ANNUAL REPORT 2007

The works relating to the maxi-lot of the sanie A-3 motorway (ASR 49/04), are progressing even although with some delays connected to the necessary adjustments to be made to the project as a consequence of unexpected geological situations. The works relating to the re-allocation of the "historical line" located in the Modena territory that was awarded to your company in connection with the high-speed quadruplication of the Milan-Bologna line, are progressing in advance compared with the work programme.
During the past year, the company commenced negotiating proceedings in connection with the concession, based on a project financing, for the project work, execution and management of four hospital districts in the Tuscany area. The temporary grouping of companies, previously identified as the promoter, exercised its pre-emption rights and was awarded the related concession. The final project was completed within the programmed deadline and it is expected that the works on site will commence before the end of the current year.
Another significant event that has characterised the past year is the appointment as promoter with pre-exemption rights of a temporary grouping of companies, with Autobrennero as mandatory, for the project work, construction and management of the "Cispadana" regional motorway. Your company participates in the initiative in the region of 36,5%, The preparation of the preliminary project has been completed in accordance with current legislation subsequent to a consultation with the interested territorial entities and the cali for bids relating to the subsequent negotiated procedure has been published. The TAR of the Emilia Romagna region has rejected the recourse of a competitive grouping, thereby removing any further obstacles to the process that will lead to the awarding of the concession.
ANAS has for the moment suspended it's reply to the proposai presented previously relating to the execution of the so-called Bologna north passage road in a project financing regime (these works are of strategie importance in order to solve the heavy traffìc problem in the Bologna motorway junctions). In fact, subsequent to the formai request of the grantmg entity, your company updated the proposai, thereby qualifying it as being totally fmanced by private capital. In spite of the attempts, promoted by the Minister in charge, the entities involved were not in a position to overcome the obstacles imposed by the current concessionary as regards the urban portion of the A-14.