This section presents the main events that occurred after September 30, 2014, to the extent that they were not the subject of specific comments in earlier sections of the Interim financial report of the Salini Impregilo Group at September 30, 2014.
On October 3, 2014, the customer for the contract for the construction of line 6 of the Santiago Subway System notified the company Empresa Constructora Metro 6 Limitada, wholly controlled by Salini Impregilo, of the early termination of the contract. A description of the overall situation is provided in the section “Risk areas” of the chapter “Operating performance by geographic region”.
On October 6, the share buy-back program began. The program is based on the resolution of the Ordinary Shareholders’ Meeting of Salini Impregilo S.p.A. which, in the meeting held on September 19, 2014, authorized the Board of Directors for the purchase and disposal of ordinary treasury shares. At the date of preparation of this Interim financial report a total of 3,104,377 shares had been purchased for a value of € 7,676,914.46. The share buy-back program is described in the “Corporate” section of this Interim financial report.
On October 13, 2014, the Salini Impregilo Group was provisionally awarded the order for the construction of approximately 18.4 km of Lot B of the S7 expressway in Poland up to the Slovakian border. The value of the contract is approximately € 194 million, with works expected to last 26 months. An advance of 5% is due to be paid when the contract is signed.
On October 14, 2014, Salini Impregilo and the National and International Construction Unions – Feneal Uil, Filca Cisl, Fillea Cgil, BWI – signed an International Framework Agreement under which the parties agree to promote and to respect, at all worksites where the Italian Group operates, the fundamental human rights principles, as defined by the key international declarations of the United Nations, the International Labour Organisation and the OECD. By signing this Agreement, Salini Impregilo continues to be the only company in the industry to have signed an agreement with national and international unions for workers’ rights at all of the work sites around the world in which it operates. With this Agreement, the Parties acknowledge the importance of promoting and adopting open and democratic industrial relations in all countries in which the Group operates, in conjunction with transparent collective bargaining procedures between union representatives and members of the Salini Impregilo Group.
On October 22, 2014, Salini-Impregilo, through the wholly owned company Metro Team (CMT), signed a Supplementary Agreement with Metroselskabet I/S for the award of supplementary works worth about € 240 million to complete the Cityringen project, Copenhagen’s new subway system. In 2011, Salini was awarded the € 1,500 million contract for the construction of the new metro line of over 16 km with 17 new stations in the city center.
On October 23, 2014, Salini Impregilo, in consortium with its Austrian partner Strabag, and the client BBT SE – Brenner Base Tunnel/Brenner Basistunnel – signed the agreement to commence works for the construction of the “Isarco River Underpass” of the Brenner Base Tunnel, one of the most challenging lots of the entire project in engineering and financial terms. The value of the lot is € 300 million.
Salini Impregilo has signed a contract to build the Dugway Storage Tunnel in Cleveland, Ohio, worth USD 153 million (€123 million). The Dugway Storage Tunnel is 4.5 km long, with a diameter of 8 metres. The contract also envisages the construction of 6 shafts of varying diameters and depths, connections between the tunnel and the shafts and a series of concrete structures for the collection and transporting of wastewater and rainwater. The project is part of a broader plan for the collection, storage and treatment of these waters, with the objective of reducing the level of environmental pollution in Lake Erie.
For events occurring after September 30, 2014 concerning the USW Campania Projects, please see the section of this Interim financial report on operation entitled “Non-current assets held for sale – USW Campania Projects”.
No other significant events occurred after September 30, 2014, beyond those described the previous sections of this Interim financial report.