Progress Update on Chuuk State Infrastructure Projects

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PROGRESS OF PROJECTS UNDER DESIGN & CONSTRUCTION
NATIONAL GOVERNMENT PROJECTS
 There are no on-going projects for the National Government due to JEMCO Resolution
regarding College of Micronesia projects.
 Technical Assistance for the PMU
 IDP Update
Harrison Grierson International of New Zealand have been selected by the ADB to
undertake this project. The team leader visited the FSM during the third week in May.
A draft project prioritization framework was presented to National Government
stakeholders for comment and discussion. The same framework was presented to the
states in the first three weeks in June for comment by the institutional specialist. The
institutional specialist met with the PMU to get information on the current organizational
structure and to discuss options for enhancement. It is anticipated that consultants will
return in mid July to work with the States on prioritization of their long list of projects.
The outline of the institutional development report is expected by mid July as well. The
current target date for completion of the project is October 30, 2015.
 Program Management Services for the FSM
A request for proposals was issued by DTC&I on June 17th for program management services
to enhance the capacity of the department to implement infrastructure projects. The deadline
for questions and clarifications was June 30th. The proposal submittal deadline is July 22,
2015.
CHUUK STATE PROJECTS
 Weno Road, Drainage and Utilities Upgrade
Designer: Lyon Associates, Inc.
Contractor: Pacific International, Inc.
Grant Award Number: GR970169
Fund and Program account:
Original Cost: $25,822,348.89
Retention Cost Percentage: 1.4%
Project Start Date: March 25, 2009

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Original Contract Completion Date: March 24, 2012
Current Contract Cost: $28,690,046.69(up to CO#38)
Remaining Contract Cost as of 12/31/14: $3,273,572.01
Contract Completion Date: November 25, 2013
Estimated Contract Completion Date: 2015
Percent Complete: 89
The contractor was terminated for default in early November 2013. The contract balance was
tendered to the bonding company for completion of the work. After 4 months, the bonding
company has not made any decision concerning taking over the project. The PMU invited bids
for completion of the project and received one bid from GPPC in the amount of $11 million.
On May 23rd, the PMU received a certified claim from terminated contract PII for damages in
connection with the termination in the amount of $14.130 million.
After the final adjustment of scope and price, the agreed price for completion was $7.7 million.
On June 11th, Stanley Setiadi Joint Venture (SSJV) was tasked to prepare an independent
redesign and construction cost estimate, completion schedule, and technical evaluation of the
time and cost aspects of PII’s claim. On June 26th, OIA advised that the claim evaluation was
not eligible for grant funding. The PMU immediately suspended the consultant’s work on this
task. This decision severely limits the PMU’s ability to respond to PII’s claim.
On April 26th, the PMU submitted a claim to designer of record, Lyon Associates, for damages
resulting from errors and omissions from the design of the project. The claim of $4 million
represents the upper limit of a range of liability for Lyon. In reality, the PMU and Lyon share
liability in various degrees on each issue. In June, the legal counsel for Lyon recommended a
group mediation between Lyon, FSM, PII and Century Insurance. To date, the FSM has not
agreed to this type of settlement. Lyon has stated unofficially that they will fight vigorously
and also make counterclaims against the PMU.
The PMU has requested an additional meeting with Century Insurance in order to discuss their
intentions regarding assisting the FSM with the completion of the project. Century has insisted
that PII be part of the negotiations. The PMU has declined and insisted that it will meet with
Century and PII only if Century has agreed to take over the project and use PII to complete.
On April 30th, the PMU’s contract with Stanley Sediati Joint Venture (SSJV) expired without
renewal. SSJV demobilized their construction management team in Chuuk. The local
employees were laid off. The PMU hired the 3 local inspectors employed by SSJV to maintain
the project until a new contractor was hired and remobilized. The PMU also took over SSJV
office lease at Truk Trading Company.

