Issue Metric Jan-19 Feb-19 Mar-19

Risks # Risks
Risks # Mitigation Plans
Risks # Risks wo/ Mitigation Plan
Environment # Pending Non-Conformities
Environment # Environmental Accidents to be solved
Health & Safety IF (Frequency Index) 19.00 17.58 10.78
Health & Safety IG (Global Severity Index) 721.88 448.19 436.50
Health & Safety IA (Accidentability Index) 13.72 7.88 4.71
Legal Claims Value of Pending Claims
Legal Claims Value of Paid Claims
Legal Claims % Estimated claims value over total updated cost
Legal Claims % Paid claims value over total updated cost
Quality # New non-conformities in last month a)
Quality Avg. # new non-conformities in past 6 months b)
Quality % a) / b)
Stakeholders # Issues with Stakeholders
Stakeholders Value at stake

Risks
Health & Safety
Environment
Legal Claims
Quality
Stakeholders #DIV/0!

Total Investment Costs

2017 $71,795,000
2018 $51,197,000
2019 $140,625,000
2020 $183,465,000
2021 $114,835,000
Total $561,917,000
Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
21
18
3
4
0
16.17 14.63 16.46 17.57 16.06 19.89
517.59 476.87 460.93 532.89 512.30 507.80
8.37 6.98 7.59 9.36 8.23 10.10
$29,915
$0
0.0%
0.0%
0
0.00
0%
3
$0
Risk # Risk Axis Risk Origin Risk Type Construction Phase
R6 Strategic Internal_Strategy Stakeholders' Relations Relationship with San Gabán II
R7 Business Markets Renewable Volume -

R15 Operational Processes Procurement Increased Land Acquisition Cost

O&M Phase Risk Approach
Relationship with San Gabán II Retain
Hydro Volume Retain
- Retain
Mitigation Plan Metrics

Risk is retained Runoff, soil moisture, Groundwater Measurements

Risk is assumed
 Observations

undwater Measurements
Due to new transmission
line design
Non-Conformity # Non-Conformity Description
Clogged storage areas due to inadequate Solid
E1 Solid Residues Management Residues Management
Inadequate handling of Wastewater Treatment
E2 Wastewater Treatment Devices devices
E3 Sedimentation Ponds Sedimentation ponds do not work efficiently
Equipments and work fronts without anti-spill
E4 Water Protection kits to prevent water being contaminated
Impact Accidents Caused Mitigation Action

Health and environment hazzard None

Disease None
Lower HPP Efficiency None

Environment hazzard None

Safety Issue # Issue Description Impact
No safe work process, no
safety regulations in Manpower reduction
S1 Blasting Activities compliancy. Project delay
Manpower reduction
S2 Scaffolding No approved procedure Project delay
Manpower reduction
S3 Rock Crashing No adequate equipement Project delay
Inadequate water Manpower reduction
S4 Water Treatment management system Project delay
Part of the upper slope of the
S5 Slope Collapse IOH T4 broke away Right lane of IOH obstructed
Two serious disabling Manpower reduction
S6 Cutting accidents Project delay
Two serious disabling Manpower reduction
S7 For work placement accidents Project delay
Manpower reduction
S8 Cement Slurry Injection Serious disaibler accident Project delay

use of improper equipment

for placement of tunnel five serious disabling accidents Manpower reduction
S9 support bolts and a mild one Project delay
Delay Caused Accidents Caused Risk Level Mitigation Action

High

High

High

High

1 High
On-going Legal Action # Process Reference Description
On the aftermath of August 28th 2018’s inspection a PAS
CUT 57593-2018 was started by SERFOR following alledged deforestation
L1 (PAS 2) of unauthorized area
On the aftermath of August 3rd 2018’s inspection a PAS
CUT 68943-2018 was started by SERFOR following alledged deforestation
L2 (PAS 3) of unauthorized area

OEFA started an administrative procedure againts HGP

for the delay in the filling of an emergency report, which
is an obligation for HGP, regarding the October 13th
2018 event.
2019-I01-013786 Claim value should be below 10% of the previous year's
L3 (PAS 4) earnings.
Criminal investigation against Paulo Miraldo.
The 60-day deadline set for the completion of the
L4 127-2018 preliminary investigations has expired in excess.

Through letter No. 24-2019-MP-FPCyF-CARABAYA, the

Prosecutor requested the plans related to the contracts,
L5 70-2018 a requirement that was compliedon May 6th, 2019.

