wa:stG amo !ta CiidtilP 'fl·apataY,Ii>n" W\li.t sa .t d sUls~ects
jlaci<J.1ied \ly ~l"'Yi• · 0 .1at·rn·i,:;a~! G.f sa.ii:d pili:a¢§Y:'ll~ Ent<tr.C?dt :sy..s 1?.02 Ad.an'za v:B ,
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~-IANJ~N
HEAVY INDUSTRIES
& CONSTRUCTION CO~, LTDo
Help for Catubig Agricultural Adv<mceinent Project C-1 Tel: (09"17-3025398)
Brgy. San Jorge, Las Navas N. Sa mar

DATE: .nJLY 27,2010

TO KYONG MOON KIM
ADMIN MANAGER
FROM : SAFETY ASSISTANT
SUBJECT: STOLEN BATTERY 40

On or before 8:00 O'clock in the moming @ station12-1; 000 dated 26, July 2010
the REX 02 equipment parking, the i·ental equipment operator M:r. Ronald M ariano notice
(' that his unit were not .able to start and he found out the tw o battery 40 inside his engine
was lost/stolen. He immccliate.ly report to the jmnjle supervisor for record .
Initial investigation; ihe battery LlO was los t/s tolen by the unidentified suspects @
CRMC station 12+000, cause for lost/stolen of the said items was clue to forcible attack
by the suspects as based on the evidence shown on the REX 02. Right now the safety
assistant is on the process to gather such information @ 1he site regnrding the identity of
the suspects, rind closely monitor this incident to resolve and file a crtse ag8inst the
suspects to prevent this wmng doing habit.

,'• .

Prepared by:

JUNVICI-IEJl-- 18 GUDGAD
Safety as.>is ant
 1-IANJIN HEAVY INDUSTRIES
& CONSTRUCTION COl>, lTDe
Help for Catubig Agricultural Advancement Project C-1 Tel: (0917-3025398)
Brgy. San Jorge,,las Navas N. Samar

DATE: JULY 23, 2010

T 0: KYONG MOO JGM
ADMIN MANAGER
FROM: JUNVICHERO 0. GUDGAD
SAFETY ASSIST ANT
SUBJECT: INCIDENT REPORT STA. 12+000

On or about 12:30 PM 22, July 2010@ station 12+ 000 we're the two equipment
·~
L.. REX 07 and REX 08 parking on that area, when Engineer Dor)alcl Garcia (Alpha 5) seen
\_ .,.·
the REX 08 operator Mam1y Ocmer caught on the act of stealing two containers of diesel
from his unit by using the hose together with unidentified pet'sons with an armed of
deadly weapons who brought the two containers and moving out the nrca talking to his
compnnion and pointing out alpha 5.
Alpha 5 talked to the operator to bring his unit @ station 13+400 \;<,'here the
parking area located and instmctccl the operator to surrendered the key to him, when REX
07 also parking beside REX 08 and seen also on the act of stealing the sa id diesel.
After seen the unidentified suspects pointing him, he immediately ]eft the area
and call ed up the base one radio informing the situations he saw ancl asking service boat
to pick up nne! send him going back to bnse one and r~port all the exact scenario . The
operators name as follows; REX 07 Mr. Ricky Monterola 8nd REX08 Jvlr. Marmy Ocmcr.
The unidentified suspected buyer was runaway <md the operators abandoned their
unit @ that area. (SEE ATTACHED FUEL RECORD)
This morning we conduclecl follow up operation from Barangay Dapclap to
Barangay . San Isidro, to arrest/invite the operators and submit their statement but the
operators gone.

Prepared by:

,TUNVICIIERO 0
 /·· .'

H . ~N.H.N.llE./o,VY lNDlJST~HES & CO_N$TRtJCT1.01'l C0.1 LTD .

' · ,1 ·' · (NCAifP) Heip jew Cuiubig ilijric"lilluml Advwu:einC!nl ['roject; C 1 . .
San Jorge Las Nnvus N: Samar .·
., ,..:.
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. DAllY CONSUMPTiON OF Fl)f::L & O!l. ..

LOCATION: ~- - -· ---·· · ~ - -~·- . ..... - · ·~ ·- - ·i'"-··· · - · - I

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 ;. .:.
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Rq:iublic of the Philippines

NATIONAL POLICE COMMISSION
PHILIPPINE NATIONAL POLICE
Northern Samar Police Provincial Office
Las NavEls Police Station
Las Navns, Northern Smmu·

. LNPS-

EXCERPT FROM: Police Blotter

STATION OF: Las Navas Police Station
i· ·
. , PROVINCE' OF: · Nortbel'n Smnm
BLOTTERENTRYNUMBER: 134255
DATE OF ENTRY: 7-23-2010
TIME OF ENTRY: 09301-I
.,.·.

· Narratives I Incidents :

At this time and elate, Donald Garcia y Villanueva of legal age, married, resident ·of Rebong
District, Las Navas, N. Samar and presently·. employed at Fbnjin Heavy Ind"i.1stries and
Construction Corp.or8tion, Limited, based at Barzmgay Dapclnp, Las Navas, Northern Samar as
Site Engineer, inform lhis office that' OOA 12 :30 more or less of hmch time on July 22, 2010,
.: · particularly .in B gy : Del Pilai' Area (Stn. 12+00) when he personr,tlly saw the operators of REX-
•. ; ·07 and 08 1;Jacld1oe named Ricky Montero Ia and Manny Ocmer, i·espectively, in their respective
units sucking tlu·ough a hose from the tanks oqheir units the diesel oil to a contairiE{rs ji1st near
their units.·whiie an unidentified persons hel.pin.g them in holding. the hose towarc;ls the plastic
.containers outside and when. he. tried lo ask why the persons holding the hosc. j'ust near the /.'>:··, •
bacld1o.e unit they ruriaway bringing along with the~n two plastic containers with diesel oil and
whei1 he asked why, .the operator nanwcl lVIanny Ocmer said in vernacular "Kumuha lang Sir"
then he ordered said operator to bring the unit to the (13+700) pmking area but said operator
refLlsed to obey his instruction iristeacl abandoned the'tmit at 12+500 Stn. and he walks tovlards
.the 1.3 +700 .stn but \;vhc:n he glanced towards the unit in the 12+500 stn. one unidentified
·· ·· individual pciuitecl his finger towards him 8s if he was trying to threatened the reporter or the
tOI\lj)lainant. S Gb. En gr. Donald V. Gmcin.

. ·:
. .. ~

'·
 ~----~~~=·~
HANJIN I-lEAVY INDUSTRJES ~~
& CONSTRUCTION COo, LTDQ
Help for Catubig Agricu ltural Advancement Project C-1 Tel : (0917-3025398)
Brgy. San Jorge, Las Navas N. Samar

DATE: AUGUST 24,2010

T 0: KYONG MOON KIM
ADMJ MA AGER.
FROM: JUNVI CHERO '0. GUDGAD
SAFETY ASSIST ANT
SUBJECT: INCIDENT REPORT

CONCERN :

Three unit/equipment as follows; WL 72, VR 23 & RVR 0·1

Lost/stolen 4 pes Battery and ltmit Steering Wheel

Location: Station 13+700 CR 1C

BACKGROUND:

On or about 8:30AM elated August 24, 2010@ stationl3+700 three unit/ equipment as
follows; WL 72, VR 23 & RV R 01 parking on th at area mentioned was found out that the
Battery and the Steering Wheel was lost/stolen, the said items discovered by our Fuelman
Mr. Edwin Capoquian when he tried to checked the said unit, he found out the there were
no battery inside the engine and also the sleering wheel. He then immediately called me
thru radio and informed the said incident he saw. Upon verifying the said incident il was
also found out that the said un it reported to Motor pool to pull out the said baliery for safe
keeping due to that parking area we're not covered by our watchman. The new equipment
parking was transferred to st8tion 12+700 to 12+900, taking to consideration that nobody
can touch the said equipment, Charlie 5 was not able to send m8npower to pull out the
batteries foi- that unit/equipment since last week when he was informed by our radio
oper8tor, until it was discovered early this morning that batleries & Steering Wheel
Jos Ustolen.

RE.COMMENDA TION:

•!• All field employees to iniliate icle8s on how to protect company properties@ the
sile
•:• Reporl immecl ialely nil issues & concern @ li10 CRMC , "Remember nctions
speak louder than voice"
I

Prepared by: conformed by :

J(JNVICIIER , f.UDGAJl
Safety Assi t· nt Fl~~-chmge
EDWI lfPOQUIAN
 Help for Catubig Agricultural Advancement Project C- 1 Tel : (091 7-3025398)
Brgy. San Jorg e, Las Navas N. Samar

D A TE: JULY 09, 2010

T 0: KYONG MOON KIM
ADMI MANAGER
FROM: JUNVICI-IERO 0 . GUDGAD
SAFETY ASSIST A T
SUBJECT : LOST OF CHAIN SAW AND FLASH LIGHT

On or about 7:30 this morning bravo 2 informed us that the stock room window
was broken, we immediately open and check ins id e the stock room until we found out
that there was unidentified persons entered nne! searching inside our stock room . We then
observed that some of our valuable things inside are missing ~uch as; Chain Savv and
/
I Flash Light. I requested the police assistance to investigate the said incidents, see details
as follows the amount of lost items :

Desc r·iption Qty Unit Price A mount

1. Chain Saw (2) llll it PSS, 000. 00 p 110, 000 .00

2. Flash Light (7) pes p 170.00 p 1 190.00
Toial : Plll, 190.00

Initi al in vestigation conducted by the safety assistant:

COMCEN GUARD NIGHT SHIFT

1. SO BASANYO A D ARA Y AN do
2. SO ROCIO LECTANA do
3. SO JONAS OUDOA D do

Status of duty:

On or about 6:00 O ' cl ock .in the evening thi s (3) thr:ee guard meritionecl \Vas
nssumecl the ir duties nn d responsibilit ies, from 01800hrs to 0600hrs they performed thei r
duties on a normal situation from gale one mnin door, to motor pool and Korean house
including staff house until 12:00 m idnight were the engineering staff finished overtime
ancl leaving the office with out any doubt that things may happened like this! The guard
hesitating to checked the area back side of administrative office we're the stock room's
located at the time armmd 1:00 to 2 :00 or 3:00 O'clock in the morning dntcd July 09,
2010 for a positive way that nobody ma ke a possible attempt for stealing company
properties because the engineering might somebody awaken. As per observation, found
out that it was a negligence of the guard on cl uty I

c
 On a follow up investigation; I found out some footprints on the ground and I
followed the marked direction going to the top of the mountain and seen: the fence broken
by the unidentified suspects, I decided to report to the B arangay Captain of San Jorge for
a blotter together with the comcen guard nnd advisee! also that if ever they have received
SllCh information regarding those lost items owned by the Company to immediately
report to our office and the company will give a monetary amount as reward.
Furthermore; I Clm contim1ing disseminate in formCit ion thru the Bmcll1gny Captain,
Pol ice, Military and our friends regarding the lost items of the company and gathered any
information from the suspect tl1nt may lead into resolve this case.
(See also attached picture.)

Prepared by:

JUNYICHERO 1
GUDGAD
SAFETY AS SIS r NT
 :~~~ ..~ .~~:~: ···
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R~public0 f the Philippines

N_i\T I 0NAL pOLICE c0l\1T1IS2IUN
PHILIPPINE NATIUNAL PULICE
North ern Samar P 0 licc Fr 0 vincial 0fficc
Lets NC!va s P 0 1 icc .statil11
Las Novas , N°rthcrn Samar
Ll\JPS ~ 15 July 2010
Excerpt f r 0 m prl Jce Blt"ttc:r
Stctt i rn Las Navas P~l i ce Stett i~n
JVIun i ci psli ty t"f Lc:ts Navo.s
Prnvince 0 f N°rthcrn S2ma.r
P2ge IlTumbc r 255
Entry~l\Tumber 134244
Dote 0f Ent ry 10 July 2010
T imc 0 f Entry 10G'JOI-I
...:... c- - - - De -

I~CIDENTS/EVENTS: .

Mr . 1o.rianitr 0linan y Ong 3~ yrs Of age, marrie~ cOMCEN

Sccu r i ty PersOnnel dctain(')d o.t . Hcmjin . Hc:ovy Industries, C'1ls -
tructi0n LTD .. , and etlfo r ~sidcrn t t"f I-I .J 0 lejnlc P 0 b ., Lc\S N<wo.s
N . SamQr pc:rs 1"112lly rop nrtcd. tr ti1is 0 fficc:> thnt s rmo time:- s in
the nifht 0f ®8 July 201@, the sup ply rffico 0 £ snid industries
wos i nt mnti~nnlly ransacke d by still unidentified pcrpctrnt nrs
s nd the f0l l nwing ite ms were e~lledgcly tnkcn/st 0 lcn : tw,...' . (2)
uni t 0f chain so~ wit scrial . nn . sr683~4408 e~n~ SL68857272, seven
(7) pes 0f Led T 0 rch Flt.<.shligh t (Dcsll:. Lc:tmp) with m~"dcl nr. l\ IJIJ\ -
AJ39 12 red. and ycll"w in c n l ;:r. r;·nr rcc~rd purp,.'scs.
Entered Dy : p03 Judithn T Go.lit .
- - - - ~ - - - - - - - - Nnthing F"llr>ws - - - - - - - - - - -
. l

Pre pared By:

P8id Under U,R Numb~r : 15~4667

P8 id D. t : L8S Nnv2s N , S~'tmll.r
Pe1 icrl on : July 1 2 , 201 0
Am'"'unt :·';:o..id : P45Jl0
 ~iANJ;t~;iEAVY ~NDUSTRIES
~· & CONSl-RlJCT'iON <:0~ 51 l~TD"
Help for Calubig Agricultural Advancement Project c-·1 Tel: (0817-3025398)
Brgy. San Jorge, Las Navas N. Samar

DATE JULY 12, 2010

TO TO ALL HAN.TJN EMPLOYEES and OTHER CONCER

FROM THE MANAGEMENT

SUBJECT CHAIN SAW REWARD

The management is encomaging everyone, both employees <mel non-employees of

Hanjin, to report any information gathered outside regarding the lost/stolen of company
Chain Saw and Flash Light inside the administrative office last July 09,2010
However; the information that you will be given to the company with details sh<lll
received a monetary reward of Pl 0, 000.00 pesos and we will assure your safety and
security of your identity to the suspects.

Details as follows :

Chnin Snw (STII-IL 07) . Serial No. SI68394408 ancl SL68857272

For more information cmd details of rew8rcl, ple<1se call the attention of the fo Uowing :

J UNVICIIERO 0 . GUDGAD - S r({e( )l Assistant

J11A RIO ABUCEJO - Srife(J.' SuperPisor

!·
i'1
/ Approved by :
i

(
 ~,..::;:-~.
,.·

DATE: JULY 5)01.0

T 0: . KYONG MOON KIM
AJ)MIN MANAGER
FROM: JUNVICI-illRO 0 : GUDGAD
SAFETY ASSISTANT .
SUBJECT: JNCIDENT REPORT (STEALING DillSEL FROM REX 10)

On or abou:t 11:00 O'clock PJ:vf elated July Ot\. 2010 ·the REX 10 operated by lV[r.
Rodney Femanclez parking neai· the NIA offlce, the operator of the said equipment
drinking beside his unit togetljer with his compm1ion when the guard assigned in the clam
site ru·ea Sg. Marvin Rasco ~~~n three unidentified persons a'l1empting to penetrate the
REX 10 tank JB,l· stealing· diesel, he immedirrtcly called up the attention of Delta 4
(Marlon Pialago) and inf01mecl him regarding the three unidqntifiecl persons witl1 four
en1p1y containers.
Then1Delta 4 conducted a securily briefing of all four guards (Sg Adan~a I omil,
· Sg Sonny Maclon, Sg Reymiut Baluyot and Sg Embot Valle) assigned that night to
prepnre themselves-for any possible attempt of the said suspects for .. stenling-of--cliesel-
inside the compound. Atter the briefin~ delta 4 went out ·the compound and talked to the
REX operator to. bring his unil/equipment inside the base two compound. ·
Mter a few hours, at around 1:OOAM REX 10 equipment is already at the
compound, clelta 4 and the guards already prepared for any attempt made by the susr)ects
and it was~happened exactly 1:30AM when the three suspectsA'pc~ught -6·11 the act of
stealing :the" ~liesel from REX 101; by delta 4 fmc! his &~~,ards an es timatecl of 23 liters but
when they tned to capture the suspects the suspects running and escaped but the guards
identified their names as follows; JORiTO GOLONDRINA MILO QUILBIO (f01merly
· hanjin employee terminated by stealing of company materials with pending case) and
1'v1IRON CELAJES all of legal age and a residents ofBarangay San Isidro, L as Navas N.
Samar.

As per investigation from the site before the incident happen delta 4
received an information that there are !luee suspects plmming to altemp t stealing diesel at
base 2 compound, as based on the information received 1he suspect ·Mr. Miron Celajes
said that before the incident" m8banat lcami nyan crudo kay may ada kami suse sa REX
10 acli man ho!" which means ihat" we have ihe Key from REX 10 we will have plans to
attempt stealing diesel at midnight time." SEE ATTACHED PICTURE OF
RECOVERED EVIDENCE, shown: that the REX tank i!? open by the' key and not by
forced.

Prepared by:

-r ·
 ·----· - ' :!

\:'::~··;;~~ ,

\ '

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 3. AJl company properl:ies must be tum over to the guard on duly, otherwise
~ we cannot blame the glmrcl if company properties los t/stolen clue to
negligence of employees in chmgccl
4. Fuel man to SlJbmit clr~ily record of refueling all cquipmenls from the
working site for monitoring purpose

For information

Jtmviche;;;- .:
· Safety A
~ad
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. '.' I:/
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) '· R~pu~lio Of th~ PhiliDpines
,.
>' NATI( 'NAL PULICE cl)MMISCL UN
'l· PHILIPPINE N.NTIUl<TAL pUJ..,JC~
l NfJrth@ r l"l [-lG"unm.r POlic c;J Pil£Ovincia1 Uff.icc
L~il.ffi NG:l.V&i\S J001ico statii:)1
Lm.s Nmvas~l NG~c th~t· n .Sar:nar
Ll'ifPS -

Excerpt ii,'.r om ·i POl ic® :mJ.n·t:ter

st~t i otl ·l L8s NavQ.s P 0 J.icefl ~Str.tt i nn
!VJun ici]>ali t y ·l La£ N.ct vas
FrOv i no e '• NOrtl1Q!rn ,c;:; ,;unc.\r
Pm.g® Num'l9l!!r ·l 253
En·cry .. Number ·! ' 13L.~241
JIDa:Le "'f' Em. try ·l ®7 July 2 @1 ®
I T im~~r r>f Entry : 1 ®3©H

I INCIT;)ENT.S/EVENTE;\-·!.
I. JVJar\Tin Hr-sc 0 y Guiue.n o.n~l 0 1:L v11r Ve.llo y Nu ng<ly bOth 0f
)
I .
\
loga1 a.g@ .111dl l.Dnth rcsial®nt Of S~\11 Isi.(J.rn ExtolilSi 0 n , 'L@s Navas
i
I N/'1J...,thC:JrB Samm.r &i.n!ll 1D~'th 8re em}iD lrly@J Q.l as S12curity Guarcl nf 0°m.,.
I
l Ct::·n 2 Slsigna:@l Gtt bca&>G! 2 ~1'1m}Unumlil 01.t S8.I:l I .s iar<' Ext . 0 f t h is
muuicj.pality, ac c0mpa1'1im€l by IV!r . Vic1D.0r0 (}uml gael r op nrte o.'.l · this
0:ffice that UOA ®5 July 2 ©1 ® ,;~t aroun <rl 1.t @@ n r cJ0ck i -n the ...
cLnrly mOrn i Ng mr:trc or · lmsm they ro :nw in';!Gl. ial~ Y'l tify (3) throt::l
porsnnrtl j _J.'J. tbe l'lal'flaJ O:f l"layrn.n CIJl lc:tje::s , Melr1 @u.i. l ·b i 0 allc¥1 :0 i 0 nit 0
GOl 0nclriniii 8a.rrying h n,'Piil' ancl Lj. c on.taincH'S 0:f . Gli(!) so 1 mnill 0J.1~ "f
t h(E L,. Gi.r>ntain~rs h~.:1s ::tJ.rctlacly :flJJ.l 0:[ <iU.csCJl m~'t wh~n. smicl tl1ra:o
pcrgn11s nnticeG1 tho.ir arrj.v.:~J. sn i Gl ~ersnns rc:m o.wb.y la:2vii:J.g
thOs e 11°s m m.nm. L.~ cOJ.'ltaipCJrs and waw )Dr0ught tn t ha:ir nfficcr at
S~JJ. IsJ.c;:lrr' Ex t~n.'8i'1.'1 mD.6 ~Subsaqu ~ nt1y tG t h 0 Las I'if <RV~~~ P 0 lia>~
statim fnr ])rr:l?~r eustGffi.y ~nffi nU. s p<'r;;iti 0 n .
Enterr:;0l JBy .;. pC'2 Han:m i ba l Hoy JU R0(!lrigu mz .
- - - - - - - - - - N~'thing Fi.ll 0 ws - - - - - - - - - -
ii
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I

PI

F21.ical Under U . R Num©a!r : 15~Lf 6 lm 7

F'0..i.<El at-: LG.~s Nuwm.s N . Sn mar
F!i>,i0!. 0J.1 : July '!2, 2 ®1 ®
Am nul'lt P aiG ,: P45 . © ~)
 ,r
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' .

D A.T E: JULY 8, 2010

T 0: KYONG MOON KIM
ADMIN MANAGER
FROM: COMCEN
SUBJECT: INCIDENT REPORT STA. 10+500

On or about 7:00 O 'clock in the evening clatecl.Tllly 7, 2010 rental equipment 8S

follows ; REX 02, RBD 05, REX 14, REX11 t1ncl RBD 01 was parking at sta. 10+500
when spoi.te1; Jusan Olinan accidentally flash lighting the RBD 01 t<mk seen one person
. armed with deadly weapon setting back of RBD 01 , shouting him to. turn off his flash
light, he then imm ediately went out that area and after a few minutes some unidentified
persons with ani1ecl of guns and deadly weapons attoclcing the rental equipments parking
on that area, the guard saw the rental operators parking on that place immediately go out
and.leave his unit The guarcl cmmot control the situation be,cause there are many and
with armed covering besides the molm!:iDg.

Prepared by:

_ Q01? · ~· -~
MARIANITO 0. OLTNAN
DIC COMCEN

{
' ~- ·
· Noted by :

/
'·
 ~· ..
J

• J

Help fN Catubig Agricultural Advancement Project C- 1 Tel: (0917-3025398)

Brgy. San ,Jorge, Las Navas N. Samar

D ATE: JULY 8, 2010

T 0: KYONG MOON KIM
ADMIN MANAGER
FROM: JUNVICI-IERO 0. GUDGAD
SAfETY ASSISTANT
SUBJECT : INCIDENT REPORT STA. 10+5 00

On or abOllt 9.:00 O'clock in the evening elated July 7, 2010 at CRMC station
10+500 rental equipment CIS follows; REX 02, RBD 05, REX 14, ;REX11. Elncl RBD 01
owned and manageable by Jamjle was pm·king beside CRMC station 10+500 when we
arrived as requested to rescue together with Las NavEls Po-lice, we then checked to
'· ,___ . secured the area for any possible attack by uniclenti:fiecl person who WElS stealing diesel.
As per observation the area, all rental equipment/unit tanks is locked and secured
but we found out and smelled diesel crude oil on the ground of the REX 02 equipment
tank. I decided to follo'w the foot prints seen on the ground marked direction and
recovered one pl8stic b8g llSe for a top cover ofthe container wilh diesel an estimated of
80 liters or fom containers was bring out: by the imiclentifred suspects from lhe
unit/equipment REX 02 as based on our source who seen lhe incidents hapjJened on tlwt
trme. (Source name is not included clue to security Elssmance)

.......... ...
~

Prepared by:

JUNVICI-IERO GUDGAD
SAFETY ASSI ~T A.NT
 . l't01fJUl!llio O:f th® PhiJ:i"FJ?P.i11®S
NATIUNAL J?ULICE cUriJ.MISS I UN
PI-liLIPF'INE N/c'I' I Ul'iJAL PULICE
IIJOrtl'lti!!''rJn S.nm6.tr f' Ollct1J P:J.t 0 vinoinl c~ffio~
Lam Navas po1~c0 Sta·tir~
L~m N'O.Vii1.fi3 ' Nnrth® :L"n smnar

LNPS - V+ July 2 @1 @
E x cEDriV:t fr:Gm ·tFGlic01 nlnttmr
Stati !'11 ~ Las Navas POliom £tmtir~
lVI un i c i ~a lity Of ,z J.i.ii.'l. S liT a vam
P'rnv i J:1 co r'lf •I N°rth<llrn $1>1mar ·
·ED nge HumluGr .;~ 256
Ent r y ._Nummer .: 13L,. 2 ~.a
·t;Ja t e 0f En try ': 13 . ·LTuly 2Q1 @
Ti me
1 0 f Entry >I 1 @3(lJH
- . -~-- - -

. i
Mr . JuJ.1vichli:!rD GuGl:galll y OJinwm 3!3 yr.s 0 14 t marri®ct, · fi1i ~
pin° & r®s J:GlGmt . Df. :ffi rti£Y~ HG.tJ<n'lrffil.wo.11 , Cellbay 0 g City G:tnt:L "J:')n:::sm.:J.tly
!ll'!:t:q,'llny®cl a,s Safety J. ssi.stau'lt at H0.njit:u. I-Icr:8VY I nl}lustriG'JS ancl
C .Jas trualtiOn G 0 . , J.;'l'ID (HHIC) lf'l01"S f'nm.lly appeare~1 thil3 r··f:t'icm o.nd
.l"~~. UGSt®GJ. t0 ]'JUt Jn.tO lf!Dli·<0C slntter thG~t ()QA July 7 , 2@10 at
· l:lll'Omicrl 9 -1 ®@ o ' CD]J \llll. j _n tlr.l® e.vctnu.in~ unnre? or l~Jts ;;3 at GJ:l.iVJC Stm. ·tir'!"l.
1{)+.5®@ , ·they r®<:;O v mr~Hl t 0 gl9:liih®r with L a1s NaV<JS 1"' 0 1l·Ce! 8 st 0 1en
01::1 e ·1rdastio bag um ~i& f0r &J. tJ~fP o0vcn"" 0 f. th© cnm.tai·n(')r w.j_·th
@l i & sllil an. 11! s tima to d ()f 8® lit@rs .. or f0ur .Gomta i n@ rs U1cat wa s
ro r nugi:r~ by thlZI UJ:1l. ieil.c:: n'tif l 0€l £US}l)®Cts; fr 0 m th® UHit/e::>EJ,UipmeHt .
Elu.ter:ect JBy.r l0 U~.- ManzO 16. Estill'erOo .
- - - - - - - - - - - - N°thdllag W.OJ J:Ows - - - - -· - - - - - - -

l"'ai@. Um\l®r U . R Numbe r.f 159&r7 85

Pa1~ etz Lms Navas N. Smm0r
l"-~ 8. iGl
Gn..: July 1/.'1- , 2@1@
Amount P ai dA 145 . ®0
 ~- .
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, ' 111
.....
I

DATE: JUNE 19,2010

T 0: lCYONG MOON JDM ,
ADMJN MANAGER
F R 0 Ivl: JUNVIClillRO 0. GUDGAD
SJ\.IrETY ASSISTANT
SUllJECT : INCIDENT REPORT STA.10+300 CRMC AREA

Altached herewith is the pict11re o:f the two robbery suspecrs with evidence
captured by the 63n1 ID I)hlhppine Army, BiJSe at Brgy. Dapclnp, "I..ss Navas N. Samar
yesterday afternoon on or about 6:00 PJVI elated Ju ne· JS, 2010 a:t_,Sia. 10+300 where the
equipment located as temporaty parking b£we. The suspect htrnecl over and now detained
at the L as Navas Police station for proper Jlling of the case. · ·'

Based on the initial report lnst nigh!: from the mililary, a :few hours before the
incident om site coordinator received information from the source i11at a cerlain group of
persons ~een · near beside that area bringing an empty contair1er each of them, the ·.
informant was imniediately called om site coordinate (Delta4) Mr. M:arlon Pialago
regarding '!11e said grOltp, Delta 4 report directly to the (63rd ill,) military regarding the
iniormation gathered from the informant m1d advised lhern to conduct a JJatrol and
surveillance the area at Sta. 10+3 00 CRMC wbere the two suspect captmed and the other
. su~;pects escaped. These two suspects (see attached pic lure & evidence) were seen !vt;V;.,c\'f1
:'s9~~-,f;a 'ili~r.·.: ·or;· ciie,5~{ pulled 01.1t from RBD 01 tank. According to the suspects they bo~1g bt
diesel from the operator amounting to P300.00 pesos per container. This is true because
we have received report that selling of diesel cmcle oil here in Las Navas is very rampant,
with an average of2q_ containers daily. .

