REPORT on Physical Audit of Construction Projects for 2016 “Hayastan” All Armenian Fund

Home , Baghanis, Chartar (town), Khachardzan, Lusadzor, Martakert, Sarigyugh

"NORASHEN"

design and technology production cooperative

REPORT on physical audit of construction projects for 2016 “Hayastan” All Armenian Fund

Yerevan – 2017

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Table of Content

Name of the construction project Page

REPORT (general provisions) on physical audit of construction projects of “Hayastan” All Armenian Fund for 2016 4 1. Reconstruction works of RA Yerevan city musical school named after P. Tchaykovskiy 7 2. Reconstruction works of RA Armavir region Nalbandyan village secondary school 14 3. Construction of RA Tavush marz Khachardzan village secondary school gym 21 4. Reconstruction works of RA Tavush marz Khachardzan village water supply system 28 5. Construction of RA Tavush marz Baghanis community irrigation system 32 6. Renovation works of RA Tavush marz Kirants, Yenokavan, Lusadzor, Nerqin Tsaghkavan, Sarigyugh, Sevqar communities roads leading to distant pastures 35 7. Construction works of the oncological center in NKR Stepanakert city 39 8. Reconstruction works of the school No. 9 in NKR Stepanakert city and renovation works of the garden 46 9. Construction of NKR Martuni region Sos village 300-seat secondary school 51 10. Construction works of NKR Martakert region Kochoghut village 150-seat assembly house 59 11. Construction of NKR Shushi region Qarin tak village 50-seat kindergarten 66 12. Construction of a house for G. and L. Avanesyans in NKR Martakert region Martakert town 71 13. Construction of a house for I. Hovsepyan and R. Sahakyan in NKRAskeran region Avetaranots village 75 14. Construction of a house for T. and M. Baghdasaryans in NKR Martuni region Chartar village 78 15. Construction of a house in Varanda village for M. and N. Musayelyans from NKR Martuni region Mushkapat village 82 16. 2-nd stage of construction works of 10 km part of the 3rd section of Sotq-Qarvajar crossroad of NKR Vardenis-Martakert highway 86 17. 2nd stage of construction works of 8.47 km part of the 5th section of Sotq-Qarvajar crossroad 92 of NKR Vardenis-Martakert highway 18. 2nd stage of construction works of 12.6 km part of the 1st section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis-Martakert highway 96 19. 2nd stage of construction works of 9.8km part of the 2nd section of Chareqtar - Drmbon of NKR Vardenis-Martakert highway 100 20. 2nd stage of construction works of 10.1km part of Drmbon-Alishan of NKR Vardenis-Martakert highway 105 21. 2nd stage of construction works of 4.8km part of Alishan-Sarsang of NKR Vardenis-Martakert highway 110 22. 2nd stage of construction works of 8.2 km part of Maghavuz - Martakert of NKR Vardenis- Martakert highway 114

- 3 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

NORASHEN DT PC Design • Construction • Supervision

REPORT (general provisions)

On physical audit of construction projects of “Hayastan” All Armenian Fund for 2016

According to the Contract No. DTC 04-16 signed on November 11, 2016, “Norashen” DTC performed the physical audit of the construction projects (construction sites) implemented by "Hayastan" All-Armenian Fund (physical audit of the construction works) (hereinafter referred to as the “Physical Audit”) during 2016. The report (hereinafter referred to as the "Report") on the results achieved is presented below.

During 2016 "Hayastan" All-Armenian Fund (hereinafter referred to as the "Fund") has implemented 49 construction projects. In the framework of the physical audit 22 of those projects (hereinafter referred to as the "Project") were selected to review. The projects selected are 45% of all the construction projects implemented during 2016. The expenses provided for these projects is 92% of the total construction expenses during 2016.

The construction projects selected for the physical audit are as follows:

1. Reconstruction works of RA Yerevan city musical school named after P. Tchaykovskiy 2. Reconstruction works of RA Armavir region Nalbandyan village secondary school 3. Construction of RA Tavush marz Khachardzan village secondary school gym 4. Reconstruction works of RA Tavush marz Khachardzan village water supply system 5. Construction of RA Tavush marz Baghanis community irrigation system 6. Renovation works of RA Tavush marz Kirants, Yenokavan, Lusadzor, Nerqin Tsaghkavan, Sarigyugh, Sevqar communities roads leading to distant pastures 7. Construction works of the oncological center in NKR Stepanakert city 8. Reconstruction works of the school No. 9 in NKR Stepanakert city and renovation works of the garden 9. Construction of NKR Martuni region Sos village 300-seat secondary school 10. Construction works of NKR Martakert region Kochoghut village 150-seat assembly house 11. Construction of NKR Shushi region Qarin tak village 50-seat kindergarten 12. Construction of a house for G. and L. Avanesyans in NKR Martakert region Martakert town 13. Construction of a house for I. Hovsepyan and R. Sahakyan in NKR Askeran region Avetaranots village

- 4 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

14. Construction of a house for T. and M. Baghdasaryans in NKR Martuni region Chartar village 15. Construction of a house in Varanda village for M. and N. Musayelyans from NKR Martuni region Mushkapat village 16. 2-nd stage of construction works of 10 km part of the 3rd section of Sotq - Qarvajar crossroad of Vardenis - Martakert highway 17. 2nd stage of construction works of 8.47 km part of the 5th section of Sotq - Qarvajar

crossroad of Vardenis - Martakert highway 18. 2nd stage of construction works of 12.6 km part of the 1st section of the crossroad of Qarvajar - Chareqtar of Vardenis - Martakert highway 19. 2nd stage of construction works of 9.8km part of the 2nd section of Chareqtar - Drmbon of Vardenis - Martakert highway 20. 2nd stage of construction works of 10.1km part of Drmbon - Alishan of Vardenis - Martakert highway 21. 2nd stage of construction works of 4.8km part of Alishan - Sarsang of Vardenis - Martakert highway 22. 2nd stage of construction works of 8.2 km part of Maghavuz - Martakert of Vardenis - Martakert highway

The purpose of the physical audit is to obtain reasonable assurance providing that the implemented construction works comply with approved design-estimation documents that received expertise conclusion and the requirements of the existing construction norms and rules that are in force in the territory of the Republic of Armenia and the Republic of Nagorno Karabakh, through examination of construction sites and studies of design-estimation, technical and other documentation and specifications thereof.

In the framework of the physical audit we have implemented the examination of the design and technical documents related to the construction projects/objects included in the list of the review, visual inspection of the buildings in the construction territory and of the construction works implemented, alternative control measures, checking of the correspondence of the construction works actually done with the examined and approved design/technical documents and with the requirements of the construction norms and rules existing in the territory of the Republic of Armenia and the Republic of Nagorno Karabakh.

The scope of the physical audit does not include the review of the construction expenses, financial documents, as well as other financial data, comparison of the expenses, acceptance acts, payment and other financial documents with the actual expenses, analysis of the construction pricing, review of the correspondence of the expenses with the normative/legal documents and/or market prices, review of the purposefullness and effectiveness of the expenses done.

The physical audit does not include the authoritative and the construction quality technical control works, the quantity, dimensional measures, measurements, laboratory and/or tool reviews defined by the law of the Republic of Armenia.

The structure of this Report is as follows: general information on each construction project (site), the description (characteristics) of the construction and description of the construction, reconstruction, capital renovation or reparation works carried out in the scope of the project are presented, followed by statements on observed violations, shortcomings or omissions (if any). Each observation is followed by a recommendation on eliminating the irrelevance, deficiency and/or omission detected. Afterwards recommendations on elimination of the observed shortcomings and omissions are provided. The description of the construction project is summarized in the conclusion presenting the quality of implemented construction works and their compliance with design-estimation, as well as normative documents of urban development sector. Photos of different segments of construction sites are provided after the description of each construction project.

- 5 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The quantitative indicators and the financial data in the financial statement are provided by "Hayastan" All-Armenian Fund, they are not checked by us and have informative purpose.

This Report is prepared solely for the Fund, with the purpose of being used in its future activities and all the information contained in this Report may not be used for any other purposes. We disclaim liability for any reliance, by third parties, on information contained in this Report.

The Report was initially prepared in Armenian, afterwards translated into English. In case of differences between the Armenian and English versions, the prevailing version is the Armenian one.

Yerevan, May 5, 2017

“NORASHEN” DTC president: G. BAGHDASARYAN

NORASHEN DT PC Design • Construction • Supervision

RA, Yerevan 0038, Halabyan 11-36, Tel: 093504009, 091504009, e-mail: [email protected]

- 6 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

1. Reconstruction Works of RA Yerevan City Musical School Named After P. Tchaykovskiy

General information

1. Name of the construction project (site) Reconstruction Works of RA Yerevan City Musical College Named After P. Tchaykovskiy 2. Donor (sponsor) USA, New-York Committee 3. Location of the construction RA, Yerevan city 4. Time period of the construction activities Start date: 02.02.2015 End date: 14.10.2016 5. Contractor organization implementing the construction "Akhuryan Coopshin" Co. Ltd 6. Contractual price of the construction 1,030,592,330 AMD 7. Construction woks completed as of 31.12.2016 1,030,592,330 AMD 8. Designing organization “HGSN” LLC 9. Design -estimation document development price 15,500,000 AMD 10. Organization realizing follow-on supervision of construction works “HGSN” LLC 11. Price of the follow-on supervision of construction works 5,500,000 AMD 12. Organization realizing technical supervision of "Armenian State Non-Departmental Expert construction works Commission For Construction Designs" CJSC 13. Price of the technical supervision of construction works 8,000,000 AMD 14. Design expertise implementation organization "Armenian State Non-Departmental Expert Commission For Construction Designs" CJSC 15. Price of the design expertise 620,000 AMD

Description of construction works

The construction works of Yerevan secondary musical school named after P. Tchaykovskiy are implemented by “HGSN” LLC by the request of "Hayastan" All-Armenian Fund. Yerevan secondary musical school named after P. Tchaykovskiy was built in 1973, and it now has 600 pupils. It consists of the sports and concert halls block with 12.2x24.0m axis sizes rectangular 2-floor building and the 4-floor educational-administrative building with an anchored floor with 15.7x55.4m axis sizes. The functional connection of the corpuses is ensured by a 2-floor corridor with an anchored floor with 12.8x13.55m axis sizes, which is separated from the corpuses by a deformation juncture. The school is located on an inclined territory. According to the developed design plan, the following works are implemented: - reconstruction of the building according to the technical proposal; - strengthening of the building; - strengthening of the floors; - implementation of the new level of removal; - decoration of the main entrance; - realization of inclined platforms for people with disabilities; - construction of the podium in the ceremony hall; - organization of the filled openings in the classrooms and the workrooms to ensure the lighting.

General reconstruction works The following constructive works are anticipated in the building reconstruction plan:  additional frames are realized to decrease the free flights of longitudinal walls;

- 7 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

 strong discs are realized on the covers with a concrete layer.  reliable mooring of longitudinal and transverse walls is realized;  new platforms and inclined platforms are realized;  new lift hole is realized;  new roofs are realized.

Principal architectural solutions and principles The following works have been implemented by the plan: - new partitions are realized; - new classrooms and workrooms, as well as new bathrooms are designed; - the main entrance is reconstructed; - new ladder is settled from the 2nd floor; - new roof is realized with new gutters and new metal banisters; - the walls, floors, ceilings, main entrance doors are reconstructed; - the polished cover of the external walls are cleaned; - inclined platforms are anticipated in the corpuses for people with disabilities; - new lift is settled for the people with disabilities; - the recreations are repaired. The windows of the recreations are turned into doors, and flowerbeds are placed in front of them; - new doors and windows are placed; - new floors and floor-covers are realized; - the podium of the ceremony hall is reconstructed, the organ is moved, the last five rows of the hall are realized with ladders; - new handrails and grab handles are realized; - external and internal interior works are realized.

Engineering networks The following works are realized by the plan: - realization of the new water-supply and drainage system; - realization of the new heating system; - settlement of the new power-supply equipment and new wires; - realization of the new anti-fire signal system; - settlement of the new audio-video system.

