Venezuela - Puerto Cabello – La Encrucijada Railway

This project consists of the construction of civil works of the railway line along approximately 110 km, connecting Puerto Cabello and La Encrucijada.

Impregilo signed a contract addendum with the Venezuelan Independent Railway Institute for completion of the Puerto Cabello - La Encrucijada line in November 2011. The addendum includes extension of the line from the city of Moron to the port of Puerto Cabello. These new works are worth approximately € 763 million (Impregilo’s share is 33.33%).

At 31 December 2013, 72.7% of the work was complete.

Venezuela - San Juan de los Morros - San Fernando de Apure Railway and Chaguaramas - Cabruta Railway

Impregilo is involved (33.33% interest) in the construction of two new railway lines: “San Juan de los Morros - San Fernando de Apure” (252 km) and “Chaguaramas - Las Mercedes- Cabruta” (201 km).

The projects comprise the design and installation of a railway superstructure, the construction of 11 stations and nine logistics centres as well as the laying of 453 km of new lines.

Work was 33.2% complete for the “San Juan de los Morros - San Fernando de Apure” section at 31 December 2013.

It was 45.6% complete for the “Chaguaramas - Cabruta” section at 31 December 2013.

With regard to the main critical issues affecting the Group's operations in Venezuela, please refer to the descriptions in the paragraph "Risk areas" elsewhere in this section.

Greece – Thessalonica metro project

This project relates to the construction of the automated metro in Thessalonica. The contract was signed in 2006 and Impregilo is participating jointly in the civil works with the Greek construction company Aegek S.A. and Seli S.p.A.. The project entails the construction of an automated light metro system with the  excavation of two 9.5-km tunnels and  13 new underground stations.

At 31 December 2013, 33.3% of the work was complete.

Greece - Stavros Niarchos Foundation Cultural Centre

At the end of 2012, the group was awarded the contract for the new Stavros Niarchos Foundation Cultural Centre (SNFCC) in Athens, Greece as part of a joint venture with the Greek company Terna S.A.. The contract is worth approximately € 325 million (Impregilo’s share: 51%) and is guaranteed and financed in full by the Stavros Niarchos Foundation. Designed by the architectural consultancy Renzo Piano Building Workshop, the project is an ecologically sustainable multi-purpose centre located about 4.5 km from central Athens on a 232,000 square metre site devoted largely to public parkland. It will be completed in 38 months. The initiative also provides for the construction of the new Greek National Opera, with a main 1,400-seat theatre and an experimental 400-seat theatre, and the  National Library which will be open to the general public and house up to 750,000 books. Finally, on completion of the Opera, the contract also provides for the management and maintenance of the Cultural Centre for a period of five years, with an additional value of about € 10 million.

At 31 December 2013, 19.9% of the work was complete.

Romania – Orastie - Sibiu motorway

In April 2011, Impregilo was awarded the tender for the engineering and construction of Lot 3 of the Orastie - Sibiu motorway by the Romanian National Road & Highways Company (CNADNR). The contract is worth approximately € 144 million and is  85% funded by the European Union and 15% by the Romanian government. It includes the construction of 22.1 km of a four-lane dual carriageway stretch of motorway with hard shoulders and a total width of 26 metres. The Orastie - Sibiu project is part of a larger project known as "Motorway corridor no. 4", which will link the city of Nadlac on the Hungarian border with the city of Constanza on the western shore of the Black Sea.

At 31 December 2013, 84.2% of the work was complete.

United States - Lake Mead tunnel

In 2008, Impregilo won the international tender  called by the Southern Nevada Water Authority (SNWA) for the construction of an articulated water extraction and transportation system from Lake Mead to the Las Vegas area to increase water supplies for drinking and domestic use. Lake Mead is one of the biggest reservoirs in the US. The contract is worth USD 447 million.

At 31 December 2013, 72.3% of the work was complete.

US - San Francisco Central Subway

At the end of June 2011, the board of directors of the San Francisco Transportation Agency awarded the Impregilo group (in a consortium with the American company Barnard) the contract to extend the city’s Central Subway line. The contract is worth USD 233 million and Impregilo has a 45% share therein with its subsidiary SA Healy. It covers the underground extension of the existing surface line in the city centre, with two new single-track tunnels for a total length of 5 km to be excavated with two 6.40-metre diameter TBMs. It is expected to take 35 months.

At 31 December 2013, 64.8% of the work was complete.

South Africa– Ingula hydroelectric plant

The procedures for the participation of Impregilo, CMC of Ravenna and a local company in construction of a hydroelectric plant in South Africa were finalised in March 2009. Impregilo has a 39.2% share of the project (“Ingula Pumped Storage Scheme”), which is currently worth approximately € 948 million. It consists of the construction of a generating and pumping plant with total installed capacity of 1100 MW which will generate electricity at peak times and reuse the water pumping it into the upper reservoir during times of less demand.