Initial findings of selling crude oil:

The suspects "ns a buyer" bought P3 00.00 pesos per container from ihe operators
and i=>so.oo pesos paid for transportation and clellvered to the store P550.00 pesos and
( ..• _) ! now the store owner selling price is P600.00 to .P700.00 pescis per container. ·

Furthermo,re; I was confused. when I saw the RJJD· 01 tnnk opened one] the
suspecls easily transierrecl the diesel from the tank to their container which I believed that
the tnnlced of rental equipment had a padlocked ancl only the opera:tors hns the one i11
cba.i·ge ll1e key. I was trying to Jtncl out the RBD OJ operator asking him some cruestions
·but he's gone.

J<. (~CO mmcmln ti0i1:

1. Suggest investigating all operators and ihe guard assigned at this Sta.
10+300 CRMC
2. Imm.ediate action to those operators no t following instruction to bring his
unii/equipment to the designated parking mess with the guard on duty to
prote:t co'mpany properties a.1id employees
 (

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EXCl':ll"li'lt :t':r.· !Jr,~ ·t :~~ ot:rb(il .¥d. ot:t(J]r•

st~tj;<r>m, •l Lwns N~ VIfl$ .'Pl:ll i. oo Stu t:f.r.jj_'l
rt: uni-~!Jm. li i:y Of l Ll.i'!1f.ll t tA Vf\ e:J
.r·-r ~: o vj, noe ot NOrthcP.':v-'lll 6 6t\n!ID.r
'f fJ.g~ · Nutt:Jloor ·.f 23 ~
Entr y Nu u~~'N81" u 1 :J lo {?. ~7
:1~ ~1/t"G o,t En try .t ·HJ . r.r unti:\ 2 ~11/v

I1.il!l(i) O.f Er1t::r·y ;; ;{,(~~ i1H

;; !.:.r: p .tn '.Q;'t :;r: ~

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H' C:f Or;w ( 1) t((,l ~t Ui· R C}\rJJ\l,'g
F.;.; t:e UJ, t:')J' G3·r,~ ''L]ji; ; m:rTh ; :~ 1 A '\fil].. *\! ,Jl Q t . ~H~~ f' Gm .~;ay Jl, t<l,.,!;.l,rth l w* L9.SJ N~~ .
.VQ$ ., NOr·tl11i/rn t3ll't.ml.'t X'' tOll)GthO¥ J," w.;L·t h :h .i s u.d.x u~) b:t h wr mc m !flq!;'. ~: ,·:
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NOrtha rm Sam&\r WillS &~l"rcr:mtoC. f.Jy tho Phili~p._i:n~ Army G,n -the act Of Stoa -
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!"aid. 'l!JnQ.e rW.,r.t No. 159Lf719
Ita iii at.:: Las Navas N o &Jammr
Faia oru \Ju:me 21· , 21 1 t ·
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DATE: M ay 26, 2010

T 0: MR. KYON G M OON KIM

ADMJN l\1ANAGER

SUB .JE CT : INCIDENT REPORT

Attached herewith is the piclure of the two susp ects for the thief of hydro oil and
1
diesel captured by the 5211< IB , 8ID based @ Brgy. San Isidro, L as Navas N. Samar
together with our site coordinator Marlon 0 . Pialago

As per investigation:

On or about 6:55 AM el ated 23 May 2010 @the house of Jonathan Rosco the
52 "d Army was conducted a search ntJ.d recovered L
w o container of hydro .oir"or 40lirs and
3Jtrs of diesel from the two suspects; namely .Tun~1 1'hn.n Rosco 11nd .Tnri ln Gnlnn rl rin;1 hn f11
,_:::; <1g 81 and a resident of Brgy. San Isidro, Las l a i ·u.J . ... ,_.. .

For further investigation; om site coordinator and the 52nd Anny was received an
.infor~11ation stated that on May 22, 20 10 around 12:00 midnight one of the informant saw
that one of the suspect was standby as a look out in front of CC 29 located @ symphonic
area and the other one was operating i.he engine hose to pull out the hydro oil inside.

The informant inunediately reported to the military for conducted follow up

operation that can result to cap lured !he . suspects and bring to the based II office for
proper disposition of t he said susp ects, but upon waiting the service car @ base II
compound used for bri nging the suspects to surrendered to.the police station.

The suspects was asking permission to eat their lunch @ home wi1ll good
exp1a.t"'1 ations to the guarded soldiers and because of being a good Samaritan the soldiers
allowed them to go home and eating their hmch with a promis e that they will comeback
'-··· '( ,•
@ 1:00 0 ' clock pm but suddenly the ~uspec ts we're not able to ~omeback @ the office
but instead they were gone and until now, was not seen in the vicinity of Brgy. San Isidro,
Las Navas N . Samar.

P repared by:

JUNVICIIERO
SAF.E TY A SS IS~
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NAT I0NP.,L IDOLICE oOlVJMiss i Or\f
PHILIPPINE NATIUl'JA1 PULICE
rJOrth~rn Samar POlice P r Ov.i:noia l Office
L&:H~
Navas ll,Ol i c® StatiOl;J.
Las Navas , NOrthsrn Samgr

LNPS - 14 July 2®1®

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Excerpt frOm .; F 0li em llllntto r
StatiOn I bU.L5 l\IQ VaS J?0l i c~ StGI\ti 0n.
fiJUJ;'liCilDEt l i·ty 0 f ·; Las Na v~s
Pr 0v ir:J.Ge r>f .·: N<:rth®rn S8m2r
Page Numb c !~' 2 ® ~ - 21@
Entry. Number .: 13'-l-14'-J.
.!iDa te "f En. try 2® IV!ay 2®10
'r i ·me 11 f En try ~ 1 t63 ®Ii
- - - - - - - - - - - --- - -- ~ -
I NCIIDENTS/EVE NTS :

.· Mr. MariO A~ucGjo y Galim~a 0 f lmgal ag~ , marrie d , s8f~ty

;,; Lrp Gl r 'vis ol" 11 f I-Im'1jim H®liil. vy Incrl ustrie s Inc "rw f):> a tecl 1D <t1 S~ d sd; :ffic:l-
l:,<iJ.i,ig:&,y San· J·nrgG ," L[ls NOll vas l\J . SQ.mar anal rm&JiGlent 0 f @. uirinn
l!istrJct pnblEFLcir>n Las NfD.VCP.,J;J N. Sam<llr p.®rs 0n®.lly .. ~ZJ.ppcN.:tr(]cl thim
r>.ffi(le~ a:1nGl. request®@. to wut; int 0 1,il 0 licm 1JJ10tt®r that CIOA 6.:55
AT1 . Of N~lY 23 , 2 ®1 1l!) mt tho h Ous® Of J nnatl'1an Rr's c n at Brgy . San
IsidrO, a .. certain Mcar l {)'J. P-'ie.lngn, .IDrgy. Cawtain nf iilaial R3arangaj?;
aJ. r>ng ·v,t1 th t w'·' rn@rnhlGrs Of th<'D 52nrr.i l iD Jfh i l ~ . Army l::>as®®. ;;.1. t BRgy .
San Isi<drn , Le,s Navas N . S!ilmar GOnci!.ucta?d S®o::l.roh at a01.icil. h 0 ust;;
an & we:re a b l0 t.r' rel!covcr (2) twn cOntainGr Of hy®.r 11 C>il an®. 3
li.;tors r'f G1i®sel nil aml UF,nn intGJrr0gstinn . Of said Brgy. Ca.~t
PiaJ_f1gn an d the s;it~ c;cr·'rclin;nt Clr i·e was lt<Hn:n~@ that the 52nd
I:B: P.bliT~ Army.rcee iV{Crill. mr.t in.f 0 rm:Mtir.n th<'lt 0B [Vfay 22 5 2 ®1® a r 0 -
UJ.J..Gl 12 m.iclnight sai<ii inf0rm~mt saw tw0 ]9Glrs 11ns in ·thG <act Of
st.cH;I.l.ing hyclrn niJ: infrnnt 0 f th0 CrawJ.cr Cr.LlnG· (CC 2~ ) lncatG Gl
o. t syph n11 i c CU~ I'%!_. Th8t aftGn~ tha:y r()! ceiv0cd this infnrmati Cn thmy
in1meGU.& to ly c '-'nGl ucteG& f0Jl Dw- uw r..lpera t i r:n ra1ate6l tc' tgis inci"'"
G:la:;nt a11Gl wen!l c:tble to recOvg.r (2) twn c Ontainer: nf hydrO Oil~rtt
th o. h Ouse;; Of cartGJ.il'l J0n~atham r-u~sco t o inclumG> 3 Li. ten~s CJf 0ru.t10
Oi~ anill th ~ y · brnught said susp~cts an~ th0 . ite ms rec0ver~~ t 0 , I

the!:lir O:ffico 8t saiel bmn'mgilly Sc.n [email protected]' . £tnllil after Gt · whilG the
tw 0 suspQ: ct£ ask -pmrmiss]_ on frDm thm . tw n s i'lirlicrs and the Brgy
Ce:ptain tD cat their lunch 8J.1cl th0y v.rer@ 'PJCS'lr'Ini ttQ?<il and the twr
SUSflccts 51h t n°t nlltUr110eil ~nymorGl anal uw tn n"'rf they wcn~c n(\t
seen EtiT)Tm f.''rc .rn t llr gy. S!Z\1'1 Isitdrn, Lcn£3 Navt; HB N . Sam8.r.
Entc.:y·~ d BY~ p 02 Harmilva.l n oy E Fl_('ffiriguez .
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P aid Un ~ e r v .R N un~mrt 15~47 8 5

P rii~ 2t ; Las N8Vms N. Sarn8r
P$id l~. : July 14 , 2 ®1 ®
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\(

ANNEX B-g~
,·_,
. ':. -~·. .

SWO~N s::rNP..ID,Ml!lN'il·· QF. FRANCISCO DID~·~ ~~-·. ~ ,. T~~-M,.

..._,. , -a+.-ili!d~W~l..M
~RiE1ilU, VTllii'PIN9 .AI\)D Rl\l.3I·J?)ENffi, QF __~AFM.GNGAYSAN 1STbffi:0, h.A.S NAVAS
NORCUJIElitN . Sam~ut.~ ffi·AKEN ~Y . P.02. flANW·I:eAlti ROY :eAlli:fo.J~DO RODIRiqumz, DUTrY
IN"tE3-\1\ !GAfii.Of,i; QF· J;JA,CJ NAYAS PCPLI C1'iJ ,9TA.~IT·ION IN .!]HID P~IDSIDNC:ffi 0 rr. l"'iN3P
~'lCJI~:El~ s •ffi])BffO ~Ak.ANQU:J::.~- OFF·!{C:ro!SI ;J;.NCILA.ffi:0il ., .i?(;)~ JUU1HL'NQ G.AJIS[:m, OFE
:i?JA,UJ.'l~JN! P.WC@ AL\ID F03 .MEll\0J10ij. Q~QNQS H'fi(PtiDlli FNCO ALl OW· .t!JA8 NAVAS
~01!:)1-QID_5i-!A.:gfJ:QN_A~· .§~~ !iA!A~ !Oll!!·I~QE.... S!A~l.QN_O! ~A~tJAi1! !·21~ !'2'~ ,_
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.. , . ANTONI·~ HERMOSILLA
.: Off~_:;.: in Charge
______ ...._____
C ]]: ~ ·Wi [ 1 ~- ;w, _ 1:11\ sst. Provincial Prosecutor
Ct A .m.• i!lllUD

. ¢· HRJB!m:eY CEJ!Rillr[:a7Y :fi·h,~:tt ,if:, M~a.o/@.· .p~:r.~· 0r,laD~R;Y 0J,C@1rn:Ln<~:rd. thEiF ~.i~~·
fidl)~di·:t' ©,taul 'T· ·~a WJ;lif~J:y i(~l~;rt~(;t;ii:tt~!lld ia~~cl· sm:to~.s·¢\Di:~:ri ,;t]fJ.a'b th~:· .~:ffiJ·~mp.·~
tlGJ. ,S i;r er .J ~·t!l.r.J.·$·~!L~f.£y tiXef~ lil~ ttl. aBGJl. ::ftmill}Qy 1jl.N.cl~~-:5i'thr~cl. J::l~\~ m-tiey;f:·M®.nn.·.\fdd~;v· ·

. 1-\1'-JTONIQ. .. . .HERMOSillA
Off .ce in Chargf ··
Asst Pro nciaf .
P"*te·.L.
wusr

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. <··... .
: ·':: :i 1' , •

II AN
HEAVY INDUSTRIES AND CONSTRUCTION COMPA Y LTQ.
Help for Catubig Agricultural Advancement Project, Contract No. HC PI-C-1
Brgy. San Jorge, Las Navas, N. Samar, Philippines
Mobile: 09173 0253 98 Fax: 09209370053

I 07 November 2009
t
Ref. no . I-ICAAPI- 0C08 ~
X\ooo,._, ,,

REINERIO E. IRINCO
Project Manager
Fielp for Catubig Agricultural Advancement Project (HCAAPI-C-1)
National Irrigation Administration
,
v\
....

IA Compound, Dalak.it, Catarman N. Samar

SUBJE CT INCIDENT REPORT

:)ir:

Tr; 2C<.:ordance to GC-10 Volume I of the Contract Documents, we are officially reporting to you
reg:e11ding 2.n incident happened late afternoon arow1d 5:00 P .M. yesterday, November 6, 2009
(;;~; ::·epotted thru radio), Mr. H enry C. Alfonso, a backhoe operator assigned in C~C Barangay
Dapdap area was stabbed while walking at the Poblacion of Barangay Dapdap, Las Navas
Norther Sarnar. The patient was brought immediately to the Catubig D istrict H ospital and to
1 · orthern Samar Provincial Hospita1, unfortunately he was pronounced dead a few 'm inutes after
arrival in the emergency room of the hospital. ·

A~; of this date, this office .and the Las Navas Police Force are investigating tlioroughly tl1e
cause (s) of this .incident. Official incident report shall follow soon.

,.... - ... ... .. '

For your infornntion .

Very tru ly yours,

KYTf H 'fUN '\"E O M

. \. .
ProJe c;t Ivl·;;nager
I
I

CC: TL Comullant •• (, .1
f''
I
j
 .... . .

m;rjU~ LI C OF TH~ PH !LI P P INf~ ~

PROV INCE lW NOIHHt~Fm S .t\ MA~
.C/\T U131 G
P f~ OV! NCI A. L m;AJ~ HI OFf-' ICE
C1-\TU[t IG f) l STr< J C.~ T·.-HDSPl T!-\ l.
~.
'\;j..._'IJ.V
__....._, __
P Q.ST :m01~~!JCM JDXA . JNATJGN

HENRY GAPOY .j\.J, F 0JNS0, 31+ y.ef:!.J.'~~ 0ld , malo, rna.r.d. 0d 1 ax·c;;~AvatQJi operatCil r ,
f:t' r:v.rn .:R;~nt=o 0 tit:L1 E&~;t City.

N 01 : .5 t alii bl.i r~g ;I no i cl~ :t:l 'b

'P®.I: E$y . J3apcla~, Lu6.l NC~_ V l~l .:n, N
wmr: ~~~. G, · ! mo'
T<DI ; Annund. I.H 00 prA

B0$ ~ Nov~ 6 , 200 \9

PGir!/ .: r.i:¢J.tubig Di .st ri ct l'h'lm}.li tal Me rguot

~OE ~ !h.3 0 prn

Requt9ati];lg ®f:f.ic;;0r .t ,NOI,SEB $ • .\BALANQUI'T
mf~~eor IA ~mhar s m
J, ~ ~l!l N<>.v,as , ~- • . .SO)tlr.ar

WI NDINGS :
$t ab W<tJ.Ul'>l,(i .':~,;.il.M~~h~Jl-\U f.~ :2· ~.,,5 _,:G._ll)Ji1,~:,:. -in lc ll$'hh fl1 id p0rt i mn ]?GISt <!!r i $T
baek
' I
ri g ~t
'.- ,
tbr u mmd
1
thr u ~
,

Sta~ w0~nd ~5 Gm . iR l~n g th left l0wa~ axilla

Stab wo umd L - sh~p~& ~i ctd l~ 3rd ~ntrori0r ~sp0ot laft arm.

GAR·IDl\9Pl.TLM.ONARY ~\E]WJS T ElEC0NDAH.Y TO RYJ?CJVQLIDMI0 £lffOCK

:5.fGC10NDAr~,y 'rCV MASBIVJG l!.][JM·(l)IU\HAGJil iill!JCON DA:RY 'J:'0 tJLTIIPLE B'l'AB WOUND •

. : I ~: ;·:,
 Republic ofrhe PhillfJI;ims
.Deparllnenl ofAgricultllre
N ational Irr igation /ldmi n istralion
H el p fo r Ca!ubig Agricultural Advancement Project
Caturmon, North ern Samar

Fax No. (055) 500-9118 E-mail: ilC<[email protected] Website : \W.w.nla.da.gov.ph Tal. No.: (055) 500-9150

N IA -HCAA P-!DC, CONSULTP.N TS an d HHIC

COORDINATIO N MEETING
MI N UTES or- PI\OCEDI N GS
f\JIA Fie ld Office, Brgy . Rebon g, Las N ovas
June 29, 2010, 2:00P M

ATIE N DAN CE:

N!A- H C.n.A P:

1. I~EINERIO E. miNCO Project Manager

2. DAVID G. 18.0RITA Pr incipv l Engineer - C
3. DANILO L. DE ASIS Pr·incipvl Engineer - C
4. EL MER SOI\1 M. LEGARSE Su pervising tf'nginr2e r - A
5. RO SS INI G. ALBURO Supervising Engine2er ~ A
6. DEODITO It TEJERO Senior En8ineer - A

HHI C:

l. PAN GEUN PA!<.I< Proje2ct Manager

2. HYUN SU K SHIN Engineeri ng Mvnvger
3. wo LEE Assistvnt. Engineer in g Manage r
4. DANT E C. TAN Chief, Office Eng ineer·
5. CHEON HOAN KIM Construction Manager

CON SU LTfl..N TS:

1. HITOSHI TOKU Team Leader·

2. TEOF ILO Q. MALICSE Co-Team Leader ·

PROJECT COOR DI NATION OFF ICE:

1. 1-EIWINAND Q. ULTRA As:;ist<Jnt Chi ef

...

. ! Id I' ;\ l't
 ~·

/>.GENOA

1. HHIC's plan on O&M Road on 1st 6km of CRMC.

2. CRMC Lutcral 3 status
3. HHIC's plan ·on Lateral1, 2, & 3.
4 . Completion of restoration works of Diversion Channel
5. Scheme/procedure on the repair/check of leakage on the Sluiceway G:ate
6. Preparation of As -B uilt piCJn by HHIC . ,
7. Disposal of CRMC excavated materials netJr the embankment works for On -
r:arin f.CJcilities
8. Oth.er Matters
(;) Downfall channel for Bifurcat ion Structure
"' Proper storage of RSB (Grade 40 & GO) for Pin ipis akan Bridge Flume
otl ,On time submission of StCJt isti ca l f~epo,-t

Actions/ 1\eco m mend atlons/

J\genua/Topics/ Issue Minutes/Highlights of Discussion
Agreements
1. Prelimin<HY act iviti es. The meeting w as started at abo.u t 1:30 P.M.
presided by t h e IA-HCAAP Project Managr.r

2. Ad option oJ the The .Presidin(l Officer presented the agenda for The agendCJ was appro ved
flgend<J . upprov<li. incorporatirig the additional
mtJtters as suggestec;l.
Eng r. lrorita suggested some <Jdd i liona l matters for
d iscu ss ion to wit:
" Downfall channel for Bifurcation Structu r e
" Proper sto r age of RSB (Grade L\0 & GO) for
Pinipi sa kan Bridge r-lume
o On time submission of Statis ti cal Report

3. Approval of the The Presid ing Officer asked the body for the
Minut es of the previous approval of the May 21, 2010 m inu tes of meeting.
meetings. Th e meeting was suspended ro r 5
minutes to give time to th e
The minutes or Mi.ly 21, 2010 meeting WiJS ilpproveu iltte nd ecs t o re<Jd t he minut es of
without cor cection. pr evious meeting.

4. New Gus iness

o 1-lHIC's pli!n on O&M . PM lrin co as ked HHI C on the ir plan with cegar ds to
1
Hoad on. 1" km of the O& M Road Fo r the 1' 6krn of the CRMC.
CRIVl C
Mr. P<:~rk <JilSWC!recJ that clue to the b.<Ju weather
condi tio n that are not all owing them to lay rotJd
surfacing materials, they are just hauling it to their
San Isidro stoc ky ard <Jnd once we<Jlher· co nditi on
1
improves, they immediately place i t along th e 1'
. I Gkm of CR M C.

o CRMC Lateral 3 PM lrin co as'ked HHI C on the stat u s or the

co.n str ucti on acti vities along the CRMC LaterCJ I 3;
since h e observed thilt the equ ipm ent he usually
saw wo rk ing in the CJrea is no lonr, er visible and it
--------------------~

2 I d r :1 r I
 ..r
~.:

.<·;::'!''

seems that it h<~d already demobil ized.

, ....

Mr. Park rep li ed that they have stopped the

activities ;:Jt the CI\MC L<Jter;:JI 3. due to their pi;Jn of
concentrutinB their uclivilies at the 1'' 15 km of the
CRMC which they pr·oposed to complete until
December 31, 2010

HHIC's Plan on. CRMC PM lrinco asked some cl<Jrifict~t i ons fi'Dm HHI C on
Lateral 1, 2 & ?· what are rea lly th eir plans for the luter;:lls of CRMC
since t hey have no act iviti es yet beinrs undertuken
) on the svid working ;neas except for the CRMC
Later<J I 3 wherein the IJtest development was the
stoppage a'l so of construction activities.

Mr. Por k exp lain ed thr1t part of the ir plans ·for their
1
contract was to complete the 1' 15km of the CRMC
until December 31, 2010 which is the rrvised
expiration of their contract. He further exp l <:~ined
tha t h ey will be submittinrs a variation o rd c~r with
re vi sed contrtJct qu<l!ltities and cos ts excluding· the
r;u:-Jnl'itics ;md cost for the remaining works of
Pinipis01kan Bridge Flume, Catubig Left Mr1in Canill
includ ing the Later~ is and the CI\MC L;' ' .. ; · t~ls.

PM lrinco saicl that that m<Jtler should be decided

and discussed properly since their contract
extension until December 31, 2010 still includes the
quantities and cost for the · structures and canals
which they are proposing not to construct anymore.

o Comp letio n or PM lrin co aske'd th~ ten t at ive dale or co mpl et ion of
restoration works of the restoration works o f the diversion channel of
Dive rs ion Channel Catub ig Dam.

Engr. MiJiice st ressed that the divers ion channel

sho ul d be comp l~t ed immed iate ly since the rainy
season in the area has alread y stilrted. ~le also
exp lain ed and illustrated on h ow to construct the
2m high dike at the left abutment or the clam at t h e
di ersion chann el are<J connectinB it to the elev.
2Gm at t h e toe of the hill adj <Jcent to the d<1m .

Mr. Kim exp lained that their act ivity in restorat ion
of the d ivers ion channel Is arrcctecl by the b<:td
weather condition and they C<Jnnol proceed since it
will only destroy the ir emban kment: l-Ie promised to
adopt the scheme suggested by NIA and the
Consu lt ants but will wait for the final pl01n.
i
I

Scheme/procedure on Mr. Toku commented on the submitted sc h eme o n

the repair/check of the repair/chec k or leCJ kage on the sluicew<Jy rsate
leakage on the submitted by HHIC. He sa id t htJt the r e are some
Slui ceway Gate lacking dCJta on the said submit t al and needs to be
.' spec ifi c in some fi gures and should define the
tolerable ra nges as per tec hnicCJ I specification.

3 Id I' ;1 II
 HHIC explilined thCJt they will relay the needed
-· information to their sub -contr<Jctor of gates to .
.~·· ·
ci<Jrify <Jnd to comply also the ICJckin~ dat<J.

o f'repuriltion of As-Ouilt PM lrinco asked the slCJtus of prep<JrCJtion of <Js -t:luilt

plan by HHIC plari.

HHIC replied lila} they are 011-going in the

prepuation of As-built plan and they <:~replanning to
submit it progressively st<Jrting with the structures
that were nlready completed .

" Disposal of CRMC PM lrinco explained to the . body that the

excavated materials construction of On -Farm facilities is h<:~ving difnculty
near the embankment in hauling embankment m<Jterials especiJI Iy th<lt the
works for On-Farm equipment of NIA for the sJ id purpose is not yet
Faci liti es delivered and it tilke longer time for farmers to hau l
it milnually. He requested HHIC that if possible,
1-iHIC's excavated materials should be disposed near
the embankment works of the On -r-arm facilities.
This is to lessen the haulin[l distance of the farmers
and somehow speed up the embilnkment activities .

Mr. pilrk replied in ilfllrmCJtive <Jnd requested NIA to

pinpoint the <Jre<J where to d ispose/dump the
embilnkment milteri<Jis.
5. Other matters

" Downfa ll channel Engr. lrorit a· requested 1-IHI C · to .Prio ritize the Engr .. De Asis commits to give the
for Bifurcation construction of the Downf<J II Channe l for Bifurcation dime:nsionlhe following day.
Str uctu re Str ucture in anlicip<1tion to the he<Jvy r<J in s tha t
might d<Jm<Jge the cro jJs nearby <Jnd also the
structure itself. He also asked Engr. De Asis for the
d im ension of the channel .

Mr. Park instructed Mr. Kim to t<Jke nccess<J ry

actions to comply w i th the request.

o Proper storage of Engr. lrorilt1 reminded HHIC about the present

RSB for Pinip isakan cond i tion of the RSB stockpile which <Jre int end ed
Bridge Flume for Pinip isakan Bridge 1- lume, he added thCJt the
markings indicating the corresponding grade of the
f\SB is no longer visible and it is already very hard to
identify whi ch is grade 40 or grade GO.

Mr. Pilrk i:lnswered that they will immedi<Jtely do

measures to address the concern of Engr. lrorita and
prom ised that i f they turned it o ver· to NIA it wi ll be
in proper order.

o On t im e submission
of StatisticCJI report PM lrinco reminded HH IC on the ir obl igat ion to
submit the ir statistical report on time. He stressed
thCJt the dela y ed subm ission of the HHIC's reports
will also caused de lays on the p<~rt of NIA to submit
some 1· eportor ial works to lA Central Ofnce.

4 Id I' <I ,. ,
 some reportorial works to NIA Central Office.

Mr. P<Hk commits that he will look at this millter

and will c:tssure the on time submission or the next
reports

6. Adjournment Since there was no. more agenda brought out; the
meeting was adjourned at c:tbout 4:15P.M.

fcvv~ cr~ ~2 (J--. ' ( ~

Consu Ita nts HHI C Ltd.

'.

,.