Renovation The following works are realized by the plan: - metal pavilions, benches, lights are placed in the garden; - new monolithic reinforced concrete cover is realized in the inner garden.

Observations and recommendations

In the framework of the physical audit we have identified certain observations based on the examination of the design/technical documents presented to us, as well as based on the examination of the location of construction works implemented in the territory. The observations are presented below:

1. Observation During winter the melted water has heavily flown over the walls from the gutters, since the outlet pipes were stuck with the ice. As a result, the humidity has flown inside from the seams of the stone strands making certain parts of the inner walls wet and damaging them (refer to pictures 4, 13, 14).

Recommendation We recommend placing certain ice-melting cables on the roof slopes and inside the outlet pipes to further avoid such things.

- 8 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

2. Observation According to the plan, the lamps in the sports-hall are fixed to the ceiling, 6.8m high from the floor (refer to pic. 19). The damaged lamps cannot be changed, if necessary.

Recommendation We recommend changing the places of the lamps and placing them to the available height by protecting them from the ball hits with a protective cover.

3. Observation The heating batteries of the gym are placed openly. As a result, they are exposed to hits of balls or other sports equipment (refer to pic. 20).

Recommendation We recommend covering the batteries from the front with wooden baluster shields.

Conclusion

During the physical audit the construction works of the musical school were overall realized, and the school was being exploitated.

The mentioned observations and recommendations should be implemented until the end of the warranty term of the construction works.

Observations identified during the previous year visit were taken into account, and the ommissions are emitted by the construction company, particularly: - the absent fixtures are realized in the roof by a steel wire (refer to pic. 21); - a handrail is placed on the side inclined platform because of the difference of more than 45.0sm (refer to pic. 22).

Except for the mentioned observations identified in the result of the examination of the design/technical documents, as well as based on the examination of the location of construction works implemented in the territory, the construction works are generally realized in compliance with the working plan and the existing construction norms and rules.

Pictures from separate parts of construction area

Pic. 1 Pic. 2

- 9 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 10 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 11 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 13 Pic. 14

Pic. 15 Pic. 16

Pic. 17 Pic. 18

- 12 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 19 Pic. 20

Pic. 21 Pic. 22

Pic. 23 Pic. 24 Pic. 25

- 13 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

2. Reconstruction works of RA Armavir region Nalbandyan village secondary school

General information

1. Name of the construction project (site) Reconstruction works of RA Armavir region Nalbandyan village secondary school 2. Donor (sponsor) Canada, Toronto, Nalbandyans Family 3. Location of the construction RA Armavir region, Nalbandyan village 4. Time period of the construction activities Start date: 22.12.2014 End date: 30.11.2016 5. Contractor organization implementing the construction N1 Shinvarchutyun OJSC 6. Contractual price of the construction 435,811,200 AMD 7. Construction woks completed as of 31.12.2016 435,811,200 AMD 8. Designing organization "GLOMMA" PC 9. Design -estimation document development price 5,500,000 AMD 10. Organization realizing follow-on supervision of construction works "GLOMMA" PC 11. Price of the follow-on supervision of construction works 1,400,000 AMD 12. Organization realizing technical supervision of construction works "Husali Kamar" LLC 13. Price of the technical supervision of construction works 2,200,000 AMD 14. Design expertise implementation organization Armenian State Non-Departmental Expert Commission For Construction Designs" CJSC

15. Price of the design expertise 330,000 AMD

Description of construction works

The construction works of Nalbandyan village secondary school are implemented by “GLOMMA” PC by the request of "Hayastan" All-Armenian Fund.

The school consists of a three-storey educational corpus and one-floor sports hall. The educational corpus consists of 3 corpuses, which are separated from each other by deformation stigmas but connected by an internal territory. These corpuses are placed in front of each other and have a П-form. The central educational complex is located along the village street and has 57.5x10.5m planning sizes, the two vertically mounted lateral buildings are of 30x10.5meters, gym is of 22.6x9.71m. The school has a large fenced area. The walls of the building are constructed with 50-55cm size “Midis” type masonry. The height of the floor of the education building is 3.3m. the height of the floor of the gym is 5m. There are 2 staircases in the building. The roof of the school is renovated, new heating system is realized. New metal-plastic doors and windows are placed. According to the developed design plan, the following works are implemented:

- new r/c frames and walls-diafragmas are realized to increase the territorial heaviness of the educational corpuses; - new staircase is being built in the central corpus; - reinforcement of the walls and floors; - realization of the new bathrooms; - construction of the new shelters and platforms; - construction of the new engineering networks; - destroying the gym, which was in a bad condition;

- 14 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

- construction of the new gym building; - new metal fence is realized along the street in the main entrance of the building; - cleaning of the frontispiece of the educational corpus.

Observations and recommendations

1. Observation There are slopes in the seismic stations dividing the corpuses, alongside the station (refer to pictures 21, 22).The cover in the seismic stations should also be separated by means of constructive components (by 5-10mm width crack-prohibitting stapling). There are lots of such solutions in the sphere of design and construction.

Recommendation We recommend referring to the design organization to develop a respective solution. The constructor will realize that to furtherly keep the cover safe.

2. Observation The heating batteries of the gym are placed openly. As a result, they are exposed to hits of balls or other sports equipment (refer to pic. 10).

Recommendation We recommend covering the batteries from the front with wooden baluster shields.

3. Observation Aqueous cracks have been found on the coverage realized around the gym corpus (refer to pic- s 13, 14). According to the norms, to prevent the aqueous cracks each 6-8m of the coverage concrete should be separated by 10-15mm width anti-aqueous station.

Recommendation We recommend realizing 10mm width stations in the cracks through a cutting tool cutting the coverage stone and the concrete layer till 100mm depth. We also recommend filling the stations with a special adhesive sealant material.

4. Observation The ends of the water outlet pipes of the roof from the garden part have 2m height (refer to pic. 25). As a result, the water flowing from the pipe makes the wall wet.

Recommendation We recommend bringing the pipe to the floor or legthening them making the water flow far from the wall.

5. Observation The handrails of the school ladders have horizontal separations. According to the norms, the handrails of the school ladders should have vertical separations for the security purposes (refer to pic-s 15, 16).

6. Observation A lot of works on RA Armavir region Nalbandyan village secondary school financed by the Fund were not included and envisaged by the design (plan).

- 15 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

 Certain windows on the staircases are on the staircase platform level (refer to pic-s 23, 24). As a result, the glasses are exposed to accidental hits. Besides, the children may break the glass, damage themselves, go outside accidentally, etc. We recommend placing balusters in front of the windows.  The repairment is absent from the building surroundings from the garden side (refer to pic-s 26, 27). We recommend renovating the territory from the garden side.

The above-mentioned works are reasonable to include in the project or implement by another project (according to the benefactor's agreement) to complete the construction of the building and to review the omissions.

Conclusion

During the physical audit the construction works of the musical school were overall realized, and the school was being exploitated.

The mentioned observations and recommendations should be implemented until the end of the warranty term of the construction works.

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

- 16 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10

- 17 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 11 Pic. 12

Pic. 13 Pic. 14

Pic. 15 Pic. 16

- 18 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 17 Pic. 18

Pic. 19 Pic. 20

Pic. 21 Pic. 22

- 19 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 23 Pic. 24

Pic. 25 Pic. 26

Pic. 27 Pic. 28

- 20 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

3. Construction of RA Tavush marz Khachardzan village secondary school gym

General information

1. Name of the construction project (site) Construction of RA Tavush marz Khachardzan village secondary school gym 2. Donor (sponsor) Argentina, Terzyans family 3. Location of the construction RA Tavush marz Khachardzan village 4. Time period of the construction activities Start date: 30.09.2015 End date: 30.01.2017 5. Contractor organization implementing the construction N1 Shinvarchutyun OJSC 6. Contractual price of the construction 139,292,410 AMD 7. Construction woks completed as of 31.12.2016 139,292,410 AMD 8. Designing organization "Umedyan" LLC 9. Design -estimation document development price 3,900,000 AMD 10. Organization realizing follow-on supervision of construction works "Umedyan" LLC 11. Price of the follow-on supervision of construction works 700,000 AMD 12. Organization realizing technical supervision of construction works "Husali Kamar" LLC 13. Price of the technical supervision of construction works 1,200,000 AMD 14. Design expertise implementation organization "Express Mek" LLC 15. Price of the design expertise 200,000 AMD

Description of construction works

The design works of RA Tavush marz Khachardzan village secondary school gym were implemented based on the proposal to contract RA/NN-15/03. The design was implemented by "Umedyan" LLC by the request of "Hayastan" All-Armenian Fund. The land for the construction of the gym is located in the backyard of the open playground. The territory has a little inclination. The building of the gym is a two-storey construction. The hall of the gym is one-storey with 6.0m height. The 1st floor consists of the entrance hall, the gym with 18.0x9.0m sizes playgraound, the sport equipment storage, the trainer's room, the technical room with a separate entrance, the bathroom, the staircase. The 2nd floor consists of antresol, the cloakroom for boys and girls, the showers with bathrooms. The building is realized with monolithic reinforced concrete frame with monolithic reinforced covers, the hall's cover is realized with metal firms. 350mm external walls are self-bearing realized with 200mm thick colourful and uncoloured pumice stone split blocks, 30mm thick thermoplex thermal insulation layer, the internal surface is realized with 100mm thick pumice stone blocks. The external doors are from aluminium, the windows and the internal doors are from metal- plastic. The cover and the ceiling of the hall is realized with coloured roofing sheets with steam insulation and thermal insulation layers, the roof-cover is realized with roofing sheets. The roof of the rest part of the building is covered with zync sheets. The water drainage system of the roof is organized properly. The gym is surrounded by basalt tiles. The territory near the gym is being covered with asphalt.

- 21 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

1. Observation The coverage at the anchored of of the external walls of the school gym is partially damaged (refer to pic-s 2, 13, 14).

Recommendation We recommend repairing the damaged parts of the coverage or otherwise cover the anchored part with basalt tiles.

2. Observation The heating batteries of the gym are placed openly. As a result, they are exposed to hits of balls or other sports equipment (refer to pic. 4).

Recommendation We recommend covering the batteries from the front with wooden baluster shields.

3. Observation Aqueous cracks have been found on the coverage realized around the gym corpus (refer to pic- s 15, 16). According to the norms, to prevent the aqueous cracks each 6-8m of the coverage concrete should be separated by 10-15mm width anti-aqueous station.

4. Observation The design/plan did not envisage balusters in front of the windows of the staircases (refer to pic. 5). The window of the staircase is on the staircase platform level (refer to pic. 5). As a result, the glasses are exposed to accidental hits. Besides, the children may break the glass, damage themselves, go outside accidentally, etc.

Recommendation We recommend placing balusters in front of the windows.

5. Observation The side and upper frames of the window are thermally insulated with the foam when placing the upper lighting windows of the gym. However, the side and upper holes are open (refer to pic-s 23, 24). As a result, the foam will quickly be spoiled under the sun.

Recommendation We recommend covering those holes.

Conclusion

During the physical audit the construction works were already finished in the building.

The mentioned observations and recommendations should be implemented until the end of the warranty term of the construction works.

