Design activities for this report period included: (1) Mechanical. Stress analysis calculations were performed on the steam/water pressure piping. Pipe support design and drawings were completed by Duke Fluor Daniel. The fluid bed distributor bubble cap design was revisited and changes made for ease of maintenance. (2) Electrical and Instrumentation. Control and instrumentation scheme proposed earlier, was based on independent single loop controllers. After careful review, it is decided to go for state of art distributed control system (DCS) which uses programmable logic controllers (PLC). In addition, coal/limestone pickup hopper fabrication was completed during this period and shipped to the site. The coal/limestone floating caps have been made at MTCI and ready for shipping. All major equipment installation was completed. The pulse combustor steam/water jacket and air plenum were installed. Construction of control room building was just completed.