At 31 December 2013, 88.1% of the work was complete.

Widening of the Panama Canal

In July 2009, Impregilo obtained official confirmation that "Grupo Unido por el Canal", the consortium of which it is a member - together with Sacyr Vallehermoso (Spain), Jan de Nul (Belgium) and the Panamanian company Constructora Urbana (Cusa) - had been awarded the contract for the construction of a new system of locks as part of the project to widen the Panama Canal. The bid was for USD 3.22 billion.

The contract is one of the largest and most important civil engineering projects ever to take place. It involves the construction of two new series of locks, one on the Atlantic side and another on the Pacific side, which will allow an increase in commercial traffic through the Canal and better meet developments in the sea freight market with bigger ships that have greater capacity (the Post Panamax ships) compared with those that can currently use the existing locks.

Please refer to the “Risk areas” paragraph of this section for information about certain critical issues affecting this contract.

At 31 December 2013, 71.3% of the work was complete.

United Arab Emirates - Abu Dhabi hydraulic tunnel - Lots 2 and 3

Impregilo is currently completing the construction in the UAE of two lots of the Strategic Tunnel Enhancement Programme (STEP) which involves the construction of a tunnel to collect wastewater by gravity on the island and mainland of Abu Dhabi and convey it to the treatment station at Al Wathba. Impregilo is constructing 25 km of the tunnel. The contract is worth approximately USD 445 million.

In the course of 2013, Lot 2 was completed and Lot 3 was 91.3% complete at 31 December 2013.

Colombia - Hydroelectric project on the Sogamosa River

In December 2009, Impregilo was awarded the tender to build a hydroelectric plant on the Sogamoso River in north-western Colombia, about 40 km from the city of Bucaramanga.

The project comprises construction of a 190-metre high, 300-metre long dam and an underground power station, which will house three turbines with installed capacity of 820 MW. The contract is currently worth roughly € 590 million and the customer is ISAGEN S.A., a public/private operator active in power generation in Colombia.

Impregilo has already completed the preliminary work for the dam, which includes construction of two diversion tunnels of roughly 870 metres long and a diameter of 11 metres, as well as a system of access tunnels and roads to the underground station.

With respect to the main project, construction of the dam, critical issues came to light in the second half of 2011, which negatively  impacted both production levels and associated profitability. These issues included, in particular, the exceptionally adverse weather conditions affecting a large part of Colombia, which considerably delayed the river diversion activities, the concomitant presence of geological conditions significantly different from those provided for in the contract and changes in the scope of work requested by the client. In this regard, during the first part of 2012 some of the most important claims made by Impregilo were accepted and in 2013 a new version of the contract covering the performance of further ancillary works on the basin affected by the dam was obtained. The additional reservations submitted to the client are still under discussion.

At 31 December 2013, 91.1% of the work was complete.

Colombia - ‘Ruta del Sol’ motorway

At the end of July 2010, the Impregilo Group won the tender for the operation under concession of the third motorway lot of the “Ruta del Sol” project in Colombia. This concession, awarded to a group headed by Impregilo and including the Colombian companies Infracon, Grodco, Tecnica Vial and the private investment fund RDS (owned by Bancolombia and Fondo Pensioni Proteccion), provides for the upgrading, widening to four lanes and operation of the two motorway sections between the cities of San Roque and Ye de Cienaga and the cities of Carmen de Bolivar and Valledupar. The related investment approximates USD 1.3 billion. The concession contract provides for total revenue of roughly USD 3.7 billion (of which 40% for Impregilo), including revenue from tolls and a government grant of USD 1.7 billion, to be provided during the construction stage. The concession will have a 25-year term, including six years for the design and infrastructure modernisation stage and 19 years for operation.

At 31 December 2013, 9.8% of the work was complete.

Chile - Angostura hydroelectric project

At the end of June 2010, Impregilo was awarded the contract issued by Colbun S.A., a Chilean company active in the power generation sector, for a hydroelectric project in Chile with a current value of approximately € 250 million.

The plant will be located in the Angostura area roughly 600 km south of the  capital Santiago.

The contract includes construction of a main dam, 152-metres long and 63-metres high, a secondary dam, 1.6-km long and 25-metres high, and an underground power chamber housing three generators with installed power of 316 MW. The generated electricity will approximate 1540 Gwh per annum.

In the second half of 2011, the project began to experience certain critical issues, owing to growing problems relating to the socio-environmental conditions, which differ substantially from those forecast in the bid phase, and site operating conditions partly due to variations requested by the customer. The litigation initiated against the customer, some of which is ongoing, have allowed a partial containment of the effects of these problems on the profitability of the project which, at the reference date of this financial report, 31 December 2013, is still negative and fully reflected in the amounts recorded in the financial statements as at that date.

At 31 December 2013, the construction works were substantially completed.