- 22 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 23 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 24 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 13 Pic. 14

Pic. 15 Pic. 16

Pic. 17 Pic. 18

- 25 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 19 Pic. 20

Pic. 21 Pic. 22

Pic. 23 Pic. 24

- 26 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 25 Pic. 26

- 27 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

4. Reconstruction works of RA Tavush marz Khachardzan village water supply system

General information

1. Name of the construction project (site) Reconstruction works of RA Tavush marz Khachardzan village water supply system 2. Donor (sponsor) Argentina, Families of Terzyans, Kalchiyans, Avagyans 3. Location of the construction RA Tavush marz Khachardzan village 4. Time period of the construction activities Start date: 27.07.2015 End date: 27.10.2016 5. Contractor organization implementing the construction "Nairishin" OJSC 6. Contractual price of the construction 186,318,329 AMD 7. Construction woks completed as of 31.12.2016 185,986,230 AMD 8. Designing organization "Jrtuq" LLC 9. Design -estimation document development price 3,150,000 AMD 10. Organization realizing follow-on supervision of construction works "Jrtuq" LLC 11. Price of the follow-on supervision of construction works 900,000 AMD 12. Organization realizing technical Armenian State Non-Departmental Expert supervision of construction works Comission For Construction Designs CJSC 13. Price of the technical supervision of construction works 1,300,000 AMD 14. Design expertise implementation Armenian State Non-Departmental Expert organization Comission For Construction Designs CJSC 15. Price of the design expertise 220,000 AMD

Description of construction works

Water supply system in RA Tavush marz Khachardzan village is fed from four deep wells the exits of which are very small, and there are losses there, the concrete walls are destroyed: The following was necessary for the renovation:  five catchment constructions;  reconstruction of the 3km long steel water wall;  construction of the 1,2km part of the water-pipe, which is absent;  construction of a 100cubic meters pond;  a chlorination station with a chlorination equipment;  construction of water supply network with plastic pipes and 5.3km long water-meter loops. The pond is anticipated to construct in the south countryside of the village. The territory is a slope not having a great inclination. Source No. 1 is 4.4km south inside the forest. The source catchment is from concrete, and in a satisfactory condition. Source No. 5 is 4.0km south inside the forest. At the moment of the study water quantity was 0.7-0.8litre/sec. Change in design has occurred. Source No. 6 has been added instead of sources No. 2, 3 and 4. The existing pond is on 1135m point with 100cubic/metre quantity. It is envisaged to reconstruct the pond, which is not being exploited now. It will be reconstructed from 2,23km long plastic pipes d=90mm.

- 28 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The existing d=100-150mm pipeline 2.3km part was reconstructed. The catchments in 5 separate areas of the sanitary zone was reconstructed. The distribution network of the village was reconstructed. For that purpose, a d-25-160mm plastic pipeline and one pressure reducing chamber were reconstructed. Anti-fire hydrants are allocated near the village municipality and the school. The existing pond is being renovated, the diagonal parts are being made of concrete, water- proofing is being realized.

Observations and recommendations

During the examination of the design/technical documents, as well as based on the examination of the location of construction works implemented in the territory, no significant defficiencies or ommissions were identified.

Conclusion

During the physical audit the construction works of the water supply system in RA Tavush marz Khachardzan village were overall realized, and the territory was being exploitated. The examination of the design/technical documents, as well as based on the examination of the location of construction works implemented in the territory, the construction works are generally realized in compliance with the working plan and the existing construction norms and rules.

Pictures from separate parts of construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

- 29 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10

- 30 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 11 Pic. 12

Pic. 13 Pic. 14

- 31 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

5. Construction of RA Tavush marz Baghanis community irrigation system

General information

1. Name of the construction project (site) Construction of RA Tavush marz Baghanis community irrigation system 2. Donor (sponsor) - 3. Location of the construction RA Tavush marz Baghanis village 4. Time period of the construction activities Start date: 25.01.2016 End date: 15.09.2016 5. Contractor organization implementing the construction "Gaysat" LLC 6. Contractual price of the construction 38,840,151 AMD 7. Construction woks completed as of 31.12.2016 37,170,730 AMD 8. Designing organization "Gidepinvest" LLC 9. Design -estimation document development price 2,200,000 AMD 10. Organization realizing follow-on supervision of construction works "Gidepinvest" LLC 11. Price of the follow-on supervision of construction works 230,000 AMD 12. Organization realizing technical supervision of construction works "Shinkentron" CJSC 13. Price of the technical supervision of construction works 540,000 AMD 14. Design expertise implementation organization "EKP" LLC 15. Price of the design expertise Implemented by means of design Organization

Description of construction works

The working plan of the construction of RA Tavush marz Baghanis community irrigation system is prepared according to the request of "Hayastan" All-Armenian Fund. The realization of Baghanis community irrigation system is of great significance for the economic development of that border village. The constructed irrigation system consists of two parts. The 1st part is constructed for the community's tilthes, which are anticipated for the grape gardens. The irrigation system for those gardens is constructed of 219mm diameter metal pipelines and separators, and has 898linear/m length. The 2nd part is constructed for the farmlands of Snndzut. The irrigation system is constructed of 219mm diameter metal pipelines covered with hydro-isolated materials. The following works have been implemented in the framework of the construction works of the irrigation system: - trench digging; - welding and dydro-isolation of the pipeline; - putting of the pipelines into the trench and realization of the filling; - settlement of separators and locks; - realization of the platform. All the construction works quality technical control acts and the construction works maintenance book exist with respective registrations.

- 32 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

In the framework of the physical audit we have not identified significant observations and omissions based on the examination of the design/technical documents presented to us, as well as based on the examination of the location of construction works implemented in the territory.

Conclusion

On the day of our visit to Baghanis community in the framework of the physical audit the construction works of the irrigation system were overall realized, and the territory was being exploitation. The examination of the design/technical documents, as well as based on the examination of the location of construction works implemented in the territory, the construction works are generally realized in compliance with the working plan and the existing construction norms and rules.

Pictures from separate parts of construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

- 33 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10

- 34 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

6. Renovation works of RA Tavush marz Kirants, Yenokavan, Lusadzor, Nerqin Tsaghkavan, sarigyugh, Sevqar communities roads leading to distant pastures

General information

1. Name of the construction project (site) Renovation works of RA Tavush marz Kirants, Yenokavan, Lusadzor, Nerqin Tsaghkavan, Sarigyugh, Sevqar communities roads leading to distant pastures 2. Donor (sponsor) France, State of Odesen 3. Location of the construction RA Tavush marz 4. Time period of the construction activities Start date: 08.08.2016 End date: 31.12.2016 5. Contractor organization implementing the construction "Levon the 2nd" LLC 6. Contractual price of the construction 56,444,808 AMD 7. Construction woks completed as of 31.12.2016 46,577,260 AMD 8. Designing organization "HGSN" LLC 9. Design -estimation document development price 2,700,000 AMD 10. Organization realizing follow-on supervision of construction works "HGSN" LLC 11. Price of the follow-on supervision of construction works 330,000 AMD 12. Organization realizing technical supervision of construction works "Shinkentron" LLC 13. Price of the technical supervision of construction works 677,000 AMD 14. Design expertise implementation organization - 15. Price of the design expertise -

Description of construction works

The working plan of the renovation, reconstruction works of RA Tavush marz Kirants, Yenokavan, Lusadzor, Nerqin Tsaghkavan, Sarigyugh, Sevqar communities roads leading to distant pastures is prepared according to the request of "Hayastan" All-Armenian Fund. The road under renovation is of great importance for the economic development of 6 communities, since during summer all the communities use this road for the distribution of agricultural products. The length of this road leading to distant country houses and pastures is 23.5km, of which 4.4km should be renovated and reconstructed. The roads are generally in a bad condition. They become unpassable even after a short rain, the traces of the cars are 50-60cm lower than the road axis digit is. There are a lot of holes, in certain places the ground is of clay. Hence during the design works all these facts have been taken into account, the quality of the ground nearby has been examined, and this is used for the road cover. In the framework of the renovation works of the road the following works have been done:  filling of the holes;  realization of the filling from the rock ground;  realization of the side ditches, which will protect the soil cover from the overflow.

- 35 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The renovation and reconstruction works are implemented in certain places. The construction works should have been finished on December 31, 2016. However, certain part of the works has been transferred to 2017 because of the bad weather conditions. According to the construction acceptance acts presented by the technical control, the following works have been implemented during 2016: Part No. 1 - Portapar-Sevqar crossroad, L=1.0km  land works are finished,  side ditches are realized at 85%. Part No. 2 - Sevqar-Sarigyugh mountain crossroad is a completely new road, the length is 1.0km.  land works are finished,  no side ditch is anticipated, since that part is filled. Part No. 2a - the length is 690m.  80% of extraction is realized,  70% of the filling is realized,  no side ditches are realized,  25% of the final land cover is ready. Part No. 3 - Sarigyugh mountain crossroad-Kirants mountain, the length is 900m.  land works are finished,  land cover is finished, strengthening is anticipated,  90% of side ditches is realized,  90% of the smoothing is realized. Part No. 4 - Sarigyugh mountain crossroad-Kirants mountain, the length is 850m.  45-50% of the land works is realized,  of which 45-50% extraction,  40% of the filling,  80% of the hole filling,  no side ditches are realized yet.

Observations and recommendations

In the framework of the physical audit we have identified certain observations based on the examination of the design/technical documents presented to us, as well as based on the examination of the little part of construction works implemented in the territory. The observations are presented below:

1. Observation The plan is not given to a professional expertise. No independent expertise report exists on the plan.

Recommendation We recommend presenting the plan to an independent urban expertise and acquire the professional organization's report on the plan.

2. Observation Bad weather condition and yet unpassable road did not allow us to pass through the whole road.

In the framework of the physical audit provided by us the information provided in this chapter is based on the design/technical documents, the data provided by the Foundation, as well as the provided and previously taken pictures on different parts of the construction area.

Conclusion

Taking into account the fact that bad weather condition and yet unpassable road did not allow us to pass through the whole road, we could not implement the examination of the location of

- 36 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

construction works implemented in the territory, we cannot give an opinion on the correspondence of the construction works with the working plan and the existing construction norms and rules.

We would like to visit the territory, where the construction works are implemented once more as soon as the works begin to be able to get acquainted with the construction works being implemented and have a possibility to estimate their correspondence with the working plan and the existing construction norms and rules.

Pictures from separate parts of construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 37 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 38 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

7. Construction works of the oncological center in NKR Stepanakert city

General information

1. Name of the construction project (site) Construction works of the oncological center in NKR Stepanakert city 2. Donor (sponsor) French local authority, NKR Government

3. Location of the construction Stepanakert, NKR

4. Time period of the construction activities Start date: 08.06.2015 End date: 22.12.2016 5. Contractor organization implementing the "PANT" LTD construction 6. Contractual price of the construction 1,089,999,930 AMD 7. Construction woks completed as of 1,089,999,930 AMD 31.12.2016Ã. 8. Designing organization "Four Architects" LTD 9. Design-estimation document development 14,653,900 AMD price 10. Organization realizing follow-on supervision of "Four Architects" LTD construction works 11. Price of the follow-on supervision of 5,400,000 AMD construction works 12. Organization realizing technical supervision of NKR Ministry of Urban Development construction works 13. Price of the technical supervision of 9,100,000 AMD construction works 14. Design expertise implementation organization Armenian State Non-Departmental Expert Commission For Construction Designs" CJSC 15. Price of the design expertise 520,000 AMD

Description of construction works

The oncological dispanser of Stepanakart has been implemented by "Narine and Geghani" Ltd, according to the assignement of NKR Ministry of Urban Development and apporved by architectural board of Stepanakert. Furtherly the plan was developed by "Narine and Geghani" Ltd. As a result, the building was redesigned, new facades were developed. The oncological center is designed for 35 patients. It has a rectangular architectural composition and is 46.6.0 m x22.2 m. The construction has three floors and a basement. The basement is connected to the Republican Hospital with a tonnel. The main entrances are organized from the eastern side by 0.00 mark. The basement is planned for military reserve rooms and laboratories. The first and second floors are designed for the administrative part and wards. The surgery room is on the third floor which has an exit to the roof of the second floor. The utilized roof is covered with polished marble slabs. Deck part (below 0.00 mark) is covered with polished marble. The walls which are above 0.00 mark are covered with polished travertine tiles. Internal works have been carried out by using organic substances and bacteria and mold resistant materials. The windows and the exterior and interior doors are made of aluminum profile. The building is equipped with two elevators, a standard one for passenger and another one for patients in beds. The constructive scheme of the buuiding represents a constructive framework of a system of rigid units. The structure of the building is fully implemented by reinforced concrete. The foundation is strip. The size of the collums is 500 mm x500. The roofs are made of reinforced concrete. The external walls which are 400mm thick are implemented with the help of infill frames in the pumice

- 39 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

concrete regular shape with 390x190x188mm size blocks. All reinforced concrete constructions which have contact with soil surfaces are waterproof with 2 layer bitumen mastic:

Engineering networks The engineering networks- heating, water supply and water removal sistems, electricity and lighting, fire warning system, patient oxygen pipelines are duly implemented by the project design in the building.

