In August, a consortium of Italian companies, with the Group as the leader with 58%, including Società Italiana per Condotte d’Acqua, Impresa Pizzarotti & C, and Cooperativa Muratori & Cementisti (CMC), signed a contract to build the first lot of the new Libyan coastal highway called "Ras Ejdyer-Emssad Expressway project," with a total value of approximately €945 million.
The new highway will traverse 1,700 km of the Libyan territory from the Tunisian border to the Egyptian border, and its construction will be an integral part of the agreements reached between the Italian Government and the Libyan Government with the signing of the Friendship and Cooperation Treaty on August 30, 2008.
The lot to be built by the Group will be 400 km long and will run from the city of Al Marj to Emsaad on the Egyptian border.
The highway consists of three lanes in each direction plus an emergency lane, and the most significant civil engineering works include the construction of 14 bridges and 52 viaducts, 8 service areas, and 6 parking areas. The contract will be funded by the Italian Government.
In 2010, a contract was signed for rehabilitation of the Koufra Airport runways, in the amount of approximately €53 million.
After a long period of political instability that prevented the project from starting, the country's client administrations resumed the previous commercial and contractual relations in order to relaunch the project.
The requisite guarantees have been provided and the contractual advance payment was finally received in July 2013.
Jobsite mobilization work continued during the quarter.
The percentage of work completion as of March 31, 2014 was 9.1%.
The contract for the Koufra urban development project was signed again in 2013.
Design work will begin soon, with ground-breaking expected to begin within the year.
The agreement for construction of the new runway at Tripoli Airport still needs to be formalized, with the signed documents expected to be received before the end of the next six-month period.
South Africa – Ingula Hydroelectric Plant
The procedures for Impregilo's participation in the construction of a hydroelectric plant in South Africa, together with CMC of Ravenna and a local company, were finalized in March 2009. The overall value of the project, in which Impregilo has a 39.2% stake, is currently equal to about €948 million. The initiative, called the "Ingula Pumped Storage Scheme," involves the construction of a generation and pumping plant with a total installed power of 1100 MW, which will generate electricity during peak hours and will reuse the same water by pumping it into an upstream basin during off-peak hours.
The percentage of work completion as of March 31, 2014 was 91.2%.
Gibe III Hydroelectric Plant
The contract was signed on July 19, 2006 for about €1,569 million and includes the construction of a 1,870 MW hydroelectric power plant consisting of an RCC (Roller Compacted Concrete) dam measuring 243 meters high with an open-air power plant. Other permanent works consist of a total of 75 km of access roads, a new bridge over the Omo River, and camps and structures for the Client.
In addition, an agreement was signed with the Client in 2010 for construction of the 66-kV electrical power line from the Sodo-Wolayta substation to the Gibe III site. This line and its substations will remain the property of the Client EEPCo, but as compensation Salini will receive electrical power at a preferred rate compared to the national standard.
The percentage of work completion as of March 31, 2014 was 72.2%.
"Grand Ethiopian Renaissance Dam" (GERD) Hydroelectric Power Plant
A contract for building the "Grand Ethiopian Renaissance Dam" hydroelectric power plant (GERDP) was signed between Salini Costruttori and the EEPCo (Ethiopian Electric Power Corporation) on December 30, 2010. The contract calls for the construction of the largest dam on the African continent (1,800 meters long, 170 meters high, and a total volume of 10 million cubic meters) and two power plants on the banks of the Blue Nile equipped with a total of 16 turbines, each rated at 375 MW.
Addendum no. 2 was signed on March 12, 2012, to formalize the Client's request to increase the voltage of the power line between Beles and the GERDP from the originally planned 132 kV to 400 kV. This change led to an increase in the contract value to €42 million, bringing the overall total of the project to the current €3.6 billion.
Excavation on the main dam and power plants is currently in progress, and the new bridge over the Nile has been completed and was opened to traffic in September 2012.
Construction work on the river-bank power plants, the permanent camp, and the construction site roads is mostly completed, as well as work on diverting the Nile into the special channel.
The percentage of work completion as of March 31, 2014 was 17.2%.
Work on the "Gurara Dam and Water Transfer Project, Lot A – Dam and Associated Works" project is in the completion phase. The current value of the contract, including the various contractual additions issued over the years (the contract was signed on January 30, 2001) comes to about €545 million. The 9 million m3 earth and rockfill dam, intake works, and 30-MW hydroelectric plant are complete; the power transmission line, the irrigation perimeter, and some road work still need to be completed. The work is expected to be completed by December 31, 2014.
The percentage of work completion as of March 31, 2014 was 91.0%.
Work is continuing on the "Development of Idu Industrial Area Engineering Infrastructure" contract (valued of approximately €237 million), consisting of the primary urban development works in a new district of the capital Abuja, intended for industrial use. The sewer and drainage networks are complete, 60% of the road network, including 4 viaducts, is paved, and construction is starting on the water supply and power supply grids.
