Pedemontana Lombarda Highway

The work calls for the final construction design and the construction of the first section of the Como and Varese Bypasses, and the link between the A8 and A9 highways (from Cassano Magnago to Lomazzo), with the construction of approximately 26 km of highway and secondary roads, including approximately 7 km of tunnels.

Moreover, on December 11, 2014 a service contract was signed for the executive design and complementary works for the realization of the systems necessary to implement “Free – Flow” toll collection systems for the first lot of the bypasses of Como and Varese, for an approximate amount of €10 million.

On January 24 and 26, 2015, due to an anticipated delivery of the relative works, the Varese bypass and the relevant A8 - A9 motorway connections were finally opened to traffic.

On March 6, 2015, a service contract was initiated for the design and the complementary works for the realization of a dynamic toll collection system without barriers to be installed on metallic portal frames of the A8 - A9 motorway section and of lot 1 of the Como and Varese bypasses for an overall amount of approximately €19 million. The contract concerns the installation of the "software" portion on the "structural part" that, instead, was the object of the "Free - Flow" contract undersigned on December 11, 2014.

Moreover, on May 23, 2015 the Como bypass was opened to traffic, as the works were delivered before the fixed date.

The percentage of work completion as of June 30, 2015 is equal to 97.8%.

Line 4 of the Milan Metro

Impregilo, the leader, representative and member of a grouping of companies consisting of Astaldi, Ansaldo STS, Ansaldo Breda, ATM (Azienda Trasporti Milanese, Milan Transport Company), and Sirti, won the final competitive bidding issued by the City of Milan to find a private partner of a joint enterprise for the concession to design, build, and manage Line 4 of the Milan Metro. The new line, which will be fully automated (there will be no engineer on board), will encompass a total of 15.2 km along the Linate-Lorenteggio section. The project calls for the final detailed design and construction of two single-track tunnels, one in each direction, with 21 stations, 30 structures/ventilation shafts/exits, and a depot/workshop.

The total value of the investment – consisting primarily of civil engineering works, providing technological services, and mechanical services – is approximately € 1.7 billion, with about two thirds of the funding coming from public State and City contributions.

To coordinate the construction activities of the project, Impregilo S.p.A. created the MM4 Consortium with only its private partners (Astaldi, Ansaldo STS, Ansaldo Breda, and Sirti). The Consortium, in turn, assigned the civil engineering and non-system facilities to consortium members Impregilo and Astaldi, which are in turn equal partners in Metroblu S.c. a r.l.

On June 20, 2013, the Addendum to the Ancillary Agreement was signed between SP M4 ScpA (a project company under ATI consisting of the same participating companies) and the client. This Addendum redefined the work schedule, focusing solely on the work for the “EXPO Section” and, among other things, increased the total investment to approximately € 1.8 billion.

On December 16, 2014 the joint company SPV LINEA M4 S.p.A. was established (in short, M4 S.p.A.), a concessionaire, formed between the City of Milan (with a share of 66.67%) and Private Partners (with a share of 33.33%); Salini Impregilo holds a share of 9.67%.

On December 22, 2014 M4 S.p.A. and the City of Milan undersigned, a Concession Agreement and, between the M4 S.p.A. and the CMM4 Consortium, the EPC (Engineering Procurement and Construction) Contract for the realization of the entire works. On the same date a "Contratto di Finanziamento Project" was signed between the concessionaire and the banks that finance the project.

The percentage completed as at June 30, 2015 is equal to 14.4%.

Port of Ancona

On December 12, 2013, Salini Impregilo, as leader of a grouping of companies, won the competitive bidding for the construction and management of the road link between the Port of Ancona, the A14 Highway, and State Route 16, “Adriatica”. The value of the project is approximately € 480 million and the concession period is 30 years from completion of the work. The initiative under concession anticipates a total revenue of about €2,540 million over the infrastructure management period. The project financing proposal submitted by the grouping of companies was declared of public interest by the ANAS Board of Directors in April 2008.

With a letter dated February 27, 2015, the Ministry of Infrastructures and Transportation informed the concessionaire with regard to the positive outcome of the approval process for the Agreement and its effect.

The activities for the realization of the final project are being currently carried out. They will be finished by September 2015.

Work on the new infrastructure will presumably begin in 2016, upon completion of the procedure for designing and approving the final plan, and will be completed within five years. The new roadway will be about 11 km long, including main and linking roads, and will represent a strategic undertaking aimed at optimizing traffic flow between the Port of Ancona, the city, and the major roadway consisting of the A14 highway, allowing for adequate growth of the Ancona logistics system based on the port, intermodal freight terminal and airport.

Milan-Genoa High Speed/Capacity Railway Line Project

In the consolidated interim financial statements as at June 30, 2014 railway line, which was awarded to the CO.C.I.V. as the general contractor Consortium with a TAV (as operator of the State Railways)/CO.C.I.V. Agreement dated March 16, 1992. Impregilo is the project leader.

As we know, the project underwent a complex, articulated pre-contractual phase, which evolved on a number of fronts from 1992 to 2011, many of which were contentious.

The contract for work on the Giovi Third Railway Crossing - Milan-Genoa High Speed/High Capacity Line, was signed in November 2011. The total value of the works awarded to the General Contractor CO.C.I.V. led by Salini Impregilo with 68.25%, comes to approximately € 4.5 billion. The works and activities of the first and second lots of the project, already effective, amount to € 1,131 million.