Improvement The adjacent panels of the structure are paved with polished marble slabs. The sidewalks are made of concrete tiles. The roads are paved.

Observations and recommendations

In the scopes of the physical audit and as a result of the study of design and technical documentation, as well as as a result of the examination of buidling construction works we reported some observations, which are presented below:

1. Observation There are no door stoppers on the floors with some of the doors of the buidling as a result of which being fully opened the doors hit the wall behind and damage them (refer to pic. 15).

Recommendation We recommend instaling doorstoppers.

2. Observation The sinks do not have siphon pipes, instead there are ripple pipes. This is wrong solution, as the convoluted ripple pipes will be easily clogged and in order to clean it the pipe will have to be dismantled. In case with siphon pipes, the problem is solved with the help of cleanout pipe which is under the siphon pipe (refer to pic. 24).

Recommendation We recommend installing siphon pipes under the sinks.

3. Observation The side walls close to the sinks placed in the corner parts of certain wards and doctors' rooms are not covered with tiles (refer ro pic. 25). As a result, the water may make the side wall wet destructing it during the time.

Recommendation We recommend covering the walls with tiles with 60-70cm width and the height should be equal to the tiles on side walls.

4. Observation There are some 5-10mm cracks between the 1-2 windows' stone windowsills and windowpanes, causing immersion of water, melted snow and insects (refer to pic. 16).

Recommendation To fill the cracks with waterproof liquid material.

Conclusion

During the physical audit the construction works were already finished in the building, however the oncological center was not functioning yet due to lack of medical equipement. The mentioned observations and recommendations should be implemented until the end of the warranty term of the construction works. Except for the mentioned observations identified in the result of the examination of the design/technical documents, as well as based on the examination of the location of construction works implemented in the territory, the construction works are generally realized in compliance with the working plan and the existing construction norms and rules.

- 40 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of construction area

Pic.1 Pic.2

Pic.3 Pic.4

Pic.5 Pic.6

- 41 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.7 Pic.8

Pic.9 Pic.10

Pic.11 Pic.12

- 42 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.13 Pic.14

Pic.15 Pic.16

Pic.17 Pic.18

- 43 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 19 Pic. 20

Pic.21 Pic.22

Pic. 23 Pic. 24 Pic. 25

- 44 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 26 Pic. 27

- 45 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

8. Reconstruction works of the school No. 9 in NKR Stepanakert city and renovation works of the garden

General Information

1. Name of the construction project (site) Reconstruction works of NKR Stepanakert city N9 School and renovation of playground areas 2. Donor (sponsor) USA West region, NKR Government 3. Location of the construction NKR, Stepanakert

4. Time period of the construction activities Start date: 17.08.2015 End date: 31.07.2017 5. Contractor organization implementing the "Khachen" CJSC construction 6. Contractual price of the construction 975,979,110 AMD 7. Construction woks completed as of 31.12.2016 401,493,070 AMD 8. Designing organization “Arkhitrav” CJSC 9. Design-estimation document development 13,451,000 AMD price 10. Organization realizing follow-on supervision of “Arkhitrav” CJSC construction works 11. Price of the follow-on supervision of 5,500,000 AMD construction works 12. Organization realizing technical supervision of “Vertical” Ltd construction works 13. Price of the technical supervision of 9,570,000 AMD construction works 14. Design expertise implementation organization “NKR KPP” CJSC 15. Price of the design expertise Implemented by funds of NKR Governement

Description of construction works

The project of the School was designed by “Arkhitrav” CJSC according to the order of "Hayastan" All Armenian Fund. The project was developed based on the conclusion of the technical condition of the building provided by the NKR Urban Development. The school was built in 1970. No renovation works were carried out during the exploitation of the whole building. The school represents strip foundation building composed of 3 blocks. The roofs are made of factory made r/c punched tiles. The carcass of the roof is wooden and the cover is made of corrugated asbestos sheets. Since the school does not meet the present requirements of the school construction, the following amendments were applied by the project. The nine-year school of two parallel classrooms is being renovated, some extra classes for children with special needs were added, and two pre-school groups are being planned. The school workshops, laboratories, kitchen unit, infirmary have been improved. Special attention was paid for initial military training classroom, foreseeing an adjacent armory and shooting space. According to the concusion of the technical condition of the building seismic vulnerability level was improved. All structures of the blocks are built with longitudinal and connecting transverse walls. In areas where the cross compliance of the walls does not comply with the norms requirements, r / c frames were installed. Since the width and length of the building proportionality does not comply with the norms of stone buildings, it was necessary to carry out seismic stitches in longitudinal parts. All external openings were reinforced. Outer walls reinforcement has been invisaged. During the reinforcement of the wall the outer plaster is cleaned and piles are placed in the drilled holes for connecting rebar nets. Reinforcement of covers with r/c was invisaged. Partitions are made in lightweight concrete block. External windows and doors are invisaged to be made of metal, the interior doors of MDF. The interior design works are plastered with alabaster and

- 46 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

cement gravel, further painted with latex paint. The ceilings are plastered with alabaster with further painting. Suspended ceilings are also envisaged. According to the current norms a new staircase is envisaged in the central block, new metal staircase is also envisaged in the school and kindergarder blocks. The existing external staircase of the gym was dismantled and instead a new r / c staircase was built. The current r / c staircase of the basement in the first block was dismantled and new r / c staircase was placed. The staircase leading to the technical floor of the second block is envisaged to me metal. Facade works are envisaged with marble slabs coverings, plastering and painting, marble cornice. All metal constructions and elements are painted with anticorrosive paints. The new roof covering is metal tile roofing. It is invisaged to install snow retention systems on the roof.

Observations and recommendations

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring an independent professional organization's expertise report on the construction design.

2. Observation During construction, work safety rules are violated. The staircase of the general block and the side parts of the stair flight were left open (picture 3, 10) before the installation of the handrails, due to which workers can fall down.

Recommendation We recommend installing temporary barriers before setting the handrails.

3. Observation Gym heating batteries, according to the project plan, should be placed openly, causing hits from balls and other sports equipment.

Recommendation After completion of the renovation the batteries should be covered with wooden grid shields.

4. Observation During the reniovation works the newly installed doors and windows became dirty.

Recommendation We recommend assigning the constructor to cover the doors and windows with plastic film, fixing it with an adhesive tape.

Conclusion

During the physical audit construction works were in progress. The construction maintenance book existed in the building site. Construction works were held without major violations.

The mentioned observations and recommendations should be implemented during the construction works.

- 47 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of construction area

Pic.1 Pic.2

Pic.3 Pic.4

Pic.5 Pic.6

- 48 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.7 Pic.8

Pic.9 Pic.10

Pic.11 Pic.12

- 49 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.13 Pic.14

Pic. 15 Pic. 16

Pic. 17 Pic. 18

- 50 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

9. Construction of NKR Martuni region Sos village 300-seat secondary school

General information

1. Name of the construction project (site) Construction of NKR Martuni region Sos village 300-seat secondary school 2. Donor (sponsor) USA Western Region, Government of NKR 3. Location of the construction NKR Martuni region, Sos village 4. Time period of the construction activities Start date: 04.08.2014 End date: 31.08.2017 5. Contractor organization implementing the construction "Start Plus" LLC 6. Contractual price of the construction 359 300 340 AMD 7. Construction woks completed as of 31.12.2016 169 616 850 AMD 8. Designing organization "Architrav" LLC 9. Design -estimation document development price Implemented by funds of NKR Government 10. Organization realizing follow-on supervision of construction works "Architrav" LLC 11. Price of the follow-on supervision of construction works 2 000 000 AMD 12. Organization realizing technical supervision of construction works "Armen Babayan" PE 13. Price of the technical supervision of construction works 3 500 000 AMD 14. Design expertise implementation NKR “Urban Development documents organization expertise” CJSC 15. Price of the design expertise Implemented by funds of NKR Government

Description of construction works

The project of the gym and the secondary school of 300 seats of Sos village in Martuni region NKR was implemented "by Architrav" CJSC. The project of school has been developed based on engineering conclusions, technical terms and project task. The school consists of two-story buildings: academic building of 14.8mx36.4m sizes and gym building of 15.4m and 30.85m sizes located not far away from school. The following premises are located in the academic building: the entrance hall for small groups, the director’s office, medical clinic, library, computer classrooms, specialized rooms. The following premises are located in the second floor: classrooms for big groups, teachers’ room, warehouse, Initial Military warehouse, warehouse for cleaners. The constructive scheme of the building represents a framework system with hard knots. The basis are ribbon. The basis of the building are fully implemented by monolithic reinforced concrete. Between the elements of the base the additions are implemented by rectangular stones. The holes are implemented with iron concrete tiles. The base of roof is implemented with wood , the cover is from shaped plate. The anchor segment up to 0,00 mark will be faced with marble slabs. The remaining parts of walls will be implemented with cement sand plaster and painted with faced paint. On the main front side will be polished marble slabs supplements. Exterior and interior doors are made of aluminium. Windows are made of metal plastic. The interior walls are decorated with plaster and ready to be painted. Bathroom walls are faced with ceramic tiles. The cover of floors in corridor and on staircases are of marble tiles. According to the project the floors in classrooms and working rooms will be parquet, in bathrooms will be ceramic tiles.

- 51 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The gym building represents itself a seismic seam detached two-storey area and playground. The following buildings are located at the two-storey part: the trainer’s room, cloakrooms with toilets and showers, sports equipment room. The second floor is designed for storage rooms and balcony for spectators. The construction system and materials used in the gym are the same as that of educational building. The playground is covered with metal farms, the cover-color-shaped plate. The two-storey covering part is realized with iron concrete plates with holes, roof base is made of wood, the cover is from color-shaped plate. During the physical audit the construction works were carried.

Observations and recommendations

During the physical audit as a result of visual examination of construction works, as well as the design and technical documentation provided to us, we implemented certain observations, which are presented below:

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring the independent professional organization's expertise report on the construction design.

2. Observation The provisions on staircases of construction norms RACP 21-01-14 (Chapter VI.4, points 78, 91) were not taken into consideration under the project.

78. Staircases should be separated from adjacent areas (corridors, waiting rooms, porches, foyers and other similar rooms) with fire protection walls and doors.

91. Staircases should have exit to the area immediately adjacent to the building or through the porch, separated from adjacent corridors by doors, dividing walls. From two staircases to the general porch in case of evacuation exit one of them, besides from exit to the porch, should have exit directly to the outside. Staircases of Ch1 type should have exit only directly to the outside.

3. Observation The electrical panel is planned to install on the staircase. This violates the requirements of point 84, chapter VI.4 of RACP 21-01-14 construction norm.

84. In the staircases it is not allowed to deploy pipelines with flammable gases and liquids, built-in cabinets, besides the cabinets designed for fire hydrants and communication lines, electrical cables and wires (with the exception lighting wirings for staircases and corridors), to embed accommodations of any significance, to provide exits from passenger elevators and hoists, as well as to deploy equipment coming out of the wall surface up to 2,2m height from the surface of rung and landing.

4. Observation Three windows from four on the roof do not have opening shutter: the shutters are directly attached to the window frame and the approach to window is closed (refer to pic-s 21, 22).

Recommendation We recommend implementing the windows with opening shutter, and cut the across parts of window.

5. Observation Some interstices remained between certain window frames and windowsills (see pictures 9,10).

Recommendation We recommend eliminating those interstices. Besides, the underneath of window frame needs to be filled with foam, in order to ensure insulation.

- 52 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

6. Observation Some connections of roof base elements are implemented incompletely, particularly: a) The connection of diagonal brace and rafter is incomplete (see picture 12). On the switching sector, on the chevron, needs to be done internal cut, in which the diagonal brace is installed. b) The implemented truss bar (refer to pic. 18) does not match the project design. c) The stand is not designed by the project design under the angular chevron, when the chevron flight reaches up to 6.0m. The constructor has installed a stand under the chevron, but not in a right way (refer to pic. 20). First of all, the stand must lean against the ground sill, which must have 2.0 m length. The connection of the stand and the rafter must be as described in point a). d) Diagonal brace lean node on ground sill is not properly implemented (refer to pic-s 6, 11).