The percentage of work completion as of March 31, 2014 was 73.8%.
Work on designing and building the "Nigeria Cultural Centre and Millennium Tower" is also progressing (contract value of approximately €421 million). The tower structure has reached its final height of 170 m and the sails and restaurant are currently being built. The underground parking garage beneath the square has been completed, the tunnel linking the two plots of the project is complete, and the structures of the 7 buildings that make up the Cultural Centre and the Auditorium are at an advanced stage of construction.
The percentage of work completion as of March 31, 2014 was 34.7%.
The urban highway stretch of the "Extension of Inner Southern Expressway (ISEX)" for a value of roughly €65 million by the Federal Capital Development Authority with a contract signed on January 13, 2010, is in an advanced stage of construction. So far, 3 of the 4 major bridges have been completed, the drainage works are nearly finished, and most of the road is paved.
The percentage of work completion as of March 31, 2014 was 95.6%.
Construction of the "Dualisation of Suleja Minna Road in Niger State," a contract obtained in November 2010 with a value of approximately €50 million, is under way. The earthwork and drainage works are currently in the completion phase, paving is partially completed, construction of 3 bridges has been finished, and construction of the fourth bridge, the longest, which crosses the Gurara River, is under way.
The percentage of work completion as of March 31, 2014 was 56.7%.
Similarly, the "Development of District 1 Abuja North Phase IV West" project is being developed, worth a total of about €250 million. The bidding process was conducted in two phases (phase 1 December 30, 2010 and phase 2 March 5, 2012). Construction of one of the main bridges of the project is nearly complete and the remaining culvert boxes are being made.
The percentage of work completion as of March 31, 2014 was 11.8%.
On September 12, 2012, the "Adiyan Waterworks Phase II" project worth €250 million was acquired. This project consists of the design and construction of a water treatment plant with a capacity of 320,000 m3/day, intended to meet a portion of the Lagos population's water needs. The job site has been set up, the plant is being designed, and construction of the civil engineering works is starting.
The percentage of work completion as of March 31, 2014 was 9.9%.
In 2013, a contract was acquired for construction of the Neckartal dam, with a value of approximately €200 million. The dam will exploit the waters of the Fish River to generate power and to create a reservoir to irrigate 5,000 hectares of land for the area's agricultural development.
The order to start work was issued on September 11, 2013, and site mobilization is under way. The percentage of work completion as of March 31, 2014 was 2.8%.
Routine management and maintenance of the Bumbuna hydroelectric plant and its transmission line to the city of Freetown are progressing normally. Electrical power generation is being handled in cooperation with the National Power Authority in charge of power distribution in the country.
The contract value, which was originally €10.2 million, has been increased to €26.1 million by way of two addenda signed on November 18, 2011 and December 18, 2013, respectively.
This contract is 100% complete.
Similar observations can be made for the "Rehabilitation of 21.2 km of urban town roads" contract for the rehabilitation of several stretches of road in the four major cities of Sierra Leone. With the signing of five new additions to the contract in June and October 2011, March 2012, and October 2013, the value of the project has gone from the original €10.3 million to €30.2 million.
In addition, an addendum to the original contract was signed in 2013 for the rehabilitation of some roads in the Lunsar area, for an additional value of €4.5 million.
The percentage of work completion as of March 31, 2014 was 96.2%.
Lastly, a new contract was signed on May 24, 2013 with the Sierra Leone Road Authority for the rehabilitation of 70 km of road as part of the "Sefadu roads rehabilitation project section 1 - Matotoka-Yiye," valued at approximately $30.7 million and funded by the African Development Bank.
The percentage of work completion as of March 31, 2014 was 14.0%.
On April 8, 2011, the Addendum for completion of the Tokwe Mukorsi dam was signed with the Zimbabwean government, represented by the Ministry of Water Resources Development and Management. The addendum, worth about €66 million, also provided for the full payment of outstanding debts owed by the client for previous addenda, amounting to about €11 million, which has been collected in full.
In 2012 and 2013, four new contract changes were also approved, thus resulting in a change in the value of the contract due to the approval of new designs, an increase in the amount of excavation, and an extension of the contractual deadlines.
The project, which will include the highest dam in the country and will create the largest manmade lake in Zimbabwe, involves the construction of a rockfill embankment with a maximum height of 90 meters, a capacity of 1.8 billion cubic meters, and the potential to irrigate 25,000 hectares of agricultural land.
The project has completed the roadwork, with the construction of about 43 km of roads, excavation of the main dam and the five saddle dams, the intake tower, and the diversion tunnel. The embankment of the main dam and construction of the two spillways are under way.
The percentage of contract progress is 81.0%.