Through letter N ° 472512-2019-INGEMMET, INGEMMET

admits to process our opposition against the request
"Dragon de Oro Churumayo" and give the other part
L6 Dragon de Oro Churuma seven days to say something about it.

By letter HGP / L-CHO1-CAR-2019-453, Mr. Roger

Quispe's letter was answered explaining the reasons why
his claim lacked support. On June, 03rd, 2019, Mr. Roger
Quispe has replied to HGP reiterating and expanding the
L7 Roger Quispe Claim arguments that support his claim.
Pending response from the institutions to which they
Letters to other entities were informed about the right of HGP on the
L8 (DGEM, DREM PUNO) Churumayo quarry.

The MDSG notify to HGP the nullity of the autorization

on the grounds that it was based on an expired permit
MDSG - Nullity of the and that HGP had enter into an agreement with intersur
L9 authorization for the use of the quarry wich is prohibited by the law.
TOTAL:

UIT S/. USD

1 S/4,150.00 $1,238
S/1.00 $0.30
Issue Actions Claim Value [UIT]

HGP made oral presentation of its defense in Puno (July

Deforestation 2nd 2019) 7.86
HGP filed an appeal challenging the grounds of the
sanction resolution and delving into the legal grounds
Deforestation presented in the defense. 16.3025

HGP has answered to OEFA explaining that the

emergency extended longer than OEFA
is considering, so the deadline for the compliance of
this obligation should be counted
from the moment the real emergency ended.
Non-Compliance Financial information was sent. 0
Defense is based on the EPC contract with CWE: CWE is
liable for all the responsabilities related to the execution
Criminal of the project.

Currently, the Prosecutor is evaluating the need to carry

out more diligences to clarify the facts investigated or
Usurpation decide on the matter.

Land use right

Letter received is being studied and a response is being

prepared. A strategy is being evaluated to mitigate any
Claim risk associated with the exploitation of the quarry.

Land use right

A new application for the refered authorization is going

Authorization to be filed by CWE on behalf of HGP.
Estimated Claim Value [USD] Paid Claim Value Current Status

$9,731.21 $0.00

$20,183.58 $0.00

$0.00 $0.00

$29,914.79 $0.00
Non-Conformity # Non-Conformity

NC1 Standards and Regulations

NC2 Required Documentation

NC3 Organization

NC4 Quality Assurance / Quality Control

NC5 Resources
Description Impact
Documents should be in English or Spanish, not in Chinese Non-conformity with EPC contract
Workers should be trained in Chinese Standards Additional difficulty in following
References to international Standards should be made standards
Components are being built without approved drawings
No designs or calculations are carried out for temporary structures Increase of risk of accidents

CWE does not have the necessary number of manpower

There is no adequate communication between Quality, Construction
and Engineering areas
Quality inspections are not strict enough nor frequent enough Increased ineficiency
No adequate QA/QC is carried out in temporary components
Test periodicity is not constant Safety risk
Some activities are carried out by unsuitable personnel
Best practises for structural elements are not always followed
CWE equipment is not the adequate one at all times Safety risk
Delay Caused Detected Date Mitigation Action

Issues to be analysed and a plan will

N/A be created upon the last TC
Issues to be analysed and a plan will
N/A be created upon the last TC

Issues to be analysed and a plan will

N/A be created upon the last TC
Issues to be analysed and a plan will
N/A be created upon the last TC

Issues to be analysed and a plan will

N/A be created upon the last TC
On-going Legal Action # Issue

SH1 Public Structure Replacement

SH2 Social Investment Plan

SH3 Framework Agreement w/ SG District

Description Action Value at Stake

HGP must:
Build Synthetic Grass Field,
Build fence for Cemetery,
Leaking treatment on the cementery area,
Educational Institution N° 601 Finish everything in 90 days

HGP must:
Deliver Educational Kits for AID an AII;
Hire teachers;
Donate provisions for Mother's day at the AID;
Implement first aid kits;
Give first aid training;
Implement technological tools (computer equipment) in
Educational Institutions of the AID; Implementat school Implement Strategy and Schedule
mobility at the AID. Activities

District / Provincial Meetings

Commemorative Events
Secondary Forest Research Committee Member
Ongoing Forest Nursery Project Create Technical Committee Table
Ongoing Citizen Monitoring and Surveillance Committee of Development of the District