Besides the above mentioned one we can notice in the project the excess of diagonal braces in some parts of roof. Particularly from “A” pivot axis to “D” axis reaching couples are leaned against the purlins with two places, therefore there is no need to place diagonal braces under the couples.

Recommendation We recommend applying to the design Organization to thoroughly develop and provide the drafts for those nodes.

7. Observation According to the design the gym roof is closed with eaves wall, in its two front sides (refer to pic-s 23, 27). This solution makes complications in the roof structure, causing drainage difficulties. Besides, the rectangular shape of the front part seems rude and unattractive, than if it were triangular. At the same time it is not appropriate for excessive weight and cost.

Recommendation We recommend for further siting of buildings redevelop, make the roof with two slopes and with triangular front.

8. Observation The platform and stairs are designed on the exit side of gym by the project. The stairs down from the platform are intersected with the iron/concrete column rising out of the wall, which reduces the width of staircases from 1200 mm to 800 mm (refer to pic-s 34).

Recommendation We recommend either to turn the stairs to the opposite direction 1800 or to the direction of door opening, and avoid the above mentioned problem.

Conclusion

During the physical audit construction works were in process. There was a construction maintenance journal with respective notes and comments.

Recorded observations should be eliminated during the construction by working order.

Besides the above mentioned observations found out as a result of visual examination and the study of design and technical documentation, construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

- 53 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 54 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 55 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 13 Pic. 14 Pic. 15

Pic. 16 Pic. 17 Pic. 18

Pic. 19 Pic. 20

- 56 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 21 Pic. 22

Pic. 23 Pic. 24

Pic. 25 Pic. 26

- 57 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 27 Pic. 28

Pic. 29 Pic. 30

Pic. 31 Pic. 32

Pic. 33 Pic. 34

- 58 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

10. Construction works of NKR Martakert region Kochoghut village 150-seat assembly house

General information

1. Name of the construction project (site) Construction works of NKR Martakert region Kochoghut village 150-seat assembly house 2. Donor (sponsor) French Local Body, NKR Government 3. Location of the construction NKR Martakert region Kochoghut village 4. Time period of the construction activities Start date: 08.06.2015 End date: 30.12.2016 5. Contractor organization implementing the “Chanshin” LLC construction 6. Contractual price of the construction 157,701,000 AMD 7. Construction woks completed as of 31.12.2016 157,697,170 AMD 8. Designing organization “Cottage” LLC 9. Design -estimation document development 1,363,000 AMD price 10. Organization realizing follow-on supervision of “Cottage” LLC construction works 11. Price of the follow-on supervision of 946,000 AMD construction works 12. Organization realizing technical supervision of "Vertical" LLC construction works 13. Price of the technical supervision of 1,570,000 AMD construction works 14. Design expertise implementation organization “NKR KPP” CJSC 15. Price of the design expertise Financed by NKR Government

Description of construction works

Martakert region Kochoghut village 150-seat assembly house is realized by "Cottage" LLC. The building is a two-storey building with sizes 18,0x10,8 m and one-storey building with sizes 24,0x12,0 m. The structural scheme of the assembly house is realized with “cubic” stone bearing walls, monolithic kernel-columns, frames and seismic border-beams. The constructive scheme of the hall has monolithic framed foundation. The bases are ribbon with ratchel concrete strengthened with monolithic fundamental frame or border. The covers are realized from congregating monolithic tiles and metal firms. The roof is covered with wooden tiling, the cover is of coloured metal tiles. The walls are realized with “cubic” stone, which are connected with the pillar-kernels with a reinforcing network with 600mm reinforcements, and with hall pillars with 600mm foam/plastic and metal corners. The coverage of the interior design is plastered, the bathrooms are realized with cement-gravel pebbly. The walls are coloured with latex. The walls of the bathrooms are covered with ceramic tiles. The cover of the floors in the staircases and platforms, as well as the corridor halls of the building are from polished marble tiles. The floor of the hall is from granite tiles, the floor in the administrative rooms is from parquet. The doors and windows of the assembly house are from metal-base laminate. The external anchored part of the building is covered with 0.00-digit polished marble tiles. The external coverage of the walls is realized with cement-gravel pebbly coloured with fence colour. The territory has a stone fence, on which metal banisters are placed. The territory near the building is covered with asphalt. The building is covered with basalt tiles, the side-stones are from basalt.

- 59 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

1. Observation The construction design is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring the independent professional organization's expertise report on the construction design.

2. Observation The opening on the window in the basement is 0.5mx0.5m (refer to pic. 11). This does not correspond to the sizes given in the plan. According to anti-seismic norms, the opening should be 0.6mx0.7m.

Recommendation We recommend widening the opening of the window.

3. Observation The inclinations of the sills on certain windows are realized toward the window frame (refer to pic. 12). Meanwhile the inclination should be in the opposite side.

4. Observation The inclination of the platform near the entrance is drastic and does not correspond to the requirements of the existing norma (refer to pic. 14). According to the norms, the inclination should be 1:8 - 1:12.

5. Observation Certain rafters were not fixed with steel wires (refer to pic. 15).

Recommendation We recommend fixing all the rafters with steel wires.

6. Observation No heating system is envisaged in the building by the construction design.

Conclusion

During the physical audit the construction works were overall realized, and the assembly house was being exploitated.

The mentioned observations and recommendations should be implemented until the end of the warranty term of the construction works.

- 60 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of construction area

Pic.1 Pic.2

Pic.3 Pic.4

Pic.5 Pic.6

- 61 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.7 Pic.8

Pic.9 Pic.10

- 62 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.11 Pic.12

Pic.13 Pic.14

Pic.15 Pic.16

- 63 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.17 Pic.18

Pic.19 Pic.20

Pic.21 Pic.22

- 64 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.23 Pic.24

Pic.25 Pic.26

- 65 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

11. Construction of NKR Shushi region Qarin tak village 50-seat kindergarten

General information

1. Name of the construction project (site) Construction of a house for T. and M. Baghdasaryans in NKR Martuni region Chartar village Construction of NKR Shushi region Qarin tak village 50-seat kindergarten 2. Donor (sponsor) Affiliates of Argentina, Greece and Cyprus, Ekzerchieanner and Devechieanner families, Krikor Shimshiroghlu, NKR government 3. Location of the construction NKR Shushi region village Qarin tak 4. Time period of the construction activities Start date: 01.12.2015 End date: 25.02.2017 5. Contractor organization implementing the construction "Araqs Group" LLC 6. Contractual price of the construction 151 103 330 AMD 7. Construction woks completed as of 31.12.2016 113 975 00 AMD 8. Designing organization "Story Project" LLC 9. Design -estimation document development price 1 150 000 AMD 10. Organization realizing follow-on supervision of construction works "Story Project" LLC 11. Price of the follow-on supervision of construction works 900 000 AMD 12. Organization realizing technical supervision of construction works NKR Ministry of Urban Development 13. Price of the technical supervision of construction works 1 500 000 AMD 14. Design expertise implementation NKR “Urban Development documents organization expertise” CJSC 15. Price of the design expertise Implemented by funds of NKR Government

Description of construction works

The 50-seat kindergarten project in Qarin Tak village Shushi region was carried out by "Stroy- proyect" LLC. This kindergarten in Qarin Tak was designed for 50 children. The building is one-storied, with the external dimensions 22.4 m x18,8m. The area provided to the kindergarten is 2745.0sq.m. In the area, besides the kindergarten building, there is also a boiler room, children's playgrounds. The area is surrounded by support walls and metal fence. The following is installed in the structure of kindergarten: - For two groups (each for 22 child), with their bedrooms and buffets, - Kitchen - Laundry - Health clinic - Administrative rooms.

The basis of the house are ribbon, implemented with butabeton. Walls are implemented by stones of 190x190x390mm size, petitions with pumice blocks. Covering is implemented r/c slabs with holes. The external doors and stained-glass windows are from aluminum profile; internal doors and windows are from metal-plastic. The roof is from wooden frame colored metallic tile.

- 66 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The anchor part of the building is revetted with marble slabs. The fringes of the window are covered with polished marble slabs. The remaining external parts of the walls are decorated with sand cement plaster, designed with putty and are ready for facade paint. The external stairs are implemented with rubble masonry and are revetted with polished marble slabs. The inside walls are decorated with plaster, putty and are ready for painting. The walls of bathroom and laundry are coated with ceramic tiles. The floor coatings is from wooden parquet and ceramic tiles. The heating system, electricity and lighting, water supply and sewage system are implemented in the building. It should be noted that the design documents are made in a foreign language: Russian.

Observations and recommendations

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring the independent professional organization's expertise report on the construction design.

2. Observation The external stairs of the main entrance gave a residue, as a result of which the aqueous cracks appeared on the stair structure joining border of lateral walls of stairway (see picture 13, 14).The problem occurred because of the absence of aqueous seam.

Recommendation Later, in order to avoid the occurrence of stair cracks on the stairway horizontal area, we recommend implementing seams with 10mm width, by cutting the concrete cover and the stone cover up to 100 mm depth. Fill the seams with waterproof liquid airtight material.

3. Observation In some windowsills and window frames from stone there were gaps left of nearly 5-10 mm (see picture 15), where could easily penetrate atmospheric water, melted snow and insects.

Recommendation We recommend filling the gaps with waterproof liquid material.

4. Observation It wasn't planned to install basalt closures on the four corners of the building walls (refer to pic. 16).

Recommendation It is proposed to implement tin aprons on the horizontal sections of closures, in order to protect the stone from rain and snow, and prevent the future deterioration.

5. Observation The heating of the kindergarten, according to the plan, will be implemented through the wood fuel boiler installed in the boiler house. In case when the village has gas heating boilers and this will be cheaper and more effective.

6. Observation On one part of the fence serving as a supporting wall aqueous crack appeared (refer to pic. 17), damaging the finishing plaster and stone cap. Since the crack is aqueous, after renovating the plaster and the closure it will appear again.

- 67 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Recommendation We recommend implementing seam with 10mm width by cutting the stone of closure and the rubble cover up to 100mm depth.

Conclusion

During the physical audit construction works were in process. There was a construction maintenance journal with respective notes and comments. Recorded observations should be eliminated during the construction by working order. Except for the above-mentioned observations found out as a result of visual examination and the study of design and technical documentation, construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 68 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8 Pic. 9

Pic. 10 Pic. 11 Pic. 12

- 69 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 13 Pic. 14 Pic. 15

Pic. 16 Pic. 17

- 70 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

12. Construction of a house for G. and L. Avanesyans in NKR Martakert region Martakert town

General information

1. Name of the construction project (site) Construction of a house for G. and L. Avanesyans in NKR Martakert region Martakert town 2. Donor (sponsor) Western Region USA 3. Location of the construction NKR Martakert region town Martakert 4. Time period of the construction activities Start date: 12.10.2015 End date: 17.10.2016 5. Contractor organization implementing the construction “Dvin” LLC 6. Contractual price of the construction 25 413 000 AMD 7. Construction woks completed as of 31.12.2016 25 407 010 AMD 8. Designing organization "ROOF" LLC 9. Design-estimation document development price Implemented by funds of NKR Government 10. Organization realizing follow-on supervision of construction works "ROOF" LLC 11. Price of the follow-on supervision of construction works 150 000 AMD 12. Organization realizing technical supervision of construction works NKR Ministry of Urban Development 13. Price of the technical supervision of construction works 250 000 AMD 14. Design expertise implementation NKR “Urban Development documents organization expertise” CJSC 15. Price of the design expertise Implemented by funds of NKR Government

Description of construction works

The design of a house is typical and is applied in different villages of NKR. The project is developed based on design assignment to carry out in rural areas. The project was implemented in the regions of 8-9 magnitude seismic activity, for the estimated external temperatures -15 ° -20 ° (winter) and + 15 ° + 40 ° (summer) and for standard snow cover of 100kg/sq.m.