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J<:l):~t\, l)ilirnan, Q \h,;zon City, Jlhil ippi !ll:!i

TIN No. ooo - ~ lo -•ll.l

(02) '>29-<,071 t<> n

September 17, 2010

Mr. Scung Jeo ng l<im

Di1·t=cto r/ Gcner<1l M<magcr
1-i<lnjin Hcavvlnclust1·ies & Construction Co. Ltcl .
l i 11 1-\oor,. 117.8 UnivCI'sity Pe1rkway
f\)orth Elonif<Jcio, G loba l City
lii[',Ui(;, fVlelro IVl <mi iJ

SUOjECT CO NJRA CT NO . HCAAPI-C- 1, CONSTf\UCTION OF CATUI31G DIVERSIO N DAM,

IRR I,1ATION AND DRAINAGE CA ALS & APflUf\TENA T STR.UCTUR.ES
lf\JC LUD if\JG INS TALLATION OF STEEL GATES FOR. HELP r-OR. CATUBIG
AGRICULTURAL ADVAf\JCEMENT (1-!CAAP)

Q(~cll' i\~ r. JCi m,

This llc:s reference to the above -mentioned Contr<1ct wherein in the ICJst Coo1c.\in ation Meeting held
on Jum: 29, 2010 wi th your Project Mani.lgeme11t Of'rice in Las Navas Catc::mnCJn, Samar and with our
Pro je ct M;:r nagement O f-f ice of HCAAP, Mr. Pan Geun Park, your Project Manager informed lhe body
lhC\t the plans for the Contract w as to complete lhe l't 15 km of Cf\MC until December 31, 2010. He
furlher e;<pla in ccl that they will be submillillG a variaLion order with re vi sed qU<llllities ;;mel costs
excluding the r ema ining works of Pinipisak<lll L~ric\ge rlume, Ca tubit; Left M ain Canal, Laterals of
CI. M C ancl the C I~M C Late rals .

l-or your refe rence, we are furnishing you a cop y of t h e minu tes of the said CoOI'cl ina_ti on Me eting
v1hich wos atlestecJ by f\/lr. Park for your comments. We ar e antic ipating to receive the final decis ion
of the H\-1\C Philippine 1-leod O ffice on the sc::~id Coilh<icl as soon <15 possible cons id ering the legal
impedi m e n ts thJt mZiy <Jffect to the said intention.

Ve ry truly /;ours, :

~?!t~
c..r. Tit~ rrujrc.t ft.·l.lr"1G r: r
N:1\ ·IICJ\J\P
t:JtJ rln Jil, llortl:crn ~Jm;Jr

Tlw Tr>.lrni.C?-Hier, JV Comuii.Jr;ls

CillJrn 1.1n, r-1r~1thr.rn S-1111 Jr
HANJIN HEAVY INDUSTRIES 8c CONSTRUCTION CO., LTD.
Floor, 1128 University P~rkway, North Bo nif~ c i o, Glob a l City, T~guig, Metro Manil~ . PhiliEpines
11
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Tel.l~o . (63 2 ) 337 -3888 F ax No s . (63 2 ) 337-3867/337-3339 li~:F;fC:I~. OF Tl-/[ SH _ [if: l~iiTY, /d .! :~_)~f!i,::, !'ii;,T,!if:!

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1 October 2010

Ref. No. HC/\J\l'I - oo3 OCT 0 5 2U ll: u

. . 5 ~VL~U -V1S
Admin ist r:J tor's Office
Hon. ANT O NIO S. NANGEL • 'j .

Acti.ng .t\dmi.nistrntot
NATIONAL IRRIGATION ADMINISTRATION
EDSA, Dilirnnn, Quc:z.on City

SUBJECT N IA LETTER dated 17 September 2010 (Col!.r!mdlo" of (.'ai;~i)~;·g · D~l 'i!!:rion

Dr~m, Tm:~fllion r111d I)millc(ge Cilltrtlr e:'~ ./ljJjJIIIlunr~~t!. .Fmililie.r n'i//1 .l11pjJiy,
De!it'r!:Ji aJI(/ fll.rlrtllr~tion oj".\'tr!e/ C.-tli!J nnrla Lonlmd No. f-ICA./l.F'f-C-1)

SIR:

In lC[)l)' to yom letter d:-~tcd '17 St:ptc.:mber 2010, \VC rcspcc l· fully inform )'Olll: r-lonor:lblc
Office of J-Inn jin's intention not to proceed with the further j)J:Osecut.ion of our \vorks under
. '
the cite d contr~cl in the following arcns of work: Ciltubig Lefl: Ivlnin; Cannl (CU'AC) nnd its
:-~ppurten:mt slil.JCLl.ll:es and fnciJlLies, Cntubig 1~ight i\•[:-~iu C:-~ml (CRlVJC) Latcrrds :-~nd its
:-~ppurtcnnnt suuourcs ;wd ol'.her rcm:tining works as indicntccl in t.hc 1" Revised Cunt.t:nct
Qu:ll1t.itie.s '-lnJ Cost :-~pprovcd by NIA Bo;-~ rd of Dixcctors on l\'Iruc h ;~2, 2010.

\Vc clcem it best to pursue: t·h.is course of no.ion as a wny of preserving the. funds of the
project and in m:-~in t aining d1e cordial cciat·ions between l'i1t: Cnnl-r:lctr.n and the. C lienl:,
wi1·hout ch1c: .refet:encc of who is at: bulL bciWL'l't1 1he Clit:Jlt and the Contractor.

Tn vic\v of the above, \VC submit the corresponding pwpnsccl second revised qu :ml'trlt:',
which :-~lre:lcly consiclen;d our intention 110t t·o proceed wit:h t·hc WlHks cnul:ler:Hccl :tbov!;.

l--bnjin ':; decision nor· to fmt.hc.r proceed ,vil.h the pwseu1t.ion of rcm:1i11it1g wurks 1s
anchored on the CONTg_i\C'T'OR 'S 1UCI-IT 'J'O TERlvllNt\.T.F.~ CONTfZACr \'-'ORK
under General Condition - 2:1 Gf ihc Cctlcr:t! Comlil'ic>ns o[ Con tntct, rcsu.ll.ing from the
OC'CLICJ:e tlCC or a Spcciill H.isk :lS j)J:cwidcd under t•nragr:lph (cl) of Ccnn :-~ 1 Cuncl.ition - 8
(l.J.t\BTlXJY FOr~ SPECTi\L RlSKS), which prm' idcs :1:; fo llows :

J[ the. conrr:1c l \\Io ri< sh:dl he: compkicl)' sl'r)pj)C'd for :1 conl'inuom [)t:tiati ot m o re th~n
90 clays thmugh 110 <!CI ()[ raull nf lhc ConrutCI'lH or :111)'011(' Cll1j)loycd h)' him or :IS

rcsult of the occurrcn~e of ~pccial risb a:. provitkd in ,\rl i,:lc C -8, 1.1 .-\Bl.LIT Y FOR
SPECl.-\ L IUSKS, rhc Conlr~ci'or shall, witlwu1 prejudice ro ~")' 01her righ t 01: r<!mcdy,
have the rig ht to g ive NIA 15 cnlcndar d:1ys wri tte n n o tice to the e:ffect that the
 Contractor intend s to terminate the Contt;.~ct \\?o rk canno t be resp med b y th e
Contractor.

If within 15 calcnchr d:1ys <1C!cr receipt by Nlr\ of such notice, the Con trn c to r cnnnot
resu me Con tract \York wi1hin for re:tsons SfKcificcl :tiJ<lVc, he (th e Contrncror) sh:dl
have the 1ight to te rmi nate the Conlrac:t :tncl re cover form NI,\ p~yment (or ~ny loss or
cl~mnge to 1hc Contrnc1· \XInrk ~risi11g oul or, or in coJl nccl"io n wilh, or h}i conseq uen ce
of su ch te rmin aLion, as described in r\rti clc GC - 2 ~ , PA'{(VJENT JP CO NTR.,-\CT JS
TEl"UI.liNATED.

GC -8 LL-\BTLTTY FOR SPECL-\L R.!SKS

Special Risks <1re:

a) XXX

b) XXX

c) XX
d) any o pe r ation of t h e fo rce s o f na tu r e (insofar :1s its occurs on tl.1e Sire)
which an e.xpetienced contr:1c tor:
(i) could not h~ve reasonabl y [orcseen, or
(ii) could b ;.~v e re aso n ;.~ bly fo reseen , b u t ;.~ ga i n s t w bic h he c o u ld n o t
reaso nab ly hav e talcen app ro priate measures to prevent lo ss o r damage to
phy sical property occurring.

x.:xx XXX :o:x

Co.u ela ted with the above-cited pwvtsions of the General Condi tion s of Contt>1ct, \Y/e
would like convey to your attention the three (3) majo1: issues affecting the prosecution of
work which prompted us t:o exercise this remedy granted to th e' Contnc.tor under the
contract.

First. UNSTABLE W EATF-Jl~R CONDITIONS UNFAVORABLE FOR THE

PROSECUTION OF THE W ORK.

The provision in the Local Co ntli1ion - 03 (CLIJ'vfAfOLOCICAL DATA OF THE

COl TRACT DOCU !fENTS) st;"ttes th;"tt

The projec t nrc~ bclOJlgs IO T)'[lC - rr in lhe clim~tc cl:ls~ificalion of the P hili[J[Jine
Clim<1tic Zone, which is ch~t· :ICCcrizcd m ainl y by hc~v)' minfflll ciuring Nov e m ber to
January (norlhenst mon so on), while the othe r mollf"h:; the m in[nll is eg wllly disr~:ibuted.

As could be deduced from the above Local Concli.Lion, NIA explicitly wanan.ted th;~t the
Conu·actor can woJ:k for at lcnst: 75% every year for the whole project duration, since heavy
rainfall occurs only in thre e months oF every yenr, while the r est of d1e 9 remaining months
was represented t:~ ha\re equal min cbst:rib tl"ion. However, the actual)ocal weather cond.ition
is abso lutely a t odds \.Vith the climai.ological clat·a supplied by NIA in the Local Conditions of
Con trac t Documents quoted above.

We comp ared the monthly average rainfall a~ stated in Table LC-01 -~;;ewge Clima/1? Parameta
ot Cat11big and Calr.mnan Slnllon.r in the Local Conclition o f the Contrnc t Documents und er
Catu/Jig Station with our rnontbly Statistical H.eport to elate with attached recmcis on the acl""ual
monthly weather condition statistics in th e p!·oject ~uea, indicating wide variance in the a
average monthly rainfall, thereby affecting site work<tbility. FOJ: better npprccJarjon, we
ta bub ted below the comparison of the average monthly rain btl!:

Comparison of Average Rainfall b etween Da l:< in the Contnct Documents rrnci Actual
Data

AYe /
!tern s .Jnn . Feb. Mn r. Apr. May J uu c Ju ly Aug. Scp. Oc t. Nov. D e c. Tot:J.
1
Contract SIS •10·1 255 21'12 2•11 15.1 2')7 22H 25H :1·11 c..w 81(, •l 5(>1

C;,tiirmilnl\:linrnll d;,ta
2007 .W7 99 2 745
iitl:H.:IH:d in ~l:\listi c :1l report

llctu;tl 201)8 503 1,52S <l.'lfl •ISO 17 ~ :1•1.'1 287 •103 :ISO 377 535 i 217 (>,Gill
(Cm>big& f---
Las Navas) 2009 1,025 677 285 :liS 21\1 201 21~ 221 \>0 350 ·1 12 5(,3 4,6.'\ 1)
--
201(1 70(, 38 12.'l 11) 2 IJJ 219
'---- ·
.142 423
L___ ~_ J
' (N ote: Summn ry of mon1hly rninfnll is nlso nlrnchccl)

Based on the above tabulated cbta, the vari;tnce every succeeding ):ear cleady li1clicates an
increasing pattern of average rainf;tU. .As shown i.n the actual data for )' Cat 2006, the avcrnge
annual rainfall fat that yenr [s forty -five percent (45%) hi,r;hcr than the avcr;~ge annual u1infall
i.ndjc;~tecl in tl1e Local Condition of Contract Documents.

Indisputably, the occunence of heavy ral.nf:<l.l in those nine (9) 111onths which supposed to
have an even distribution of ninfall constitutes a special risk ;~s enumerated under GC-8
(LIABILITY FOR S1)ECIJ\L RJSKS) 5ince .it is <~n oper ation of the fo rces of nature which
an experienced contractor could not have reasonably foreseen, or could hav e re a sonably
foreseen, but again s t which he could not reasonably hav e taken appropri a te
me as ures to prevent los s o r dam age to physical property o ccurrin.g .

./lrtide 1174 of t/;e Ci?;i/ Corle clearly provides no pe1:son shall be responsible fot those events,
which, could not be foreseen , or whic.h, though foreseen, were inevitable.. Fint, the heavy
r:~infall on those remaining 9 months of the ye;ll: refett:ccl above is beyond the control of
Han jin. Second, if ever the he~vy r<~infall could be foreseen, it is impossible to avoid Third,
the occurrence of the hc~nry rainfall all throughou t the year and not just on the months of
January, 1-ovember and December render il imp o ssible for Hanjin to achieve the targets ~ct
in the consUc1ction cha.tt in a nor.m al mannc.:r. Fourth , I-lanjin has no parrjcipation in any
manner and degree to this impossibility of continuing further the cont.J:actcd works. In f~ct,
Hanjin even went an extra nulc by wor:bng on the days when it is UJ:1safc and impractical to
work in view of the dangerous ground coJHliJ·.ion due to heavy rainfnll and restrained from
requesting suspension of works when it should h;wc been entitled to do so, exposing itself to
incur Sllbstantial overhead costs for icllc cquipmcnls <tncl payroll expense for emplo yees
whose scrv.ices arc utilized only at minimum levds \XIhilc it may Gc obser-ved th;tt at any
given point, there was no suspension of wodc for m~rc 90 calcnda 'r d:~ys as contemplated
under GC-23, ye t, we bcliev~ th<1t Sllch scenat:io need not h:~ppen since dc:;pi.te great
clifficJ,Jlty in site at:ca, Hanj in endeavored to work even a little pcrcent~gc just to avoid being
totally idle in those period where heavy rainfall is prcv:-tlent :-tnd which period is more th::111
9.9 days .as discussed below. As part of T-bnjin's IT:-tdemark of finishing projects, 've never
ven!.lJted on declaring suspension of woJ:k as we tried to squeeze ourselves of even a m.inute
rate of :-tccomplishment when we would h:-tve tbe right to ask for sus1~ension of works under
the circumst:-tnccs obt:-tining.

1
In the 2'" & 3'"d quarters of yen.r 2007, we are nlmost idle due to rensons beyond our conu·ol
(GFC revision and re-alignments as well ns the eady on -set of r<~iny senson beginning
September up to December 2007. On t·he following year (2008), the r<~iny season prolonged
until the tniddle of May 2008. Despite th:-tt pteclic:-tmcnt, we had rendered t.ht:ce (3) :-tctual
workable months, :1 testament to om commitment to our contract ob.ligations . In the
subsequent year of 2009, we 111:1n:1ged to work about fom (4) months, while in 2010, we
were blessed to have <~round five (5) months thereby incre::~sing our accomplishment
primarily due to the so called E.L NINO jJ/Je!IOIIIC II0/1 rl1at: stnrted as endy ~~ Fcbru:uy up to
June th.is year.

Ivfennwhi.le'> the 5.0 mm / clay or below t;<i.nfallme<tsurement wh ich is considered zero and not
counted as rainy clay under Table LC-03 lvfonthly Rainy Dnys more than 5.0 rmn / dav at
Catub.i.g (1996 -2001) is tot<~lly irrelevant i.11 tbis project. J\cll.1<1l site condition would show
that a continuous he:1vy downpour for thit ty minutes with a r:1inf<tll mensurement of below 5
mm would rcnde.t the site unworkable. NIA's field personnel ; have witnessed this .
t'
.insunnountable preclic<~ment. Thus, the assutnpt.ions in the LC -03 !'o the effect that: for
· ~mbankment works, 20mJn r<~infnll clepth/chy or h.i gher, the Contt:1ctor's onq)ut will be
:-tffccted; and for concreting, wotks, 30mm rainbll depth/c.by or l:igher, the Contractor
cannot effectively undert:-tke the normal activities, arc nil grounded ot'l unrealistic premise iJ1
view of the <lct:unl conditions st<tted nbove.

\Y./e do not discount the possibility that objections m::tybe tilised on the gwunds th~t the
r:1infal1 measurement cited above would not jJct· .rc render the site umvork::tble and tl1at H anjin
w::ts :-tlready apprised of the soil conditions in the s.ite which are predom.innntly silty and
claye y lo:1m. However, we tnust emphasize th:1t per ;-~n:1lysis by NIJ\'s fteld personnel,
Consultant and I-lanjin's hb01:atory stnff in the sexies of technic:1l meetings on-si te, the type
of soil we have in this ptojec\ is clifferent from wl.1:1t is statccl in the local condition
d ocum en ts.

Hence, even when the rainfall i.ntensity is less t·han 20mm, ground is aLre;J.dy unworkable
nonvitbstanding the fnct thnt the rnin alrc:1dy stopped and for which re:1son that a thirty (30)
minute rain (below 5 mm reading), we c:1n no longer cont-inue our work. \\/hen the rainfall
intensily is more th::tn 20mm, much more the gro uncl is unworkable and· need nt least 2-3
days dryi11g period before we c:-tn proceed to work p::trticu larly for em,b ankment. \Y/c need to
redo the preparation on the seq1.1cnce o f work fot emb ankment.

These conditions were indisputably experienced at Catubig Right Main Cnnal (CIUviC) and
we arc very certain that same conditions will happen in Catubig Lc(t J\hin Can:1l (CLiviC) .
\'Y/e, the Contractor will continuously experience nclclit.ionni burden O:n indirect costs due to
series of extensions that would be caused by the unCavotable weat·.hcr condition which is
very prev:1lent in the site. _As. substanl-inlly discussed earlier, the unforeseen unfavorable
 weather conditions at site are beyo nd the contro l of the Contra c tor \nd Client as well, \vhicb
'is very much clettiment;1l to the gu;1lity of the ptojcct in gener;1l '

\//e expect the scenarios mentioned above w.i.ll be rcpe:1tccl in Gatubig Left lVfain Canal.
(C.LlviC) . Thus, the followillg sitt1:1tion is inescapable if we proceed with om wmk in the
CLMC:

.···
a. There will be signiflc111t number of standby hours of t:he ec1uipmcnt of Contr;J.ctor
and service vehicles of the Client chat:gcablc to the project, incurring expenses on
eng.ine paits and fuel.
b. There will be signiftcant expenses from the Conu:actot and the Cli.en t fat the sabry
of Engineers anc1 .inspcctoJ:s which. .is cha~:ge;tblc to the. project.
c. There will be sign.ific;tnt number of workers th;tt will be sidelined both from
Contractor and Client on st;~nclby chacgeal.Jlc to the pmject.

As may be observed, the common deno1ninatm is th;~t: all the aclclition;~.l costs incurred
brought ilbout by the unforeseen unfavor:1blc weather conditions is all chargeable to the
project as these are .legitimate cost ;111cl cxr)enses, subst:lnt.i;~lly reducing the proJect: funds
without any significant level of ;tccomplishment commensma t:c to silid reduction. The
resultilnt effect is that, it's not only the Cont.ractor thilt will be losing its resources but NIA
tlS well.

To reiterate, the unfavorable weather condition th:1t c1uses our operation on & off in CIU\·1 C
to ·cbte is a major f:1ctor why the 24 /7 schedule of opcrilljons wi\s n~t fully implemented.

To be attlmecl to the real sit1.1at·ion, we must: emphasize th;,t the PhiJippine Atmospheric,
Geophysi cal ancl .Asu:onom.i c;,l ScL'viccs A(ln'1i.nistT:llion (Pi\GASJ\.) hilve alre:1dy
· pronounced the on -sci: of rainy season ilS c;1rly ilS .June 2010 . Thjs pronouncement of
Pi\GASA is now prevalent in d1e Pwjcct Site. AU items of works slowed down i£ not
instantly stop due to the effect of cl;,ily t:;tin It is important to note that the unfavot8.blc
weathe1· condition beyond the con u:ol of H ANJIN .is ;1 major f;~ctor for the two (2) approved
time extension of th is Pmjcct. Plcmc !Yfr:r to a//{.ldJC(/ .rw?t1JW1izr:d copir:.r of ml;!fall da!a'.r in the
apj;rot-•ed .rtalistical n:po11s Ji'om 200 7 to 2009 al!(ljim;t jalltlri~J' !o }119' 2010 wllccti?lC{v refi:rred a.r
/lnne_Y ''/1 "/1m:o( inclf.lding iiJ .r11bmark.ing.r.

This unst:1blc nnd ea:1tic p:1ttcrn of the forces of nr~I:UJ:e is a very unptedicl:ablc phenomenon
which now a pressing issue glob;~lly the climate cl1ilnge. The unfavorable we;1ther condition
that c:1uses us too much clcbaclc i.n the p;~st yc:11:s will s1.ucly put us .in mote delay
implementing the Catl1big Left :tvlain Cnnill m1d its appurtenilnl stl"'Llctures ;111cl bcilities.

Secondly, the DIFFICULTY OF TERRAIN in CLMC. In the case of CIUvfC, it took us

aLmost two (2) years to develop ihc rempo.cnry i\ccess road along the main canill. The
development of the temporary nccess toile! from beginning station 0+000 - 20+000 (Fl'v.LR
Crossing) is very much clifficuli: ilncl an aclclecl cost for the Cont.t:;"~c tor due to the double
(sometimes more) h;1nclling of e:lJ:th tnatetial.s. The unit cost cstitnill';:: applied for thjs project
does not include e:xtr;1 activity of such magnitude of work.
 Th..is condition is expected to occut in CLMC. II can be rcc~llecl th~t during the fm~t yen of
this Contl~ct, we tried to utilize t:he Cat:1.1big River for the mobilization of the equipment and
materials but it was affected by the ptesence of the Craneway Bridge willie the construction
of Las Navas Bridge is underway. This caused us much delay in th~ consu·uction of Catubig
Diversion Dam.

Please trilce due notice that the act'u:1l joint stllvey between J-Ianjin and Nil\ surveyors, both
fo[ the Catubig Left Iv[:1i.n Can~! (CLtviC) origin~! alignment ~ncl re~Jignment w:-~s observed
meticulously to be very difficult kind or t:enain and mountainous differing materially as what
have been presented duting bidding period. This is more than doubled the difficulty of
Catubig lught l\'[ain Canal (CJU\1C) which were also a product of re - ~lignm.cnt to suit-up
actual condition. The joint survey of CLMC re-a)jg11ment interrn.itten!:ly conducted ;:tnd it
took six (6) months more hom October 2009 to .March 2010 to complete .

The Pin.ipisakan Briclge Flume has been tr.iccl sincerely clue to no Subcontr:1ctor would
accept the offer because of its very small volutnc of wotk :111cl no bored pile Contractors and
special.ists me willing clue to thei.r pJ:evious com rnitments in highly mbnn.izecl cities nncl on
their on-going activities. Although, it is the Contractor's full responsibi_lity to undertake this
struchu:e, we tJ:ied all our effoll:s to look for a subcontractoJ: s.i nce the contrnct condition bns
a silent 1novision whetbct piling works have to be undeJ:taken by the m;1i.n Contractor or by
the Subcontractol:.

Lastly, we would W<e l:o ask your utmost consiclemtion [egarding tl1e SAFE1r CONCER-NS
AND UNCOOPERJ\ TfilE l'vfi\.NPO\XIER 1\ T THE PRO ECT {\REA ~s provided for in
GC -·10 SAFETY - PR.J2VENT10N OF 1\CCIDENTS - RE~PONSIBILITY of the
Contract documents . While it is st:1tecl under the cited provision that the Contractor is
answerable for the safeLy nncl protection :1ncl security of personnel, materials and the public
at huge in the area , howcvet, we believe, that such should not be intetpreted i.n a w;1.y t.l1at
tbe responsibility would extend to matters beyond its control. As experienced in the
completed major stJ:uc tures and on -going implemcnt'ation of Catc1big lught Main Can;:d
(CR.TvfC), ehminating the occurrence of safety hazards dming tl1 e implementation of
Cont1·act \Vorks is ;1. priority matter as we h:1ve employed sufficient number of security 111cn
nne\ irnplernented a security plan. Dut, comple tely elimin:11ing the loss or d:1m:1ge, particularly
of the (construction materials, fuel, equipment, :1cccssories, was not :1cbieved in a significant
level clue to the hostile attitude and uncooperative 111;111power <1t the project site.

The pilferage of construction tesoutces for the past three (3) years is uncont<1U1:1ble due to
t.l1e hostile attitude of the residents in the arc;'!. Our wotkers were nlways subjected to
aLuming secu[ity thre:1ts at site especi:1ll y clming overtime work, which we foresee to h;1ppen
also in the Catubig Left MaLn Canal. This sccu1iry concern in th e area dish1rbs the
concenr1·:1rion of the wotl<ers of the ptoject. The extended as sistan:ce of Pbllippine National
Police (PNP) and Philippine Army (Pt\) when requested, is not su[ficien t enm1gb, which the
very reason the pe:1ce :1nd o.l'der condition in lhe :11:ea become ext-remely dangerous to our
wotkers :1ncl your inspectoJs ~1s well. Safety wiLl ;'J[Wil)'S be subject l-o the whims and caprices
of tl1e people u1 the are:1 whose motive is not to work and help :but to steal constluc6on
materi;ds not just for Lhc Contractor but also fo.t other Constructors as verbally reported to
us and your inspectors. The <1bovc sccnntio will be detrimental to the Cont[actor and Client
in the encl. Plea.ra njcr to all.t.td}(;r/ i'OfJia.r of r.·oln:JjJomlcncas, inr.irlenls rl'port.r a11d r.·!!l't~jication of tbe
 ·y/Jilipplne National Police a.r regardr to tiJc _!Jett(C nnd otdcl' .ril11alion of tbc p1·o;'ed area ml/uti/)e!J' r~pr!Yld
~:as /-lnnex '13 "bercoj md11dz';t~ z'ts .ruDii?arkinL~.r.

· Thus, the deletion of CLtviC and its appml:cmnt stJ.1.1ctures anc( facilities and contract
: tcrminatjon as weU is very much nclvant;~gcous to the Government of the PbiiippiJ1es.

' Digressing fr om the above, W/e want to cbrify that we arc n.w<1rc of the provision in the
\contract requiring the Contra ctor to t:1kc the neccssn.ry steps to satisfy himself as to the
/nature nncl location of tl1e Contract \\fork and to which directive we have sufficiently
-; complied by participating in the on site visit prior to the bidding as well as tlm.1 our site
/ inspe ction priot to rnobi.Liz<1tion. Adclccl to thn.t is 0\.11: vnsl: experience in the constl:uction of
1
dams and canals in the Philippines and other countt:ics . ln fnct, I-bnjin have succesutlly
comple ted two (2) major dam and irrigati.on projects for NIA, the :tviali.nao and Bayong;~n
I
/ ; Dams .in the provin ce of Bohol. Nonet·heless, fatniliarity with the contract work is .irrelevant
; ' in this situation since the problem lies in the unstable weathet conditions extremely
.:' detrimental to the fmther prosecut·ion of wade.

As laid down above, we have been willing to complete this Contract ;-tS wh;tt we have do11e
in aU other p.rojects that we have unc.lertakcu in the p;-tst, however, the occurrence of special
risks in tlus project constrains us to invoke the provision on tern).ination of contra ct by
! r easons stated above in order to protect both the interest of I-Ianjin; and NIA . As result of
the termination of tbe conu:a ct, tl1e bleeding of the funds of tl1e project brought about by
in ct ensecl overhe11d costs and expenses wii:h almost a l.ittlc accompl.ishment would be
min.imizccl at the lowest, if not completely ctadicat·ed.

On a. [mal note, we are aware tha t in the termination of contract brought about by
occmrence of special rislcs, the Conlnctor is entitled to claim from Nil\ for any loss or
damage attendant to tl1c occun:cncc, however, we behcve that nobody wanted this situation
to happen. Hence, we arc amenable to forego thjs type of claim and .im;teacl would only
claim fo r costs of works already performed but not yet billed, variation orcin and r c;~sonable
price escalation as provided under the pen_incnt provisions of the Contract.

\Vitl1 this scenario, we are looking fot:wnnl for your fnvo.rablc considemtion on this request
which is clearly beneficial foe both T-Ianjin and NTA. \X/c are stiLl hopeful for further positive
chances on so 11e other matters.

Thank ym1 and best regards.

