Denmark is experiencing a phase of moderate growth. The country’s infrastructure development plan entails public and private investment. The Group operates through its subsidiary Copenhagen Metro Team I/S, a company incorporated under Danish law and involved in the construction of Copenhagen Cityringen, one of the world’s most modern transport infrastructures.
The following table shows the amounts involved in the contracts in place at the reporting date:
(Share in millions of Euros)
|Residual backlog||Percentage of completion|
The project consists of the design and construction of the new metro loop in the centre of Copenhagen, which entails two tunnels of 16 km each, 17 stations and five monitoring shafts. The contract is worth approximately €2,050 million, including riders and price revisions. During the period, work went ahead according to schedule with continuation of the electromechanical works and architectural finishings. The Group’s share of the project is 100%.
During the period and in 2015, the Group incurred costs for activities not originally provided for in the contract, mainly to strengthen the structures requested by the customer. Requests for additional considerations to cover these activities have been formalised and are under negotiation. Measurement of contract work in progress has considered these costs to the extent that the Group deems recovery is probable, also based on its legal advisors’ opinion.
Outlook for 2016
The Group has presented bids for some important tenders in the transport sector. The project for the southbound extension of the metro line for Copenhagen is at the pre-qualification stage.