Project description

The basis of the house are ribbon, rubble concrete. The walls are implemented of cubic stones. Covering is implemented constructive r/c slabs with holes. Partitions are implemented from light concrete. Floors are implemented with wooden and ceramic tiles surfaces. The roof is from wooden frame with tin colored cover. Interior is implemented with alabaster and cement plaster, painted with latex and watercolour. Exterior is implemented with cement plaster, painted in façade. Water supply is carried out by connecting to the water supply network. Drainage is connected to the sewage system, heating is individual and air condition is natural. Electric power supply is implemented by aerial cable.

- 71 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring an independent professional organization's expertise report on the construction design.

2. Observation It was not designed by the project and was not implemented during the construction to make window sills (refer to pic. 17.). This would cause the disruption of cement-sand plaster of window sills because of humidity and would penetrate from the window frame inside of it.

3. Observation Plaster cracks appeared on the front (refer to pic. 15).

Conclusion

On the day of physical audit the construction works of the house were completed, the house was exploited and was resided.

The above mentioned observations and recommendations should be implemented before the end of the warranty period of construction.

Except for the above-mentioned observations found out as a result of visual examination and the study of design and technical documentation construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of construction area

Pic. 1 Pic.2

- 72 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 3 Pic.4

Pic. 5 Pic.6

Pic. 7 Pic.8 Pic.9

- 73 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 10 Pic.11 Pic.12

Pic. 13 Pic.14 Pic.15

Pic.16 Pic.17

- 74 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

13. Construction of a house for I. Hovsepyan and R. Sahakyan in NKR Askeran region Avetaranots

General information

1. Name of the construction project (site) Construction of a house for I. Hovsepyan and R. Sahakyan in NKR Askeran region Avetaranots village 2. Donor (sponsor) Affiliate in Lebanon 3. Locat ion of the construction NKR Askeran region Avetaranots village 4. Time period of the construction activities Start date: 12.10.2015 End date: 31.10.2016 5. Contractor organization implementing the construction "Elitstroy" LLC 6. Contractual price of the construction 23 112 300 AMD 7. Construction woks completed as of 31.12.2016 23 103 900 AMD 8. Designing organization "ROOF" LLC 9. Design -estimation document development price Implemented by funds of NKR Government 10. Organization realizing follow-on supervision of construction works "ROOF" LLC 11. Price of the follow-on supervision of construction works 130 000 AMD 12. Organization realizing technical supervision of construction works NKR Ministry of Urban Development 13. Price of the technical supervision of construction works 230 000 AMD 14. Design expertise implementation NKR “Urban Development documents organization expertise” CJSC 15. Price of the design expertise Implemented by funds of NKR Government

Description of construction works

Project description

- 75 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring an independent professional organization's expertise report on the construction design.

2. Observation Drainage pipes were installed in 800mm height from the ground (see pictures 4 and 5), causing water drops to wet and disrupt the anchor plaster.

3. Observation The external walls of the surface were damaged and plaster scattered places could be noticed (see picture 6).

4. Observation The upper layer of concrete blind area was disrupted (see picture 3,5).

Conclusion

On the day of physical audit the house was resided. Besides the above mentioned observations found out as a result of visual examination and the study of design and technical documentation construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of the construction area

Pic.1 Pic.2

- 76 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic.3 Pic.4

Pic.5 Pic.6

Pic. 7 Pic.8

- 77 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

14. Construction of a house for T. and M. Baghdasaryans in NKR Martuni region Chartar village

General information

1. Name of the construction project (site) Construction of a house for T. and M. Baghdasaryans in NKR Martuni region Chartar village 2. Donor (sponsor) Toronto, Canada, Nalbandyan family 3. Location of the construction NKR Askeran region Avetaranots village 4. Time period of the construction activities Start date: 12.10.2015 End date: 30.12.2016 5. Contractor organization implementing the construction "Esqiz" LLC 6. Contractual price of the construction 25 082 200 AMD 7. Construction woks completed as of 31.12.2016 25 070 220 AMD 8. Designing organization "Vertical" LLC 9. Design -estimation document development price Implemented by funds of NKR Government 10. Organization realizing follow-on supervision of construction works "Vertical" LLC 11. Price of the follow-on supervision of construction works 150 000 AMD 12. Organization realizing technical supervision of construction works NKR Ministry of Urban Development 13. Price of the technical supervision of construction works 250 000 AMD 14. Design expertise implementation NKR “Urban Development documents organization expertise” CJSC 15. Price of the design expertise Implemented by funds of NKR Government

Description of construction works

Project description

- 78 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring the independent professional organization's expertise report on the construction design.

2. Observation It was not designed by the project and was not implemented during the construction to make window sills (see picture 6, 9, 14). This would cause the disruption of cement-sand plaster of window sills because of humidity and would penetrate from the window frame inside of it.

3. Observation On the blind area around the house the aqueous cracks were appeared (see picture 15 and 16). In order to avoid aqueous cracks, each 6-8m sections of concrete blind area and facing should be separated with anti-aqueous seam with 10-15mm width.

Conclusion

On the day of physical audit the house was resided.

The above mentioned observations and recommendations should be implemented before the end of the warranty period of construction.

Besides the above mentioned observations found out as a result of visual examination and the study of design and technical documentation construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of the construction area

Pic. 1 Pic.2

- 79 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 3 Pic.4

Pic. 5 Pic.6

Pic. 7 Pic.8 Pic.9

- 80 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 10 Pic.11 Pic.12

Pic. 13 Pic.14

Pic. 15 Pic.16

- 81 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

15. Construction of a house in Varanda village for M. and N. Musayelyans from NKR Martuni region Mushakapat village

General information

1. Name of the construction project (site) Construction of a house in Varanda village for M. and N. Musayelyans from NKR Martuni region Mushakapat village 2. Donor (sponsor) Western Region USA 3. Location of the construction NKR Martuni region Varanda village 4. Time period of the construction activities Start date: 12.10.2015 End date: 30.08.2017 5. Contractor organization implementing the construction “Hayr yev Vordi Musayelyanner” LLC 6. Contractual price of the construction 26 380 000 AMD 7. Construction woks completed as of 31.12.2016 15 415 000 AMD 8. Designing organization "Vertical" LLC 9. Design -estimation document development price Implemented by funds of NKR Government 10. Organization realizing follow-on supervision of construction works "Vertical" LLC 11. Price of the follow-on supervision of construction works 150 000 AMD 12. Organization realizing technical supervision of construction works NKR Ministry of Urban Development 13. Price of the technical supervision of construction works 260 000 AMD 14. Design expertise implementation NKR “Urban Development documents organization expertise” CJSC 15. Price of the design expertise Implemented by funds of NKR Government

Description of construction works

Project description

- 82 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Observations and recommendations

1. Observation The construction design/(plan) is given to a professional expertise to NKR KPP CJSC. However, no expertise report exists on the design.

Recommendation We recommend acquiring an independent professional organization's expertise report on the construction design.

2. Observation The lintels of doors between partitions were implemented in a wrong way (see pic. 6,7). The linters must either be from concrete at least 100mm height or must be implemented with special blocks designed for linters.

Recommendation We recommend dismantling the wrong linters and implementing the new ones in a right way. Apply to the designer for developing a detailed plan for node.

Conclusion

On the day of physical audit the construction works of the house were in process. The recorded observations should be eliminated in working order, during the construction. Besides the above mentioned observations found out as a result of visual examination and the study of design and technical documentation construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

- 83 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10 Pic. 11

- 84 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 12 Pic. 13

Pic. 14 Pic. 15

Pic. 16 Pic. 17

- 85 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

16. 2-nd stage of construction works of 10.0 km part of the 3rd section of Sotq-Qarvajar crossroad of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2-nd stage of construction works of 10.0 km part of the 3rd section of Sotq-Qarvajar crossroad of NKR Vardenis-Martakert highway 2. Donor (sponsor) Marathon 2013-2016, Governments of RA and NKR 3. Location of the construction NKR Shahumyan region 4. Time period of the construction activities Start date: 25.12.2015 End date: 31.10.2017 5. Contractor organization implementing the "Haykshin" LLC construction 6. Contractual price of the construction 932,944,887 AMD 7. Construction woks completed as of 31.12.2016 451,283,570 AMD 8. Designing organization "Artsakhroad" Institute CJSC 9. Design -estimation document development 56,500,000 AMD (The project is developed for price 48.5 km, including the 1st phase) 10. Organization realizing follow-on supervision of "Artsakhroad" Institute CJSC construction works 11. Price of the follow-on supervision of 7 200 000 AMD construction works 12. Organization realizing technical supervision of “Avtoban” LLC construction works 13. Price of the technical supervision of 12 000 000 AMD construction works 14. Design expertise implementation organization “RA State Non-Departmental Expertise of Designs” CJSC 15. Price of the design expertise 1,695,000 AMD

Description of construction works

The work project of the construction works of Vardenis-Sotq-Qarvajar crossroad of Vardenis- Martakert highway is designed according to the order of "Hayastan" All Armenian Fund. The 3rd part is P/P221+00-P/P321+00 part. The newly-built road is passing along the administrative area of NKR Shahumyan region. The existing road previously has a ground cover. The minimum radiuses of horizontal curves are 20-30 meter, the maximum longitudinal deviation is 95%. According to the given order, the road is of the 4th technical type:  The calculated speed - 40km/h  Land cover width - 10m  Carriageway width - 7m  Pillar width - 1,5m  The smallest radius of horizontal curve - 55m  Minimum snake-scroll radius - 10m  The roadbed is from asphalt concrete.  Maximum lengthwise curvature - 90% The structure of the roadbed is anticipated to implement in the following way:  Gravel layer h= 10cm  Sorted pebble h=20cm with bitumen distribution 4,12 t/1000 sq.m  Large asphalt concrete h=6cm  Small asphalt concrete h=4cm Five new water removal pipes are anticipated to be build on this part of the road and three already existing water removal pipes should be repaired.

- 86 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The following is also done for the traffic security:  Road signs  Barriers  Signal columns  Road lining During the physical audit land works were in process but still there were many collapses. Additional construction works were carried out on this part, i.e implementation of drainage systems on only five sections of 1,196 gts.m. an average of 2.5-3.0m deep. At the end of 10km part of the 3rd section of Sotq-Qarvajar crossroad, where there no collapses asphalt pavement works of the inner layer h=6cm 35,000 sq.m, large asphalt concrete h=6cm, 30,747sq.m, small asphalte concrete h=4cm, 30,747 sq.m were implemented according to the construction acts. The remaining parts of land cover is completed, the ground cover is in satisfactory condition, where covering work can be carried out.

Observations and recommendations

Observations  This part differs from others with a great number of serpentines and bends. It has a complex geological structure of ground cover and the existence of groundwater, which complicates the implementation of construction works. As a result, slides and collapses constantly occur on the road. It was proposed to transfer the axis of the road to the extraction side if it is possible. A number of measures have been implemented, but did not give any noticeable result.  According to the plan developed by the project organization as an additional measure to prevent landslides, monolithic concrete abutment was built on the side of the road padding. During this year's physical audit implemented by us, we observed that the abutment has numerous cracks and stands on the verge of collapse. It shows that the slides and collapses continue to exist.  According to another plan developed by the project organization drainage systems are intended to implement. Relevant working projects have been submitted. Drainage systems were implemented in accordance with the working projects submitted, with a depth of 2.0- 2.5m.  On one part the project organization offered to restore the collapsed area with rocky grounds. Relevant working projects have been submitted. Restoration works have been implemented.  Because of landslide the output of culverts was completely covered with ground.  During the observation, we noticed that there are many cracks and ground water on that area of road that came out to the surface. These cracks could cause a collapse at any moment.  Because of the severe winter and heavy snow partial collapse of slopes have occurred, that flows to the side streams and prevents the water drainage from road. These must be quickly removed.

Recommendations  We recommend performing additional geological and hydrological studies, since the depth of sliding ground and the level of underground water in unknown. First of all it is necessary to find out the reasons of these collapses occur. If it is proved to be landslide process, it will be necessary to think about changing the axis by leaving the landslide area. After that will become clear whether it is worth to implement extra costs for additional structures and systems, or it will be necessary to think about roundabout.

- 87 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

 The asphalt concrete cover realization should be made after giving final solutions to collapses and landsides as a result of additional geological and hydrological studies.