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All materials held by PII and paid for by the Government were turned over to the PMU in late
April 2014. The PMU also took over the lease on PII’s warehouse at Nepukos. The PMU also
hired 3 watchmen to maintain security of materials stored at the Iras Quarry and the
warehouse. The watchmen’s contracts were terminated on September 30th. The contracts
were not extended. The inspectors have agreed to take over security responsibilities until
GPPC mobilizes.
A lawsuit was filed by PII against the FSM in December. Preparations are being made for
mediation. DOJ is assisting and providing coordination with the contractor’s attorney.
Mediation meeting is scheduled for June 3rd. Mr. Antonio Piazza is the chosen mediator. FSM
will be assisted by Mr. David Lechner of Falk-Metz Attorneys at Law and Stanley Setiadi Joint
Venture (SSJV).
Mediation was held on June 3, 2015 in Maui. Mediator Anthony Piazza was able to develop a
settlement offer by the end of the day. The offer was signed by PII and concurred by
Department of Justice representative. The FSM Government was given two weeks to accept
or reject the offer. Until the end of June, the FSM has not yet accepted the offer. The FSM
court has extended the stay of PII’s lawsuit until July 20th to allow the FSM leadership time to
consult on the proposed settlement.
 Weno Road, Drainage and Utilities Upgrade Phase 1; Completion
Contractor: GPPC, Inc.
Grant Award Number: D12AF0062, GR970169
Fund and Program account: A1-19-85-52-72241-12/8310:$3,161,686.61
A1-19-85-52-72241-09/8310: $ 824,467.80
A1-19-85-52-72241-14/8518 $3,717,228.00
Original Cost: $3,986,154.41(First Increment)
CM#1 Second Increment: $3,717,228.00
Retention Cost Percentage: 10%
Project Start Date: November 24, 2014
Original Contract Completion Date: October 19, 2015
Current Contract Cost: $8,205,601.42

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Percent Complete (less Retainage): 12.8%
Remaining Project Cost as of 6/30/15: $7,152,425.86
Current Contract Completion Date: April 1, 2016
Estimated Contract Completion Date: April 1, 2016
Work output increased substantially this quarter and included the following tasks on
Road 6 (east of Chuuk High School): Installation and testing of remaining sewer line
and sewer laterals, testing of water main and installation of water laterals. Adjusting
sewer manholes and catch basins to final grade. It is anticipated that road base work
will begin in third week of July and concrete paving in early August. Heavy rains in late
June slowed progress. On Road 1 work included installation of drainage pipe and
drainage structures and testing of old sewer line. A sewer clog in the old sewer main
on Road 1 delayed other work by more than one week while repairs were made.
GPPC has struggled to keep safety officers on site. Their third safety officer reported in
late June. So far there have been no serious accidents. GPPC’s qc manager finally
arrived in mid June. Filling this position is critical to keep the project going smoothly.
An acting qc manager has provided part of this function since early this year. GPPC has
been testing their concrete in Guam due to lack of testing lab on site. The third
progress billing is on hold pending submittal of all concrete test reports for the billing
period. Contractor is still in the process of mobilizing testing lab to Chuuk. GPPC's goal
is to have lab operational before concrete paving begins in early August. GPPC has had
their Vice President for Operations on site continuously since the third week in January
to assist the superintendent. This has been a major factor in GPPC being able to
sustain continuous progress with the work. Since Typhoon Maysak, local dredging
equipment has not been fully functional and coral sand is in short supply. This may
affect progress on backfilling utility trench work with low strength concrete slurry.
The settlement agreement for Iras quarry land claims, lease amendments and survey
maps have been drafted and sent to Department of Justice for legal sufficiency review.
It is anticipated that the documents can be provided to land owners for signature early
next quarter. There is potential for delay of Road 6 paving work if this process is
delayed.

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Recent Pictures of Project:
Rebar and formworks for CB No. 23-7 (Type B) Special CB at Sta. 10+50 Road 6.
Pouring of concrete top slab of CB No. 23-7 (Type B) Special CB at Sta. 10+50 Road 6.
Installation of water lateral in Road 6.

