OHL Concessions. Toll plaza on the Mexiquense Beltway. OHL Group Annual Report

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1 OHL Concessions The company s consolidated experience in the development of new concessions, as well as in the operation of toll roads, ports, railways and airports, has placed OHL Concessions among the international leaders in the sector of transportation infrastructures under concession. Toll plaza on the Mexiquense Beltway. 8 OHL Group Annual Report OHL Concessions has ended 2014 the term with a positive balance, due to the five new motorway concessions achieved, two in Mexico and Chile and one in Colombia, and the 15.5% of the toll revenue.

2 Market and strategy The business track record of OHL Concessions since its incorporation in the year 2000 has evidenced its capacity both for successfully developing new markets as well as for materializing the value generated through stock market flotation, the direct sale of concessions and asset swaps. The company s consolidated experience in the development of new concessions, as well as in the operation of toll roads, ports, railways and airports, has placed OHL Concessions among the international leaders in the sector of transportation infrastructures under concession. The development strategy adopted, as part of the OHL Group s policy of diversification and internationalization, defined the transportation infrastructure sector as its exclusive area of action, together with the ongoing study of fresh opportunities for growth in its active markets (Mexico, Spain, Chile, Peru and Colombia) and its entry into new markets considered strategic (the United States and Canada), as criteria of geographical expansion. OHL Concessions-Position 18 main concessions: 13 toll roads, three commercial ports, one railway and one airport. Young backlog: 27 years of average residual life of the concessions. Very low performance risk: 12 concessions in operation, 1 in operation-construction and 5 under construction. Activity in Mexico: 7 toll roads and 1 airport; Spain: 2 toll roads, 2 commercial ports, 1 railway concession; Peru: 1 toll road; Colombia: 1 toll road; Chile: 2 toll roads and 1 commercial port. Prequalified for projects in Canada and Colombia. Management criteria Financially independent from OHL. Expert in the development and operation of newly created concessions, greenfield projects. Concessions financed through non-recourse borrowing and in local currency. Preference for majority stakes. Materialization of the value generated in its concessions (stock market flotation, sale of mature concessions or asset swaps). Reference shareholder of Abertis, with a % stake (18.925%, Villar Mir Group). Together with the sector-specific and geographical development strategy, the company has implemented a policy of extremely strict financial discipline, the financing of the concessions in local currency and with non-recourse borrowing, a minimum 15% rate of return on equity in euros for new investments and the optimization of its financial structure through the partial or total sale of mature assets. This strategy has enabled the company to obtain positive results in 2014, a year in which the assets backlog has increased, the capital structure has improved and new internationally recognized partners have been added. The company has expanded its asset backlog with five new toll roads under concession: two in Mexico, two in Chile and one in Colombia, and has renewed, yet another year, its position as the main driving force behind the growth of the Group. Activities of the OHL Group 9

3 The toll road sector is the company s main asset, with 13 major projects under concession, accounting for 61.4% of its turnover, eight of which are in operation and five in the preconstruction phase. Within the OHL Group, the OHL Concessions division has strengthened its financial autonomy through the transactions undertaken in the year that have enabled it to improve its capital structure and release a significant cash flow to facilitate future growth. The turnover obtained by OHL Concessions totaled million euros in 2014, with 15.5% growth in terms of income from traffic with respect to the previous year. However, the reflection in the accounts of the decline in construction activity (both the company s own as well as the work subcontracted to third parties under IFRIC-12), derived from the completion and start-up of its concessions, has translated into a 9.3% reduction in total sales. The gross operating profit (EBITDA) totaled million euros, 8.9% below the figure for 2013, due to the 3.3% devaluation of the Mexican peso against the euro. However, excluding the exchange rate effects, OHL Concessions recurring EBITDA has grown 5.5%. The net operating profit (EBIT) amounted to million euros, with a 5.1% increase in recurring EBIT in comparison to the 2013 financial year. The addition of five new toll road concessions in the course of the year in Chile, Mexico and Colombia has strengthened the profile of OHL Concessions as a promoter and direct operator, preferably with controlling interests. Likewise, the financial stake in Abertis contributes an asset backlog, balanced in terms of its stages of development and diversified geographically, with a presence both in emerging as well as developed markets and with an extensive capacity for generating recurrent revenues and dividends, all of which are factors that combine to create a scenario of stability and growth for the company. OHL Concessions operates transportation infrastructures in the full range of modalities toll roads, ports, railways and airports which integrate major metropolitan areas, industrial, commercial and tourism corridors, contributing development and competitiveness to its principal markets. Concessions managed by Metro Ligero Oeste, in Madrid, and by Terminales Marítimas del Sureste, in the Port of Alicante. The toll road sector is the company s main asset, with 13 major projects under concession, accounting for 61.4% of its turnover, eight of which are in operation and five in the pre-construction phase. In the commercial port sector, the company is working on the consolidation of a backlog of terminals strategically located on the trade routes of the major shipping companies and intended to provide support to the container goods traffic in Europe, Africa, America and Asia. A highlight in the area of rail transportation is the participation of OHL Concessions in a company with two light rail lines integrated in the Metro de Madrid network. In airports, the company has assumed the integrated 10 OHL Group Annual Report

