RAYALSEEMA EXPRESSWAY PVT. LIMITED.

Letter No: REPL/SPV/Aarvee/11.2/2084 To Team Leader Independent Engineer, Aarvee Associates Architects Engineers & Consultants Pvt. Ltd. Plot No.225, Lalitha Nagar, NGOs Colony, Nandyal 518 502, Dear Sir, Sub: Design Engineering, Financing, Procurement, Construction, Operation and Maintenance of for four laning of Cuddapah Kurnool section of NH-18 from the existing Km 167.750 to Km 356.502 in the state of Andhra Pradesh under NHDP Phase-III BOT Basis Change of Scope Reg. Dated: 23.02.2012

Ref: 1. Concession Agreement for above mentioned Project was signed on 11 February 2010 between NHAI and REPL. The appointed Date of the Project had been declared by NHAI as 15 November 2010. 2. In accordance with the Concession Agreement, the scope of the Project during construction period include construction of the Project Highway on the site set forth in Schedule-A and as specified in Schedule-B together with provision of Project facilities as specified in Schedule-C, and in conformity with the specifications and standards set forth in schedule-D. 3. In Schedule-B of the Concession Agreement, the features of 4-laning are included. These features include different types of cross sections required to be developed in different segments of the Project Highway. This Schedule also specifies that the alignment plan and vertical profile of the Project Highway are to be designed as per provisions of manual of specification and standards for 4-laning of National Highways through PPP published by Ministry of Road Transport and Highways. Among others, this Schedule comprises details of various structures to be constructed as part of Project Highway. 4. Schedule-C of the Concession Agreement includes details of Project Facilities to be constructed. 5. Schedule-D of the Concession Agreement deals with specification and standards for 4-laning. 6. In compliance with the obligation set forth in Clause-12.3 of the Concession Agreement, the Concessionaire has been furnishing drawings for review to the Independent Engineer and proceeding with construction thereafter. 7. Additional works and services, which are not included in the Scope of the Project as contemplated by the Concession Agreement, are to be dealt in accordance with Atricle-16 of the Concession Agreement. 8. Details of additional works not covered under Scope of the Project defined vide Para-2 above are brought out as below.

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// 2 // A. Additional works in Road Portion / Works The general principles given in the Manual of Specification and Standards for 4-laning of National Highways had been followed for geometric (horizontal and vertical) design of the highway. In following these specifications, it was necessitated to raise the FRL much above the existing road level. In general, the typical cross sections given in the Concession Agreement shows only overly on existing c/w and FRL of both new c/w and existing c/w are same. The raise in FRL as per actual execution has resulted in additional embankment quantity. Detailed calculations in this regard are enclosed at Annexure-2A. Based on these calculations, the additional cost has been worked out as Rs.82,28,02,551. B. Additional works in Structures Portion / Works a) Increase in length of the Major Bridges: (i) Kundu Bridge at Km.290+205: In accordance with the details provided vide Appendix BX, Schedule-B of the Concession Agreement, the proposed span arrangement was 8 x 26m in line with this arrangement, the design and drawing was submitted to IC for review. The additional cost involvement on account of increase in length of Bridge is Rs.2,36,60,888. (ii) Vakkileru Bridge at Km.236+360: In accordance with the details the details provided vide Appendix-BX, Schedule-B of the Concession Agreement, the proposed span arrangement was 5 x 26m.In line with this arrangement, the design and drawing was submitted to IC for review. The additional cost involvement on account of increase in length of Bridge is Rs.1,27,20,083. Detailed calculations in this regard are enclosed at Annexure-3A. b) Additional Structures (i) Minor Bridges: Details of Minor Bridges are provided vide Appendix B-XI, Schedule-B of the Concession Agreement. Among others, these details include locations of Minor bridges. In addition to the locations specified in the Concession Agreement, it is required to construct minor bridge at Km.352+000 and 354+700 based on site topography. The additional cost involvement on account of these two minor bridges is Rs.3,32,90.087. Detailed calculations in this regard are enclosed at Annexure-3B. (ii) Box Culverts: Details of Box Culverts are provided vide Appendix B-XII, Schedule-B of the Concession Agreement. Among others, these details include locations of Box Culverts. In addition to the locations specified in the Concession Agreement, it is required to construct Box Culverts at 29 more locations based on site topography. The additional cost involvement on account of these 29 Box Culverts is Rs.11,77,66,979. Detailed calculations in this regard are enclosed at Annexure-3C.

