06th September 2013Our Ref. Q130826000971/CCR

Revised 03

Mr Ashoka RandeniyaManaging Director Consulting Engineers & Contractors (Pvt) Ltd No. 157, Kynsey RoadColombo 08

Dear Sir,

QUOTATION FOR INSURANCE

With reference to the discussion our Assistant Business Promotion Manager Mr Dilshad Raffaideen had with you, we are pleased to give below our revised quotation for your consideration.

1) TYPE OF COVER : CONTRACTORS ALL RISK INSURANCE

Scope of Cover : As per standard Contractors All Risk Insurance including Riot & Strike cover.

All other terms & conditions : As per standard Janashakthi Insurance PLC policy.

Principals Name & Address : Road Development Authority – Sethsiripaya, Battaramulla.

Contractors Name : Consulting Engineers & Contractors (Pvt) Ltd

Location of Construction : Madawachchiya – Kebithigollewa Road

Title of Contract : ADB Funded Northern Road Connectivity Project - Additional Financing Rehabilitation / Improvement of B283 Madawachchiya – Kebithigollewa Road from 0+000 KM to 12+600 KM Contract No. RDA/NRCP(AF)/NCB/ADB/CP - 12

Period of Contract : 20 Months (Dates to be advised)

Period of Maintenance : 12 Months (Dates to be advised)

Section 1 – Property Damage

Value of Contract : Rs 834,536,459/70

Value of Plant & Equipment : Rs 98,150,000/00

Cost of Clearing Debris : Rs 5,000,000/00

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Section 2 - Third Party Liability : A) In respect of bodily injury: -

i) Per Event - Rs 5,000,000/00ii) Per Person - Rs 5,000,000/00iii) Number of occurrences - Unlimited

B) In respect of property damage: -i) Per occurrence - Rs 5,000,000/00ii) Number of occurrences - Unlimited

C) Aggregate limit for the period of Insurance

- Rs 10,000,000/00

Premium : Rs 907,929/17 Rs 1,406,529/69Rs 2,314,458/86

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Basic PremiumRiot & StrikeSubject to Taxes

Rs 2,655,836/31

(Inclusive of Rs 400/= Policy Fee, 0.3% Administrative Charges, Stamp Duty, 2% NBL & 12% VAT)

Excesses : In respect of Section 1

a) An excess of 10% or Rs 50,000/= which ever is higher on each and every claim. In respect of all insured perils other than Riot & Strike cover.

b) An excess of 10% on each and every occurrence in respect of Riot & Strike cover.

(The above Excesses are in respect of each and every claim arising due to respective perils mentioned above and will be applicable after the final adjustment has been made to the claim subject to other terms and conditions).

: In respect of Section 2

An excess of 10% on each and every claim subject to a minimum of Rs 75,000/= whichever is higher will be deducted after the final adjustment has been made to the claim subject to other terms and conditions.

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Additional Clauses :

In respect of Section 1

1) MR 003 – MAINTENANCE VISITS COVER

2) MR 013 - PROPERTY IN OFF-SITE STORAGE

Territorial limits : within 100 metres of the site

Limit of site storage : Rs 5 Million - Any one Event / In the aggregate for the period of insurance

Storage location to be declared

3) MR 103 - EXCLUSION OF LOSS OR DAMAGE TO CROPS, FORESTS AND CULTURES.

4) MR 106- WARRANTY CONCERNING SECTIONS

Maximum length of section : 500 m (anyone loss event)

Maximum Number of Sections : 04 (anyone loss event)

5) MR 107 – WARRANTY CONCERNING CAMPS AND STORES.

Any one event - Rs 1,000,000/00

In the aggregate for the period of insurance - Rs 5,000,000/00

6) MR 108 – WARRANTY CONCERNING CONSTRUCTION PLANT, EQUIPMENT AND MACHINERY

7) MR 109 – WARRANTY CONCERNING CONSTRUCTION MATERIAL.

8) MR 110 – SPECIAL CONDITIONS CONCERNING SAFETY MEASURES WITH RESPECT TO PRECIPITATION, FLOOD AND INUNDATION

9) MR 111- SPECIAL CONDITIONS CONCERNING REMOVAL OF DEBRIS FROM LANDSLIDES

Maximum limit of cover - Rs 5,000,000/= anyone event/ In the aggregate for the period of insurance

10) MR 113 – INLAND TRANSIT

Limit of Liability : Rs 5,000,000/00 Anyone event / In the aggregate for the period of insurance

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In respect of Section 2

11) MR 002 - COVER FOR CROSS LIABILITY

12) MR 102 - WARRANTY CONCERNING UNDERGROUND CABLES AND PIPES

Deductibles : (a) 10% of the loss amount, minimum of Rs 75,000/= any one occurrence

(b) 20% of the loss amount, minimum of Rs 50,000/= any one occurrence

13) MR 120 – VIBRATION, REMOVAL OR WEAKENING OF SUPPORT

Any one Event - Rs 2,000,000/00

In the aggregate for the period of insurance - Rs 5,000,000/00

Excess - 10% with a minimum of Rs 100,000/= on each and every claim.

Conditions : Safety and other Sign Boards relevant to the construction should display at the construction area (Written in letter Sinhala/Tamil & English) Eg: " Danger – Men at work " / " No Parking) ".

Exclusion There will be no liability under the policy in respect of inevitable damage under section 2 (Third Party Property) unless the affected building or property is 15 ft. away from the place where excavation/ cutting / digging/piling of any sort whatsoever is carried out.

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2) TYPE OF OVER : WORKMEN COMPENSATION INSURANCE

Scope Of Cover : As per standard Workmen Compensation Insurance Ordinance including Riot & Strike Cover.

All other terms & conditions : As per standard Janashakthi Insurance PLC policy.

Occupation : Contractors

Location : Madawachchiya

Period of Cover : 20 Months (Dates to be advised)

Estimated Wages : Rs 102,500,000/00

Number Of Employees : 160

Category / ies of Employees : All Categories

Provisional Premium : Rs 256,250/00Rs 38,437/50 Rs 294,687/50

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Basic PremiumRiot & StrikeSubject to Taxes

Rs 338,403/26

(Inclusive of Rs 400/= Policy Fee, 0.3% Administrative Charges, Stamp Duty, 2% NBL & 12% VAT)

Condition : Employees should always wear safety gears whilst working.

Special Claim Condition

This quotation is based on the understanding that it is a new project and therefore no records of past claims.

This quotation is subject to satisfactory survey of the premises by the insurer's own surveyor, Methods statement and completed proposal form being submitted prior to confirming cover and valid up to 30 days from the date of this quotation. Upon submission of required documents Janashakthi Insurance PLC Engineer will provide recommendations on risk management & improvements to be complied by the client.

We trust the above terms are acceptable. Should you require any further clarification please do not hesitate to contact Mr Dilshad Raffaideen or the undersigned.

Yours faithfully,JANASHAKTHI INSURANCE PLC

Rishad M J M INSURANCE EXECUTIVE - TECHNICAL DEPARTMENT

RM/pp/Consulting Engineers - 0971

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