4 Western Urban Toll Road, in Mexico. management of the airport, supplementary and commercial services of the Toluca International Airport, in Mexico, an essential element within the program for the deconcentration of air operations of the Metropolitan Airport System. The addition of the technological subsidiary Tráfico y Transporte Sistemas (TTS), in 2012, has strengthened the portfolio of tools and systems for the operation and maintenance of transportation infrastructures, guaranteeing proper risk management and control over all of the significant elements of the operation, as well as the scheduling of maintenance and the planning of investments. OHL Concessions: Sales performance by activity (Million ) Activity 2014 Var. % * Toll revenues % Sales ** % Recurring EBITDA % Recurring EBIT % * 2013 figures reexpressed. ** Descent by the accounting reflection of the lower construction, own and outsourced activity, completion and operation of its concessions. The details of the sales performance of the OHL Concessions division by activity show that toll revenues grew 15.5% in 2014 with respect to the previous year, thanks to the increase in traffic and in toll rates. However, the reflection in the books of the downturn in construction activity (both the Group s own activity as well as the work subcontracted to third parties under IFRIC-12) derived from the finalisation and start-up of its concessions has determined a -9.3% reduction in the global sales figure. Toluca International Airport. Activities of the OHL Group 11

5 OHL Concessions in the OHL Group in 2014 Sales EBITDA 12% 80% Concessions Rest of the Group 88% 20% The technological subsidiary Tráfico y Transporte Sistemas (TTS) has strengthened the portfolio of tools and systems for the operation and maintenance of transportation infrastructures. Business in the company s main markets has performed well, with significant growth in traffic flows and toll rates on the Mexican toll roads, which have led to 24% growth, in pesos, of OHL México s EBITDA from tolls. In May 2013, the 70 km long Casma-Huarmey section of the Northern Toll Road in Peru commenced operation, thereby completing the conversion of the roadway into a dual highway on the initial section specified in the concession contract. The operation of Terminal 2, which already existed in the Port of Valparaíso and was transferred by the Empresa Portuaria de Valparaíso, commenced in December 2013, while the construction and development of the expansion of the port remained pending. Trend in traffic flows and updating of toll rates Trend in traffic flows Updating of toll rates From 1/1/14 to 12/31/14 From 1/1/13 to 12/31/13 Var. (%) % Revision (6) Last revision MEXICO Amozoc-Perote (1) 31,154 28, % 3.3% January 2014 Concesionaria Mexiquense (1) 283, , % 9.9% January 2014 Viaducto Bicentenario (2) 29,075 29, % 29.7% January 2014 Autopista Urbana Norte (2) 44,091 40, % 49.6 (7) % March 2014 SPAIN Euroglosa M-45 (2) 76,701 74, % 2.7% March 2013 Autopista Eje Aeropuerto (1) 6,611 6, % 2.6% January 2013 Autovía de Aragón (2) 101, , % 5.3% January 2013 Metro Ligero Oeste (3) 13,415 15, % 0.3% January 2014 Puerto de Alicante (TMS) (4) 72,922 83, % 1.6% January 2014 Terminal de Contenedores de 43,643 24, % - - Tenerife (4) CHILE Terminal Cerros de Valparaíso (5) 116,262 - n.a. - - PERU Autopista del Norte (1) 34,105 30, % 1.2 (8) % February 2014 (1) Average Equivalent Paying Traffic. (2) Average Daily Intensity (ADI): total km traveled by all of the road users, divided by the total km in operation of the toll road. This measurement represents the number of road users who would have traveled the total km in operation of the toll road. (3) Average daily number of passengers. (4) Accrued number of TEU movements. (5) Average tons of general cargo. (6) Average increase in the rates applied at each toll plaza, resulting from the rate adjustment provisions established in each concession agreement. (7) Average increase from the updating of toll rates for off-peak and peak hours. (8) The conversion into a dual highway of the roadway of the Casma-Huarmey section was completed in the month of June. The increase shown on the tables is the average of the total of the road for the month of June. 12 OHL Group Annual Report

