For a review of the main types of critical issues identified within the Group’s operations in Greece, refer to the information provided in the Director’s Report section, under the heading “Risk areas and Litigation”.

Thessaloniki Metro Project– Joint Venture AIS for civil works

This project regards the construction of the Thessaloniki automated metro. The contract was signed in 2006 and Salini Impregilo is participating together with the Greek construction companies Aegek and Seli, with a 42,5% for the civil engineering portion. The project involves construction of an automated subway with construction of two tunnels, each 9.5 km long, and 13 new underground stations.

The total updated amount of the civil engineering works amount to €668.9 million.

The percentage of work completed as at June 30, 2015, was 32.2 %..

Among the significant facts characterising the first half of 2015 it is important to notice that JV exercised the right to claim the termination of the contract with Attiko Metro (customer) as the latter did not complete the works within the time set by the law in force. The Customer challenged the claim and, therefore the negotiations between the parts started in order to redefine the terms of the contract. These initiatives are still currently ongoing and the timings are also in part conditioned by the contingent Greek situation.

When in an agreement there is a delay, civil engineering works proceed slowly and concern, nearly exclusively, the conservation and the implementation of the safety measures for the existing works. The JV has proposed a cost reduction plan, being that JV cannot invoice the Customer.

Stavros Niarchos Foundation Cultural Center

At the end of 2012, Impregilo was awarded the construction of the new Stavros Niarchos Foundation Cultural Center in Athens, Greece, as part of a joint venture with the Greek company Terna S.A. The contract value is approximately € 325 million with Impregilo’s share being 51%, fully guaranteed and paid by the Foundation. The design, created by the architectural firm Renzo Piano Building Workshop, calls for the construction of an ecologically sustainable multipurpose center located about 4.5 km from the centre of Athens, which will occupy a total area of 232,000 m², most of which devoted to a public park, to be completed in 38 months after work starts. The initiative also provides for construction of the new headquarters of the Greek National Opera, which includes a 1400-seat main theatre and a 400-seat experimental theatre, and the National Library, which will be open to the public and will contain up to 750,000 volumes. Lastly, under the contract, the activities of managing and maintaining the Cultural Center for a period of five years for an additional value of about € 10 million will be allocated, once construction of the opera is completed.

The percentage of work completion as at June 30, 2015, was 68.1%.

At a date subsequent to June 30, 2015, a variant of the contract has been agreed upon with the Customer that, among other things, sets the term for the partial delivery of the works to March 31, 2016.