V cry ttu ly yours,

SEUNG JEONG KIM

DiJcctor / GencJnl Manager

CC: TL Cons\dt~nt
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(I'll\ .1N.I\I.. 1\UUl.:i\TION 1\lllviiNI.':iiWITIOI'l)

FOR 'f)IQ J\dlldldslrflltH

l'l rli i u 11r~ I 11 1 i g '11 i u1 1 !\ tl11 1i 1i is I r; 11i 1111

Tl!RU The 1\ s ~l"lunt 1\JndlllstJntur

ror l'rojr.n l.kvrllljlllll:lli illlilll11pl1:11\\'11\iliil)ll

FD.Of·d The fl.ctlJJg Mnnn(l'cr

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S UDJI!: C'l' CUNTRJ\CT 'l'll\!E !!:X'l'.l! J'lSlON NO. 1 CONTRJ\.C'l' NO. llCI\A.Pl -C-1
- - -- - - - ··----- -- ---··-- - ·- ·- - -·'-.>. '
P .ROJECT 1'l1'LE CONSTRU C TION .OF CJ\TUI)IG, DULJ\0 1\JlD
11./\GB/\Y Dl\I"ERS! O N IJ/\JYl.S, lRRl GJ\TiON 1\J~D
D R/\J N 1\ G E Clll'l J\1,6 liJW Ill' P U R'i'EN I\J'I '1'
F 1\. ClLlTlE S / STRU CT\JRES, lN CLU Dll'l G
SUPPLY, DELIVJ!:HY lll'ID lNSTJU.LJ\TlON OF
S TEEL GATES FOR THE.. HCIV\..P
PROJECT NAME 11ITLP FOR C/I.TU.BIG ./\OI1.JCULTUR.I\L
1\DV./\.NCEMI!:NT PROJECT- lRIUGIITION
COl\'lPOl'II!:HT
CONTfl.fi.CTOR llliNJl.('l l{i!J\VY JN D US TRJES JUID
CONSTRU C TION COMPJ\1-rY, LTD.
Pll - P2
~2~l ________________________________ APPROVED
LOAN NO.

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illliuslrir. .'l n11d CtJIJ.~Irllf.'li!lll CtlliiJli\11.\', Uti. 11111in lilt' :tiHlVI>·JIIl:ltl.inlll:d Ctllill'iit:l.

D /\.CJ\GTIOUN D HI FO.RJJ'U\ TlOl'l 8:

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is s c JJC~dulctl\.u expire 011 Mnrrll ~0, ~0.10.

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rtlr Cnlu!Jig ·,,Gricu\Lun;ll flrivnllr.CIJ\CI\1. l'rujt:r.l - lrrigi'lilOJl CO!Il)\\lli\CI11. tl:-tl.ctl
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ila_yo1 ns l;\iJulltlctlllc:rcttllilt:r:

::l. J. Ct\'\'U lJIG W:0 \IT JvlfiiN l'fiNI\1. (CIUI'IC):

fltlv<Jitcr. CIIJ1.Y of lilc GFC nl CfllVJC SlGI_iun U ·r OUU lo 2

+ 'lOU wrts issur.tl 1\ugus\. l'l, ?,007 0\llcl llH\l lli ·J/C
c/njmrd 1/!f\1 CRMC i11ilinl t:illlltwllJ It i.IL'livily uJt 1\.ttgttsl
20, 2007 c.Jid not WiJ.l e riu.li?..e uuc lu sumc i11lervcning
. . l·igl1t - of- way (ROW) problr.1ns. TIJI" jlf.\)'JJICI.\1. fur lite
I<OW prtli>lcm 8.1. ~l<1l.io1.1o; 0 + :1•'10 ltl l) f '\00 and lJ ~·
oElO lo 1 · ~ 200 Wf.IS liili.Y llliJdc Oil OctoiJ~J' J nnd
OciolJN 4, ~0()7 'I'hc lJumiJr.r of t:i'\lr:ndru· dii.YS of lilllr.

r.~ .. o.lil -l h - ill

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c\lclls ir
.cu 1111IICliLkli l1y Lilc l'lviO is ------- Jll c[).\cl1l\ll.f L\[).)'S
2007 £\ .~

3.2 . Fur Lhe Jel<t\' due l.u Lllll·;,vtJmult: wcnlller cumlil.io11

Lh<tl ur6ugl11 \\IIWlll'lt;,I\Jil: ['\I"Ci\ l'ut• Cur'ihwoJic
cllnslrur.l\u11, illi.ll js, !'rtJtl\ Nuvt~rniJL~r. 2007 to i\prl\
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Uid Duculllt:lll.~ VtJI. II \,C -IJ:l is ;,s tlr1ys. TIJcrdu.rc, i.IJ~
l'lv\0 1Cl'tl111111t:lltkd (r I t:iilt'tlthr c.luy·.~ Ct111iract l.itlll~
1.
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G-1 5 . 1 l llllll. J'ur l'd>ru:.\1)' '200ll, lvltu'Ch 200tl
<11\d /\pril 20UIJ, IT.speclivc:ly.

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; lllu!'ll. tli\Jicull.

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cut1slrucl !heir nct:css ,·u:HI lo Lllc lempumry
.clivl.!r!'liun r.lll\1\llt:l. Durillj\ lhc CXCCII'f\litlll
; ocLivilies, lhl.! Ct>lllm t:lut ellt:OUJilcrcd C\ han\
silly slonc. wldcl1 tlilkr ft·u111 1\Jc lllfllcrinl.~
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conlplcl.r.t.l u1Jiy 1.11 1 11Jit1 - .")cplr:lrJI;cr ur wi!li o
durnlitlll uf 10'7 dnys due l.r1 l.h~. R<:\itl ln:r.t·d
cxrn vnli un. · Tile 11 /vlO . recun\JI\l~!H.letl G7·
r:nlclld<JJ' days c:ul!l ri'\t:l. Lit,'J~, cxlL:Ilsiun due lo
Jclr.t.ys fru1u /\pril, ?.UtJn ID Sr.pl~tnl.Jc-.r , :2000. G7 eu.lcmlR.t' dnys

J . <l' Fur ll1c C1ilicn.J I' C\l ll it1 C i\'I'U IJ 1l1 IY\1\IN Cfi.J~/\ .LS :
1
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will. hr. fltt itll:tT;\st~ itJ. l.liL'. Yoiltmc uf
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l'IIC\0.(~ .l (SI<t.. lJ ·I· 000 l.u I 0 +FJOO) is .lhc C\l'CEl.
lheurclit:o.Jly n.lftTietl \>y lltr. ROW fUlli wt:nliln
coJHiiliolls ur liJc cinu; uti(JI1t.:ltl ncl.ivily is
pnmllr.l will1 1.\l c: l'r.ltStii1S l'o1· l.i111t: t~x.l.r.t~:dun for
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i11 Jll1nse I will tHJI. i11 cJJ'e. cl. it1crr.asc Lilc
t\ U 1'£\{lt/11 II[ l,j Ill r.,
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Department of Agricu i lure
Pa7nL ',(.jana Panaasi'TA)aan na PaL ·d ' LAB ANAN ··, . .(

(NATIONAL m.RIGA TION ADlvill\TISTRA. TION) ANG

L\u'lg::H)ll l\b t::ut·2.('1ll
KAHIRAPAN .
N:uwn:d l:ir,\' c:: /'1\l\l t" lll ('e: nlcr
E !l.~.-'c . Ililim:.n. (lncz. nn C'ill'. Y'hilippu1c.<

TclcphllM Nll.\ .: TIN Nn. Ofill -'1 I 6-l J ~

May 14, 2010

FOR The Acti.ng Administrator

National l..rrigation Administration

THRU Tb.e Deputy Admi..t1.i.strator

For Engineering and Operation

FROM The Acting Manager

Eng:ine ~ lli""lg
Depadmen'l

SUBJECT COIHRACT TIME EXTENSION NO. 2 TO:

CONTRi\.CT NO. : HCAAPI-C-1

CONTRACT TITLE: CONSTRUCT IO N OF- -CATUBIG DI\lERSION DAM ,
ffiR I GATION \ Al\'D DR.AINAGE CANALS &
APPURTENAl'rT FACILITIES :WITH SUPPLY,
DELIVERY AND Th'STALLATION 6F STEEL GATES
FOR THE HCAAP

CONTR.A.CTOR HA.NJIN HEAVY lliDUSTRIES Al\"D CONSTRUCTION

C O.MPAI.fY, LTD.

PROSECT NAME : EillLP FOR CATUBIG AGRICULTURAL

ADV AN CE111:ENT P ROJECT IRRlGATION
CO 1:rll' 0 l'i'EI'·>"T

Respectfully submitted here,vitb for your consideration and approval, our

rec:om.mendation of One Hundred Twenty Ei.ghl (128) calendar days ex"tension of
Contract time relative to the herein attached request for Contract ti=e ex"tension of
Hanjin Heavy I.ndusu-ies and Construction Company, Ltd. under the above mentioned
Con.rract.
'I
BACKGROl.Jl\'1) TIIT;QRM.ATIO:NS:
'
1 .0 ,
The Construction of Catubig, Bulao and Hagbay Diversion Dams, Irrigation aud
Drainage Canals a..."ld Appurtenant Facilities/ Structures :including Supply,
Delivery and Installation of Steel Gates under Contract No. HCAAPI-C- 1 for
HCAAP was awarded to Hanjin Heavy Industries and Construction Company, Ltd.
-with a Total Origi..c""lal Contract Amount (TOCA) ofP 994,391,744 .00.
'
' I
2 Ol ! The effectivity' of the contJ.'act is on March 22, 2007. WiL.1-l. original Contract
duration of 1095 calendar days, it '\>,7 as suppoSed to e::qJi.re on 1v1arch 20, 2010.
Due to some :intenening Right of Way problems at CRMC; associated v."ith the
unfavorable -weather condition from November 2007 to April 2008 that brought
unworkable area for earthwork construction; delayed in the Const.11.1.Ction of
Catubig Diversion Dam; due to no ac=ss at the left bank of the river because of
high river flows and encountered hard silty stone, the first extension of 158
calendar d ays was granted to tl1.e Contractor, thus moving the original C ontract
expily date to August 25, 2010 .

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3.0 The Contractor in its letter dated November 20, 2009 to the Project Manager, Help
for Catubig Agricultural Advancement Pro_iect - Irrigation Component copy
attached, had requested for another time e:>.."iension of t\-.:>o (2) dry seasons afte1·
calendar :year 2010 or 763 calendar days due to unfa\1 0rable ·weather condition
brought by clima te change, anticipated variation quantities in Catubig Sub-
project area particularly Eight and Left Main Canals with Laterals based on the
issued revised GFC drawings.

4.0 . Acting on the aforesaid request of the Contractor for Contract time e).:iension, the
ProJECt Manager, HCAA.P in his letter to the Acting Deputy Administrator for
Engineering and Operations dated April 27, 2010 submitted h.is evaluatio n and
~ : favo rable recommendation on the Con1.ractor's request for time extension up to
' December 31, 2010 2.11d not iv:ro (2) dry seasons after this year or 763 days as
they reques ted earlier.
•:

EVALUATION :

.0 . After furLher review and evaluation of the Contractor's request, recommendations

made by the ' P-roject 1vlanager, HCAI\P and the submitted weather report on the
weather condition for r..he period of May 2008 up to December 2009, the rainfall
summary and the Daily Inspector's Report, the actual numb~~_ of unworkable
days dUii...llg the p .eriod :from May 2008 up to December 2009 considering the
dryi...--"lg ti=e, is greater tl1an the predetermined unwo rkable days stated in LC -03
CLilviA.TOLOGidAL D.A.TA, Vol. II of the Contract Docume11"~ as sho\;;rn in the
attached tabulation.

2. 0 Considering the Loan will expire on J anuaiJ' 2 3, 20 ll, this office concurred '1\lith
the recoiDJJJ.endation made by the Project Manager, HCA.~ that the Contractor be
given ti=e extension up to December 31, 2010 .

RECOM:M:ENDATIONS:

1.0 In view of the foregoing it is respectfully recommended that a 128 calendar days
e:.;.-tension of ContracT tllne · be granted under the above-mentioned Contract.
However, that except for payment of actual works accomplished , the Contractor
shall not be entitled to any further claims associated with this Contract time
eA.-tension.

2 .0 Should tb_.is recoiDJJJ.endation merit your approval, the revised Contract exp:u.-y
date of -A<;1gust 25, 20lOh:ill be further m _oved to December 31, 2010.

ClwV
ERDOLFO B . DOMUiGO
v
REC01v1MENDJNG APPROV h.L

~'f/3,~~ / /
~;£:J~L7)2.ALE~
L--D-0/
Deput}' Admin:istr tor
IV

Engineering a.c"ld o ,~
APPROV~.

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Panz6. J .sang Pangasi··waan ng PaLk 1.ig

(NATIONAL trUnCATION AIJMINISTl\1\TlON)
l.u ng,od nr, Qur;/'.c111

Nalil)n;d C"io v crn i i!L'I It Ccnt~o'r

t·:us ''- Dili"""• Qu·:m" City, l'ltilippitlcs

(ill.) 9/. ~-(.07t 1" n 'I' IN No. 1100-9 1G-~ 15

October 2.0, 2010

M INUTES OF T HE MEETING

RE: CON TR A CT NO. HC AA PI - C-1 , CONSTRUCTION OF CATUB I G

D XV ERSION DAM, IRRIGATION & DRAINAGE C A NALS &
A PP U RTENANT FACILITIES INCLUDING SUPPLY, DELIVERY
&.IN STALLATION OF ST E EL G A TES FOR THE HEL P FOR CATUBIG
A GRICULTURAL ADVA N CEMENT PROJECT (HCAAP)

I. Vf:f\lUE/DATE/ TI M E
Conference Room
Deputy Acimini st:·a tor
r:ngineerirlg and Operations
6 1h Floor, 1\JIA Building Comp lex
EDSA, Diliman, Que zon City
October 8, 2010 -
1 :00 P.M .

.U. }-\TH:ND EE S

J. 1\ntonio A. Galvez Sr. Deputy Administr·ator

--~. F1·clo!fo B. r)Oillingo 1'1anage1·, f.ng in ee,·ing Department
.:~:. Gt::ncver 1"1. Dionio ~1arl ager, Legal Service Department
·:f . R~inerio c. Ir·inco Project Manager, HCAAP-I C
5. Hitoshi Toku Team Leader·, Consu ltant
G. Itsuo l<ihora 11·rigation Engineer, Sa nyu
7. Teofilo B . Malicse Co- Team Lead er, Consultant
8. Migu el F. Espa ldon Construction Engineer
9. JuliE::lCJ V. Durnandan OIC, CMD, Engineeri lg Dept.
JO . Ale>c andre J. Oanda san P1·incipal Engr. A, Orfice of lhe Sr. Deputy Adm.
1J.. Lydia S. Esguerra Head, CAS-CMD, Engineering Dept.
17. ::st el e:1 J. Torn~s Supervising Engr. A, CPSS - CMD, Eng'g Dept.
.1. :3. Cynthia C. Rinosa Supervis in g Eng1·. A, CAS - CMD, Eng'g. Dept .

H I. J-\JGH U G H T S AN D A G R EH-1 ENTS REACHED IN T H E M EETI N G:

The meeling r-e lative to implementation of Contract No. HCAAPI - C- 1 wa s formally
e:pencd c.t 1:l5 P.f·-1. with Engr. Antonio A . Ga lve z, Senior Depul:y Administr-a tor
presiding tile rn<~ding. With the presence of the Manager of Engin eering
Department, IVJanager, Legal Ser-vice Department, En<;Jin ee r·in'g Sta ffs, Project
1\'.anaoer or HCAAP and the Consu ltants, tile meeting proper started.

Tabulated hereunder are the minutes of the discu ss ions and agreements reached in
the said meeting, to wit:

~-'U\IN P.Gf:l\ii.Jf1, ; POSIT I ON OF fiJ IA ON H HX C'S IN T ENT IO N TO

T ERMXNAT E TH E R E MA I NIN G W OR KS OF C ONTRA CT 1\!0.
HCAAP I- £:.:: 1. - - -·- - - - - - - - - --- - -

1. C:ngr. Gal\iG'Z illf'omlecl the body t11at tile main pwrpose of th e meeting is to
discuss tile intention of HHIC to tem1inate the Contract.
 ,..
2 Ji) "g c

:.~. M U1e ~:t: e:wt, ;\tl~ y . Dion io requested the PMO to v erify and comment on t he
xn. Jr;~cy (Jf t~ \ e i\ctu al Rclinfa ll Data subm itted
by HHIC.

:l. C: r:ur. f·-'lali cse attested that the sa id data in cluded in th e documents subm itted
b•; HHTC is ninety eigllt (98) percent accurate, co nsidering t h e .rain gauge used
in ca li b1·ation or rainfall was provided by the Co nsultants.

4. ~11· . Toku second.e d that the sa id data was cert ified by NIA proper autho l-iti es in
Las Nav as and Catub ig stat ions. :,

.S. In the Octobel- 1, 2010 letter o f HHIC, Engr. 1'1alicse as k ed if the reason of t he
Contractor· cou ld be qual ified under Specia l Risks.

6.\ Engr. Es paldon seconded if tile reason of the Contractor for term in at ion of the
Contract is acceptab le. As l1e adm ittecl, t he w eather condition is unfavorable
t11at even if the rainfall depth of less than 20 mm, the earthworks is already
affe cted. He sta ted furthe1· for- concrete w or·ks, ev en for less tha11 30 mm of
rai :-1 , co ncrete w orks is a lready affected.

/. /\\:t:y . Dionio commented that if weathe1· condition is the probl em the suggested
solution is to g iv e t h e Contractor a time extens ion . But he asked also how
pi·uctica I it is with r ega r ds to time and money.

8. Engr. Espa ld on added that if the Cont r·act will be term in ated and prosecute
by other Cont r actor, the1·e is no gua1·an t ee that the sa m e i$sue will never
occur again.

'. l t=nw. Dom ingo Cls ked if the ten·ain and local co nd iti on is stated the
\j·1nl:r<:1ct Documents.

1'~;-. f;'i!Jar.3 answe1r~d ye.s c:1nd s howed the table wh er-e the actua l data is far
(II ·· ~.:J ter\:h;:Jn t he given fi gure in th e Contra ct Documents particu larly in the
ili .Wnber of unworkab le da y s. He co mm en t ed also that for t he r easo n of
iX; iJ<.: e and order, no one injur-ed nor ki dnapped and no equipment has
bur -fled yet at· .s ite cornpa1·e.d to his la st Project ass ignment in IA.

'I .,
.• ..i . [r1~.p·. (;;:i\vez as k ed wh at will be the effect if NIA let the Contr·actor leav e t he
Co rl t r·act.

D . Atl~y. Dionio sugge sted that let th e HCAAP PMO documented o ffi cia lly their-
comments before t ac kling the iss ue .

.. , 13. t ngr . Ir in co 1·e pl ied that it is better to discuss it durin g t il e m eetin g si nce the
JICA IS w aitin g for its resu lt . He informed a lso that repac kagi ng of t he
remcJ ining work~; of their- Contract is one of the action plans of NIA to f ini sh
th2 proj t:!Ct. As h e conti n ued, if the major iss ues c ited by t h e Contracto1·
i·ee:1 lly fal ls unde1· Specia l Risks or GC - 8, of t he Contract Documents. Verba lly
as he said, the stand of HCAAP- PMO, it is not unde r· the Special Risks s in ce
th en:! is 110 work stoppage for a cont inu ous ~ oF 90 days. 'H owe v er, the
pe rformance of t ile Co ntracto r r·ea lly affected by unfavorable w ea th er-.

14. Atty . Dion io in quir·ed about the performa nce of the Co ntractor .

.1.5 . Eng,-. Ma licse exp la in ed that tile Contractor's perfo1·m a nce wen:: 1·eally
::'ffC::clr:d by t he unfavorable w eathe l- cond iti on. He recommended t hai: f\ IA
:,~t i-11-IJ C co n•.l_;l eted t he Cl-l.f\'I C and lea ve the CP. MC L ~Jte 1·a l s, c r:_MC and othe r·
r<:rn;.:; ining w orks . \IVitll hi s r~ st imation o f the possible Liqu idate'd Damages to
b<:': ch <.:r-CJ0Ci against HHI C, if t hey cont inu e to finish the wh o le CRMC, HHlC
il;;lve P.(1 uai ly pa icl the ~;upposed Liquidated Damages to be shou ldered L'Y
their· c:omp ;:1ny, if this remaining works will be rJone by other Co n t 1·a c.tor
=.! 5 in ~J t!1c updated unit cos l~ .

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16. Engr. Ga lv ez co mm ented that, there is no more t im e for the r:n to fini sh the
r-emaining works sir1 ce tile er1d of Contract is Decembe r- 2010: He asked if it
is poss ibl e to rescind tile Contract.
17. At ty . Dionio co mmented t l1at rescinclirlg tile Contrac t is not most appr-op r-iate
action . If this happened, defini te ly the Contr-actor will res ist a nd this m ight
be elevat ed aga in to CI AC. On t he part of NIA it is very expe nsiv e,
co nsid er-ing the docket fees to be pa id.

18. Er1qr. Espa ldon suggested that why NIA go for the dec ision ,to delete th e
r·em a ining work s of the Contract due to negative slip page · of .th e Contractor
like wha t f\JIA did in Hag bay & Bu la o Areas.

19. Eng r . fVJ a li cse r-eminded th at to t erminate t he Contract is to sta rt aga in with
tile bidding so why not negotiate. He then suggested g ive t he Contracto r
tirne extens ion as a relief.

20. Engr . Gal v ez noted all the su gge stions.

21. f'vlr-. Toku as ked for comments and recommendation s to put in writin g.
I

22. Eng r. Domingo as ked if NIA will not accept th e Co ntractor's reason for
t ermin a ion wh at are til e poss ible thin gs to do.

23. Engr . Espa ld on ans w ered, if NIA will refute, it m ea ns going to CIAC .
Fo ll owed b y a question is NIA pr-epa r-ed fo r that. And he c i~ ed the three
option s :

a) f\IIA for-cibly let HHIC to finisll the Co n tract and if he refuses, he m ight
go to arbitr-at io n .
b) Delete the whol e of CL MC a nd nego ti ate wi t h HHIC to fini sh CR MC.
c) Delete the whol e of CLMC and gr-ant the requ est of HHI C to fin ish up to
Sta . 15+ 000 of CRM C.

f-\CRt:EM E T:

/'~ s con cluded, Engr . Ga lve z instructed Engr-. Domingo to invite t he Co ntrac tor a nd
tr-y to conv ince to do the rem ainin g work s and this wa s agreed by t he body.

There being no matter-s to be discusse d, the meeting w as adjou rn ed at 3:30P.M.

Prepared By: Checked By: Reviewed By:

~hSG~·RRA
·'I
u./1, .1 • ·- ·. . .-c __ r1.~-~ ,; _ fJ~L
CYNTHJ/\ C. RINOSA LYDIJj JlJLI ETA V. DUMA DAN
S upervi ~ing Engineer· A, Principal Engineer- A, OIC, Ca nst . Mg t. Division·
C.II.S -CMD CAS - Cfv1 D

~TTES TE;? .
f:"L-v1; v·
EP.DOLFO B. 'o ~~I\IN GO
Manag er-, Eng'g Dept.
GE~~
Manag er, Legal
~~INCO
Proj ec t Ma nager,
Se rvi ce Dept. HCAAP - IC

Consult~nt:

~ j:;~Li-~
HITOSHI TOI<U
Team Leader, Cons ulta nt

Noted:
 ,,

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October 14, 2010

1\111·. .Scu n~J .Je on'(J f\im

Dir(;c o:·/G<::r:er .J\ M anage r
:, -\c:.nji:·\ Hc:,<ivy ll dusl1ies & Conslr\..!ction Co. Ltd.
"12 111 FloQr, ·J ·J2-S ·uhiversily P<::trkway ·
t-iortll 8onifdciu, ClobEli C ity
·rJuui~l. :f!etro lv\anil 3

CO I\ITRACT NO. HCAA\J\ -C- '1, CO STRUCTIO N OF CATUBIG

fJIVERSIOf\J D AM , IHRIGAT ION A I\J D DRJ\1\\JA GE CA f ALS &
APPLJF<.T E: NA T STRUCTURES !NC L LJDIN .G 11\J STALU T ION OF
STEE:L GATES FOR HEU:J FOR t: ATUB IG AGRICUL TURA L
i\ DV .L\I'JC E IVl E f\I T 11:\C/\A PL _ _ __
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( 1.· :.:d' ;\"\ .' i'\ 1111 ,

(r-~·\i·:: ;·1d~; r~'krence to y our li".Lte r d<ilec\ Octob(;J· 1, 2010 w11emin you confirmGd Uit:l l only tile
.,,.t 'If.; i•.;n nY C!.-~ 1\I C wi!l tJe completecJ by 8 1l j ol' Decem b er 31, 20 .10. Th8 olher rema inirl g
·rvori•.::i v;ili l:1e subject to your relJUG~>t in t erminating the Con tract invo king ih e rea sons of til e
<>.~li\i.i ..r<~I. CTC) \ ~ 'S r~I()HT TO TERM INATE CON TF<.ACT W OR.K under Ge n era l C ondition -
·e::: ui U1~ C ontr;:.,ct D o cume nts r<::s ullin g from the occurrence of Specia l Risk.
'f'::;ur ~--~ quest h3d be e n deliberatecl durin g the Coo rdir1 ation mee ing held last October 8 ,
:2Crl 0 <=.1rnong ou r Officials, I-ICAAP- PMO, ProJect Consu ltan ts and th e E ng ineering staffs. In
c on ::;idc J·ation t? your c ited reason s, tlris o ffi ce will extend your duraUon to f ini sh th e
:·r::maining work s. ··· Fo r your information, the request of lA for Extens ion of Proj ect
Imp lemen tation up to December 31 , 201 2 and Loan Extens ion up to Jam1ary 23, 20 13 w as
;:_,_ ,\·t~ady 8j'.1pi"Oved ill a meeting of lhe Investment Coo rdin e1tin g Co mmitte e - Cabinet
<:.:.u!Yil ni',\ce ( ICC--CC) las t MEly 7 , 20·10 .

!d 'J:i:·; rT:{}'ircl, ~.ovc:: :Gre anti cipating fo1· your usuJI cooperation.

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Repllu l . · · 'UL.1'URAL
I-lliLP FOR CATUB10 AGRlC
ADV ANCEivfENT PROJECT (H CAAP)

FOH MR.1U:INE R10 E. IIUNCO

1-ICAAJ> - Project Mtmugcr ·

SUDJlCCT

Sir:
'
Tllis Is iu conncctior:t with UJC cnptloueu subject wh)clt WD.:J forwurded to t13: wclet your
covering lel"ter dated Ocl0bcr G, 2010 for COlllillCHls ll.l\d rcconmlCJld(ttions. ·

The basis of Ha.nji.n's rcC]ues t to tc11ninn(c tbe Contwd Vlorks is ·nnchorcd on U1e
provisions of OC-23 CONTRACTOR'S RlGHT TO TERMINATE CQNTRP..CT WORKS
r:sulting from the occurrcJJce of Special lUs.k.s · ns provided under pn.rugrnph .(d) of GC-8
Lli\JJILITY fo:OR SPEClAL RiSKS , Vol. 1 of the Controct Doct]mcuts, which:st.<Jtes thnt:

_GC-23 CO IHZACTQR 'S RIGHT TO TERMINATE CONTRACT WOTU\.$

Tf the Conl.rnct Work 51!1111 bo l: Ompl c toly ototip&.l for n. continuo us pcrlod of more
tlwn 90 ~,:nlcnullJ d (l}'S through no net of ilJc Contrnotor or anyone employed by
him or usn ros ult o.f Lho occurrouce of S]X'X)Inl Risks us provided in A,--ttc!~ OC-8,
LL"'\J3H.JlTY T'OR SPECIAL TUSKS, tho Contruelor shnll, without projudleo to"
nny otll<:r rig)tl or rern ccly, have the rlgltt ·io give NIA 15 cnlcndnr dnys written
not)cc tO tho effect. that tho Contr<Jctor inteods to krmlnntc the Conlrn.ct If UlC
ContT;\d Work cunnol bo rosumctl by th o by ilio Conlrnc.tor.

If within 15 eulenclru- tluy:~ nflcr receipt by NTt\ of. such notic.:o, ilto Cunrrnctor
Cttru1ot res11mc Contract Work for re-1sons spec ified above, he (Contmcto r) shnlJ
hovo U1c riuJ:~t to t.:rminoto th o Contsnct nnd recover [rom NTA pay1nont fo r nny
loss or ri.lfnngc to lh~;: Contract \Vorl<. <tr13lllg out o/, or In connection with , or by
con~cqucncc of such termination !15 dcscrlbctl In ;\rticlc OC - 2~, PAYMENT IF
CONTI~ ACT l S. TEillvliNAT.ED .

. GC-il L'f.'\BIUTY f';)R SPECIA L lUSKS

Spcci.ol Rlsks 111'<.::

(o) XXX
(b) i-."XX
(c) ·:-;xx

' •,' ·.