6 The long-term backlog totaled 58,448.9 million euros, increasing 14.7% with respect to the figure at December 31, 2013, due primarily to the awards of the Atizapán-Atlacomulco toll road (Mexico), worth 4,723.4 million euros, and the Magdalena River toll road (Colombia), in the amount of 1,846.7 million euros. OHL Concessions: long-term backlog (Million ) 60,000 50,000 40,000 30,000 20,000 10,000 51, , The backlog of projects under concession with direct management by OHL Concessions, at the close of accounts at the end of 2014, was comprised by 18 major concessions: 13 toll roads, three commercial ports, one railway concession and one airport. Geographical origin of the long-term backlog 2014 (Total 2014: 58,445.9 million ) 2.5% 5.4% 3.2% 12.0% Mexico Spain Chile Peru Colombia 76.9% Concession periods of the main concessions Years remaining Years transpired A2 Highway T 1 2 M 45 Highway 3 Northern Toll Road 4 Amozoc-Perote Toll Road 5 Port of Alicante 6 West Light Rail Lines 7 Bicentennial Viaduct 8 Magdalena River Toll Road 9 Port of Tenerife 10 Northern Urban Toll Road 11 Western Urban Toll Road 12 Port of Valparaíso 13 Atizapán-Atlacomulco 14 Puebla E. Bypass 15 Mexiquense Beltway 16 Industrial Bridge 17 Toluca Intl. Airport 18 Eastern A. Vespucio Activities of the OHL Group 13

7 The backlog of assets with direct management, together with the more mature and geographically diversified assets added through the stake in the capital of Abertis, guarantee the continuity of the strategy designed by the OHL Group, focused on internationalization and the concentration of its activities in the transportation infrastructure concession and construction sectors. The new infrastructures awarded in 2014 have increased the average residual life of the concessions to 27 years and maintain the profile of the backlog of main assets as a balanced backlog exposed to a low performance risk, with 12 concessions in operation, one in operation-construction and five in the investment phase. OHL Concessions: main infrastructures TOLL ROADS Toll Road / Concession Company Length (km) OHL stake (%) SPAIN M-45 Highway Euroglosa 45 C.C.A. Madrid, S.A A-2 Highway T1 Autovía de Aragón Tramo 1, S.A MEXICO Mexiquense Beltway Concesionaria Mexiquense, S.A. de C.V * Atizpán-Atlacomulco Toll Road Concesionaria AT-AT, S.A. de C.V Bicentennial Viaduct Viaducto Bicentenario, S.A. de C.V Puebla-Perote Toll Road Grupo Autopistas Nacionales, S.A Puebla Elevated Bypass Libramiento Elevado de Puebla, S.A. de C.V Western Urban Toll Road Controladora Vía Rápida Poetas, S.A de C.V Northern Urban Toll Road Autopista Urbana Norte, S.A. de C.V CHILE 15.8 Eastern Américo Vespucio Sociedad Concesionaria Vespucio Oriente, S.A Industrial Bridge Sociedad Concesionaria Puente Industrial, S.A COLOMBIA Magdalena River Toll Road Autopista Río Magdalena, S.A.S PERU Northern Toll Road Autopista del Norte, S.A.C TOTAL OHL CONCESSIONS OHL Group Annual Report