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Installation of 48” Dia. HDPE drainage pipe at Sta. 54+58 Road 1.
Installation of 30” Dia. HDPE drainage pipe from CB No. 23-7 (Type B) SPECIAL CB (Sta.
10+50) to DMH No. 23-3 (Sta. 11+14.99) Road 6.
Delivery of aggregates from K&I to quarry/staging area.

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 Weno Road, Drainage and Utilities Upgrade Phase 1; Completion; Construction
Management
Grant Award Number: D14AF00045
Fund and Program account: A1-19-85-52-72241-14/8512:
Contractor: Stanley-Setiadi Joint Venture (SSJV)
Project Start Date: November 15, 2014
Original Contract Completion Date: February 4, 2016
Remaining Project Cost as of 6/30/15: $1,088,663.44
Current Contract Completion Date: February 4, 2016
SSJV continued their work in managing the construction of the road project. Billings for
November and December work have been received. PMU provided review comments to SSJV and
are awaiting response. Project manager Mr. Lynn Wolfe, PE resigned from his position effective
on July 1st. Currently SSJV’s resident engineer Marlon DeJesus is managing the project with
support from former project manager Richard Senecal from SSJV Guam office. A new project
manager has been recommended and approved by the PMU. It is anticipated that the new
manager Mr. Eufemio Nilles will be on Chuuk within 30 days.
 Weno Road, Drainage and Utilities Upgrade Sewage Lift Station Operations and
Maintenance
Designer: None
Contractor: Chuuk Public Utilities Corp
Grant Award Number: GR970169

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Original Cost: $37,480.00
Project Start Date: December 1, 2013
Original Contract Completion Date: June 30, 2014
Current Contract Cost: $150,371.00
Remaining Project Cost as of 6/30/15: $51,046.96.
Contract Completion Date: August 31, 2015
Estimated Contract Completion Date: August 31, 2015
Percent Complete: 66%
CPUC continues to perform daily monitoring and routine maintenance on the sewage lift stations
associated with the road project. GPPC’s late completion of Road 6 sewer work appears to be
delaying the commissioning of lift station 8, the first lift station to be commissioned under this
contract.
Weno Sewage Treatment Plant Rehab:
Design Build, managed by CPUC.
The contractor is mobilized and doing work on sludge drying beds and other site work
awaiting delivery of electrical and mechanical equipment for the treatment systems. Short
supply of aggregates is affecting progress.
 Chuuk Lagoon Dispensaries Project – Construction
Designer: Beca International Consultants Ltd.
Scope: Construct dispensaries at the following locations: Fefan (Sapore),
Fefan (Ununo), Fonoton (Sapota) , Parem & Romonum
The bid evaluation is now completed. The award recommendation and grant request will be
submitted to OIA early next quarter. PMU is recommending a split bid between contractors
RadioCom and M&R General Contractor. Radiocom was determined as the lowest, responsive
and responsible bidder. However, the Governor of Chuuk sent a letter to the PMU to award the
project to M&R. M&R was the second lowest bidder and their bid bond is not licensed and
registered in the FSM. The PMU sent a grant request to OIA recommending 4 dispensary sites
for Radiocom and 1 dispensary site for M&R. OIA said that such grant for the dispensary is still
subject for JEMCO resolution on August. The PMU is now waiting for the resolution. Award of