~ - 330 . ';'1.C, .
 - --- ·-- . --·"·"' ·Vi <' "\f · YVj;iH'~'-\;t; t~: !
. 1

(cJ) :~ny openuion o[ th e forces of nnturo (insorru- ns it oct: til"S on lhc Si te) Wllich
nn c:xpericnccd ConlTac.tor;

/ I) could not lwv.e rcnsooably lorcsee11, or ·

i i) cottlcl re.u.sonnbly linve foreseen, but against which could not
re:n 8onably hnvc taken oppropriut"c rncosures to . p1·cvcnt loss
or ~runRgc to physicn.l pro perty occun·iug.

Spcc ifi cn.Jly, 1bc reo.suns cited by tile ConlnlClor me tlJo following:

1. UNSTABLE WEATHER COND TIONS UNFAVORABLE fOR THE

PRSECU'DON Of TIJE WORKS
2. DIFFULTY Of TERRAJN IN CLMC
3. SAFETY CONCEl\NS AND UNCOOl)Im.AT.lVE 1\'l:ANPOY/ER AT THE
PROJECT AREA as proviueu for tn GC -1 0 SAfETY -PREYE TION OF
ACCIDENTS -RESPOSIDlLITY . .

fll<ST ~ U NS TABLE \VEATIJ;;ET<. CONPffJONS UNFAVORABLE fQR THE

PI<..OSECTJTIO Of THE WORKS

The follov,1ng rnc ·the poi.ots: rnised by HHTC ill iLs lcltcr to NlA dated October 1, 2010 to
f;np port. tlH: fust rc:·lSOD ancl oL'u- opi u.loJl l11ereto:

1, CJi mutologicaJ do.t..a nre at odds wl1b t.he one f?,iven iu tbe Coutrad anu ill the act1.ml.

The provi:_,jom of LC-03 CLIMATOLOGICAL DATA, Vol. 1 of tli(; · Contract

Docwnt:nts is very clear. The first sentence states tba l :

"The projc<.:t nretL bcld,ngs to Type-ll in the climnlr~ cla<isifiC<Ition of tho Phlllpplne
Climatic Zone, w!Lich is chnxactcrlzcd malnly by henvy mi.nJu.ll during ov ornbcr ·o
Jru1U<1.ry (northcus t nlaflBoon) , wl.Li..lc clurillg · ot.hcr mom)ls U)o rn.in(n..ll is eC]ual y
di8Lributed."

1l1e ubovc cited prov isions of LC-03 simply doscrlbo tl1o Type-D cUmritc clMsificution
which ll~e P!'Ojcct ~n·cn bclonr.r since there me other (lTOlLS in llw coWJt.ry wh.lcll have Type"Il
clirnate cla.ssi.li.cutioo Cl.i !d one of these is t.be Cutubig areu in Nortl 1en1 S1l.ill1lf. It d.ld not
ck:;cribc the clirnu·e conclitJon ill the project area T11e specific climat0 condltlon in the
project meo is provid ed i.n the fo ll owing seuw.uce~ of the same Contrnct provisions which
HHIC frulcd to nndcrstn.nd:

." T.lln nver~q:;e ~tnlln.ul n1lllf><U in th~ project lU'\!11 H<.:l:tln.mlntcs n (·ot-n1 n mouu t· of
4-:Solmm. There is uo wel!-dcfi.ned rl rx nenso n in t.h o pro ject n·rco. aud the hc nylcs t
_Rrccipitnti o u occp r .'i dllring tile month uf D ccc n,tbcr , U ow rvcr, lliatribu(ion of t'flinJ.;:
chrys i!i nnt cvc.n Ln 5·u y TJl (nHh .''

further, lhc ]nsf. scnlc:nce of tbe same provisiOl\S .9tates 1hnt;

"Ti!_Q ~l"C~ u~ well withln :Otc (yphOOll helL AbO\l~ ::11 -<10 pcrcwt of fypb.oor~
the ann with the hi~;l.tcstfr (! (]Hcnq• <hl[LUg tllc m ontlia ofOdob <: r to DcccJ:Ubcr."

2
: .,
 ''_ ' ,::·:. ;?7'JI; ·; . ':!;:··~~::~ ·.:. (· •':· .• -.:-,;;- ·'~':~:: ·:' ~
1
,

., .
·' ' ·
,.
I

Hence, U1c w1dcrstnndiog of F-ll1IC thnt the NlA c.xpUcitly warrnntccl thaL ll.1o Coutrnctor
,:an work for ut leust 75% every )'O<'U' for the whole project dw-alion, sinc e heavy rainfoll
occ\Jrs only in three months of every ycur, wh.llB the rest of U1c 9 remaining months was
represented to havy equal T:l.Ul distribution jg not uoncct since It ls not in consommcc v.~th tJ1e
above specific dcs~riplion of the clilll8lc comlltlon i.n the project nrell. ' .

On pages (2) and (3) of the snrnc letter, ll comr)n.red the [\vernge monthly ralnfo.JJ record
ln Catubig swT:ion ( 1 973 -1977) as provided in Tn ble LC-0 1, page LC-02,. LC-03, Vol. TI of
the Cont.ra.ct Documents wit..h the rumuul actual ralHfali record in. the clam site ill San Isidro ,
LN and in San Jorge, LN. The result showc.cl. (hflt tbc actual ralnfllll record in the ·dtun siie tn
Scm Isidro, LN in 2008 is higher tl1an 45% comp£Ued with the nverage monthly. ralnfall
record as stH!ed in Table LC-01,

There is no ba.~is for comporing tl10 <Wcrogc rumunl ruinfrrll record in Co.tublg . stntlon
(1973 - 1977) w:itl1 tho 2008 rniolhll record in lbc Jnm !iilc in Silll Jslcl.ro, LN) wlticll is fllxlUt
30 km (tpurt. Ol.le is a 4 year nverngc record whJJC t.hc other is only a yeo.r record. Not only
that \1\l~ result mny be unreliable but it is also n1.i3lcncling. Titc be.st comparison is bct:we.cn tho
average o.nnua.J ra.i..J1.fnll r.coord in Catubig statlou (1973 -1977) tmcl t11 e average rumuul ruini'u.ll
record in SaQ Jorge, LN (2007 -2010) wb.ich htwc o disi.ru1ee of about 10 km. nw result, as
shown. in Attnc hm c nt- 1, is only nbout 2lJ.o/o hlgber tlwu the tweroge annual rainfall us
provided i11 the C(?nt1nct nnd it is also higher by about 36% when compared with the average
::muu2.1 r runfnll rcCOi'd in the dam sito In San Isiclto, LN (2007 -2010) wll..lch b about 30 km
npnrt.

2. UnworkL\blc ground couditiou due to tulfnvomblc wealht:r .

The wi1vorkablc grow1d condition even wiLL! roln.fult depth of loss ,than 20mrn due to
twfnvornble weather coup led wiili the soll condition nt lho site wh.lch is predoruinru1tly si.lty
Rnd clnyey loa.u1 nrc ulso cited by I-ll-riC ou psgcB (4) !l.llcl (5) of the same letter wh.ich l.J.nd
nfCcctcd thoir \'York flucl 1nisscd their iilrgct nccomplisluuc\\t. Th ey ol(lim thDt they have to
stop work evon with 1·ainfaJl depili of less 5mm if mins cont.l..t1u c to pow· fo r obout 30 minutes
dur. to slippery ccndiUon of the gro1.1nd. ·
1

. T h o ui1cvcn <l i.s t l'ibu ti on of r uinfall iu ihc ]l r ojod 11 r cn nn <l Ill£ soll coxt(litl on wh ich
b dc.'lcdl!C 113 J) 'CC:dt!Jtlilll\ll!ly .~i l(y 811 (1 c:ln ycy IO!llll Witll n fl ii C>- (C:tturc !l.!HllligiJ Wfltor
l ' cli~ution ca p aci ty are proyjr.Jed in LC-03 CLDvf.ATO L OGICAL DATA and in LC-04
'TOPOGRAPHY respectively, Vol. II of the Contrnct Docurn c nls. In ilie cas e ofiainfnll data,
tlJC uneven distribution of r.Unf<lll in any mouth ls pretty mucl.J the so.me .if ilie rol.u.fo.JJ dat.n.
prov ided in the Contl'act is compared with the l1C(unl datn . as shown in A ttn chlll cn t-1
nltlwugh, tuc-re is a 3J ight increase in ralnfCL!l . dcplh i..J1 the Hctunl. The IA, us . the
implcmenti~1g agc.ucy , bus nckuowlcdgr.d this unfnvornble wMfber contlltion prevn.ili..IJg in ilie
.rroject ru-ca lu 2008 nnd 2009. That's why wuen tllr. Contrnctor requested for extension of
contmct lime on·Octo ber 6, 2008, l.Jc NlA grillll"cd such request fo r 214 e<\lendrn ·ctnys,
including 61 culencl..ai days due to unft~vornb!"e wcaU1e:r condition on December 10, 2008> us
shown i.n Attncllmcnt-2. Then on November 20. 2009, Hf-IIC requested nguiu fo r another
extension of con1mct ti.rne and th\s WClS acted favornbly by tlw NIA by granting I-TI-IIC
cx.t cnsion of contract time for 128 calend£U dHys clu e to lJnfovorable weatl1er alone, as sltovro
in A tt acb m cnt-3. To slun it all , t.he NJA has gt·G..utecl H1-IIC n totlll of 342 cnlondM dn.y~
cxt.cnsion of coutmct t ime clue to Wllhvornblc wcnU1er condition for the yelli: 2008 ru.id 2009
as a remedy Cor )ill workable growld as prov-ided :!.11 A.rt.Jcle GC -11 :EXTE SION OF .

•'
 . ..... " ·..,. , .-' .•, ,.. "'"'1"''"~'""''1irll· ;~"' ~,%~~~

;~~~~ ~t~, ~0~~~

0

Contntct and ilie actual dnlll tnken from lnborC\tory <Uld fleld test. In addition, the Contract ,f
describes tbe soi 1 us mois t to wet ancl Vety wat as provided in pAge TS-X-2 ,' last par~:~ graph of ;;:
C lause 1003 CO MfACTI ON EQU IPMENT, Vol. ni of U1e U:mtract Documents which r.;;
st.i1tes thnt:
,.
«Soi l ItlOLsti it· c iu !he nrcn vnrles fror.u · mol Ht to ~vot nhcl. ~en wet: l.J{ o rd~r t o clry
.
.
,
:\
r '•
fiuc h ll lH fc:r!aJJ; to on timum ·moi.Bturc contc:u t 1 tho Contract or HuaU t:) rovicJo st::{l r lOcr !'

cnuipment dnrinc st m ny peri od , wL1.ilc r! prin.rr nf ny peri od, rln s tic cnv )l r aod ueces s:uy
drains ,9haJI be provided tq !) [ CYcl1 t GlliD!lll iw't cnt m a tcri<\l.'l fr OlU ceftine:wct 1' 1 .

Ivinybe, the CoJ;Ihactor· is J.igllt when tl1ey su.id i.n tile same letter that·eveo during cil.fficult
situution when slight opportunity .ocC'urs they venture to work even :,"rvith very llttl \l
. accomplishment just to prevent UJeir eqwpment from b~i.ng icllo and to preserv(;) ' I:-IanJl.n's
trademark. of fl.n.lahlng project. nut Bnnlin <l lt! U9 t yndc..gvor 0!' trv to nroYidc pln s(ic
cov er on the stricknilc-d em};JnnkJ,[II'llt 'r.vn't erlM}-~ ·to nravent them from betJl,f.! wet during
rniuy n cdod so tlJ f} t it can Cflll)' ]Jo u,~e<J wh0n th.o rl) lu ~top , a 8 nrQvlde<j Ln the Copt-rgd. ·
' . ' ' .

3. Climate chnnge phenomenon,

The en<1t.ic and unsrnblc ru lnfall pattern was rncnlionecl by 1-UUC QD pnge (5) of the same
Jcl:t.e r to NlAD.3 unprcdi cta~l c phcnom~orr wlllch is fll) 1..3aue in the global cll.mBt.e change,Il
furthe r said thnt it is the ODC thnt is Cl\\lsin g much deln.y ii1 the .implement ation of tho Contract
Works. · ·
. .
Based ou the c;limato loglc al datu rneutloucd above, about 3 1-40 percent of typhoon's pass 'I

the project an::a every year. However, as per. recorcl of PAGA.S A Caiarman brancl1,.only 1 out
of 13 typhoons pas:rthe urea of Cntnrmo.n, N.S . on Nov. 20 -27, 2007 or o.bonl 8%n. 2 Ollt of
21 typhoons on Jun ., \ 8-25 and Sept. 29 -0ct 2, 2008 or about 10%, 2 out of 22 typhoons on
May 1·5 and Jun. 23 -26, 2009 or a'oDu.l 9% a:ud uo typhoo!l-'i pass the arN of N.s: from
JR.Duary to September this ywr, n..s shown in Atinchmcn(-4, These typbocns bring mi.o.imal
ruin TI111gi.ng &oro 26m1 to 101 ml only wWch have rnlu..lmal .e ffe cls ou' t.he conslructlou
activities of the Contractor in controst to thei.r clu.i.m. that th ey were ve ry much affected by
climate change phcuomcnou. ·· · · · · ·

TheEl Niil.o phenomeno.il, ac~rru.nt; to l?A OA$A, is a wcaUwr pattern in the country
· which is chn.rncteriu:d: by less ra:i.JJ..fa.IJ and exie.ncled Sl.lll.l.ncr sen..son. It happened every 3
years L1Dd l.t.su.ally follCJwecl. by Ln Ni.ii.n. In the project nreu, El Nli3o was felt ln 2007 and
again tlli.s yea:r 2 010 . La Nina pheno menoa, o~ tu e oth er hand., iB cluuactcri.z.ed by abnormal
rillnfo.ll co ndition and extended m:lny period, Bccordlng toP AOASA. -:
Hanjin , b ei:ng an experienced Conlructor and lwvi.ug bl1'liness in the Plillippines fo r. a lo ng .
t.i.roc ulready, roust have known th.i~ weulbc.r pnlt em and mu.st have . c.opsld e.red 1t their
t;:onstruction planning ao.d in contrnct exccuUon.

SECOND: DiFFICULTY OF IER.RAIN rN CLMC

On page:s (5) and (6) of the sauie lolier lo NlA, HWC stu ted lh.ut they e x:pe~t to encounter '
t1 1 ~ same o r doubled the difficu lty i.n w1dertuking tho CLMC tllllil in CRMC :Vb.ioh ls ,also a .

. tl·
.\

·,
8PC:P6E - SS0 ·or-1 XtJ.::J dtJI:::IJH WO~ .::J .
:. ..
. . ~ ... (. .~ ~ l.:·
~_!: ·
r., ·•.'
procluct of re-ruignmcnt. They sLHtcd thnt in CRMC, it took them 2 yen.rs to develop the
t~mporw·y ucc css road uloug the mo.i.n ctuwl 1.\.om Stu . 0+000 to S to. 20+ 000 , They sa.Jd ·thtl.t
tbc construction of tempoi-~:y access road ls an added cost due Lo doubfB handling of earth
.'' \ .
·' .
materials EU1cl tbe ltrut cost appLied for tlus project cloes· not i.oclwclo cxlTtt oc vi ties ofs\~c ll
rnugnitude of work.

Article GC -7 FAMILIARITY W1TH CO NTRACT WO RK, Vol.l of ilie conttnct

Documcu s stntes, umong olhers, iliat: ,,
. \.
''
"TI1c Contr-;;ctor·sbnlJ be rcs p ousiblc for huvi..ug t :\ lwu ~ tep a to sn tisfy himself ns to
'

the nnhtrc nncJ Jo cn (i o.n of tbc cou6·act w o rk~; the chim1ctcr of eqt~iproen.t ond .
f3r. ilitlrs nccdc·d prclillli.Jlart to o..u rl clu.rlng tli.c nrosc.cutio n of th e Contrnet· Wo rk;
tfuc gcn enll n.nd loC1Jl concJit~ons; nnd 11\l the mnltcra whidl crw ln 11riywi1y fJffOcj tbe
C on trnc:i or co.s t_tb. crcg f. Au y faj)!..l£9~ln'.J.lls..Contrqctor to do so wLU·not rcUc-ve btm, . '
. ;
.from respons)hiJiiy f o r 5uccot~sf tt lly p crf o rm .i.ng the C o n tract Work ut no udclJtiou.al
\ cost t n NL<\.."
\ . . ,. ·,
. ~ence, the statement of 1-il-IIC thm it i.'i very dilJltnJt lo w1dcrt.ak e (.he con~·cllon of
:,'::Jt;ld no l l.Jc rdi~iXI ut this point in tlmc slnCD, nt the beglnning, they should hnve
r' r :) '(_'
rJ rq<1dy familiarized t.bcms;elves with condition·or the Site.lt is presumptuous upon lUDC to .
say tlwt CLMC is very difficult to undertake since they have uot yet started the construction.
CillvfC shou d uot be a basis for this presumption since the' 20kro length frOm Stn.O+OOO,:Lo
sui 19 +700 is situated in lu lly p01tlon wh..lle in CLMC, ouly the fi.rrt 6km is situnted on· billy
port~on and the rest is located on re!o.tl vcly mode rate slope. In any case, U1·e Contract i.s n u.o.it . I

prlce 'basis £li)d the cosl of undertaking construction works Ln such sltuntion should hnve be<>n
comidt:.red by tbe Cont:ractoi: ill ilie prcp arn tio11 of Ws bid. And , £li)y Lncrcasc or decrease Ln
the Contract qnan ti ties as a resul t of re-a.ligrunont or Cb,ang es In ilie Works as provided under
GC - 15, the C ontractor is enUUed to clalm fo r time ancl money under GC-16' V ARlA TION .
ORDERS, Vol. 1 ofthe Con~--uc Documents.· · ..

In regards the accessibility to the Site, it is presumed U1at I-!1-TIC mllit b.ave been fu.mlllar
with the movisions of LC -02 LOCATION AND ACCESSIBiLITY, Vol. II of th e Contract
DoC\lmcnts which states , QTOon g otlle iS, tbrtt :
. ·· ·: ! ,.,
11
Project Sites ~ucl.l OS tl.1 c onru nntl cnnt~ls llC Cii C.ODS([llctJo g 0( tcmn ornry B~CCBS
r o<t d.9 in order to n~t ch th e spcr.if.ic sites us thcrr: arc nQ cxlBiing )'o!l\1§ lp m ost o(
tbcst! ar c(ls , At rrc.~cot tl.Jc nr o po~c0 Cntu!Jlg dn\(\ ~i[c unclcr tlte proiect, ca.o be
ro ucbc d thr ou gh the llSe of m o t o rizccl hancn (qb ottt i-1(2 bolla· fulv~,:l tlmfj) via . ..
· .,.
.. . -.:. ,'
Cn'i11big ri-v er fr ont Cntubia t o1Yn un to PLnirL~ nl,:1n f ;t)b in Dnrango.y S rt.u lsldrp, . ·.·
L os · nv~s ." · . · : .·.•.· i ·
• : .·)
'; : ( .
: t,• • ! ~'
. ·. ~--; .'.·

The construction of terupor ru-y access rond is nlwo.y~ a necessity i.u any
construction
·works to reach the site nn cl bring ln tho rnucb needed coOBtrucliou rno.terif\lS ,· maupower and ·
cquipmetlt, and for i.ri.spec\ion and .s upcrv lslon purpose.s, if lbero 'nrc no 'ox lstlng ron.d in tM ·
site. De[J.e nding on th e constn1ct..lon method or techn.iquo employed by the ContnicLor,'·tbis
temp-orary access roncl m<~y become [\.1) intcgru.l pnrt of lbc mrun· wor ks~ · Therefore, · plaunlo.g
for c-on.struction of eruibworks/e'mbunkment works und .tempo rury o.ccess road is very
im1Jortar; t in t hi!J project As !lll expe-rle11ced Contrnc tor, I-TI-IIC sbould have Incorporated llie
cost 'of tbe access road in the other items of'ivork in the Contrnct arid should hilvo pl n.nned '
well t)lc execution of the wo rk so . ili11t it will become au integral par( of tbe maJn .wock.s'
thereby limiting extra cost for ilie teruporn.ry nccess ;·oad, If not toUllly avoldlng lt:, .··.·
.·.·
''

. ,5

,.
o I
 . ! . .
THIRD: S,.:•,FETY CONCERN~ AND UNCOOPERATIVE MA NPOWER AT Tl-IE _:... . !
PROJECT AREA·,
I

On pag~ (6) _of tho Silille letter. to NlA, HI-IIC stilted that lhcy have emp loyed suffici ent ·
number of ~;~~unry ~~cJs to proVIde safety, proteclion (!Jld secu:rity of personnel, IllDierials
ru d the pubuL;.--at l~ge m tb~ areu ho wever, sucl.1 responsibi lity should not be interprc:ted to ·
extend to ardns beyood t11eu control. They sBJd that completely el lrninal.i.ng tb e 33 or lo
damages, particularly of the c.onstruction mat.erlo.ls, fuel , equl pmcnt aud accessori es was not
achi eved in a .significruH level due· to the Loslel a ltitude and uncooperutive t.n(!Jlpower ul the
projed site. : . · ·

11J.ey saJd fw;ther that the pilfemge of consl.ructlon resources for th e past 3 years Is .
uncontainable d&-~ to the hosWe uttih1de of tho residents in the area. Theil' workers were
alw<:~ys subjected tb alarming security threats at the sit e er:pccially during overtime work,
Vfhich they foresee ~o bnppen !l!so in CLMC.

Article GC-10 ~1\Ff:rfY-PREVENTION OF ACCIDENTS-REPOSlBil.TfY, .Y.ol: 1 of

the Cont-r:!ci Doc·uments slates, ~moug others, lhnt: -

"Kt cept for speci;:d Risks ns proYidccl -for Ln Ar tlcl c GC-8 L IAD U J TY F OR
SPECI AL R ISKS, tl1 e Cop. (:racto r sh nl! . b e soloy QO SW(Irfl b lc for tbe snfety,
protection 1HHl accuritv of ). lis p ct-s omJcl, tbJ n l pn ti"ics, the pnhlic nt lRnro, th e Wo r ks ,
cc1nst r ucti on Plo.nt nn cl !U Rtc r ird.!! , Acconl! nc lv, tile Co ntTrcto r s l.J.nll com ply
fnHl!fully wrtb nuy nntl ;Ill · r$rtweu t 1RW8 , r og\l lnti ol\ 8, nncl otb e.r ordl n1J ncc.s Bt his
own csp euse, nns1 shnll tukc nll r e q pisi to nrot'S liY il m oo8ur c.s to ! h ~; ct) d of
cliJninntiug · t ll<> occTI [I un cc o f .:c cciclcnt.'l , lo~s or d nm <1 t: e of nny kln tl. uuriu g tho
pcrfonu n o.cc;o.f thc C ou t r nc t n ntl 1m til [ u ta! ncc~ p htucc by NlA."

Based 011 the above J1rovi sions of the Contract, I-ll-ilC is oblige to employ sufll9ient
number of s ec urity persoru1cl in tbei.r carn p o.nd ill areas of work 2<1 hours u ciny for the whole :·
d JIO.tion of the Contract until final acceplnnCc by NIA. Maybe , the .ccn.son why pilferngo of
coD.struction materia ls and othe rs are still hnppen.i.ng in the projec~ in spite of ilic clatm by
TffiiC thnt they huve . employed sufficient number of security personnel , is that their ..:.
per~ofl. ncl themselves are the perpetrators or nn accornpllce of this wrong doings . T11o clalm ·
. \
of I-II-TIC that ih cy have been experiencing the pilferage of construct ion ma terials cmd others ·:
incide-nts for ibe pa,qt 3 years n ow due to the homilo o.!titude and uncoopcrativo lniVlpower at :·. ·
the proj ect site i!; not true. Bused on the record by HHIC on tho incidents thut hnppened in ilie
proj ect a.re<1 fr om Mu rch 2007 up to August 2 010 , only two (2) illcidents buppened in 2009 (1 · .
in Nov. 6 Elilcl 1 in Dec. 16). a.nd : fourteen (14) ln 20 I 0 for total of sixteen (1 G) .incidents, ~ :
sho-.;vn in AttacLmen t -5. Ofthe ·sixteon (16) incidents, ten (lO) lw.ppened between lOPM and
8i\M based on the same report of H.HlC. ·

It may be recal led that 1-lJ-llC W10ffi.ciul ly rumounced that tl10y >vill complete only tl1e first
15km of CR..t\1C up to D ec. 3 1 , 20 l 0 n.ud tlu~t they will proposed a revision of th o Contract
CJ.Llillll-iti~s and CXJsts excluding Pi.b.ip isak.a.n bridge flwne, · CLMC, latcml cantils and lt.s .
·nppurtem'...ot st:rue h.rres, and the rerri iwli.ng works in CRMC during the J!CA Mlsslon o n April
21, 2 010 . This proposaJ WEl;f. )-dffi.cii:!U y unnouncecl by HT-ITC dw·Lng tllc monthly coordination :
meeting u.mong NIA -PMO,'· riT-JIC and Ute Con.sultants held nt N1A field Ofne<.l in Rebong, .
Las N avas on Jw1c 25?&10'10, o...s suown ln Att n~lllncnt-6. The premature rumounc~roent by.
}IJ-ITC on April 21 , .2o
lO fo llowed by the offlcl!l! DillloUilccmcnt' during the coordinc\.tion · .
. .. •:
meeting on June 2 9,~' 20 0 Uwt iliey will pull-Out {}om U1o project by U1e end of Dec{)t:nbor ·· · ~

2010 is, may be, the' reas o n why some of the cwployee.s of Hanj Ln b«ome l.nsecurcdn' ilielr
work and become fearful of loosing tbe. lr job. Meanwhile, some resldenlS of Lns Navas· w!Jo '
; .. •
,A,:.;-!"'rrl - ·

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HCAAP
055 - 2 19<1 2<10
' •,·' Oct, 15 2010 i1: 52At1 PS ...
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urc u1e primary bc-~ eficio.rics of lliis projc.ct sln.rtcd to fosc )!ope undbcc_omc doubtful tbnt .. . I.

thoy will. enjoy the bcncfit.s. of this project st~.ing 2010, .n.!i conm!ltted b~ t·ll-UC. :Ue h.ostll c . .• .
attitude J.Jld uncooper-ative mMpower, as clmm by 1-lllilJln, are th~ result of the1r .unt.unely_
decis.ion to pull-out froni U1e project by the eud of December 2010 illld their failure to abide
:·:
by their commitment to finish t11c project by December 2010 and is llierefore, con);ollable by
Hanj iu . Thi;; hostile nnd W1coop0rrrt.ive atmosphere bctwee.u the workers or re 1~1dent.s · and i .