8 The toll roads increased their toll revenues 15.5% in 2014 and constitute the main business line of OHL Concessions, accounting for 61% of its sales. In 2014, the eight main toll roads under concession in the operating phase achieved an increase in average daily traffic of 8.7% with respect to COMMERCIAL PORTS Surface area (hectares) OHL stake (%) SPAIN Port of Alicante Terminales Marítimas del Sureste, S.A Port of Tenerife Terminal de Contenedores de Tenerife, S.A CHILE Port of Valparaíso Terminal Cerros de Valparaíso, S.A The start of operations of the cargo terminal at the Port of Valparaíso in December 2013 has made it possible to increase the port sector sales in OHL Concessions to 8.6% of the total. AIRPORTS Toluca International Airport (Mexico) Administradora Mexiquense del Aeropuerto Internacional de Toluca, S.A. Services under concession Airport, supplementary and commercial services OHL stake (%) 27.5 During 2014, the Toluca International Airport experienced a 34.6% contraction in passenger traffic with respect to the previous financial year. Nevertheless, the Mexico City International Airport saturation report, issued in September 2014, points to a gradual recovery of traffic by Toluca on absorbing the demand that cannot be met by this airport. RAILWAYS Length (km) OHL stake (%) SPAIN West Light Rail Lines (Spain) Metro Ligero Oeste, S During the past financial year, Metro Ligero Oeste obtained an average traffic figure of 13,415 passengers daily. The expectation is that the reactivation of the Spanish economy will make it possible to reach higher traffic figures in the next few years. Activities of the OHL Group 15

9 Significant activities New awards The study of fresh business opportunities carried out by OHL Concessions has enabled the company to strengthen its presence in Mexico and Chile during 2014 and to add Colombia as a new investment destination. The main features of the five new toll road projects under concession, awarded during the financial year, are described below by market. Mexico Atizapán-Atlacomulco In March 2014, OHL México added a seventh toll road to its asset backlog on winning the contract for the financing, construction, operation, upkeep and maintenance of the Atizapán-Atlacomulco toll road. The concession, awarded by the Mexican Federal Government s Secretariat of Communications and Transportation, has a concession period of 30 years, with an estimated investment totaling million euros. The new 74 km long infrastructure will have four lanes of traffic (two in each direction), and the project includes the construction of several tunnels and viaducts. Located in the State of Mexico, the toll road will significantly improve the road connectivity between the Metropolitan Area of the Valley of Mexico and the northern and western regions of the country and will enable important synergies with the other toll roads managed by OHL México in this market. Puebla Elevated Bypass In the second half of the financial year, OHL México signed a contract with the Government of the State of Puebla for the construction, operation, upkeep and maintenance of the Puebla Elevated Bypass. The new 13.3 km infrastructure will run as a viaduct over a section of the federal Mexico City-Puebla-Veracruz toll road in the metropolitan area of the city of Puebla. The concession period will be 30 years, starting from the commencement of operations. With a total estimated investment of million euros, the toll road project will be performed in a consortium with Promotora y Operadora de Infraestructura (Pinfra). OHL México will maintain a 51% stake in the concession company s shareholder composition. Layout of the Atizapán-Atlacomulco toll road. The project constitutes an alternative to the former Northern Puebla Bypass and is set in the framework of the indemnification granted by the Government of the State of Puebla to OHL México for the investment made by its subsidiary Autovías Concesionadas de OHL in the earlier bypass project. 16 OHL Group Annual Report

