SUPPLIER MONITORING INTERVENTION REPORT

Power Turbo-Systems/Power Environment Plant Alignment Meeting

IRN: T8AA-IR021
Final Conformity Inspection unit # 11

Q. Surveillance/Intermediate
Inspection

Pre-shipment Inspection unit # 11

Project: TERGA Power Plant Project

Equipment : External Piping & De Super Heater

Unit: 011, 021 & 031

Rev. :

Equipment specification :

Inspection & Test Plan: T8AAPSP-ITP-1 Rev. 06-External Piping

Order No. : 101089 IO Reference Contract No.: 66007507 Supplier: PT AP ESI Surabaya, Indonesia

EFU list :

Rev. :

Sub-supplier :

Place of intervention : PT AP ESI Surabaya, Indonesia

Telephone No Fax No

: +62 (31) 329 2080/2088 : +62 (31) 329 2168 Date of Intervention: 09-10 July 2009

Attendees : See on the page 2 on this report

WORKSHOP DELIVERY DATES (Ex-works)

Contractual 01 June 2009

MANUFACTURING PROGRESS PERCENTAGE

Expected
TBA

Realised
- Manufacturing : - Final testing :

Supplier / Sub-supplier
- Packing

Discrepancies report attached :

No

Discrepancies (Number off) :

Major : Minor :

SUMMARY: Next surveillance inspection visit is on 17 July 09:

EOMR files include balance of DPEM files & attestation of conformity not yet submitted to Alstom Windsor. All EOMR submission was reminded to adhere strictly as stipulated in the QCP. The marking of those pipe spool in the 9 (nine) steel skids/frames + 2 (Two) cases were controlled and been inserted into 9 (nine) container that found number of package on Packing list no. T8A8PSP/PL/001 Rev. 10 is equal to the number of package inspected; Satisfactory. Review film RT and reports for unit 21 and 31 that found acceptable were meets Job routing sheets and ASME code Section I or ASME B31.1 requirements as applicable.

Actions: 1. APESI to finalize the compilation of EOMR documents with NOBO sign off Attached Documents : Inspector/Date/Signature : 11 July 2009 Condro Widiyarto/QA AP-W Rep Quality Coordinator/Date/Signature : Report Reference: T8AA- IR021 Distribution :

QUALITY SURVEILLANCE / INTERMEDIATE INSPECTION

Power TurboSystems/Power Environment Plant

Reference Document

Description / Action

1.

SUMMARY/FINDINGS:

Res pon sibl e

Proposed of this meeting is to perform a Quality Surveillance inspection for inserting of pipe spool in steel skid of unit # 11 into container -TERGA piping Project and intermediate surveillance inspection for unit 21 & 31 includes verify the EOMR documents. Attendees: 1) Made Kana Budiana- APESI PM 2) Hendri Arief Setyawan-APESI PQE 3) Rokhmat-APESI QC-Inspector. 4) Condro Widiyarto-EURTREU Inspector as QA APW Rep. Documents used to carry out this inspection was organized with the following documents: o QS-7507-0009 Rev. B-ASME I & B31.1 Pressure Piping Built in Conformance Too o ITP no.: T8AAPSP-ITP-1 Rev. 06A-External Piping o QCP no.: TRG/00/M/.A30/QC/001 Rev. D o QS-7507-0010 Rev. C Final Quality Documentation Submittal Procedure (End Of Manufacturing Report) o Unit 11 Packing List no.: T8AAPSP/PL/01 Rev. 10

2. Shop surveillance inspection: PMI-Intermediate inspection -Unit #31Terga piping : Witnessed PMI on pipe spool P5A no. 31C-4-2-2/1 up to 31C-4-2-2/5 (SA335-P22)that found acceptable as shown in the bellow table were meets specification QCP7.9 Rev. 8. Spool no. material PMI Result PMI Result Accept/ On BM (%) On WM (%) Reject 31C-4-2-2/1 up to 2/5 CR: 2.26-2.60 CR: 2.22-2.82 Accepted MO: 0.71-0.82 MO: 0.74-0.82

Fig. Witnessed PMI on pipe base metal & weld metal of spool no. 31C4-2-2

Unit 11 last pipe spool in steel skid/frame-7- visual inspection appearance before inserted into container that the whole piping supplied free asbestos. Found minor touch up painting is required due to handling for packing arrangement. APESI was rectified at the day after spool inserted into steel skid/frame that found acceptable.

Fig. Before and after touch up on primer painting in frame no. 7

2. Verify Inserting of pipes spool in steel skid/frame into container: Review the packing list T8AAPSP/PL/01 Rev. 10 with the following contains: There were no any particular concerned issues: Grand totals are 808 pieces o Pipe spools on 9 (nine) steel skid/Frame: 448 Pieces o Pipe fitting: 6 pieces (In case no. 0230). o Gasket: 35 pieces (In case no. 0230). o Stud bolt & Nut: 280 pieces (In case no. 0230) o Square Head Plug: 14 pieces (In case no. 0230) o Rolled plate: 10 pieces (In case no. 0448). o Pipe spool: 13 pieces (In case no. 0448 o Loose pipe spool: 2 ea (In case no. 0448)

The following steel skid/frame number was inserted (Except see note) into the following container number. The package number inspected was matched with Packing List no. T8AAPSP/PL/01 Rev. 10 and validated for delivery. STEEL SKID/ FRAME NO. 1 2 3 4 5 6 1 x 40 CONTAINER DRY NO. OOLU 7079452 OOLU 7070769 OOLU 7077402 OOLU 7140784 OOLU 7048277 OOLU 7072397 REMARKS

25 Pipe Spools 32 Pipe Spools 23 Pipe Spools 29 Pipe Spools 56 Pipe Spools 74 Pipe Spools + case no. TRG11-1000230 (see note) 7 OOLU 7135290 97 Pipe Spools 8 OOLU 7046778 75 Pipe Spools 9 TRIU 5667909 37 Pipe Spools + Case no. TRG11-1000448 (See note) Note: 2 (two) case no. TRG11-100-0230 and TRG11-10000448 still storage at ware house.

Fig. Overview Frame no. 1, 2 and 3 was inserted into container

Fig. Steel skid/frame no. 4, 5 and 6 was inserted into container.

Fig. Steel skid/frame no. 7, 8 and 9 was inserted in to container

Fig. Typical ID 1 x 40 dry container as shown on the picture.

3. Review quality documents during this surveillance visit: Unit 11: EOMR files include balance DPEM files and attestation of conformity not yet submitted to AP-W, APESI will submit after completion of compilation/copy/scan of documents required. All EOMR includes balance DPEM documents was reminded to adhere strictly as per stipulated in the QCP. Unit 21: 50 sheets RT Reports for the BP (Boiler proper-ASME Section I PW-11) and NBEP & BEP (RT 100 % ASME B31.1) butt joint piping spools were reviewed that found acceptable to meets code ASME requirements and specification QCP-7.5 Rev. 11. Unit 31: 150 sheets RT Reports for the BP (Boiler proper-ASME Section I PW-11) and NBEP & BEP (RT 100 % ASME B31.1) butt joint piping spools were reviewed that found acceptable to meets code ASME requirements and specification QCP-7.5 Rev. 11.

3. Others: None 4. Attached Photograph: 1) T8AA-IR021-1: Overview 1 x 40 Dry Container with pipe spools in the steel skid/frame inside. 2) T8AA-IR21-2: Overview unit 21 several pipe spools are ready insert into steel skid. 3) T8AA-IR021-3: Overview unit 21 & 31 Pipe spool is under fabrication at bay 7.2