HHJC ·is milllifestcd by th e incidents of pi.Hcmge o.nd oilier wrong doings wherein .fowtcen
(14) out of sixteen (1.6) illcidents llnppcncd in lhe p-roject orea. i.n 2010 froru Jwl.e 18 to
Augu_>t 24 alone, os sho\'m in A ttn ch m cnt-5 . ·

From the above, it cun be couclw:le.d tlU\t.:

AJl three rcason.s cited by the ConinJCtor, u.runely: (l) UNSTABLE WEATHER ·
CONDITIO S lJNFA \ ! ORABLE FOR TI-IE PROSECUTION OF THE WORKS (2)
DIFr!CULTY or TERRAIN IN . CLMC AND (3) SAFETY CO CEI~S AND
VNCOOPERATIY'E .MANPOWER TN TI-IE PROJECT AREA, does not full \lllder
Article GC -8 LIABILITY FOR SPECIAL RISKS duo to t.he foUowlng:

1) The NIA dic1 nbt explicitly wurmntcd thflt tbe Coolroclor oan work for ut lcu.st .
75% every ye<U" for the whole project durntlon., sJnM heavy rainfall occurs ·
on 1y in three moniliB of every year, while tJ1c rest of the 9 reruu.ining months
v.rRS repres~ntc:cl to huve equal raJo dlstrlbution us provided in LC-03 of Lbe
Contn\Ct Documen ts.

ii) TI1e average 1liUJuru ra..infaJl reco!'d ln Cutublg station ( 1973 - 1977) o..nd the .
ovcmgc CU1.1J.Uo..l ru.infull record in San Jorge, LN (2007-2010) which have a ....
distance of nbout 1Okm., as show11 ln A ttac..JJ me n t-1 , is only ubout 24% higher
tbfill tbe nverago .1IU1Uil.l ru.illfaU U3 provid.c d in ilie Controct und· it is ruso ,
high er by about 36 % when compored will1 the avcmgc un.ou.al rn.infall record .
in th e dum site ill San Isidro, LN (2007-2010) wlucll is about 30 km apart and
not 45 % n.s stated by 1-ll-gC. · ·

ili) The Ullcven distribution of rain.fu.ll ill ihe project ll.I'Ca aud the soU ·cond.ition
whlch is describe no predomim~ntJy sllty tlDd clayey lo.O.m with u fu1e-texh11e
i\,n.d high woter rete:ntlon capa.clty arCI provided .' lp LC-03 .
CLI.Jvf.A TOLCJGICAL DATA and In LC -04 TOPOORAI' HY respect lve y,
J,
Vol. II of tbe Contract Documcuis. .. · =

iv) Hill C. has a·c cepted u.lre.ady thnt one. of th e cause$ o.f deiuy in ·the . .·,.
· implemenLDt lon of th e Contract Works ls due to unfuvorablo ·weather . ·
condition when : he. requested for contrnct· timo cxtenBion · on two occasions, .. .
one on October 6, 2008 and the oilier on November 20, 2009 which NlA ..
approved for n t.Dtal of 342 calendar dnys, ·. a.s shown ill Atincl.Jm ont-2 & 3 ; · · . ,
. . .
v) Ba.scd on U1e climatological. datu meutioncd above, about 31-40 percent :of
ty-p h oons pos.s tJ1e project nreo. every ycru. However, o..s per record of
PAGASA C uturrnnn brruJch, only 1 oui of l3 typbooilll pass !.he area .· of
Cn L1IID<~n. .S. on Nov. 20-27, 2007 or about 8%" 2 out of 21 typhooo.s on '; I

Jun.l8 -25 and Sept. 29-0ct 2, 20 0 8 or nbout J 0% , 2 out of 22 typboori.a on

Mny 1-5 and JUD.. 23 -26, 20 0 9 or nbout 9% and n.o (ypboons pilss t1~c urea. of :. ,
N .S. from J::l.llu::try to September Lhis year, ElS shown in A!tncbrucut:-4. These ·
typh o ons bri.ng min.imru ru.in ranging fTOLU 26o:if to' 10 lm.J. only whic h have ·,,
. ' .

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:.~~f#~!W~"· t~L .. ~~~;;~~ :-.·1\
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mJ.nlmal eJ& . Jll the COD.Struc'tfou QCUYtties of the toi~ . ·.'t,mCO~l~.~~'··;·~;::·_- ·: :;~~i{~~;~·;,. :· ':Jr;:)~':)~)\::\:7! J\
I.

., · · \ :;: their claim 1hnt they wer·e very mwcll oifccted by cllmute cl.lil.n~,e .f~e~o~:?non. ·. tJ.::

v~);' . . I-ILUJjin , being 1ln · ex1Jerkuced Coutm ctor wd hnving buslncss : In U10 j;
f ) r.hilip pinc~ ~or e. long time n.Jrcady, mustl.J.nve kuowu the ·El ].'lift.o rmd Lu Nifi.u. · ,.
.J weather polt.cm n.od Irtus t ltuve- comidcrcd il llwi.r coll.'llruction planuing u.nd ili :
./ COn\TaC( CXeCUtJOll. .. . .i I

vi.i) Ordinary mlfuvora.ble weather condition as ·experienced in .prC}.icet areu the

from March 2007 to Aug\151 2010 docs not full under pEl.I1lg.ruph· (d) of GC -8
. LIJ\BILITY FOR SPECiAL RISKS.
i
j i·
viii) His pre~w~npluous upon 1-D-IIC to say ilint CLMC b very dillicult to undertn.k.e
sine~ they bnve not y(;l started the corutrucbon. C.RlvtC should not be a bn.sis
for iliis prcswuptioo si.nce Lhe 20km Jenglh from Sta.O+OOO t.o Sta. 19+700 is
sit·uutecl ill hilly [Xlrtiou wb..ile in CLMC ooly tho fust 6kln is situated ort hilly
1
portion ~d the rest is locoted on relatively moderate slope. ln any case, tl1e
Contract is a un.it price ba.sis CU1d the. cost of underlaking CDn.slruc.Uon works .41
· such s:i tuntlou should Juwe been considered by the ContruQ'tor ·in the
prepurut.ion of his bic.L And, ~Y incren.so. o.r dccrcn~o ln tho Contrn.ct qun.ntltles
as a result of re-alignment or ChMges i.J1 tbe Works as pruvided uuclcr GC - 15 , ·
the Contractor is entitled to . clcilln · for ti.roe and money undor GC-16
VARIATIO ORDERS, Vol. 1 oflh{l Co, tract Docum <":nt~.

ix) HliiC must huve been fo..rolliarizcJ Utcrnselvcs with the provi~ioo.s uf LC-02
')
LOCATION AND "ACCESSIBILITY~ Vol. IT of the Conlroct Docwnc-nts ·
w\l.icb st.a.tes , runong otb.~.rs. U1nt the project .~it.cs such us U~ . druu and ca.nf\ls
need corubucLion of temporary access roads i.o order to reach tbt:: spt:cific sites
as there arc r\o ex isting rands in most of the se arens. At present the proposed
Cut"U'uig d~ slte llilder tho project, cnn be r~achccl through the. use of
·mo'torized bMca (about l - 11'2. llow-s t.rnvel tl.me) via Catubig rivet from ·
Cn.tubig. town up to Pi.u.ipisn.kn..o fn.Us in B\lfil11gay Siin Isidro, Las. Navas. As
an experienced Contrn ctor, I-ll-TIC s,b.ould hove incorpOJilted ili'e CDsl of the
access road in the other items · of wod.;: in Ule Contract and · should have
pJanilcd ·well the ·cxecutiou oftbe work so that it .will beco1~e u.n Li1U:gral pnrt
of the main works thereby li.rnit.i..ng cxtm cost for Ute temporary access road, ii .
not totally avoiding it. ·

x) Difficull)'; of termin d oes · uot fnJI unc.J~r pflr~~ph · (d), Artlcle · GC-8
LIABILITY fOR SPECIAL RISK, Vol. l oftl.J,e CO'htrnct Documents. ,

xi) Th e p remalure announcement oy I-lJ-ITC on Aprl'l 21, 20i 0 followed by the

official n.o.nouucemcnt ciu.ri.ng (.he coorc1l.ontiou meeting On JLUl0. 29, 2010 tho( .
they will.tJull -out from the project by the oncl of December 2010 is the reason
why some of UJB emp oyees of 1-lfll~i..n 1x:·come.: insecure in tbeir work and
b ec ome fcw-ful of looswg Ul etr job, MeanwhDe, some res idents of Las Naya.s
wllo nrc 1e prlntruy benei1cio.ries of . this project'" stnrtcd to: lose · hope and
becomo doublful t.L.nt thcy,wiU eojoy tho bcnoflls ofU ll s project ~truti.D.g 2010,
ns committed by l-11-IIC. ·

~ii) 1lJe hostlle ntlitude ll.lld WlCOOpemtive mnnpo'wer, ns cln.im by Hanjin: are the
result of tbeLr untimaly decision to pull-ou.t from th~ project by l11e ~;~nd of

I <'

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l·ltJ0s: n 0i0c Si ·po 0t>ct>6ic -SS0 'ON XtJ.:J . , dCJl:OH ·: wo~.:J
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D i ~c.st ing fTo m the abo ve, the Nl.A. may tn.ke the following opLiollS:
' ' '
1. Rcxlnd· t.he Coutract for fE1iluru of tlm Cout.racLor to ·comple.te the Contract n.s U[VCed
u pon n.nd for wmcccs.sn.ry dewy i.n the prosccnUou of tl1e C outruct Works, rmd rebid ·
th e reroai.n.ing work.s til ncoord.aDce wLlh .A.i:t.iclc OC-21 NJA'S IU(JHT TO TAKE
. OVER THE CONTICACT WORK, Vol. I of tlJ0 Contro.cl Docmnents:. · .

2. Take over or c.ldcte part of the Contract Work for fElilure of the Contia.c1.or to
compkt..e the Contract as ugrec.d upon. nn.d. for urmC(;essary dduy ln the prosecution of
tJ1e Con.tr-c.Lct Worb, unci rcuid Uw portiou of lhe works wh.lclJ. Will · bo deleted in
accorcl.ance wilh Article GC-22 N1A'S R101-IT TO TA..K.B OVER OR DELETE
PART OF Tt-ffi CONTR..A.CT WORK Vol. 1 of tlJ0 Contract Docume.llts. This option
JT1..<1 )' io volve another optioru und these ure tllo following:

i) TiJ.ke o ver or dekle pilrt of the: Contract Work sucb rrs; !ul parts of CLMC Mci lts
np purte.o.ant ~ ln.Jcturcs, i..ucludi_og tho Pi.rt.ipi5.!l.k.n.u brldgc: flume And Mgotiut"e wi.Lh
HI-ilC to finish all .. 01e remnining works in CRMC, lo.teral canals and its
npnurtcuELD t ~in.i c!uJ'es. Thls will ·gcncr<1to on D.l'c.n of nbout 1,540 ha whet"\.

d) TtL.k: c ov e r o; dektc pcui: of tilt~ Coutmct Work such n.S: all pO. tiB of CLMC rutd lt'l
ap pw·tc!lUJlt rtruclU.J'CS, Lncludi..ng the Pi..ulpisillwn bridge numc, n.n.d . all . the
r~m..ainillg p~rt : of CRMC J.r:..J ;.u .': ;1. :. 1 ~+0 0 0 to St.<\.. 21+691 and accept the
pro]X)SiW of ~D-IJC to compktc ouly the work3 Ul CRMC from Stu..O+OOO to Stu.
1:';+DOO. Tb..is \vill gcnent.U.; ru1 o r~1 of o.bout 300 hn wbt;m comploteJ . . I

For yo u upp ropr\ule Hcli o LL

V cry truly yours,

~·· - ~~- .~·

H1TOSIDTOKU
HCAAP - T0a.tn Le.uder ·
. TOM • ., .
MFB - ~ ~- i< P /t.u
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He l p for C;ntub l!J Aol · ic; u l tur<~l A dv <~nc c ment Pr o j e ct
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no'W-~'Ee:it~~ff.o0ffEOU f'f/j£~~1H{Et DR
RECEIVED · · "i. 0 QrT 2010
October 15,.2010

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HC/\:'~P
"'i, '·l . . I
FOR AN TONIO A. G A LVE Z, CES O IV .. lDC
Se nior Deputy Administrator
National irrigation Administration
EDSA, Dilim an, Quezon City

AUention ERD OL FO B. DOMINGO

Manager, Eng in eering Department

SUBJECT HHIC' s LETI ER OF OCTOB ER 1, 2010 RE : REQU EST FOR WORK

TE RM ! ATIO UNDER CO TRACT NO. HCAAPI-C -1

Sir:

Th is refers ro the above capt ioned subject whicll was the agenda of our mee tin g la st
October 8, 2010 . Hereunder is our pos iti on, conclu sion and recommendation s ori th e iss ue .

. T he bas is. of . Hnnjin's request for contrad ~ork · termin.ation · is anchored on the
provisions of GC-23 CONTRACTORS RIGHT TO TERM INATE CO NTRACT WORKS
resulting from the occurrence of Special Risks CIS provided under pa (·agraph (d ) of GC -8
LIA BILITY FOR SPEC IA L RISKS, Vo. 1 of th e Contract Documents, which stales that :

...- · GC-23 CONTRACTOR'S RIGHT TO TERM INA TE CONTR AC T WORK S

If the Contract Work sha ll be comp letely slopped for a continuous period of more than
80 calendar day s through no act of the Contractor or anyone employ ed by him or as a
result of the occurrence of Special Risks as provided in Article GC-8 , L1At3LILITY FOR
SPEC IA L RISKS, the Contractor sh8 11, without prejudice to any other right or remedy ,
have th e right to give lA 1!::! ca (end ar days written ·notice to the effect that the
· Co ntractor intends to terminate the Contract if the Co nt ract Work cannot be resumed
by the Contractor. ·

If within 15 ca le.nd ar da ys after receipt by NIA of suc h ·noti ce , the Co n rac tor cannot
• resume Con tract Work for reasons spec ified abo ve, he (Contractor) shall have the right
to term in a te the Con tract and recover from IA·p q ~m ent for an y lo ss or damage to th e
Contract Work aris in g out of, or in co nn ec ti on 'w ith, or by conseq uence of such
termin ation as described in Article . GC -24, PAYMENT IF CONTRACT IS
TERM INAT[2:D.

GC -8 LIA.BILITY FOR SPEC IAL RISKS

Special Risks are:

(8) XXX
(b) XXX
(c) xxx
(d) any operat ion of the forces of nature (insofar as it occurs on the Site) whi ch an
experience Contractor: . · ·

i) cou ld not have reasonably foreseer), or

 ,·:•oM,; ·:::lfJ?f~ . ·--~

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ii) cou ld re,. .1ably have foreseen, but against wh 1ch Jld not reasonably
.y have taken nppropriate measure to prevent lo ss . or damage to, physica l
·property occurring.
I / .

.;;" Specifi cal ly, t;he reasons cited by the Contractor are the fo ll owing:

1. UNSU ITA BLE WEATH ER CONDITIONS UNFAVORABLE FOR THE

PROSECUTION OF THE WORKS
2 . DIFFICULTY OF TERRA IN IN C LM C
3. SAFETY CONCERNS AND UNCOOPERATIV E MAN POW ER ;AT THE PROJECT
AREA as provided for in GC-10 SA FETY-PRE VE T ION : OF ACC IDE NTS-
REPONS IBILITY

FIRpT: . UN S UITA BLE W EATHER CO NDITION S UNFAVORABLE FOR THE PROS EC UTIO
OF{:tfHE WORK S ·
. :· /·'
. ,: Th e fol l owi~g are the.points ra ised by HH IC in its letter to NIA dated October 1, 20 10 to
support th e first reason and our co mment s th ere to:
I
\
·0. The cli matological data given in lhe Co ntract are at odds w ith th e ac tual.
. .I ·:. -· '
'The provis ions of LC-03 CLIMA TOLOG ICAL DATA, Vol. 1 of the Contract Documents is
· ·very clear.: .· The ,first sentence states that : ·
~: 1: , l ' I "'.,' I

; · " The project . area · belongs to Typ e-// in the clim ate classification or the
P hilippine Clim atic Zone, which is characten·zed mainly by heavy ra infall dun'ng
Novef!Jber· to January (nortlJeast monsoon), while dun·ng other months th e ra·infa /1 is
· equ ally distnbuted." ·
·_, :'

The above-cited pro vi sions of LC-03 simply· describe genera lly the Type- II clim ate
class ifica tion w here the project area be longs. The specifi c clim ate cond ition is provided in th e
fo ll owing se ntences of the .' same Co ntract provisions which HHIC mi ssed and failed to
~1nder s tand: ··

"The average annual ra infa ll in the project area accumulat es a tota l amount of 4,561
· ·· mm. There is no ·we/1-<:Jefined dry season in th e pro jec t area ·and the he a vies!
precipitation occurs dun·nq the month of Decem ber. 1-/owever, disln.bution of ra in y days
:is not e ven in anv month."

Further, lh e last sen tence of the sa me provi sions states U1 at:

"Th e area lies well within the typ hoon bell. About 31-40 percent of lyo hoons pass the
area with the highest frequency the months of October to December." · ·

Hence, HHI C understanding th~t NIA exp li citly w arra nted th at the Co ntractor ca n work .
for at least 75 % every year for the whole pro ject duration (because hea vy ra infall ·occurs on ly
in three months of every year and the rest ·of lhe nin e rema ining mon th s was represented to
have equ al ra in distribution) is not accurat e and rea lly th e one at odds with the abov e spec ific
description of th e climate cond ition of the project area.

On pages (2) and (3) of the same lett er,. HHI C comp ared lh e. average monthly .rainfa ll ·.
reco rd in Ca tubig ra infall station (1 973 -1977) as provided in Tab le LC-01 , page LC-02, LC -03 , ·
Vol. II of the Co ntract Documents with the annu al ac tu al rainfall record at lh e HH IC main
ca mp site in Brgy. Gan Jorge , Las Navas . The resu lt showed that .the actual average an nu al
ra in fa ll in Sa n Jome in 2008 is hi gher by 45% compared with the average annu al ra in fa ll ~ qS
pre se nted in Tab le LC -01 of lhe contract docume nts.

The co mp ari son bet:vveen an average annual ra infall from 5 yearo\ reco rd (1 973 -1977)
in Ca tubig stati on with a one ye ar ra infall record (2008) at San Jorge see ms im proper that
may lead to a res ult not conc lu siv e enough and mi slead ing . Catub ig and Sa n Jorg e station s
are abo ut 7.0 km apart by direct dis tance . A better comparison is bet:vveen the average
annu al rainfall record in Ca tubi g station (1973 -1977) and lh e ave rage annual ra infall record
ava il able in San Jorge (2007 -2010). ·

2
 ;:;''': ';\·f?,Y·;pr· V4:. \46

./
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The esult Indicates lhall~e actua l avecage annual talnfall at San Jocqe Is on ly 24 % h lghet
than the ra infall prov ided in the contract documents, not L\5% as earlier reported (and th e San
y · Isidro average an)lual ra infall is 36% higher) as shown in Attachment 1. Th e San Isidro
·S station is about 15· Km from Ca.tubig sta tion.

Furthenmore . wh ile the 5,651 mm average annual ra infall at San Jorg e is 24% hioher . I

still it is wi thin the minimum and maximum rainfa ll lim its presented in the contract documents,
henc e, cannot be cons idered as an extreme rainfa ll event ne imer e xces~:i ve forces of nature .

. . HHIC claim furthe r mat the averag e annu al ra infall vari ance eve'ry succeed ing ye ar
: . clearly in dicates an ·.i ncreas ing patt em . Th is is belied by the fact that in 2008 the San Jorge
' ··. average annu al rainfall wa s 6,664 mm and in 2009 only 4 , 6~8 mm ·or a decre.a se of 1 ,962
·. mm. Strong : indi ca tion s shows Ulat th is year 2010 , th e ave rage annual rainfa ll w il l further
· decrease. · The sa m8 decreas ing rainfall pattern ca n · be seen at the San Isidro station as
. shown in·Attachmen't 1.
' ...··

2 , Unworkab le ground co ndition due to unfavorable weamer.

c~.. . The unworkab le ground cond ition even with ra infa ll depUl of less than 20mm due to
·unfavorable w ea th er coup led w ith th e so il condi.tion at Ule site which is predom inantly silty and
clayey loam are alsocited in HHIC on pages (4) and (5) of the sa me letter which had affected
the ir work and missed thei r target accomp li shment. HH IC claim that th ey have 'to stop work
even w ith rainfa ll depth of less 5 ·mm if rains c.ontinu e to pour for about 30 minutes due to
sli ppery cond ition of _me grcund. ·
I •

.• , The un even =dist ri bution of ra infall in the pro ject area and th e so il cond iti on w hich is
describe as predom inantly silty and clayey loam with a fin e-te xture and high water retentioh
capacity are provided in LC -03 CLIMATOLOGICAL DATA .and in LC -04 TOPOGRAPHY,
.respectiveiy, ',Vol. II of the Co nt ract Documents. ·· In the case of ra infall data, the un even
.d ist ribution of ·ra infa ll in any month is almost th e same if th e rainfall data provided in th e
Con tr act · is .compared wiUl ' me actua l data as sl1own in Attachment -1 although , there is a
·sli ght increase in rainfa ll _depth in th e actual. NIA, be ing th e imp lementing agency, ha s
· acknowledg ed . mi s· unfavowble weather co ndition preva ili ng in th e projE=kt area in 2008 and
2009 . Th e .Contractor reque st for exte nsion of co ntract tim e on October 6, 2008 for 2 14
ca lendar days , includ ing 61 ca lendar days due to unfavorable wea ther cond i ion was granted
by NIA on December 10, 2008 , as shown in Attachment -2. · Then on November 20, 2009 ,
HH IC requested aga in for another exten sion of contract time for 128 ca lend ar days due o
unfa vorab le weath er a:lone , aga in mi s w as granted by NIA, as shown in Attachment-3 . A ll in
all,. lA granted HH IC . a total of 342 ca lendar days extens ion of contract tim e due to
unfa vorab le we ame r cond ition 'for the year 2008 and 2009 as a re medy for unworkab le ·ground
as pro vi ded in Article GC- 11 ExTENS ION OF CONTRACT TIME, Vol. 1 of the Contract
Documents. F. or thi s current' ye ar of 201.0, NIA. so far ha s not rece ived reques t for extension of
con ract time from HHIC. ·

· In the case · of . th e soil cond ition, there is no sign ific ant difference between the data
provided in th e Contract and the actua l data taken fro m laboratory and field tes t. In add ition,
the Contract d escribes the soil as moist to w et and very wet as provided in. page TS-X-2 , last
paragraph bf Clause 1003 CO MPA CTION EQ \JIPM ENT, Vo l. Ill of th e Contract Documents
wh ich sta tes tha t:

"So il moisture in the are a vanes from moist to wet and very wet In order to dry such·
ma terials to optimum moisture content, the Contractor shall provide scarifier equipment during
sunny period .- wh il e 'during ra iny period , piClst ic cover and necessary dra ins shall be provided
to pre vent embankment materi als from ge lling wet. " ·

. Wh il e 'the Contractor sa id cle arly in the sa me letter mat even du~ng difficu lt situ ation
when sli ght opportunity occurs they venture to work even with very little accomp li shment just
to pre vent me ir equipment from be ing idle and to preserve HH IC's . tradema r.k of finishi ng
project ·on the oth er hand , HH IC did not tak e remedi al me as ures to impro ve site wo rki ng
cond itions during diffi cult times, like to provi de plastic cov er on Ule stockp il ed emban kment
materia ls to prevent them from being wet during ra iny period so that it can easy be used when
the ra in stop, as pro vi ded in the Contrac .

3
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3. C lim ate change phenomenon.

The erratic and unstable rainfall pattern was mentioned by HHIC on page (5) of the . ;
same letter to NI:A as unpredictab le pl1enomenon which is an issue in the global clirnate
change. It further sa id that it is the one that is caus ing much de lay in the implementation of the .
Contract Works ...'. · ·

.. Based on· he clim atolog ica l data mentioned above , about 31-4:0 percent of typhoons
pass tne project area every year. However, as per r'ecord of PAGASA Catarman branch , only
1 :out of 13 typhoons pass the province on ov. 20-27, 2007 or about 8%, 2 out of 2 1
typhoons on Jun.18-25 and Sepl 29-0ct 2, 2008 or about 10%, 2 out of 22 typhoons .on May
1-5 . and Jun. 23 -26, 2009 .or about 9°io and so far no typhoons pass the provin ce from January
to!' September . this year, as shown in Attachment-4 .. Only a maximym of .1 0% typhoons ' '
visited the .province on 2008, out of tlle 31% -40% typhoon:;; expected every year. These
.typhoons bring minimal ra in s rang ing from 26 to 101 ml on ly which have minimal effe·cts on the
cons ruct ion activiti es . of the Contractor contrary to their cla im that· they were very much
affected. by cl im ate ~lange phenomenon. ·
,:. ·.
. The E/ ino phenomenon, accord ing to PAGASA, is a wealher pattern in the cou ntry
which is characterized by Jess ra infall and extended summer season. It -happened every 3
I. ye ars and usually followed by La Nina. In the proJect area , El Nino was felt in 2007 and again
this year 2010 ..La Nina pt1enomenon , on the other hand, is characterized by abnormal rainfa ll
cond iti on and extended ra iny period, ·according to PAGASA.

HHIC, be in g an experienced Contractor and having business in the Phi li pp ines for
quite a long time . must have known lhis weather pattem .and must have cons idered it in their
construction plann ing and in contract execution . Hence, such weaU1er phenomenon cannot be
cons idered as unfqres ee n events. . ·

SECO ~ID: DIFFICULTY OF TERRA l CLMC . i

i
On pages · (5) and (6) of lhe same Jetter to N/A, HHIC state •j lhat they expect to
'I encoun ter the same or doubled lhe difficulty in undertaking the CLMC ' than in CRMC. Tiley
stated lhat .in CRMC , it took lhem 2 years to develop the temporary access road. along the
main canal .from Sta. 0+.000 to Sta. 20+000. They sa id th at the construction of temporary
access road is an added cost due io double handling of earth materials and b'1e unit cost
app li ed for this project does not include extra act iviti es of such magnitude of work.· .
. .:.
Art icle GC-7 FAM ILIARI TY WITH CONTRACT ·WORK, Vo/.1 of the contract
Documents states , among others·. that:

"The Contractor sha ll be respons ible for having taken steps to sat1stv himself as to the
nature and location of the con/met works,· the· character of equipment and facilities needed
prelim inary to and during /he prosecution of the Contract Work: the genera l and local
co nditions: and all the matters which can in anyway affect the Contract or cost thereof. Any
·... .._ failure by the Contractor to do so w ill not relieve him from responsib ility for successfully
performin g the Contract Work at no additional cost to NIA. ·:

The prov ision s of GC -7 clearly states that it is HHI C burden to be familiar wilh the
general and loca l cond i ion s of the project, in cluding terrain and others. Hence, rais ing the
issue of difficult terrain at this point when the contract time is almost over is .not proper and .
cannot be acceptab le. ·There is no basis for HHIC to say that CLMC is very difficu lt to
unde ake since they have not started yet lhe construction. CRMC cannot be the basis for th is
presumption sincethe 20km length from Sta .O-t-000 to S ta. 19+700 is situ ated in hill y portions
while .in CLMC , only the first 6km is . sit uated on hill y portion s and the rest is located on
relatively moderate s lo pe :. In any case , the Contract is a unit price basis and the cost of
undertaking . construct ion works in such situation shou ld have been considered by the
Contractor in lhe preparation of his bid .. And, . any in crease or decrease in the Contract
quantities as a resu lt of re-a li gnment or Changes in the Work s as provided under GC -15; the
Contrac or is .entitled to claim for time and money under GC-16 VAR IAT IO ORD ERS, Vol. 1
of the Contract Documents.

4
..
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_/
7 \Nith regards to the accessib ili ty t.o the Site , HH IC must have been familiar w ith the
provisions of LC-02 LOCATION AND ACCESSIBILITY, Vol. II of the Contr3ct Documents
y . whrch states, among others, that.
• ' '. ~ ·, ', I ' ,·.
"Project sites such as the dam and cana ls need construction of temporary access roads in
. order to reach the specific sites as there are no existing roads in most of these areas. At
. · present the proposed Calubiq dam site under the project, can be reached through the use
..·: of moton'zed banca (about 1- 112 hours traveltime) via Catubiq River fro!'n Catubiq town up
·. to Pinipisakan falls in Baranqav San Isidro , Las Navas .." ·
.. .. '·
The co n struct ion of temporary access road is always a necessity in any construction
works to reach the site and bring in the much ne eded construction materia ls, manpower and
equipment,. and for insp ection and superv ision purposes, if there are no existin g ·road in t11e
site. Depend ing ·on the construc~ion method or technique · employed by the Contractor, this
temporary access road may become an integral · part of the. main works.· Therefore, plann ing
for , construction of earthworks/emb ankment works and temporary access road is very
important in thi s project. A s an ·e xperienced Contractor, HHIC sho uld have incorporated the
cost of the access road iri the other items of work in the Gontract and shou ld ha.ve planned
. well the exeo,Jtion of the work so that it w ill become an in tegral part of the main works thereby
li miting extra cost for the temporary access road, if not total ly avoiding it. ·

THIR D: SA FETY CONCERNS AND Ui'JCOOPERATIV E MANPOWER AT THE :PROJECT

ARE".
. ' . .
On page (6) of the same letter to NIA, HHIC stated that they have emp loyed suffic ient
number of . security guards to · prov ide safety , protection and se·curity of personnel, materials
·and the pub li c at large in Ule area however, suct1 responsibility should not be interpreted to
extend to areas . beyond their contro l. . They said that completely eli minatin g the los s cir
damages, particularly of the construction materia ls, fuel , eq uipm ent and accesso rie s was not
ach ieved in a sign ificant level due tq·the hostil e at titud e and uncooperative manpower at the
project site.

They said further that the pilferage of construction resources for the past 3 years is
: uncontainable due to the hostil e atti tud e of tile residents in the are a. The ir workers were
always subjected .to alarm ing security threats .at the site especia ll y during overtime work, wh ich
~ .... they fore see to happen also in CLMC.