10 Colombia Magdalena River Toll road In the month of October, OHL Concessions added Colombia as a new investment destination with the award of the 144 km long Magdalena River Toll Road, involving a total investment of 1.94 billion Colombian pesos (673 million euros). The concession period is 25 years, extendable up to a total of 29. Of the total length of the infrastructure, 82 km will be new construction and the remaining 62, rehabilitation and upgrade of the existing roadway currently in operation. The new section, where work is scheduled to begin in 2016, includes two tunnels and 79 bridges, the largest at Puerto Berrío, over the Magdalena River, 1,480 meters in length. The widening and upgrade of the Magdalena River Toll Road is highly relevant for the economy and connectivity of the region, as it will link important centers of inputs and production from western Colombia with the Magdalena River, the north and the east of the country. The Colombian Vice President, Germán Vargas Lleras, signing the concession contract for the Magdalena River Toll Road before Robinson Alberto Baena Zuluaga, mayor of Puerto Berrío, on his right, and Juan Luis Mato, director of OHL Concesiones, and Luis Fernando Andrade, chairman of ANI, on his left. Chile During the first and second half of the financial year, concession contracts were formalized with respect to the two road infrastructures for which, at the end of 2013, the Ministry of Public Works had selected the proposal of OHL Concessions as the best economic and technical tender submitted in the bidding process. Eastern Américo Vespucio A 9.3 km long urban toll road in Santiago de Chile, awarded in January The project will be performed in a consortium shared evenly with Sacyr Concessions, with an estimated total investment of million euros. The layout of the road runs through five communes of the country s capital and will contribute to reducing the travel times in the eastern sector, improving traffic in an area with high levels of vehicle saturation. The features of the project respond to the company s expert profile, with a consolidated capacity for adding value in the performance of projects involving considerable technical complexity, both in terms of construction features as well as due to their location in a metropolitan area with high population and traffic density. Activities of the OHL Group 17

11 Industrial Bridge Concession In December 2014, the Official Journal of the Republic of Chile published the decree formalizing the award of the concession contract for the Industrial Bridge Concession public works project for the design, construction, financing, operation and maintenance of this toll road. The contract, for a period of 38 years, provides for an investment of million euros. The length of the toll road will be a total of 6.5 km, as a divided highway with two lanes in each direction. The new infrastructure is designed to improve the commercial traffic in the province of Concepción, one of the four provinces comprising the VIIIth Region of Biobío, characterized as being one of Chile's most important industrial centers, where fishing, forestry, iron and steel and manufacturing are the core industries. Model of the Vespucio Oriente urban toll road, in Santiago de Chile, and head office of OHL México. Financial transactions Sale to Inmobiliaria Espacio of 5% of Abertis OHL Concessions has strengthened its financial independence from the OHL Group with transactions enabling it to improve its capital structure and release a large amount of cash flow in order to continue growing. In October 2014, the Group sold 44,915,253 Abertis shares, representing 5% of the latter s capital, to Inmobiliaria Espacio, head company of the Villar Mir Group. Following this transaction, the percentage stake of the OHL Group in the capital of Abertis is now %, while the direct or indirect stake of the Villar Mir Group in Abertis remains at %. Sale of 7.5% of OHL México The sale of 130,000,000 shares of OHL México representing 7.5% of its capital was finalized in November. The OHL Group continues to maintain control through its 56.14% stake, and OHL México has strengthened and diversified its shareholder base with the entry of new international investors, at the same time as the liquidity of the share has increased. 18 OHL Group Annual Report

12 IFM Investors purchases 24.99% of Concesionaria Mexiquense In January 2015, OHL México reached an agreement with IFM Global Infrastructure Fund for the sale of 24.99% of Organización de Proyectos de Infraestructura, the direct owner of Concesionaria Mexiquense (Conmex), at the price of 8.8 billion Mexican pesos. The transaction is subject to the usual closing terms and conditions for transactions of this kind, and the resources obtained will make it possible to strengthen the balance sheet and the financial structure of OHL México. Construction, upgrade and start of operations Mexico Bicentennial Viaduct The construction of a section of close to 5 km of the second structure of the Bicentennial Viaduct between the former Cuatro Caminos Bull Ring and Lomas Verdes was completed in the course of the financial year, eliminating the need for reversible vehicle traffic on this section. This section has been built with four 3.5 m wide lanes over the Anillo Periférico, adding three new distributor roads to the existing four accesses and exits. The size of the infrastructure has involved the erection of 168 column footings with a unit weight of up to 180 tons and 168 beams with a unit weight of up to 273 tons, while 672 concrete foundation piles were excavated in situ. Interoperability of electronic toll collection in Mexico The interoperability process affecting all of the toll roads in the country entered into force on November 1, In this context, work was carried out during the year both for the completion of a model capable of reading all TAGs, regardless of the technology used, as well as for the establishment of agreements for the collection of tolls among the various road infrastructure operators in Mexico. Televía, OHL México s electronic toll collection operator, culminated the signature of agreements with the principal electronic toll collection operators in the country. In an initial phase these agreements included the toll road network operated by Caminos y Puentes Federales (Capufe) and its operator Tedisa with 3,809.9 km, accounting for 53% of the Federal Toll Roads in the country, together with two bilateral agreements signed with I+D and Viapass. During 2015, work will continue for the implementation of multiprotocol reading on a national scale and the signature of additional agreements with other minor operators. Peru Autopista del Norte On December 5, 2014, the President of the Republic of Peru, Ollanta Humala, inaugurated Section IV, Pativilca-Huarmey, comprised by 76 km of the Northern Toll Road and built by Autopista del Norte, the concession company for the 356 km section of the Pan American Highway North between the cities of Pativilca and Trujillo. Activities of the OHL Group 19