During the physical audit as a result of visual examination on the rest areas of the road we did not notice any significant omissions and shortcomings.

Conclusion

During the physical audit road construction works were in process. There was a construction maintenance journal with respective notes and comments made by representatives of organization realizing technical supervision and follow-on supervision on technical quality control. Technical inspection acts and laboratory experiment results of road cover are in hand. The recorded observations should be eliminated and the recommendations should be implemented in working order, during the construction. Besides the above mentioned observations found out as a result of visual examination and the study of design and technical documentation, the construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms. The results of additional thorough studies and deep examinations on the mentioned part of road are essential for the solutions of above mentioned problems and for further normal exploitation of the whole road.

Pictures from separate parts of construction area

Pic. 1 Pic.2

Pic. 3 Pic. 4

- 88 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10

- 89 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 11 Pic. 12

Pic. 13 Pic. 14

Pic. 15 Pic. 16

- 90 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 17 Pic. 18

- 91 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

17. 2-nd stage of construction works of 8.47 km part of the 5th section of Sotq-Qarvajar crossroad of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2-nd stage of construction works of 8.47 km part of the 4th section of Sotq-Qarvajar crossroad of NKR Vardenis-Martakert highway 2. Donor (sponsor) Marathon 2013-2016, Governments of RA and NKR 3. Location of the construction NKR Shahumyan region 4. Time period of the construction activities Start date: 25.12.2015 End date: 31.10.2017 5. Contractor organization implementing the construction "HaykShin" LLC 6. Contractual price of the construction 827,291,751 AMD 7. Construction woks completed as of 31.12.2016 574,500,581 AMD 8. Designing organization "Artsakhroad" Institute CJSC 9. Design -estimation document development 56 500 000 AMD (The project is developed for price 48.5 km, including the 1st phase) 10. Organization realizing follow-on supervision of construction works "Artsakhroad" Institute CJSC 11. Price of the follow-on supervision of construction works 4 700 000 AMD 12. Organization realizing technical supervision of construction works “AYG” LLC 13. Price of the technical supervision of construction works 8 000 000 AMD 14. Design expertise implementation “RA State Non-Departmental Expertise of organization Designs” CJSC 15. Price of the design expertise 1 695 000 AMD

Description of construction works

8.47km part of the 5th section of Sotq-Qarvajar crossroad of Vardenis-Martakert highway passes through NKR Shahumyan region administrative area. According to the given order, the road under design is of the 4th technical type. The project was realized according to the normative documents and typical projects of RACP – 9th 11.05.02-99. The technical parameters accepted according to the 4th technical type during the designing process are:  Land cover width – 10.0m  Carriageway width – 7.0m  Pillar width – 1.5m  Maximum lengthwise curvature - 90%  The smallest radius of horizontal curve – 55.0m  The roadbed is from asphalt concrete. The roadbed has the following construction:  Gravel layer hmid=12cm,  Sorted pebble h=20cm with bitumen distribution 4.12 t/1000 sq.m,  Hot spongy large asphalt concrete h = 6cm,  Hot spongy small asphalt concrete h = 4cm: For the traffic security the following measures are taken:  Metal barriers,

- 92 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

 Signal reinforced concrete columns,  Road signs,  Road lining

During the physical audit on the date of our visit construction works of the 1st stage were already completed and from the 2nd stage the following construction works were implemented, i.e gravel layer 62,079sq.m, sorted pebble with bitumen distribution 67,455 sq.m and lower layer of large asphalt concrete h=6cm 65,258sq.m. The upper layer of small asphalt concrete had not yet been implemented. Technical inspection acts on the finished works were in hand. The road near Qarvajar canyon passes very close to the river. For that reason an abutment was built on the right road. Additionally metal culvert was built, the construction of its two headquarters was not yet completed. The manufacture of an asphalt concrete was built on such an area of the road, so as the hot asphalt concrete would reach to the respective temperature as defined by construction norms, as the quality of the road depends on it. Technical inspection acts, as well as the laboratory testing protocols on thickness determination of samples taken from different parts of the road, were in hand.

Observations and recommendations

During our visit in the scope of the physical audit as a result of visual examination of construction works, as well as the design and technical documentation provided to us, we did not notice any significant omissions and shortcomings.

Conclusion

During the physical audit road construction works were in process. There was a construction maintenance journal with respective notes and comments. Technical inspection acts on construction works completed and the laboratory testing results on road cover samples were in hand. As a result of visual examination and the study of design and technical documentation, we could mention that construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

- 93 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 3 Pic. 4

Pic. 5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10

- 94 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 11 Pic. 12

Pic. 13 Pic. 14

Pic. 15 Pic. 16

- 95 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

18. 2-nd stage of construction works of 12.6 km part of the 1st section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2-nd stage of construction works of 12.6 km part of the 1st section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis- Martakert highway 2. Donor (sponsor) Marathon 2013-2016, Governments of RA and NKR 3. Location of the construction NKR Shahumyan region 4. Time period of the construction activities Start date: 18.05.2015 End date: 31.10.2017 5. Contractor organization implementing the construction "Caravan" LLC 6. Contractual price of the construction 1,235,900,929 AMD 7. Construction woks completed as of 31.12.2016 1,076,760,500 AMD 8. Designing organization "HGSN" LLC 9. Design -estimation document development 33,600,000 AMD (The project is developed for price 22.4km, including the 1st stage) 10. Organization realizing follow-on supervision of construction works "HGSN" LLC 11. Price of the follow-on supervision of construction works 3 000 000 AMD 12. Organization realizing technical “RA State Non-Departmental Expertise of supervision of construction works Designs” CJSC 13. Price of the technical supervision of construction works 6 100 000 AMD 14. Design expertise implementation “RA State Non-Departmental Expertise of organization Designs” CJSC 15. Price of the design expertise 1 000 000 AMD

Description of construction works

The designing works of the construction of 12.6 km part of the 1st section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis-Martakert highway are realized according to the order of "Hayastan" All Armenian Fund. The newly-built highway is the 1st part of 24.0 km Qarvajar crossroad - Chareqtar section. The newly-built road is passing along the administrative area of NKR Shahumyan region. The newly-built road is of the 4th technical type. Its project is prepared according to RACP 9th- 11.05.02-99 normative documents and typical projects. During the designing process the following technical parameters were adopted:  The calculated speed of the movement - 40km/h  Land cover width - 10m  Carriageway width - 7m  Pillar width – 1.5m  Lengthwise curvature - 90%  The smallest radius of horizontal curves - 55m  The roadbed is from asphalt concrete. The road is from reinforced asphalt concrete cover.

- 96 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

It is anticipated to take necessary measures for the rock removal and coast protection for excluding water floods on the roads. In some areas of the road the riverbed was changed to another direction so as to protect the road charge slopes from water flow. Water removal system improvement is also anticipated. For traffic security sidewalks and bus stops are to be placed in those places of the highway, where people live. In some areas high-voltage power poles are planned to be replaced, which are very close to the road. Metal barriers, monolithic concrete signal columns, road signs and road lining are anticipated by the project. Protective abutments are anticipated to place for the rock removal. There are 5 bridges on the highway with different openings, which have been completely renovated. During the physical audit on the date of our visit construction works of the 1st stage were already completed and from the 2nd stage the following construction works were implemented:  Gravel layer 12.6 km  Sorted pebble with bitumen distribution 12.6km  Large asphalt concrete 88,200 sq.m  Small asphalt concrete 74,569 sq.m Road furnishing was not yet implemented.

Observations and recommendations

Observations  Partial collapse of slopes occurred because of heavy snow.  On the areas where two-layer asphalt concrete construction works were made, the pillars were not smooth.

Recommendations  It’s necessary to clean up the collapsed slopes  Implement the smoothing of pillars

During our visit as a result of visual examination of construction works, we did not notice any significant omissions and shortcomings on the rest areas of the road.

Conclusion

On the time of implementation of physical audit construction works were temporarily suspended.

There was a construction maintenance journal with respective notes and comments. Technical inspection acts on construction works completed and the laboratory testing results on road cover samples were in hand.

Recorded observations should be eliminated and recommendations should be implemented during the construction by working order.

- 97 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 98 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 99 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

19. 2-nd stage of construction works of 9.8 km part of the 2nd section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2-nd stage of construction works of 9.8 km part of the 2nd section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis- Martakert highway 2. Donor (sponsor) Marathon 2013-2014, Governments of RA and NKR 3. Location of the construction NKR Shahumyan region 4. Time period of the construction activities Start date: 18.05.2015 End date: 31.10.2017 5. Contractor organization implementing the construction "Caravan" LLC 6. Contractual price of the construction 1,081,096,000 AMD 7. Construction woks completed as of 31.12.2016 1,015,196,600 AMD 8. Designing organization "HGSN" LLC 9. Design -estimation document development 33 600 000 AMD (The project is developed for price 22.4km, including 1st stage) 10. Organization realizing follow-on supervision of construction works "HGSN" LLC 11. Price of the follow-on supervision of construction works 5 500 000 AMD 12. Organization realizing technical supervision of construction works NKR Ministry of Urban Development 13. Price of the technical supervision of construction works 9 600 000 AMD 14. Design expertise implementation “RA State Non-Departmental Expertise of organization Designs” CJSC 15. Price of the design expertise 1 000 000 AMD

Description of construction works

The designing works of the construction of 9.8 km part of the 2nd section of the crossroad from Qarvajar to Chareqtar of NKR Vardenis-Martakert highway are realized according to the order of "Hayastan" All Armenian Fund. The highway begins from Qarvajar crossroad of Vardenis-Martakert highway and ends at Chareqtar village. The newly-built road is passing along the administrative area of NKR Shahumyan region. The newly-built road is of the 4th technical type. Its project is prepared according to RACP IVth- 11.05.02-99 normative documents and typical projects. During the designing process the following technical normative acts were adopted:  The calculated speed of the movement - 40km/h  Land cover width - 10m  Carriageway width - 7m  Pillar width – 2x1.5m  Lengthwise curvature - 90%  The smallest radius of horizontal curves - 55m  The roadbed is from asphalt concrete.

It is anticipated water removal system improvement by the project. In some places high-voltage electrical wires should be replaced, since they are very close to the carriageway.

- 100 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The road with its full length is passing along the left bank of the river Tartar. The right side of the road is flooded by the river. The bridge located in P/P 62+48.25 was reconstructed in a way to preserve its ancient architectural style. For traffic security metal barriers, monolithic concrete signal columns, road signs and road lining are anticipated by the project. The roadbed has the following construction:  Gravel layer 10cm,  Sorted pebble 20cm with bitumen distribution 4.12 t/1000 sq.m,  Large asphalt concrete h = 6cm,  Small asphalt concrete h = 4cm:

For the traffic security the following measures are taken:  road signs,  metal barriers  signal reinforced columns,  road lining

During the physical audit on the date of our visit construction works of the 1st stage were already completed and from the 2nd stage the following construction works were implemented:  Gravel layer 9.8km  Sorted pebble with bitumen distribution 9.8km  Large asphalt concrete h = 6cm, 64,318sq.m  Small asphalt concrete h = 4cm, 64,318sq.m

That means the land roadbed construction work is completed. Metal barrier is placed in 500gts.m. The remaining part of the work is not yet completed.

Observations and recommendations

Conclusion

During the physical audit road construction works were temporarily suspended.

There was a construction maintenance journal with respective notes and comments made by representatives of organization realizing technical supervision and follow-on supervision on technical quality control.

Technical inspection acts on construction works completed and the laboratory testing results on road cover samples are in hand.