Article GC- io SAF ETY-PREVE NTION OF ACCIDENTS-REPOS IBILITY , Vol. 1 of the

Contract Documents states, among others , that: ·

"Exceot for spec ia l Risks as pro vi ded for in A icle GC-8 LIAB ILITY FOR SPEC IA L RISKS,
the Co ntractor sha ll be so ley answerab le for the safety, pro tection and securitv of hi s
personne l, third part ies, the pub li c at large ; the Works, construction Plan and materials.
Accordinaly. the Contractor shall comp ly fa ith fu lly with any and all pertinent laws,
regu lations. and other ord in ances at his own expense, and shal l ake all requ isit e
pro tec tive measures to the end of el iminatin g the occurrence of accidents, loss or damage
of any kind during the performance of the Contract and unti l fin al acceptance by NIA."

Based on th e above prov isions of the Co ntract, HHIC is ob li ge to emp loy sufficient
numb er of security personne l in the ir camp and in areas of work 24 hours a day for the who le
duration of the Contract until final acceptance by NIA. Maybe, the rea son why pil ferage of
construction materia ls and others are s.till happening . in the project, in spite of the claim lly
HH IC that . they have e n:1ployed sufficient number of security personne l, is that the ir personne l ·
th emselves are the perpetrators or an accomp lice of th is wrong do ings. The claim of HH IC that
they have been experiencing the pilferage of construction materials and others incidents for
the past 3 years now due : to the hostile attitude and . uncooperative manpovi er at the project
site is not true. Based. on ·the record by HHIC on the in cidents that happen'ed in the project
area from March 2007 up to August 2010 , on ly two (2) incident s happe ned in 2009 (1 in Nov. 6
and 1 in Dec.16) and fourteen (14) in 2010 for total of sixteen (1 6) in cidents , as shown in
Attachment-S. Of the sixteen (16) in cidents, ten (10) happened between 10 PM and 8 AM
based on the sa me report of HH IC.

5.

.!; ·. :· .
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Du cing the J 1O:A 't~;; 1on on Ap ell 21 , 201 o, H H IC u noffi , ·: : announced that they wi l
complete only the first 15km of CRMC up to December 31 , 2010 and that ll;leywill proposed a
.y . re vi sion of the Contract:quantities a nd costs exc ludi ng Pinipisakan brid ge flume , CLMC, latera l
cana ls and its appurtenant structures, and the rema ini ng works in CRMC . Th is proposa l w as
officially an nounced by HH IC during tlle monthly coord ina ti on meetin g among NIA-PMO , f:iHI C
and the Consu ltants he ld at N IA field Office in Rebong, Las 'Navas on June 29 , 2010, as
shown in Attachment-S. The premature announcement by HHIC on April 2\ 2010 fo ll owed by
the official announcement during the coord in ation meeting on June 29 , 2010 tllat tlley w ill pu ll -
. o ut from the project by the end of December · 2010 can be tlle reason why some of the
emp loyees of Hanjin become insecure in the ir work and become fearful of los in g th e ir job.

Meanwhil e ,. some res idents of Las Navas wl1o are the prim ary be n efi c iaries of this
proj ect started to lo se hope and become doubtfu l t11at they will enjOy the benefit s of tllis proj ect
start in g 20'10 , as co mmitt ed by .HH IC . The hostile att itude and unc0oo era tiv e manpower
claimed by HHJC ; are the result of the ir untime ly decision to pull-:out from tlle pro ject by the
· end of December 2010 and the ir fa ilu re to ab ide by their commitment to nnish the pro ject by
December 2010 factor s under Hanjin contro l. Th is ho st ile and .uncooperative atmosphere
between the workers or. res idents and HHIC is man ifested by tile in cidents · of pilferage and
ot her wrong doings wherein fourteen (14) out of six teen (1 6) in cid ent s happened from June 18
.... .. ..
to A~gust 24 20·10 a lon e, as shown in Attachment-S. ·
~ ''

All three reasons cited by the Contractor, namely: . (1) UNSTABLE WEATH ER
CO D ITIONS .U FAVOR A BLE FOR TH E PROSECUT ION OF THE WORKS (2) DIFF ICULTY
OF TERRA IN , IN·.: CLMC AND (3) SAFETY . CONCER S ·AN D U COOPERAT IV E
MANPOWr=R · IN TH~ PROJECT AREA , does not fa ll unde r Article GC-8 LIABILITY FOR
SPEC IAl · R ISKS d u e to the fo ll owing:
' ;: I

· i) · The ~I IAdi~ not exp li citl y warranted Lhat the Contractor can work for at least 75 %
every year for the who le project duration , since heavy ra infall occurs on ly in tllree
montlls ·of every yea r, whi le tlle rest of th e 9 rema ining months was repre?e nted
to h?v e equa l ra in d istrib ution as prov ided in LC -03 of he Contract Docume nts.

ii ) The ave rage annuc:\1 m infall record in San Jorge as shown in Attachment-1 ,' is
on ly about 24 % high er th an the ave rage an nual ra infa ll a& prov id ed in the
contract . documents (hi gher by about 36% when com·pared . with the average
annua l ra infa ll record of San Isidro), not 45 % ·as claim by HH IC .. T h e Sa n Jorge
. av erage .annua l ra infa ll is still with in the minimum a nd maximum limit s presented
in the contract documents. The annua l ra in fa ll varianc e from 2007 to 20 10 shows
a decreasing pat tem , con trary to 1-jHIC claim of increas ing pattern.
iii) The un even distribution o f ra infa ll in the project area and tlle soi l cond iti ons which
is· described as pr edom inan tly sil ty and clayey loam w ith a fine-texture and high ·
water retention capacity are prov ided in LC -03 CLIMATOLOG ICAL DATA a nd in
LC -04 TOPOGRAPH Y respec tively, Vol. II of the Contract Docume nt s. ·

iv) HH IC has accepted a lready th at one of the c:auses ·or de lay in tlle im p lementation
o f the Co ntract Works is due · to. unfavorab le weather cond ition when they
reques tec;J for con tract time extens ion on two occas ions , on October 6 , 2008 and
on Nov erpber 20, 2009 which N IA all granted for a tota l of 342 ca lendar days, as
shown in Attachment-2 & 3.

v) Based on tf.le climatological da ta of PA GASA CatarmElll Branch, a m ax imum of

on ly 10% of typhoon s passed from year 2007 to 2009 o~t . of tll e 3 1-40%
typhoons expected to vi sit the prov ince every year as shown in Attachment-4 .
These typhoon s brin g m inim al ra in rang ing from 26m ! to 101 ml only wh ich have
m inim al effects on the construc tion ac tiviti es of the Contractor :in co n rast to the ir
c la im thc:t they were v ery muc l1 affected by clim a te change phenomenon.
. . . :

vi) HHIC, be in g an experienced Contractor and having bus iness in the Ph ilippines
fo r qu it e a long tim e, must have known the El ino and La ina wea th er pattem
and must h ave cons idered it in their construc tion p lann in g and in con tract
exe cu tion.

· :· . . ,. .::.. ·::-··' .
 •,''

vii) Ordinary unfavo rab le weather cond itio n as expe ri enced in the project area from
March 2007 tO Augu st 2010 does not Fa ll under paragrap h (d) of GC-8 LIABILITY
FOR SP EClA L RISKS.
I
.

vi ii) It is presumptuous upon HHIC to say t11at CLMC is very difficu lt to underta ke
sin ce they have not yet starte d its co nstruc tion. CR MC shou ld not be a basis fo t·
th is presumption sin ce ttie 20km lenglh from Sta.O+O OO to Sta: 19+ 700 is sitwated
in hi ll y portion wh il e in CLMC , on ly th e first 6km is situ ated on hi ll y portion and lhe
res t is lo cated on re lative ly moderate slop e. In any case , lh e Contract Is a unit
pric e bas is and lhe cost of undertaking construction works in such situ ation
shou ld h,sve been cons idered by th e Contractor in the preparation of hi s bid . And,
any in cr~ as·e or decrease in the Contract quanti ti es· as a result of re~ a li gnmen t or
Changes in th e Work s as provided under GC - i 5, th e Contractor is entitled to
claim for tim e and money under GC -16 VARIATION ORDERS, Vol. 1 cif the
Co ntract Docum ents.

ix) HH IC tl1u st have been fa milia rized themse lves w ith the provis ions of LC -02
LOCATION AND ACCESS IBILITY , Vol. II of lhe Contract Do cum ents which
sta.te s, amo ng olhers, that the projec t sites such as th e dam and ca nals need
constructi on of temporary acc ess roads in order to reac;h the spec ific sites as
th ere are no existin g roads in mo st of these areas. At present lh e Ca tubi g dam
· site can be reach lhroug h th e use of motorized banca (about 1-1/2 hours tra.v el
tim e) vi a Ca tubig riv er from Catubig town up to. .Barangay San Isidro, Las Nava s.
As an experienced Co ntractor, HHI C should have incorporated the cost of the
access ro ad in lh e other items of work in th e Contract and shou ld have plann ed
well th e execution of lhe work so that it will beco me an in tegral part of the main
work s thereb y li mitin g extra cost for the · temporary access . road , if not tota ll y
avoidi ng it. ;

x) Difficu lty of terra in does not fall under paragraph (d), Arti cle GC -8 LIABILITY FOR
SPEC .
IAL
'
RISK, Vol. 1 of. the Contract Documents. ·

xi) T he prematu re annou 11 cement by HHIC on Apri l 2 1, 2010 follow ed by the official
announcem ent during the coord in ati on meeting on June 29 , 2010 th at they will
pu ll -ou t f,rom the project by lh e end of December 2010 is the reason why some of
th e emp loyee s of HHH IC become insecure in thei r work and beco me fearful of
los in g th eir job. Mea nwhil e, residents of la s Nnv as who are the primary ·
beneficiari es of th is project sta rted to .lo se hope and become doubtful th at they
will enjoy th e benefits of lh is project starting 2010, as ·committed by HHIC.

xii) ·The hostil e a itud e and uncooperat iv e manpower, as claim ed by HHIC , are lhe
resu lt o f the ir untim ely decision to pu ll-out from the project by the end of
Dece mb er 2010 and the ir fa il ur e to ab ide by their commitment to co mpl e te tile
pr-oject by December 20 10, factor s so lely under HHIC control. Fourt ee n (1 4) out of
the sixt een (16) in cidents re ported by HH IC occurred from Jun e 18 to Augu st 24
20·'10 as shown in Attactlment-5:

!n view of the above, NIA can consider lh e fo ll owin g opt ions:

1 .. Re sc ind the Con tract for fa ilure of the Contra cto r to comp lete lh e Contract as ag reed
upon and for unr:1ece ssa ry delay in lh e pro secution of th e Contract Work s, and re-bid
the remai'n in g work s in accordance w ith A rticle GC-21 NIA'S RIGHT TO TA KE OV ER
T HE CO NTRACT WORK, Vol. 1 or the Co ntrac t Do cuments.

2. Ta keo ver or del e te part of th e Co n tract Work for fa il ure of th e Co1;tractor to comp lete
the Contract as ag reed upon and for unnecess ary delay in the · prosecution of th e
Con tract W or ks, and re -bid the portion of· the works which will be de leted in accordance
with Articl e GC-22 NIA' S RIGHT TO TAKE OVER OR DELETE PAR T OF; THE
CO TRACT W ORK , Vol 1 of th e Contract Documents . Thi s option may invol ve
another optioris and th ese are the fo llowin g ~

,.
 '·.
''

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:.Takeover or de lete part of the Con tract Wo rk such as ; all parts of CLMC and its
· appurtenant stru ctures , includin g llle Pinipisak an bridge flu me and negotiate
.· wi th HH IC to fin ish a·ll llle · remaining works in CRMC , latera l ca nal s and its
' ap·purtenar)t structures. T11is will ge ne rate an area of abo ut 1,540 ha when
:. comp leted .

· ii) , Ta keo ver or delete part of the Contract Work such as; all par,ts of CLMC and it s
app urtena:nt structu res , including the Pinip isakan bridg e flume, and all the
rema ining· pa rt of CRMC from Sta. 15+000 to Sta. 21+691 · and accept me
propos111 of HHIC to complete only me wori<s in CRMC from Sta.O+OOO to Sta.
15+000. Th is wi ll genera te an area of abo ut 300 ha wh en comp leted.

Very tru ly yours,

.s
' : .',,, I

.
.· .: . :.· ... ~ . .:~~i/~i' ~;:'· ';): : ...... "
'•'( ·:.;·
 LungsoJ ng Que;:on

co i\ u d rc s~: Nntiunul G <Jvcm mc11 t Cc 11 lc r

,,!):;;\, J) ilill l:lll , QII CI.<JI\ Ci ty, l'hili p p i 11 C~ Tclcl'"' No. (632) ?2R-934J

pliuuc Nus .: (02 ) n 9-G07 1 to 7H H N No. 000 -9 1G-415

.\)j P ; ':.·\? ,0, L O!:P '1

- Octobet- 18, 2010
C.l (·t~> :' :.. .· · --J.o...)_.o.J\6:Z
I ') I - __:.--
.

FOR Th:c Manager

. Lega l Services Department
T hi s Office

FRO ~IJ T he anaget-

Engineering Department
Same orfice

SUBJECT RE: REQUEST OF HHIC TO T ERMINATE THE CONTRACT WORKS,

CO TRACT NO. HCAAPI - C-1

W e Me f u rni sh ing y ou here wi th copy of the letter dated October 14, 2010 of Mr. Hitosh l
Toku , Team Leadet- o f' HCAAP Project Consultants addressed .
to the HCAAP Project
t' 1l anager. In the sa id ;letter, the Project Consultants rendered the ir comments and
suggeslion on t he Octobe.r 1, 2010 leli:er oF HHIC on which the Contractor is requesting··
to term ina te the re~a i n i ng wor ks of the above - mentioned Con -ract.
-·- -
In this regard, we are r equesting your legal op in ion on the inten t ion of HHIC to
t erminate the rema ining works. Also furn ishedi · is a copy of HHIC October 1, 2010 letter
for y ou r refere nce and information. JICA is wailing for the NIA's: fi n::li decision on the
matter cons idering the lime lert in the project i·nip lementation.

GO

Encl.: A/ s

c.c.: Team Leader

1-lCAA P Co n su lt a nt
D.A. Co m pound , Cap ilo l Si ite , Br Qy. Dcll a ki t
' I
Cata rman , No rth e rn Sam~ r

( '
(!_? /1 -{_f( r ( .r)
 II L
X \..

·? ·. ~­
·:
~
lli\NJfiN

22 Ocl ober 2 01 0
Ref. No. HC/-\L\ P I-_i U

SUB JE CT NIA Letter dated 14 Octobe r 20 10 (Construc tion of Catubig

Divers ion Dam , Irrigation and Drainage Canals & Appurtenant
Facilities with Supp ly, De livery and Installation of Steel Gates under
Contract No . HCAAP/-C-1)

S IR:

In the subject lc.:tt er, NIA informed Hanjin of the pos itive resu lt of the de li berat ion on
Hanj in 's i n tc ;r~; on to terminate Contract No. HCAAPI-C-1 in view of the occurrence of
Special Ris k;, :\lonethe less, NIA instead dec ided to g ive Hanji n time extension w ithin
wh ich to fin ish t he remain ing works under Contract HCAAP I-C-1.

Wh il e Hanji n truly apprec iates N lA 's pos itive consid em tion of th:e reasons ad vanced
in our ear li er letter if!d icating our inten ti on to term inate the c ited contract, yet, we
f irm ly be li eve that term ination of con tract is proper and appropriate under the
circumsta n ces. W e find that the extens ion of contract duration is no longer a feasib le
so lution as per cont ~act.

It must be noted that at t he initial stage of proj ect imp leme ntation , Hanji n had already ·
discussed a ll p 1·ed icaments and ant icipated prob lems that m ight occur in the future of
the proj ect. In vi ew of that , Hanj in requested a 2-year extension for wh ich we we re
give n on ly 158 days -first approved time extens ion. Facing a more adverse situation
as th e proj ect w ent through , we re iterated our req uest for the 2-year extens ion of
time but got on ly the simi lar 128-da ys-second approved time extens ion , which clearly
fa iled to cons ider that the request for time extens ion was mad e in ant icipation of the
on-se t of the rain y season of September-December 201 0) . Notwithstand ing the
inconsequential t ime extensions mentioned above and the pre valent' occurrence of
the Spec ial R isks, we have shown our effort in maxim izing resources resu ltin g to a
cons iderab le accomp lishment as indicated in our month ly stat ist ica l report attested
by yo u r site nersonne l. However such acco m p li shment left substantia l to ll to Hanjin
as d isc losed ill our earli er. letter to NIA where in Hanji n even went an extra m il e by
worki ng on the days w hen it is unsafe and impract ica l to work in v iew of the
dangerous gro und cond ition due to heavy ra infa ll and restrai hed from requesting
suspens ion of w orks ~hen it should have been entit led to do so , exposing itse lf to
' ..','{.

in c ur s ub stantial overhead costs for idle equipments and pa y roll ex pe nse f or

em p loyoe s w hosG serJices are utilized onl y at minimum le ve ls .

We t her~C:~for e reiterate the very same ratioc ination w e presented in our letter dated
Oi October 2010 on Hanj in' s intention not to proceed with the further prosecution of
the remc:lin ing works under the above -cited contract, which we understand was also ,
the m ain age n:da in the latest meeting of N lA and Hanj in .

In relation to our int ention to terminate the contract , we wou ld like to inform NIA that
based on our construct io n daily work report; we anticipate reach ing the 95%
accomp li shment rate under o ur proposed 2 nd revised qua:ntities towards the end of
th is year. As su:ch, we plea that final in spect ion and turn -over of the con tract works
be conducted within this year pursuant to Genera l Cond ition- 59 of the Genera l
Con dition of Contract Documents (FINA L INSPECTION , CONTRACT
COMPLETION, FINAL STATEMENT AND FINA L PAYM ENT). T he remain in g 5%
1/111 . ·" 1' . '.:. 2nd the correct ive works sha ll fol low after we obtain the punch-list resu lting
from llw NI A in specto rate team 's preliminary inspection. If in the exerc ise of the
sound iuclgm en t of NIA there is necessity to comp lete the rema inin g works of
Ca lt thi!] Right Main Canal .(Sta. 0+000 -21 +69 2), we are wi il ing to undertake the
renl<.'. :i, 19 wo rk as an addition to the punch -li st but exc luding additional work s. It is
understood that the add ition to the punch -li st wou ld matElria li ze on ly after contract
term inati on and turn -over which will be done not later than the end of this year.

As a final note, the occurrence of the Spec ial Ris k under the Genera l Cond ition of
Co ntract lea ves us no cho ice except to exerc is e the remed ies granted to us under
the Contract ·Documents as in dicated in our letter dated 1 October 20 10.

It is the refore our sincere appea l to NIA to set as id e the grant of time extens ion and
insteacl ccn sider Hanji n's intention to term in ate the contract works .

Than lc yo u and vye hope for a posit iv e response .

Very tru ly yours,

CC: T h e:: P 1cject Manager

N IA -HCJ\AP
Catarman, orthern Samar

Th e Team Lea ijer, JV of Consu ltants

Catarrnan, No~hern Samar
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3» ttmh CHUH\ 1\y ~}1 Hllfl t1Hi llHH\H 11fl ~T atuhig

(NATIONAL iiZRIGATION ADMTNISTRATlON)
Lungsoclng Que.zon

(>!·TIC!·: .".l.lf.ll< J:.<;s: NA\'IONt\1.. CiOVJ·:J(N/vii'.NT CJ:NTI:IZ TJ:LLor!·IONE NOS.: 929-6071 TO 78

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QUJ.'.7.0N C I'J"l' :'HII .. II'rJNt:S TIN: 000 -916-415

------------------------------------- OUR IU~FERENCE:

FOR MM~A GER

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THE MAN AGER

Legal Services Dep artm ent

SUGJ ECT Request of Hanjin Hea vy Industries & Constructi o n Co ., Ltd.

(HHIC) to Termin ate t h e Contract Wo rks under Co ntract No .
HC AP, PI-C-1 (Construct ion of Ca tubig Divers ion Dam,
Ir rig ation an d Drainage Canals & Appurte nant Faci li t ie s with
Supply , Del ivery a nd Installation of Steel Gates)

T l1i s re fers lo your letter dated Oc tobe r 18, 2010 requGst in g lega l opinion in connection
with th e above -mentioned subject m att er.

E.\R;,od on <3 Vail8ble records and documents , it ap pears tha Hanjin Heavy Indu stries and
C:G:J~;[,·u c tion Co. , Ltd. (HHI C) w as Rward od th e contract fo r the Construction of Ca tubig
Div~rsion Dam, lrrigetion and ·Drainage Cn nals and Appurten an Faciliti es with Supply,
UGiivery and lnst all<:'ltion o Stee l Gales under the JICA-fin anced Help for Catub ig
1\griculturul i-\dvancement Proj ect (HCAAP).

1Vitik.' in the course of implem en tin g sa id contract, HHI C alleged that it encountered
diffiL:u!ly in execut ing th e contract works on account of, among others , 1) unstable
'Ne.<-1ihl">r con diti o ns :un favorable lo tile cond iti ons of work; 2) difficully of terrain in the
CatuLlig l. di fvlain Cana l (C LMC ); and 3) safety concerns and uncooperative m anp ower
8 · t:1e project · C~rea as provided for in GC- 10 Sa fety Preventi on of Accidents-
r\r:~sponsibili l y

On 3ccount of this, HHIC , per le tter dated Oc to ber 1, 2010 advised NIA of i s intention to
termin2le he contr2ct citing GC -23 Contracto r' s Right to Term in a e Contract Works and
GC - 8 Liability tor Special Risks as base s \h ereof (Annex "A).

On the other ha nd, Mr. Hito shi Tol<u , Team Leader of HCAAP co nsult ants, in a letter
cJ~lr-!cl October ·J4 , 2010 to HCAA P Proj ect Manage r Reinerio E. lrin co m anife sted lhilt
f JHI C cannot term ina e th e contr act because th e field scena rio c<mnot be categorize d as
Spec:ia! F~ i s k uncJ<:r in GC -8 (J\n nr;x "B ").

With the se conflic ing vi ews, we were as ked to iss ue a legal op ini on on th is m atter at
hand.

Relcv8nt to this endeavor are Genera l Condition (GC) - 23 Contractor's Right to

Terminate Contr act \~orks and GC - 8 Liabili y for Special Risks of lhe Bid Docum ent s
i:lS well CJ s Arti cle 1174; of the Civil Co de, which am quoted hereunder as foll ows:

"GC-23 CON TRACTO F?' S f~IGH r TO TER M/Nil TE CONTRACT

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If tlw Contract Work shall be comple ely stopped for a continuous period
ot' more tlu:uj 90 ca lendar d[Jys through no act of the Contrac,lor or
anyon& employed by him or as a~ te, ult of tile occurrencEJ of Special
flisi(S as provided in Article CJC-13, L/A- ILI TY FOR SPECIAL. RISKS, the

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Con tmctor sha ll, without prejudice to any other n'ght or remedy, have the
right to (Jive NIA 15 ca lendar days writt en notice to the effect that th e
Con tractor int ends to term irwte the Contracl if the Contmct Work cannot
be resume'd by the Contrac tor

If within 15 calendar days after receipt by NIA of suciJ notic e, the

Contractor cannot msume Contmct Work for reasons specified above,
he (Contractot) sha ll /wve t/J e right to terminate the Contract and
recover from NIA payment for any loss or damage to the Contract
arising out of, or in connection with, or by consequence of such
term ination as describ8d in Article GC-24, PAYMENT IF CONTRACT IS
TERM INATED."

"GC - 8 LIAB ILITY FOR SPECIAL RISKS

Spe cial R isks are:

(a) x x x;
(b) X X x;
(c) X X X.'
(d) any operation of the forces of nature (insofar as if occurs on the Si e)
wh ich an exp erienced Contractor:
i. c;·ould not h ave reasonably foreseen, or
if. co uld reasonab ly IJave foresee n, but aga inst which could not
reasonably have tal< en appropn'at e m eas ures to prevent lo ss
or damage to p hysical property occum·n g. "

6BTlCLE 11-74, CIVIL. COD E

''l1R T. 11!4. Excep t in cases expressly specified by the law, or when it

is ot11ervvise declared by stipulation, or when the nature of the obligation
roquires th e assurnption of rislc, no person shal! be responsible for those
events which could not be foreseen, or which, though foreseen, were
inovil able."

!-\ re ad in g of GC-23 and GC-8 Item (cl)(ii) will show that the Contractor sha ll have the
righ t to term inat e the Con tract and recov er from NIA payment for any lo ss or damage to
the Co ntract aris ing out of, or in connect ion w ith, or by consequence of such term in ation
if an y of the following occurs, to wit: .
(1) If h e Contract W ork shall be comp letely stopped (or a continuous period of
more than 90 ca lend ar da ys throug h no act of the Co ntractor; or,
(2 ) If the Con tr act Work sha ll be co mpl etely stopped for a con tinuous period of
more than 90 ca lendar days th roug h no act of anyon e employed by the
Contractor; and .
(3) There is occurrence of Spec ial Risks mentioned In Art icle GC-8 , Item (d)
threof r~ an y operat ion of the forces of nature (in sofar as it occurs on the
Si e ) which an experienced Contractor:
i. cou ld not have reasonably foreseen, or
ii. cou ld reaso nab ly have foreseen , but against whi ch cou ld not
reasonab ly have taken appropriate measure s to prevent lo ss
. or damage to pllys ica / property occurring.
'
It can be g leaned fm rn 1he letter of th e Con tractor tha th er Is an 8dm iss ion that th ere
v.tE1 s neither susptm sion of worl< o 1· com pl ete stop of worl< fo a co ntinuou s period of mor e

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th an 90 ca lend ar da ys as a resu lt of th e three (3) iss ues pose d by th em. Hence ,

numb ers 1 and 2 , sur,ra , will no t ap ply .

Consequ ently, th e main iss ue which is le ft to be res olved is whethe r or not the c laim of
HHIC that unfavorable weathe r condition in t he project site is a Sp e ci ~l Risk u nde r
G C -S of the Bid Documents. '

Fore mo st, this O ffic e would lil< e to note th at as rega rds th e wea th er da ta att ac hed to th e
O ct o ber 1, 2010 lett er 9f HH IC, the PMO has confirm ed that the sa m e are accur ate in
th e Octobe r G, 20 10 m eet in g ca ll ed to disc uss th e lett er of HHI C. In sa id weather data, it
ind ee d appea rs th E!! th ere were con sistent occurrences of hea vy ra infall in the proj ect
si e m aking it difficult for th e contrac tor to execute t11 e co ntr ac t works.

Docum ent s also s how th at the contrac t has already bee n sta ll ed for three hun dred fo rty
two (3 42 ) cal end ar days for th e Year 2008 and 200 9 during th e con structi on of th e
Ca tubig Right Main C anal (CRM C) d ue to unfavorabl e weat her conditio n. In fact, the
contrCJct tim e wa s extend ed as requ es ted by Hanjin which wa s gran ed favorably by lA
pu rs uant to GC- 11 Exten sion of Contrac t Tim e ac knowl edgin g th e unstable w ea th er
co ndition in th e Sit e.

Morea er, the Contrac tor pointed out th at th e occ urre nce of the hea vy rainfall all
throughout th e ye Cl and not ju st on til e months of Novemb er, Dece mbe r and Ja nu ary
re nd e r it impo ss ible for th em to achiev e th e targe ts se t in the cons truc tio n chart in a
normal m anner.

W e also took note th at ·NIA has guarant ee d in th e Bidding Docum ent s that the wea her
co ndition in th e area wiJI allow the co ntrac to r to do t11e work s al le ast 75% of th e whol e
year as w ell as m entioned the ty pe of th e soil in the lo ca ti on of the contrac in the loca l
condition s of th e contract. Yet wh en th e contrac t was impl em ent ed , it did :not appear
th at i11 e g u<J ran ee stipulat ed in t11 e Bidding Doc um en t w as prese nt. Hence , 'des pi te th e
exerc ise of du e d ilig ence of th e Co ntrac to r in exami(ling th e loca ti on, in cludin g all
cond ition s that may affect th e fulfillrn ~nt of th e co ntract, th e Contractor ca nno t in any
w ay fulfill it s obligation ,du e to th e un stabl e w e<J lh er :conditi on whi ch is be yon d th e ir
con rol to prevent. lnde e¢1, this is an instanc e of "cas o fort lito" .