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// 3 // (iii) Pipe Culverts: Details of Pipe Culverts are provided vide Appendix B-XII, Schedule-B of the Concession Agreement. Among others, these details include locations of Pipe Culverts. In addition to the locations specified in the Concession Agreement, it is required to construct Pipe Culverts at 35 more locations based on site topography. The additional cost involvement on account of these 35 Pipe Culverts is Rs.30,372,296. Detailed calculations in this regard are enclosed at Annexure-3D. c) Change of type of Structure: (i) Box Culvert to Minor Bridges: In accordance with the details provided vide Appendix B-XII, Schedule-B of Concession Agreement, Box Culverts were proposed at certain locations. To accommodate the design discharge, the box culverts are replaced with minor bridges at 3 locations i.e., at Km.183+928, 227+230 and 328+162. The additional cost involvement on account of these 3 minor bridges is Rs.2,78,34,886. Detailed calculations in this regard are enclosed at Annexure-3E. (ii) Pipe to Box Culverts: In accordance with the details provided vide Appendix B-XII, Schedule-B of Concession Agreement, Pipe Culverts were proposed at certain locations. To accommodate the design discharge, the pipe culverts are replaced with box culverts at 2 locations i.e., at Km.264+426 and 277+315. The additional cost involvement on account of these 2 Box Culverts is Rs.79,69,697. Detailed calculations in this regard are enclosed at Annexure-3F. d) Reconstruction of existing structures: (i) Minor Bridges: Details of minor bridges are provided vide Appendix B-Xi, Schedule-B of the Concession Agreement. In accordance with these details, existing bridges are to be retained at some locations. Manual of Specifications and Standards for 4-laning of National Highways specifies that, the vertical alignment shall provide for a smooth longitudinal profile and grade changes shall not be too frequent as to cause kinks and visual discontinuities in the profile. In complying with these guide lines, it resulted raise in FRL at some structure locations. This has resulted in additional surcharge on the structure and necessitated to go for reconstruction of existing minor bridges at 3 locations i.e., at Km.189+089, 198+890 and 214+812. The additional cost involvement on account of these 3 Minor Bridges is Rs.1,29,95,747. Detailed calculations in this regard are enclosed at Annexure-3G.

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// 4 // (ii) Box Culverts: Details of Box Culverts are provided vide Appendix B-XII, Schedule B of the Concession Agreement. In accordance with these details, existing box culverts are to be retained at some locations. Manual of Specifications and Standards for 4-laning of National Highways specifies that, the vertical alignment shall be provide for a smooth longitudinal profile and grade changes shall not be too frequent as to cause kinks and visual discontinuities in profile. In complying with these guide lines, it resulted raise in FRL at some structures locations. This has resulted in additional surcharge on the structure and necessitated to go for reconstruction of existing box culverts at 177 locations. The additional cost involvement on account of these 177 box culverts is Rs.11,15,77,771. Detailed calculations in this regard are enclosed at Annexure-3C. e) ROBs: ROB at Km.290+960 (Nandyal Bypass) Railway Track crossing between Nandyal Panyam station on NDL- GTL section: In accordance with the details provided vide Appendix BXIII, Schedule-B of the Concession Agreement, the proposed span arrangement was 3 x 28m. As per the GAD approved by Railway Authorities vide Dy. CE (Br. Design. SCR) Lr.No. W352/G/76 dt. 13.12.2011 communicated by IC vide Lr. No. AA/Nandyal/CK-08.4/1557 dated 19.12.2011 (NHAI forwarding Lr. No. NHAI/PIU-ATP/BOT/ROB/1534 dt. 15.12.2011), it requires to construct two ROBs at this location ROB-1 on Railway Track (Existing) between Nandyal Panyam stations on NDL GTL Section and ROB 2 on Railway Track (Proposed) crossing at Rly Km 3.336 on Nandyal Yerraguntla stations comprising the span arrangement as detailed in GAD drawings. i) ROB at Km.355+835 (Kurnool Bypass): In accordance with the details provided vide Appendix BXIII, Schedule-B of the Concession Agreement, the proposed structural configuration was 4 lane ROB cum Interchange. As per the GAD approved by Railway Authorities vide Dy CE (Br. Design SCR) Lr. No. W352/Y/101 dt. 13.12.2011 communicated by IC vide Lr. No. AA/Nandyal/ CK-08.4/1556 dated 19.12.2011 (NHAI forwarding Lr. No. NHAI/PIU-ATP/BOT/ROB/1533 dated 15.12.2011), it requires to construct 8 lane ROB cum interchange, details as shown in GAD.

9. Details of additional cost on account of Change of Scope of ROBs will be submitted after approval of the detailed design and drawings by Railway Authorities. 10. Aforementioned proposals along with the proposals have already been submitted (shown below) under Change of Scope which are summarized at Annexure 1.