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these projects will be issued immediately once the grant is issued by OIA and appropriated by
Congress.
 Chuuk Schools Project Weipat High School, Ettal Elementary School, Pwene (Fefen)
Elementary School, and Eot Elementary School Weipat High School, Ettal Elementary School,
Pwene (Fefen) Elementary School, and Eot Elementary School:
. The PMU has invited proposals for an updated topo survey on the Pwene school site. The main purpose of
this is that the new school building is not shown on the 2006 survey that we have, and we want to ensure that
the new building is entirely on the site before the scoping for this school is done. A contract has been awarded
to Pacific Survey Company of Pohnpei and is in negotiation as of the end of this reporting period. Once the
contract is approved, this work can be completed in approximately 5 weeks, including government review of
mapping submittals. PMU is suggesting site visit for Ettal school for the purpose of scoping. Chuuk State
appears to be opposed. PMU will continue to work until resolved. Damages to the 4 schools due to Typhoon
Maysak are minimal and may be addressed before this project is designed. If not, repairs can be incorporated
into design.
KOSRAE STATE PROJECTS
 Kosrae Hospital:
A grant has been awarded for the HVAC redesign with an additional cost of $146,586.
Beca is working towards 90% design stage. The proposed air conditioning system is
redesigned to reduce the cost of power consumption for the building. Design for temporary
facilities for Public Health, Dental Clinic and the Lab are complete. The bid opening for the
construction of temporary facilities is scheduled for August 28, 2015. A pre-bid conference
is scheduled for July 21, 2015. Design changes are currently being made on the inpatient
building. We have reviewed Beca's cost proposal and are negotiating an agreed price for
the final work to complete this project for bidding.
Designer: Beca International Consultants Ltd.
Grant Award Number: GRX00074
Fund and Program account: A1-19-85-51-70020-10

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Remaining Project Cost as of 6/30/15: $244,714.00
Start Date: June 20, 2012
Current Completion Date: None
Original Contract Completion Date: None
Estimated Contract Completion Date: August 2015
Estimated Design & Construction Cost: $17,000,000 (including FFE)
POHNPEI STATE PROJECTS
 NMS Library Construction Project:
The bid for NMS Library Classroom was opened on December 12, 2014 with three (3)
interested bidders. The Bid Committee had considered Abcor Engineering and Construction as
the lowest, responsive and responsible bidder. The Notice of Award was issued on March 24,
2015 and the PMU requested grant from OIA thereafter. The grant was approved by JEMCO
and was issued by OIA on April 28, 2015. The grant was passed to Congress sometime in May
2015 but was returned. This July Congress session, AG's office is resubmitting for
appropriation by Congress. Once OIA issued the grant, this will be subject for Congress
appropriation. Notice of Award will be expected at the end of May after the execution of the
contract. Construction is expected on 3rd week of June 2015.
 Sekere to NMS Water line Phase 1, Segment 2, COM to Diadi:
Grant Award Number:
Original Cost:
Current Contract Cost:
Remaining Project Cost as of September 30, 2014:

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Start Date:
Original Contract Completion Date: 730 calendar days
Estimated Contract Completion Date:
Percent Complete:
Contractor: To be competitively bid
Cost Estimate: $6,000,000 to $8,000,000
Third Quarter FY2015 Update:
Met with Lyons early July to work out revised project parameters. Lyons to input revisions, run
model, and determine pumps requirements and sizes.
 Parameters for the Sekere and Kinakapw waterline projects. Nick agreed that the
parameters set forth by the PMU are reasonable. Parameters include the following: 1.
Initial number of customers (25% of total service stub outs) 2. Average Daily Demand (to
be increased to 600 gallons/day) 3. System Growth Rate (to be revised to reflect latest
census - Total SSO plus 5% growth) 4. that for modeling purposes the existing systems
and the new systems shall be treated independently.
 That the PMU will work with PUC to provide model numbers and pump curves for the
pumps installed by PUC in wells #3, 6, 8, & 9
 That following the receipt of the model numbers and pump curves complete review and
modeling should take no more than one week for the Sekere project. Note: Nick expects
that complete modeling will be unnecessary and that pumps capacity should be able to be
determined based on GPM and head requirements taken from the pump curves.
 Sekere to NMS Water Wells, Electrical
Contractor: Pohnpei Utilities Corporation
Contract Fee: Construction $23,000
Design Modifications: N/A
Estimated Completion date: March 31, 2015
In an effort to expedite the connection to four (4) water wells in Palikir as part of the Sekere
to NMS Waterline Phase 1, a contract has been issued to the Pohnpei Utilities Corporation
(PUC) to provide all materials, equipment, and labor as required to provide power to each of
the four (4) wells. Work shall include transformers, secondary conductor, meter services, panel
boards, motor starters, controls and all associated materials for complete connection. Upon
completion of work, all four (4) wells shall be ready for connection into the new Sekere to NMS
water system without any additional electrical work by the utility or an outside contractor.