T his is prim arily exemplified in tl1e case of LU ZA N SIA v. COURT OF APPEAL S and
SECURITY BANK and TRU ST CO MPANY, G .R. o. 102970, May 13, 1993, citin g
Se rvando v. Phil.,. Stea m Navi ga tion Co., 117 SC RA ·83 2 [198 2). "In its disset1ation of
tho phrase "caso for1uito" the Enciclope clia Jurisclicada Espai?ola says. "In a legal sens e
anci, consequently, also in relation to contracts, a "caso fortuito " prevents (sic) th e
following essential characteristics. (1) t/?e caus e of the unfores een and unexpe cted
occurrence, or of the failure of the debtor to comply witiJ /Jis obligation, must IJ e
indep endent of the lwman will, (2) it must !Je impossible to fore see t/Je event which
constitutes 1/Je "caso forluito," or if it can !Je foreseen, it must be impossi!J/e to avoid; (3)
· th e occurrence must be such as to rencier it impossible for one debtor to fulfill his
o!Jiigation in a normal manner; and (4) t·!Je obligor must be free from any pat1icipation in
the aggrava tion of th o injury resulting to 1/w creclilor." ·

In HH IC 's cas e, th e unforesee n or unexp ect ed hea vy downpour all through out th e year I ,

w ere ind epend ent of th e will of th e Co ntr actor and the lat ter was not s ho~n to have
p arti cipated in aggrava ing th e stallin g of th e con stru ction of th e proj ec t. In fact, the
C ontrac tor des pit e g reat difficulty on th e sit e, encl ea voree!l to work accompl ishin g even a
littl e perc ent age ju st to avo1d being to tally idl e in lh9 se:;_ period wh ere hea vy, r a ~nf a ll is
pr evalent and whi ch penod is tec hni ca lly m ore tl1 a n~ days as cont empl ated und er GC_-
23 Indeed, th e un stabl e weather condit ion rend e ed the fulfillm ent of th e obl1 ga t1on

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imposs ible as the Contractor cannot fu lfill hi s ob ligation to comp let e the contract in a
norma l manner.

In fine, we are of the op inion that the unfavorable/unstab le weather cond ition ·in the Site
as c; llc:ged by th e Contractor may be cons idered a Special Risk in th e context of the
general cond itions of the contract between Hanj in and NIA as it squarely fa ll s in the
speci al risk mentioned in GC-8 , item d (ii) thereof that sha ll warrant the term ination of the
con tract under GC -23.

Finally, it is worthy to note th at in U1e aforc:sa id letter of the Con tractor that for th e /
mutual bene fit of the Contractor and NIA, the form er is amenable to forego Its right to !" .
claim from NIA for any Jos s or damage atiendant to the occurrence of a specia l risk
cons idering that no one of the pa rti es .d id not want the happen in g of such spec ial risk.
On thi s score, thi s is benefic ial to NIA sin ce the Agency w ill not shou lder the costs
2ccomp2. nying til e loss or dam age att endant there to.

In view of the foregoing, it is· our cons id ered op ini on that tho request of the / .
Contractor to terminate the co n tract by reason of an exlstenco of a special rlak
has legDI basis. It Is however ad vis ed that parugraph 2 of GC-23 should be
.observed.

Pleass be guided accord inGly.

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NATIONAL IRRIGATION AD M INI STRATION

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,- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - {\
I BOARD OF DIRECTORS RESOLUTION
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SUBJECT: Proposed Terminatio n of Contract No. HCCAPI -C -1 for · the
Construction of Catubig Diversion Dam, Irrigation and Drainage Ca na ls and
Appurtenant Facilities including S upply, Delivery and Insta llation of Steel
Gates for Help for Catubig Agricultural Advancement Project (HCAAP) .

RESOLUTION NO. 7658-10

SERIES OF 2010

RESOLVED as it is hereby resol ved, on motion duly

seconded, to approve the Termination of the Co ntract Works
under Contract No. HCAAPI -C- 1 (Construction of Catub ig
D iversion Dam , Irrigation and Dra inage Ca nals and Appurtenant
Faci litie s with S upp ly, De livery and Install ation of Steel Gates )
under Contract w ith Hanj in Heavy Industries & Construction Co. ,
Ltd. Particu larly the Catub ig Left Main Canal and La tera ls ,
CRMC Latera ls , Pin ipisakan S iphon.

I Date Adopted: I, the undersigned, hereby certify that the foregoing i:-:-1
I true copy of the resolutio n adopted by the Boa rd of Directors

_A_d_m-in-Jisrt-r_a_tio_n_a_n-:drs~p-r-e-ad_i_n
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1
Decern ber 1
- 3_._2_0_1_0+--of

873'd Regu lar Board

- -,-
th_e_ N_of
minutes a_tio-an--'duly
December 13 , 2010 .
--a 1- 1-rr-ig_a_ti_o_
n
constituted Qleeting of said Board held- t-on
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EJ 0 N
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11 Meeting Secretary
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 Page 1 of3

NATIONAL IRRIGATION ADMINISTRATION

,. For the BOARD OF DIRECTORS

\

' Thru the THE ACTING ADMINISTRATOR

/
) THE CORPORATE BOARD SECRETARY
i For inclusion in the Agenda
(
(
ANTONIO S. NANGEL
Actin__g_ Administrator
SUBJECT:

PROPOSED TERMINATION OF CONTRACT NO. HCAAPI-C-1 FOR THE

CONSTRUCTION OF CATUBIG DIVERSION DAM, IRRIGATION AND DRAINAGE CANALS
AND APPURTENANT FACILITIES INCLUDING SUPPLY, DEliVERY AND INSTALLATION
OF STEEL GATES FOR HELP FOR CATUBIG AGRICULTURAL ADVANCEMENT PROJECT
(HCAAP)

ACTION REQUESTED:

[ ] For Approval ] For Notation

[ X ] For Approval and Confirmation ] For Information

DETAILS:

We are respectfully submitting herewrth for approval and confirmation the proposed
Termination of Contract No. HCAAPI-C-1, Construction of Catubig Drversion Dam, Irrigation and
Drainage Canals and Appurtenant Facilities including Supply, Delrvery and Installation of Steel Gates for
the Help for Catub ig Agricultural Advancement Project (HCAAP) under Contract wrth Hanjin Heavy
Industries & Construction Co ., Ltd. (HHIC).
1. The total original Contract Amount as awarded to Hanjin Heavy Industries and Construction
Co., Ltd. was P 994,391,744.00. The Contract took effect on March 22, 2007 and with an
original Contract duration of 1,095 calendar days, it is scheduled to expire on March 20,
2010. However, wrth the approved total Contract time extension of 286 calendar da ys, the
Contract expiry date was moved to December 31, 2010.

2. Due to unforeseen problems and issues encountered at the very start of construction, the
progress of work was affected . Hence, the NIA Top Management decided to take
over/deleted the Hagbay and Bulao areas thus the Original Contract Amount was revised to
P 749,759,153 .60. The action taken by the NIA Top Management, is in pursuant to GC- 22,
NIA'S RIGHT TO TAKE OVER OR DELETE PART OF THE CONTRA,CT WORK. This was du ly
approved by the NIA Board of Directors per Board Resolution No. 7592-09 Series of 2009.

3. Tile recunrence of the implementation problems at the project area is inevitable. On June
29, 2010, coordination meeting was held in Las Navas Catarman, Samar among HCMP
PMO, Project Consultants and HHIC. Mr. G. Park, HHIC Project Manager informed the body
that HHIC plans to complete 1st 15km of CRMC until December 31, 2010 out of the length
of 21km, copy of the Minutes of Meting hereto attached as Annex "A".

4. On September 17, 2010, NIA sent letter to HHIC, Head Office to validate the comment of
Mr. Park that they are planning to complete only the 1st 15km of CRMC by
December 31, 2010. (Copy of NIA's letter dated September 17, 2010 attached as Annex
\\8")
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Page 2 of3

On October 1, 2010, HHIC replied the letter of NIA confirming that they intent not to
proceed further the prosecution of their works specifically the Catubig Left Main Canal
(CLMC) and the Appurtenant Structures and Facilities, Catubig Right Main Canal (CRMC)
Laterals and the Appurtenant Structures and Facilities and other remaining works as
indicated in the 1st Revised Contract Quantrties and Cost. Their decision was based on the
CONTRACTOR'S RIGHT TO TERMINATE CONTRACT WORK under GC-23 of the General
Condition of the Contract resulting from occurrence of a Special Risk as provided under
paragraph (d) General Condition- 8 (Liability for Spedal Risk) which is" any operations of
the forces of nature". (Copy of HHIC's letter attached as Annex "C'').

6. On October 8, 2010 Coordination Meeting was held at NIA Central Office and discussed the
request of the Contractor. It was agreed to call for a meeting with the Contractor and at
the same time instructed the HCAAP Project Manager and the Project Consultant to submit
the ir official comments on the letter of HHIC for the termination of the Contract to further
study by our Legal Services Department the legal implication on the said request. The
Minutes of the Meeting hereto attached as Annex "D".

7. On October 14 and 15, 2010, the Project Consult:lnt and the NIA HCAAP Project Manager
submitted their official comments, attached as ANNEXES "E" and "F". The arguments of the
Project Consultant and the NIA HCAAP Project Manager focus rr1qinly that the above cited
reasons of the Contractor is not applicable to the provision of the ~C -23, Contractor's Right
to Terminate Contract Work in view of their different views in the actual problems/ situation
occurred in the project srte and interpretation of the provisions of the Contract Documents.
In view of these conflicting views, we referred the matter to our Lega l Services Department
to further study both reasons of the two parties. Also on the same date of October 14,
2010, NIA replied the letter dated October 1, 2010 of HHIC and informing them that NIA
will give an additional time to finish the remaining worl<s. (Copy of the NIA's letter dated
October 14, 2010 attached as Annex "G'').

8. On October 22, 2010 HHIC replied the letter of NIA dated October 14, 2010 informing that
they are anticipating their accomplishment by end of this year is 95% based on the 2"d
proposed Revised Quantities and Cost. In the 2nd proposed Revised Quantities and Cost
they excluded the construction of QMC (Main Canal and Laterals), Pinipisakan Siphon,
CRMC laterals. Hence they plan to request for final inspection and tum-over of the Contract.
Other remaining worl<s of CRMC will onty be included in the punch · list for necessary
rectification. (Copy of the HHIC's letter dated October 1, 2010 attached as Annex "H'').

9. On October 26, 2010, the legal opinion was issued by the Manager, Legal Services
Department, that the request of the Contractor to terminate the contract by reason of an
existence of a special risk has legal basis under GC-23. (Copy of the Legal opinion is
attached as Annex ''I'').

10. After thorough deliberation of the said request of the Contractor, the NIA's Top
Management concurred the legal opinion rendered by our Legal Services Department
considering it is the most beneficial to NIA, since the agency will not shoulder the costs
accompanying the loss or damages attendant thereof. Further, the decision is in line with
the NIA's commitment to complete the project in order to achieve the vision of the Agency
of increasing agricultural production and in support to the new administration for the Rice
Sufficiency Program.

11. The indicative cost for the proposed 2!>d Revised Contract Quantities and Cost which is for
t he Construction of Catubig Dam and Catubig Right Main Canal and other Appurtenant
Facilities including Supply, Delivery and Installation of Steel Gates which is under Hanjin
Heavy Industries and Construction Co., Ltd. is P 542,628,370.47.
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t!!( . .· . . r;~~;~ f-1~END~T10NS:
t,:.r•'.-~t.f: . ,
. · In view hereof, it is respectfully recommended that the proposed Term ination of the Contract
" Works · under Contract No. HCAAPI-C-1 (Construction of Catubig Divers ion Dam, Irrigation and
·,; Dra inage Cana ls and Appurtenant Facilities with Su pply, De livery and Installation of Steel Gates )
J under Cor:tract with Hanj in Heavy Industries & Co nstruction Co., Ltd. particularly the Catubig Left
n~ fv1 ain Canal and Laterals, CRMC Latera ls, Pinipisakan Sipho n be approved by the NIA Board of
Directors.

5Ui'J!MARY OF AITACHMENT:

1. Annex "A" Copy of t he Minutes of the Meeting held on June 29, 2010 in Las
Navas catarman, Samar among HCAAP PMO, Proj ect Consultants
and HHIC, Project Manager and their Office Engineer.

2. Annex " B" - Copy of the NIA's letter dated September 17, 2010 send to HHIC,
Head Office to val idate the comment of Mr. Park that they are on ly
planning to complete the 1st 15km of CRMC by December 31, 2010.

3. Annex "C" Copy of Co ntractor's rep ly dated October, 1, 2010 addressed to the
Administrator informing NIA their inter(t for Termination of the
Contract No. HCAAPI -C- 1.

4. Ann ex "D" Copy of the Minutes of the Meeting held on October 8, 2010 at NIA
Central office.

5. !~nnex " E" Copy of the Com ments/ Position of HCAAP Consu ltant
,-
0. Annex " F" Copy of the Comments/ position of HC/\AP Project Manager

7. /\ nnEcX "G" Copy of the NIA's letter informing HHIC t ha t they will be given
add itional time to finish the re maining works .

8. .1\nnex "H'' Copy of Cont,.actm's reply dated October 22, 2010 addressed lo the: /
1 Administrator informing NIA that they are cnL:i;;a!:ing thei; I
accomplishment by end of this year is 95% .:'lnd they will request fo~ /
I
I
final in spection and turn-over of the Contract . I
j 9. Annex "I" Copy of legal opinion dated October 26, 2010 was is sued by the
f·_.. __ _ ______ ._ _____fV1_a_n_a~ _b.~ Services De.Lp-'-a-'rt""m-'-e'-'-n-l''-.- --- -- - . - -- - - --

i)~
To be prese nte d t o the Board by:
1 SUBM!HED

I 'fRDOLloti::! DO~UNGO REINERIO E. IRINCO De.;ember 13, 2009

I Man ager Eng inee1·!ng Departmen t Proj ect Manager, HCAAP Date

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 ; J IC A PP (Phi i pp i nes) i8 39 ti85 1 # 1 ·.,
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PHIUPP!NE OFFICE
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Fax
To:

Cc: M r. C: RDOLF O DOMINGO MR. RENE IRINCO

Nla n agsr, Engineering Depa,1ment Project Manage r, HCAAP

r-ax: · No. of Pages: Two (2)

·· ----- · --~----~-------~~;:....._------------.o......-"7-

Phone: Date: 16 February 2010

---~

Re; _ReqJ.J e:st (or Conc urrence on HCAAP

D ~i:l r Oii: puty Admin G r an ;;~ :

This is to acknowledge re ce ipt of you r letters req wes ti ng JICA conc um :nce on th e fo llowin g; ( 1)
NIA Board RerJo lution on Term in ation of Contract No. HCAAPI-C-1 fo r the Construc tion c 1
Catu big Divers ion Dam, Irrigation, Drain age Canals, and Appurte nant Facil ities with Hanjin He: ;:
Industries and Con struct ion Co., Ltd.; and (2) Propo sBd Im plementation Tim eline, Repackagin9 .
an d p ,·ocurement Method for the Main Civil Wo rks of HCAAP.

Pleas e be informed th at in ord er. for t.J S to process your request, we wou ld lik e to seel< add itio nal
informati on/clarification, as fo llows;

{1 Oii th e NIA Board Resolution fo r Contrac l Termin ation. W e take no te of the reduction in th e
r::on lract amoun t with the co ntractor (Hanji n) based on the 2 1'd Revi sed Qwant ili e;; and Co::;t.
Ho_wever, in order for JICA to proceed, we need to h;;J ve de tails on both foreigr1 and loca l
currency and VAT portion to be <l djuste d from the current co ntract amount, as well as main
reas ons for the adjustment. For your gu ida nce , <J tt acheo herewi th is th e lates t Proct.J rement
/

Ad m in i s tre~t ion Sheet (PAS) with contract detail s on HCAAP-C-1.

/
G\1 f2.
Repackaging of Main Civil Works. Th e docum ent subm itled on the proposed repackaging is
similar to what ha s be en prese nted and discussed duri ng the HCAAP PI R Mee ting last i'
Februal)' 20 11 . W e understand however that th e re packaging of re maining works includ_ing /
r;:or.-esponding cost ir:i cr.:as e is still subjec t for revi ew and approval of th e NIA Boa rd . Heno::·

1 it will be pru dent from ot.J r end to wait until the NI A Boa rd issues a decision p ior to our revi ev,
of you r r ~'qu es t. Kind ly submi t ·to us at soonest copy of th e NIA Boa rd Reso lution on .the
matter, it.• 'Jcilitat(; ou r re view and i ss ua~ce of concurrence.

ShoLdd you need furth er clari ficatio n, please do not hes itate to direc tly co ntact rn e. Hopi: ·rJ lor
you r understa ndin g and immediate attention on the above conce rns.

fds~ .
Be~ 1eGg
- · ---:::>"

l:: f\:\~~J . M E L A , J R.
seder r reject o rncer
Poveny Redu c..ti on Secti on
JICA Ph ili pp ine Ofiice
 Rcpul.i ii ka •lg .P ilipinas II tl
eQ
'.Lambansang Panaasi--waan rtg Patu6ig
(NATTONAL lRlUGAT.ION ADMlNlSTRATlON)
Lungsocl ng Quezon
OFFICE ADDRESS : N...\.TIONAL GOVERt"'lvlENT CENTER TELEPHONE NOS.: 929 -60 -71 to 79
E. DE LOS SA.J"lTOS A VENUE FAX NO. 929 -2ii - l ,
(1L'EZC)N CITY. PHJL:.:P.:.. :P.:..:-'-r:.=-·S
:.. INE =------------
OUR REFERENCE

Ji1 R NORI O !I'I!\.TSUD.'1

Chief Rcpr~:S.en.ta t:t:e
.J~lf';ln lntf;!Ti.r:ttloJ La! c.:. :·)f"'t.:L'F.lt~ot: i\i:;; ncy (JlC?. }
-1Ct;, Floor Y :. tL'hcn~-:_:::f:- TuV!t.· :
J;:CGC Pk.ze~,;Aya 8. ;'I venue
:\l:·\k~\tl Cit.;{, Ph.:lippine!::.

OJN'fR.".C'l' 1 0. HCAAl' i -C- 1 , CO NSTf<UC1'ION OF CJ\'l'UfJJG DIVERSION DAiH IHR!GAT!ON &

DR.J1..IN }\. G:•; C:iiNAL S & ,\ l>PUR'i' ;,;N.ANT li'ACILITI E;S INCLUDIN G SUPPLY, DELIVERY &
u:;S1'.?:.LLA'll0X OF' S';'EBL GATl£S !cOR TH E 'JIJXLP FOR CATUH!G J\GR!C\!LTURAL
~\DV ,•\NCb:~•.. Q;NT PROJECT (H C.-\.,_1_.I:L_ _______ ___ _ __ , _ __ ,_ _.,_ -· __ __c. _ _ _ _· - - - - - - - · - - ·

lieu!.' lYh. 1'/i;.\t;j\\da,

II": r.•·c: rtq,:;·:~tinc ft!rther p·:odifir:c-.cion of th e JB[\:; Ji'inattcecl Portion ,.:- t te l'lbov<:-rm::nt:cn·< l!d Ccntn\ct ~\ ,.>''-to·
ilpprc;va! by t.)1e N!A Guard ,,f Dire,·' .rs pe::r n.Jard Resol u tion No. '7o71 -l l, Serit:s of 20 l.l of th~ J«< 1\:·~·;iso:d CoJJ.! , - t
(!t,nn\ities <'.t).C\ Costs. This .::·,vers the Termination of Contr~.ct; the Contn:u;L Ammtnt of Php ?•f9,750,153.6() .a.-:
b<:en l'l.:vis'!u :o Php 5 ~>7 ,629,?06.60 <'ls pres-=nted h<'reunder:
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l_ _I<2 REIGN CURRENCY PORTION
_____ (&__ _ _ _ -- ~ ----
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JBIC PINANCED PO- J,-,T-IO
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1. ..J81C fi'itHlllCt;d
J.i(lrtir;n c.:o ncur red
Conlrc:t<.;t Amount
cl~ttcd
1'1t>l)l'L(a.J'y 20,2007 p 994,391,74'!.00: p 164,674,803.71 p -p 723,.17'f,967.72 p .l06,5~ 1 ,9?2.57
liS$ 3,201,\7<L21)
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· ._j,:'~·~:,,.ry J:.<,200il IF ''') ';.:.JS't ,·;· ,i-I.Uu P [2,350,610.:28 !" :-, 8'i5,'f9'),161l~i11 P l06,S<JJ,':i'i'1.;)'/
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(:.!"·'; M.:..Iificlltiun
<:!' .JIC.~. I~ in "'~~0cl / !

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l(l'(Jl\l~::t~d fo r
Cc:.r~· !cu !Tc.nce
p 5J7 ,6'2 9 ,206.60 12,350,610.'21::$ p
I.---- - - - - - - -- --·- - -·- - - 2~0.038 .0"-7'-L..J_ _ _ _ _ _ __ p

!''o r your infat·m&;ion ancl concurnm'c" or the pi'Opo:sed third (3"') mr.dificil.tion or JlCA l'inant:ed pur lion.

V;,:;ry Lri..tly yoltrs,

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1')1;. /i./ !
 Japan International Cooperr;tiion Ag ency

pp 5 _,,oy;
JG May 2012

Mr. A, TO liO S. NANGEL

Administrator
National I:trigation Admirt1slr'ation
EDSA, Diliman
Quelon City

N OTICE RE GR.L\.DIN G M OD IFICATIO N O F CO NTRA CT

R eference: Your lener reques ing HCA concurrence on th e Modification of Contracl for '
..
HCAAPI-.C--1 'Nith Hanjin Heavy Industries and Construction Co.,-Ltd. due
to the Deletion of Civil Works at the Catubig Irrigation System (3rc
modificaTion), Final Firmed-Up Quantities and Costs (4u 1 modification), and
Price E scalation o. 1 under the Irrigation Componem of the Help for
Catubig Agricultural Advancement Project (PH-P221)

:._.k ar AdministraTOr Na.Dgel:

In uccorc!t~nce with the relevant provisions of Loan Agreemem No. PH-P221 dated 30 May
2001 [,etween THE J APAN B ANK F OR I 1TERN ATIO NAL C OO PERLI...TI ON (nm:v
.JAPAN IN T E P.....t' IATIO NA L COO PE R A..T I O N A GEN C Y) and T HE GOVERNMENT OF
THE REP UBL IC OF T H E PH ILIPPI NES, we hereby infonn you lhat w e have no
objection to your abovemention ed requests.

DisbW'sement for this contract will b e mude by JICA within the limits of US$ 240,088 .07
(sarne) for the fore ign currency porlion and P hP 488,038,9 54.2.4 (rev·sed) for ·he local
currency porion bolh representing 100% of eligible expenditures, subj ect ro the relevant
provisi ons or the Loan Agreement.

Wiu1 our concurrence, NIA mt~y pro ceed in the amendment of contract with Ha.tijin while at
the same time finalize p-lans to compiere tl1e remaining portions of the C£1tu.big Irrigat" on
System . . Kindly be advised however that NIA should request JICA's prior written /
confinm\rion on the chapge of Procurement Method (if in case ICB will not be adopted) and
Final Contract Rep.:=10kaging for tJ1 e remaining works prior to the awarding of addi- :ona!
. contracts. We anticipare the submission of Request for Revi ew of Procurement Methoc.. and
Final Contract R epackaging at soonest. ·

Given tha· there are only several months befor8 the loan closing date of 23 January 2013, \Ve
wou ld like to reiterate th e need fo r NIA to closely monitor the pe.rfo~ma.11ce of irrigation
co tractors in order to increas e the service urea of the project. Moreove -, for NIA to info::m /
and secure ' i£DA -ICC approval on the revised implementation sch dL le 8..i"1d cost overr:.lr.. a.; a
result of contra~t repackaging before the Joan e;>.;piry dme.

~ JI CA PHlL!P PIN ES .. . I mf?!ruPOnJi7Pf

J,'f~.0~;; ·:,i.-lf,r?vG.!.:nn~: __ : . r7W;t:~~J"&YWChengco Tower, RCBC Plaza, A~al~ Ave nue, Makatl C1ty, Philtpptn~f-
f;f,~ !r.E··~~-·.', .~.:_:L."Ui~ P.0. Box i 025. MCPO. Makat1City, Metro Manil a :
I ~i ' ~~
f.! A" ~ 4
7 L"~~tC.. I
~1: t. ~ ·~ _
~;4f " !':';_ , Te l:-r632- 889-7ii9 Fax:-t632-889· 6850 7 I l 11

11AY 1 u 2012 Hcmepoge: http://wwW.JICa.go.Jpiphili ppine/eng lish J

t~P. (:!. f5 .;?4.2. - l.lr.-v .- .4' :, LJ L../
 2

Please be guided accordingly.

Vcty tro:y rs, ~

I/T~SASAKl
c:tY Chief Representative

cc: Gov. Paw I Oa23.. PC ! S

Sec. Procc:so Alcala, DA ""·
Usee . Ro salia de Lecn, DOF
DOG Rolando Tungpa.bn, "EDA
Mr. Romeo M. Cardenas, HCAAP-PCO
Mr. Nobuaki Chiba, Co nsu lmnt -earn Leader

.•.
 s
Japan International Cooperation Agency

PP I;.( -.< l ~bl

December 21 , 2012

MR. A TO 10 S NANGEL
Administrator
Nat ional ir rigatio n Administration
EDSA, Diliman, Quezon City

Reference: Your letter request i ng review and co ncurre nce on the proposed Co nt ract
Repackag i ng for the Irrigatio n Component of the Help for Catubig
Agricultu ral Advancement Project (PH-P221 )

Dear Administrator Nangel:

In accordance with the re levant provisions of the Loan Agreement No. PH-P221 dated 30
May 2001 between the JAPAN BANK FOR INTERNATIONAL COOPERATION (now JAPAN
INTERNATIO NA L COOPERAT ION A GENCY ) and THE GOVERNMENT OF THE PHILIPP IN ES, we
hereby inform you t hat we have no objection t o you r abovement ioned request, subject to
confirmation of the Department of Agriculture.

Based on our review of the proposed Contract Repackaging, there was no clear mention of
contract pac kages for the Catubig Left Main Canal (CLMC) which is part of the original scope
of work of the project and designed to generate at least 1,800 has. service area. Though NIA
has given JICA assurance of their intention to continue on with the implemen tat ion of the
CLMC using local funds , lA is still requested to subm it at soonest, before loan closing date,
the Final Contract Repackaging for all irrigation contracts includ in g land de elopment, as well
as Implem e ntation Schedule and Costs since this will be used by JICA and other Oversight
Agencies for continuou~ monitoring of progress and completion of the project.

We also understand that the finan cing for on -going and newly awarded irrigation contracts
will be primarily sourced .from the available Special Allotment Release Order (SARO) for
HCAAP issued in CY2012. Moreover, in order to maximize utilization of loan proceeds, NIA
intends to submit to JICA for payment the following: (a) progress billings for Hagbay and
Bulao irriga t ion system, (b) retention payment for HC.AAP- 1-C-1 contract with Hanjin, and (c)
ad vance payment for HCAAPD -C3 (Pinipisakan Bridge Flume and Lining of cr itical portions of
CRMC and HCAAPD -C 4 (CRMC Laterals inclu ding Structures and Creek Improvements ). Kindly
be reminded to subm it Disbursement Requests including rep lenishment/recovery of Initial
Deposit for t he Special Account b y early January 2013 (at t he very latest) so that JICA can sti ll
facilitate payment and minimize the financial obl igations of NIA to their contractors after the
loan closing date of 23 January 2013.

J IC A PHILIP PI NES
40th Floo1· Yuchengco Tower, RCBC Plaza, Ayala Avenue, Makati City, Philippines
P.O. Box 1026, MCPO, Makati City, Metm Manila
Te l: +632-889 -7119 Fax: +632 -889 -6850
Hqmepage : http://www.jica.go.jp/philippine/english
Please be guided accordingly.

~--_,~
TAKAHIRO SASAKI
Ch ief Representative

cc: Sec. Proceso Alcala, DA

DDG Rolando Tungpa lan, NEDA
Gov. Paul Daza, PGNS
~ng r. Estelita Sumil e, NLO.-HCAl>.P
I
1
Engr. Romeo Cardenas, HCAAP-PCO
', Mr. Nobuaki Chiba, HCAAP Consultant

/Ill . ..,