With regard to significant facts during the first half of 2015 a series of Agreements have been entered into with RFI that brought to the following:

  1. the definition of a flat rate amount for project adjustment activities (for a total amount of € 511.7 million of which the amount concerning the Lots that are already being used is equal to € 83.4 million);
  2. a reduction of the value of the 3rd Lot, benefiting the subsequent ones, which is now € 537.1 million, of which the the approval process is yet in now in the final phase.

The percentage completed as at June 30, 2015 is equal to 9.5%.

Salerno – Reggio Calabria Motorway Project: Lots 5 and 6

The project involves the improvement and modernization of the last section of the Salerno - Reggio Calabria Highway in the stretch between the cities of Gioia Tauro and Scilla (Lot 5), and between Scilla and Campo Calabro (Lot 6). The Group participates to the project with a 51% share.

The percentage completed of Lot 5 as at June 30, 2015 was 97.5%.

With regard to Lot 6 the terms for a new expert opinion are currently being defined, so as to postpone the conclusion of the works to September 2015. The percentage completed as at June 30, 2015, was 95.4%.

Ionica State Highway

At the end of 2011, Impregilo, in partnership with Astaldi, won the ANAS competitive bidding for construction work on the third maxi-lot of the Ionica State Highway (“SS-106”) to be assigned to a general contractor. The value of the new contract is about € 791 million (of which 40% for Salini Impregilo). The new infrastructure involves the development of a total of 38.0 km from the junction with state road 534 (SS-534) to Roseto Capo Spulico (Cs). The main works of the project involve the construction of some 13 km of tunnels, about 5 km of elevated roads, and 20 km of embankments. The overall duration of the work is expected to be about 7 years and 8 months, including 15 months to develop the design (final and construction) and to prepare for the start of work, with the remaining 6 years and 5 months for the construction phase.

The percentage completed as at June 30, 2015 is equal to 2.5%.

Third lane of Venice-Trieste A4 Highway (Quarto d’Altino-San Donà di Piave)

In November 2009, the grouping of companies led by Impregilo S.p.A. as agent won the competitive bidding for the executive design and construction of the extension to the third lane of the Venice- Trieste A4 Highway in the section between the cities of Quarto d’Altino and San Donà di Piave (VE). The total value of the contract is € 224 million.

The works include widening the highway over a distance of 18.5 km with construction of a third lane, and, in particular, construction of two new viaducts over the Piave River

Verona-Padua High Speed/Capacity Railway Line Project

The IRICAV DUE consortium, of which Salini Impregilo holds 27.28% interest, is the general contractor of RFI S.p.A. for the design and construction of the Verona-Padua line, under the agreement dated October 15, 1991; role confirmed by the arbitration award of May 23- 26, 2012, res judicata. The Salini Impregilo Group participates in the Consortium with a share of 34.10%, greater by 6.82% due to the acquisition of shares by Lamaro Appalti, a partner,. currently being finalized.

By resolution no. 94 passed on March 29, 2006, the CIPE had already approved the preliminary project for Phase 1a of the Verona-Padua line from Verona to Montebello Vicentino and from Grisignano di Zocco to Padua, rendered functional by the requirements and recommendations proposed by the Ministry of Infrastructures and Transportation and implemented by the CIPE which ensures the connection from Montebello to Grisignano through the Vicenza station.

On June 30, 2015 the Consortium concluded the delivery of all the project drawings to Rete Ferroviaria Italia for the definite project of the Verona – Vicenza sub-section. On the same date, the commercial offer for said sub-section was also communicated.

Currently, a technical preliminary investigation for the technical project that has been delivered is currently ongoing, and also a verification for its economic fairness. The investigation should end by the end of August 2015.

Lastly, in relation to this project and the fact that the Group was represented in it, even before the merger between Salini and Impregilo by shares held separately by the companies in the consortium, the period prior to that reviewed in this report reflected the portfolio value limited to the portion attributable to the former parent. This circumstance, which took account of the substantial standstill of the dispute with the client prior to the events described below, as well as the different assumptions made in previous years in relation to the probability of restoring the correct contractual situation of the consortium, was considered to have passed in the light of the events and, the portfolio value was presented in a homogeneous manner and included all of the shares attributable to the Group, currently estimated to be approximately € 1,700 million.

Rome Metro Line B

On June 13, 2012, after having passed the static testing and all authorisations, the new section of Line B1 connecting Piazza Bologna to Piazza Conca d’Oro was put into operation, with the Mayor of Rome and the city’s top dignitaries in attendance.

Temporary acceptance was completed in February 2013, while legal proceedings started for the recognition of the reserves posted in the final account.

The Conca D’oro - Jonio section , whose contractual overall vale amounts to € 185.5 million, as at June 30, 2015 is practically finished, except for some minor works that are currently suspended and whose execution is subordinated to the decision of the Commissioning Body. The railway part of the works and the Jonio station have been delivered and the new section has been opened to use on April 21, 2015 and the advancement in relation to the date of delivery is 99.8%

Finally, on April 17, 2015, Roma Metropolitane, having read the decision made by the Council of State and the consequent validity and effectiveness of the awarding of MetroB S.r.l., pointed out, considering the possible difficulties with regard to the acquisition of the town planning variants for some of the areas part of the estate improvement, a possible re-modulation of the financial side of the works.