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Pump sizes and electrical requirements for the four (4) locations have been revised by the PUC
since initial design by Lyons and pump electrical configurations will be adjusted by PUC to be
compatible with these revisions.
Work is approximately 50% complete at this time. Upon the completion of work, the Utility
will notify the PMU for testing and inspection of the pump electrical service connections.
As of January 2015, we are still awaiting word from PUC that work has been completed and
that they are ready for final inspection.
Final inspection has been completed on the four well pumps, awaiting invoicing from PUC.
 Kinakapw to Lehn Diadi Waterline Phase 1
Preliminary Budget: Construction $5,300,000 - $6,000,000
Design Modifications: $30,000 (estimated)
Grand No: GRX0074
Account No: A1-19-85-54-70020-10-8514
Retention Cost: N/A
Project Start Date: 9/28/10
Suspended date: 10/14/2011
Reactivation date: 12/6/2013
Contract Completion Date: None
Estimated Completion Date: September 30, 2015
Current Contract Cost: $287,990

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Remaining Cost as of 04/30/2015: $87,359.50
Pre-final drawings have been submitted by Lyons and reviewed by PMU. We are still awaiting
for PUC's comments.
Overall submittal looks good. Significant issues are as follows:
1. Lyons has not provided structural details for the water tank foundation or the tank
construction. Instead writing it into the drawings and specification that the contractor is
responsible to provide stamped shop drawing for these items. Lyons has been informed that
they are responsible for this.
2. Electrical is based on 3-phase supply and VFD drives for the water pumps. PUC has
indicated that they prefer to standardizes to 1-phase pumps without VFD. Lyons to revise
drawings.
Upon receipt of comments from PUC, Lyons will provide updated timeline for final submittal.
Met with Lyons early July to work out revised project parameters. Lyons to input revisions, run
model, and determine pumps requirements and sizes.
 Parameters for the Sekere and Kinakapw waterline projects. Nick agreed that the
parameters set forth by the PMU are reasonable. Parameters include the following: 1.
Initial number of customers (25% of total service stub outs) 2. Average Daily Demand (to
be increased to 600 gallons/day) 3. System Growth Rate (to be revised to reflect latest
census - Total SSO plus 5% growth) 4. For modeling purposes, the existing systems and
the new systems shall be treated independently.
 The modeling for the Kinakapw project will proceed and Lyons will select pump that will
best match the current and future parameters as set in previous item.
 Pohnpei Island Central School (PICS)(Nett), Pohnlangas High School
(Madolenihmw) and Nanpei Memorial High School (NMS) (Kitti) Library/4
Classroom Buildings – Design
Designer: Leo A. Daly
Grant Award Number: 2010-COFA-FSM-INFRASTRUCTURE-FY-10
Fund and Program account: A1-19-85-54-70020-10/8514
Original Contract No: CG 0364
Original Design Contract Cost: $103,000.00 (for 25% plans for D-B Deliverable)

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Design Contract Modifications:
1. Modification #01 - $459,076.00 (Contract No. CI 0345 for 100% design
2. Modification #02 – $22,403.00 (Contract No. CI 0471 additional work for NMHS
and Pohnlangas)
3. Modification #03 - (pending Congress appropriation)
Amount Certified: $551,455.10
Retention Cost Percentage: N/A
Start Date: September 10, 2010
Current Completion Date: NA
Original Contract Completion Date: N/A
Budgeted Total Cost: $5,000,000 (including FFE)
The New Sites for PICS and Pohnlangas were already confirmed by the DOE on November
13, 2014.
The supplemental grant for the relocation of the two sites was issued by OIA on November
13, 2014 of which grant will expire on September 2015. However, this July Congress
session, AG will resubmit the Bill for appropriation.
 Pohnpei Primary Healthcare Facility – Design
Designer: Leo A. Daly
Grant Award Number:

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Start Date: August 17, 2010
Suspend Date: April 2011
Reactivation Date: March 15, 2013
Original Contract Completion Date: None
Estimated Contract Completion Date: May 31, 2015
Preliminary Budget: Construction $5,500,000
On-going work with LAD to establish FF&E Schedule and furniture and equipment layout.
latest has been submitted. Waiting comments from LAD. Following agreement on the FF&E
Schedule LAD will finalize drawing and provide updated timeline for Pre-Final Submittal.
YAP STATE PROJECTS
 Yap High School:
Designer: Beca Consultants
Grant Award Number: GR2011-COFA-FSM-Infrastructure-Yap HS/Voc. Ed.
Total Cost: $4,988,128
Net Change Order: $21,748.61
Revised Contract Amount: $5,009,876.61

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Total Amount Certified: $4,025,179.61
Retention Cost Percentage: 2.70% ($120,521.03)
Remaining project cost as of 06/30/15: $479,018.25
Start Date: February 27, 2012
Completion Date: June 14, 2014
Percent Complete: 75.5%
Building 21 has been turned over to the government. Buildings 22 and 23 are completed
except for the solar shading, solar power system, and data cabling. These items have been
rejected for failure to meet the project specifications. The contractor is in the process of
submitting proposals for correction.
Third Quarter Progress Report
The solar sunshade framing and support members had been sent to the GPPC Saipan Office
for repair of the welded joints and parts. This solar sunshade system is for Building 22 and
Building 23. The repaired members were shipped back to Yap State on June 30, 2015. Prior to
its site erection, the Contractor had set-up the scaffoldings at the rear of Buildings 22 and 23.
Data backbone cables had been installed to inter-connect the three new school buildings and
to connect them to the Administration Building of the High School Campus.
The solar inverter panels and its conduits for both Building 22 and Building 23 were installed.
These had been wired and connected to the solar panels at the roof of the two buildings. To
provide additional space at the electrical room in Building 23, the building distributor had been
transferred to the inside wall of the classroom.
 Yap ECE Furniture
Contractor: Office Place Yap
Contract # - CL0071
Program Account:
Original Contract Amount: $153,914.34
Contract issued: October 14, 2014

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The contractor "Office Place" has won the supply of the furniture for the ECE building. The
contract was served last October 2014 and now the contractor, "Office Place" is preparing for
placing order of the materials.
The first payment in the amount of $76,957.09 for the ECE furniture was received by the
supplier- Office Place only last June 16, 2015. The first partial shipment of furniture arrived in
Yap last June 29, 2015. The second shipment was in Yap last July 15, 2015. We were
informed there will be another shipment but no ETA yet.
Office Place- the supplier of the ECE furniture had received the first payment in the amount of
$ 76,957.09 last June 16, 2015. The first shipment arrived in Yap State on June 29, 2015 and
the second will arrive in the island on July 15, 2015. A third and last shipment of the remaining
furniture does not have an ETA yet.
 Yap Hospital Renovation:
Designer: Beca Consultants
Grant Award: D11AF00016
Program Account: A1-19-85-55-75221-11
Original Contract Amount: $6,888,000.00
Net Change Order: $506,436.93
Revised Contract Amount: $7,394,346.93
Amount Certified: $6,726,061.13
Balance as of 06/30/15: $679,583.35
Start Date: November 8, 2010
Original Contract Completion Date: April 30, 2012
Revised Completion Date: Dec. 31, 2015
Percent Complete: 92.04 percent

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The vast majority of the work in the Hospital has been completed except for several major
systems including the emergency generators, the fire alarm system, the Nurse Call system,
and the water treatment plant.
Due to some defective and missing push button knobs of the nurse call master station control,
a new set of control knobs had been installed. Defective code blue lights were replaced.
Four pieces of circuit breakers for the AHU in Building 8 had been installed. One unit of
overload relay will be arriving in Yap next month.
Repair of the non-slip floor paint in the hallway and corridors is ongoing.

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