Italy

Salerno - Reggio Calabria Motorway: Lots 5 and 6

This project relates to the improvement and upgrading of the last section of the Salerno- Reggio Calabria motorway, between Gioia Tauro and Scilla (Lot 5) and between Scilla and Campo Calabro (Lot 6). Impregilo’s share of the contract is 51%.

As regards Lot 5, in relation to which major disputes had arisen with the client, which were however successfully resolved, new critical situations have arisen in the second half of the previous year. These are due to the difficulty in obtaining the desired productivity targets and the social and environmental conditions at the construction sites, which remain critical. As a result, Impregilo has revised the contract life cycle estimates, identifying a loss situation, which was already fully reflected in the income statement for the financial year 2012. During 2013, no new and significant critical elements have arisen that would require changes to the assessments made at the time.

Progress on Lot 5 at 31 December 2013 is 94.7%, and on Lot 6 it is 79.0%.

Pedemontana Lombarda motorway

2010, in addition to approval of the executive plan, Rider no.1 (which in fact increased the activities defined as early works) was signed and on 7 December partial delivery of the works was made.

However, starting from 2011 and throughout 2012, the customer has encountered increasing difficulties in meeting its  contractually provided for  financial commitments. Despite this, the general contractor commenced construction as per the agreed work schedule and the procedures provided for by contract to safeguard itself in relation to the above difficulties. In this regard it should be noted that, during the first half of 2013, the client has largely overcome these financial difficulties and, during the current year, activities are progressing correctly and according to schedule. In particular, on 30 November 2013, as provided in the contract documents, substantial completion of the link road between the A8 and A9 motorways was achieved.

At 31 December 2013, 77.0% of the work was complete.

Third lane of the A4 Venice-Trieste motorway (Quarti d'Altino - San Donà di Piave)

In November 2009, the joint venture led by Impregilo as lead contractor won the tender for the planning and execution of the works to widen to three lanes the A4 Venice-Trieste motorway between the municipalities of Quarto d’Altino and San Donà di Piave (VE). The contract is worth € 224 million.

The works involve widening the motorway over a length of 18.5 km by building a third lane and include, in particular, the construction of two new viaducts with an overall length of about 1.4 km over the Piave River, the construction of four bridges, nine overpasses, four motorway underpasses and the rebuilding of the San Dona di Piave motorway exit.

At 31 December 2013, 62.7% of the work was complete.

High-speed/capacity Milan-Genoa Railway Project

The contract for the works on the Terzo Valico dei Giovi section of the high speed/capacity Milan - Genoa railway line was signed in November 2011. The works assigned to the general contractor CO.C.I.V., led by Impregilo with a 64% interest, approximate  €  4.8 billion. The first lot, already financed by CIPE for € 500 million, includes works and activities for € 430 million. CIPE has also assigned the funds for the second lot as per its resolution no. 86/2011, published in the Italian Official Journal no. 65 of 17 March 2012. The Court of Auditors recorded the funding of the second lot (€ 1.1 billion) on 5 March 2012. CO.C.I.V. and RFI agreed commencement of Lot 2 for € 617 million on 23 March 2013.

Towards the end of the first half of 2013, arbitration proceedings started in previous years were successfully concluded; these concerned payment to the Consortium of fees owed to it in relation to activities carried out prior to the entry into force of the abovementioned Decree 112/2008 in relation to which the Consortium had recorded only the item relating to the costs actually incurred. In addition, with the conclusion of these arbitration proceedings, the Consortium became liable to repay the contractual advance payment received at the time, plus default interest. This obligation was fulfilled early in the third quarter of 2013 by offsetting it against the amounts owed to the Consortium pursuant to the arbitration decision, all in accordance with the provisions of the Rider to the Convention of November 2011.

Lastly, the Impregilo Group's share in the CO.C.I.V. Consortium was increased to 64% as a result of the finalization of the agreements signed with partner Tecnimont S.p.A. during September 2013.

At 31 December 2013, 7.6% of the work was complete.

Line 4 of the Milan metro

On 20 June 2013, the M4 S.c.p.A. (project consortium replacing the temporary association of companies and comprising the companies belonging to it) and the Client signed the Addendum to the Ancillary Contract which redefined the schedule of works, separately detailing the works on the 'EXPO section' and increasing the total investment to approximately € 1.8 billion.

At 31 December 2013, 3% of the work was complete.

Jonica highway

At the end of 2011, Impregilo and Astaldi were awarded the tender called by ANAS (the Italian national roads authority) for the construction of the third maxi-lot of the Jonica highway no. 106 as general contractor. This new contract is worth approximately € 791 million, of which 40% for Impregilo. The new infrastructure will stretch over 38.0 km from the junction with highway no. 534 to Roseto Capo Spulico (CS). The project main works include the construction of some 13 km of tunnels, 5 km of viaducts and 20 km of embankments. The project is scheduled to take approximately seven years and eight months, including 15 months to develop the designs (final and  executive) and for the preliminary work, and another six years and five months for the construction work.

At 31 December 2013, 2.0% of the work was complete.