As a result of visual examination and the study of design and technical documentation we could mention, that construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

- 101 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 102 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 103 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 13 Pic. 14

Pic. 15 Pic. 16

Pic. 17 Pic. 18

- 104 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

20. 2nd stage of construction works of 10.1km part of Drmbon-Alishan of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2-nd stage of construction works of 10.1km part of Drmbon-Alishan of NKR Vardenis-Martakert highway 2. Donor (sponsor) Marathon 2013-2016, Governments of RA and NKR 3. Location of the construction NKR Martakert region 4. Time period of the construction activities Start date: 18.05.2015 End date: 31.10.2017 5. Contractor organization implementing the construction "Chanshin" CJSC 6. Contractual price of the construction 900 910 898 AMD 7. Construction woks completed as of 31.12.2016 861,777,242 AMD 8. Designing organization "Ayg" LLC 9. Design -estimation document development 13 500 000 AMD (The project includes the 1st price and the 2nd stages) 10. Organization realizing follow-on supervision of construction works "Ayg" LLC 11. Price of the follow-on supervision of construction works 5 200 000 AMD 12. Organization realizing technical supervision of construction works "Vertical" LLC 13. Price of the technical supervision of construction works 8 900 000 AMD 14. Design expertise implementation “RA State Non-Departmental Expertise of organization Designs” CJSC 15. Price of the design expertise 400 000 AMD

Description of construction works

The newly-built road is passing along NKR Martakert region and is a part of Vardenis-Martakert highway, as well as a part of "North-South" freeway, the construction of which is of great importance for the development of the whole territory. According to the order, the newly-built road is of the 4th technical type. Its project is prepared according to RACP 4th-11.05.02-99 normative documents and typical projects. During the designing process the following technical parameters were adopted:  The calculated speed of the movement - 40km/h  Land cover width - 7m  Pillar width – 0.9 – 1.5m  The largest lengthwise curvature - 90%  The smallest radius of horizontal curves - 55m  The roadbed is from asphalt concrete. The following land works were realized by "Road Construction" CJSC realizing the following construction works: extraction is 84,986 cub.m, the padding is 71,772cub.m. During the designing process in the horizontal and the vertical cutting the water line is passed so that the existing road is maximally used. The vegetarian and the black land is removed. 3,108 cub.m road cover construction is anticipated for two types: Type 1  Gravel layer - 12cm  Road metal layer - 12cm

- 105 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

 Black road metal layer - 8cm  Large asphalt concrete - 6cm  Small asphalt concrete - 4cm Type 2  Hole repair, small asphalt concrete - 5cm  Large asphalt concrete, construction of smoothing layer  The surface of the existing asphalt concrete, after processing 0.5 l/sq.m bitumen - 5sm  Small asphalt concrete - 5cm;  Pillars are from gravel material.

The volume of the road cover is as follows: Type 1 -64,742 sq.m Type 2 - 7,000 sq.m

The pipeline on horizontal and vertical cross-section was carried out so that the existing road could be used maximally. Road signs, lining, signal pillars, metal barriers were anticipated for road furnishing, so as to ensure traffic security. All the changes during the construction were coordinated with the client and the designing organization in written form. It was recommended to install precast concrete parapets along the deep canyons and high padding instead of metal barriers, which was coordinated with the client and the designing organization. These parapets make the traffic more safe. All construction works of 1st and 2nd stages were completed. Large asphalt concrete 68,668sq.m and small asphalt concrete 68,668sq.m were partially completed. Road cover works were completed. Installation of monolithic concrete signal columns 422 was completed, road lining was not made, as well as the installation of metal barriers was not completed. Only metal barriers 1,490gts.m, road signs 471 and 320gts.m concrete parapets were installed.

Observations and recommendations

Observations  On some parts of the road we observed partial rock removal from the land cover slopes,  On the areas where two-layer asphalt concrete construction works were made, the pillars were not smooth.  Side streams were filled on some parts.

Recommendations  It’s necessary to clean up the collapsed slopes  Implement the smoothing of pillars  Implement additional cleaning of side streams.

During our visit as a result of visual examination of construction works, we did not notice any significant omissions and shortcomings on the rest areas of the road.

- 106 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Conclusion

On the time of implementation of physical audit the construction works of 1st and 2nd stages were completed.

Recorded observations should be eliminated and recommendations should be implemented during the construction by working order.

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

- 107 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 5 Pic. 6

Pic. 7 Pic. 8

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 108 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 13 Pic. 14

Pic. 15 Pic. 16

Pic. 17 Pic. 18

- 109 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

21. 2nd stage of construction works of 4.8km part of Alishan - Sarsang of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2nd stage of construction works of 4.8km part of Alishan - Sarsang of NKR Vardenis-Martakert highway 2. Donor (sponsor) Marathon 2013-2016, Governments of RA and NKR 3. Location of the construction NKR Martakert region 4. Time period of the construction activities Start date: 18.05.2015 End date: 31.10.2017 5. Contractor organization implementing the construction "Chanshin" CJSC 6. Contractual price of the construction 452 598 721 AMD 7. Construction woks completed as of 31.12.2016 349,183,850 AMD 8. Designing organization "Dorproject" Institute LLC 9. Design -estimation document development 29 400 000 AMD (The project is developed for price 25.2km, including 1st stage) 10. Organization realizing follow-on supervision of construction works "Dorproject" Institute LLC 11. Price of the follow-on supervision of construction works 2 500 000 AMD 12. Organization realizing technical supervision of construction works "Vertical" LLC 13. Price of the technical supervision of construction works 4 300 000 AMD 14. Design expertise implementation “RA State Non-Departmental Expertise of organization Designs” CJSC 15. Price of the design expertise 882 000 AMD

Description of construction works

The design of 4.8km part of Alishan - Sarsang of NKR Vardenis-Martakert highway is realized according to the order of "Hayastan" All Armenian Fund. The design works are realized by "Road Construction" Institute Co. Ltd. The newly-built road is passing along NKR Martakert region, and is a part of Vardenis-Martakert highway, as well as a part of "North-South" freeway, the construction of which is of great importane for the development of the whole territory. According to the order, the newly-built road is of the 4th technical type. Its project is prepared according to RACP 4th-11.05.02-99 normative documents and typical projects. The carriageway of the designed part does not have an asphalt concrete cover. The existing artificial buildings are filled. New pipes should be placed. During the designing process the following technical normative acts were adopted:  Land cover width - 10m,  Carriageway width - 7m,  Pillar width – 0.6 – 1.5m,  The roadbed is from asphalt concrete,  The largest lengthwise curvature - 90%,  The smallest radius of horizontal curves - 55m,

The profile volume of land works is 109,421 cub.m, of which extraction is 78,715 cub.m, and the padding is 30,706 cub.m. The volume of side streams is 2,411 cub.m.

- 110 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

The following construction works are to be done for the road cover recovery:  Gravel layer - 10cm  Road metal basis=16cm with bitumen distribution 4,12 t/1000 sq.m,  Large asphalt concrete - 6cm,  Small asphalt concrete - 4cm:

Repair of abutments, placement of 10 kw pillar and replacement of a connection wire is anticipated. The following measures are taken for the traffic security:  placement of 107 road signs,  carriageway lining,  placement of metal barriers,  placement of signal pillars.

On the day of the physical audit conducted by us construction works of the 1st stage were fully completed. The following construction works were implemented from the 2nd stage:  Gravel layer distribution along the entire length of the road h=10cm  Sorted pebble with bitumen distribution 4.12t, 1,000sq.m  Large asphalt concrete 33,600 sq.m  Small asphalt concrete 16,310 sq.m  Road furnishing, including placement of 40 road signs and 10 signal pillars

The remaining works by 2nd stage were not implemented.

It was recommended, without changing the estimated price, to install precast concrete parapets along the deep canyons and high padding instead of metal barriers, which was coordinated with the client and the designing organization. These parapets make the traffic safer.

Observations and recommendations

Observations  There was land removal from the slopes of extraction.  There was a collapsed are of the inner layer of road.

Recommendations  It’s necessary to clean up the collapsed slopes.  Recover the collapsed area of the inner layer.

During our visit as a result of visual examination of construction works, we did not notice any significant omissions and shortcomings on the rest areas of the road.

Conclusion

On the time of implementation of physical audit the construction works were in process.

Recorded observations should be eliminated and recommendations should be implemented during the construction by working order.

- 111 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Our previous year observations were taken into account and the detected omissions were corrected by the organization.

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

Pic. 3 Pic. 4

Pic. 5 Pic. 6

- 112 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 7 Pic. 8

Pic. 9 Pic. 10

- 113 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

22. 2-nd stage of construction works of 8.2km part of Maghavuz- Martakert of NKR Vardenis-Martakert highway

General information

1. Name of the construction project (site) 2-nd stage of construction works of 8.2 km part of Maghavuz-Martakert of NKR Vardenis- Martakert highway 2. Donor (sponsor) Marathon 2013-2016, Governments of RA and NKR 3. Location of the construction NKR Martakert region 4. Time period of the construction activities Start date: 18.05.2015 End date: 31.10.2017 5. Contractor organization implementing the construction "Chanshin" LLC 6. Contractual price of the construction 1,191,559,300 AMD 7. Construction woks completed as of 31.12.2016 908,090,800 AMD 8. Designing organization "Avtoban" LLC 9. Design -estimation document development price 11,100,000 AMD 10. Organization realizing follow-on supervision of construction works "Avtoban" LLC 11. Price of the follow-on supervision of construction works 4,000,000 AMD 12. Organization realizing technical supervision of construction works "Vertical" LLC 13. Price of the technical supervision of construction works 6 700 000 AMD 14. Design expertise implementation “RA State Non-Departmental Expertise of organization Designs” CJSC 15. Price of the design expertise 330 000 AMD

Description of construction works

The design of Vardenis-Sotq Qarvajar crossroad of Vardenis-Martakert highway is realized according to the order of "Hayastan" All Armenian Fund. The newly-built Maghavuz-Martakert road is passing along NKR Martakert region, and is a part of "North-South" freeway, the construction of which is of great importance for the development of the whole territory. The road passes with the average height of 500-900m from the seal level. The existing road previously had 6-7m width before reconstruction. The beginning of the road construction would be Maghavuz village crossroad with asphalt concrete cover, and the end would be Azatamartikner street of Martakert city. The length of crossroad was 8,164m. The beginning part of the road with 2.6 km length was built on the existing road base, and on the rest part the road alignment was transferred to the left 2-4m. According to the order, the newly-built road is of the IVth technical type. Its project is prepared according to RACP 9th-11.05.02-99 normative documents and typical projects. During the designing process the following technical normative acts were adopted:  The calculated speed of the movement - 40km/h  Land cover width – 10.0m  Carriageway width – 7.0m  Pillar width – 1.5m  Lengthwise curvature - 90%  The smallest radius of horizontal curves - 55m  Minimum snake-scroll radius - 15m

- 114 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

 The roadbed is from asphalt concrete. On separate parts the width of pillars is 0.9m. The plan was designed in a way so as to use the land cover maximally. Based on geological research the padding sections of land cover were built from extraction grounds. The excessive soil was taken to the intended part of road. The roadbed with its entire length had the following cover:  Gravel layer hmid=10cm,  Sorted pebble h=20cm with bitumen distribution 4.12 t/1000 sq.m,  The inner layer with hot spongy large asphalt concrete h = 6cm,  The upper layer with hot spongy small asphalt concrete h = 4cm:

The abutments of Azatamartikner street of Martakert city were made from a single-layer asphalt concrete. On the day of the physical audit conducted by us construction works of the 1st and 2nd stages were completed. Within the scope of 2nd stage the inner and upper abutments were constructed, gravel layer and sorted pebble were distributed, large asphalt concrete with inner layer 58,580sq.m and small asphalt concrete with upper layer 58,580sq.m were implemented. From road furnishing works only road signs were placed in the amount of 50%.

Observations and recommendations

Conclusion

Our previous year observations were taken into account, and the detected omissions were corrected by the organization.

As a result of visual examination and the study of design and technical documentation, we could mention that construction works were implemented in accordance with the approved work plan and meet the requirements of existing construction norms.

Pictures from separate parts of the construction area

Pic. 1 Pic. 2

- 115 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 3 Pic. 4

Pic. 5 Pic. 6

Pic. 7 Pic. 8

- 116 -

Report on physical audit of construction projects of “Hayastan” All-Armenian Fund for 2016

Pic. 9 Pic. 10

Pic. 11 Pic. 12

- 117 -

"NORASHEN"

design and technology production cooperative

Design • Construction • Supervision

11-36 Halabyan street, Yerevan 0038, RA, Tel. 093504009, 091504009, e-mail: [email protected]