13 Ollanta Humala, President of Peru, inaugurated Section IV of the Northern Toll Road. To his right, José Gallardo, Ministry of Transport and Communications, and, to his left, Jaime Crosby, general manager of Autopista del Norte. To the left, a pergola constructed on this infrastructure. The commissioning of this section brought the degree of progress on Network No. 4 to 45%, with 146 km of divided highway in operation. At the same time, construction is moving ahead on Sections II and I. The asphalting of 20 km. was completed on the 36 km long Section II, Santa-Casma. With respect to the 92 km long Section I, Santa-Trujillo, progress was made in obtaining the release of land along 34 km of the road, and work for converting the roadway into a divided highway commenced on June 15th. By December 31st, 64.6% of the total divided highway project contracted with the concession grantor had been completed. The detailed engineering for the eight roundabouts included in the project for upgrading Network No. 4 has already been approved by the relevant government authority. In the case of 15 of the 20 pedestrian bridges planned, the detailed engineering has also been completed and is awaiting approval. With respect to the bypasses or beltways around the cities of Huarmey, Casma, Virú and Chao, alternatives and improvement have been proposed and are being examined by the Peruvian Ministry of Transportation and Communications. Chile Terminal Cerros de Valparaíso Terminal Cerros de Valparaíso (TCVAL) performed the Environmental Impact Study (EIS) required for the performance of the Terminal 2 expansion project at the Port of Valparaíso. The project consists of the construction of a new wharf, operations area and berths in the Costanera sector of the Port of Valparaíso and the subsequent operation of the facilities. The project includes the construction of a 725 m long wharf, based on a structure of reinforced concrete deck supported on metal beams and piles driven in the seabed. The space between the breakwater and the wharf will be filled in to form a paved surface area of 9.1 ha, approximately, added to the existing space, reaching a total of 13.6 ha of support surface for port operations. The concession company TCVAL initiated the environmental processing of its project for the modernization of the port on the 17th of September. The submission of the EIS for approval culminated a full year of work characterized by integrated management committed to the community, with close publicprivate cooperation and a continuous reporting and communication effort to engage with all of the stakeholder groups. 20 OHL Group Annual Report

14 At the end of the financial year, the concession company received the so-called Consolidated Report Requesting Clarification, Rectification and/or Additional Information (ICSARA), which includes both the remarks made by citizens as well as the observations of the government bodies connected with the project. TCVAL will prepare the reply to these observations during the first half of 2015 and will submit the relevant Addenda. Start of operations of the TCVAL general cargo terminal TCVAL s first year of operation of the cargo terminal s three berths increased the total transfer of tons by 28% with respect to the 2013 financial year. A total of 1,483,022 tons were moved in the course of the year, with an average monthly rate of 116,262 tons, exceeding the forecasts made at the start of the concession. In 2014, Terminal Cerros de Valparaíso serviced a total of 299 cargo ships, 15 cruise ships, 71 side-by-side vessels and 232 smaller vessels at berths 6, 7 and 8, which have the capacity for providing service to vessels of up to 235 m in length and with drafts ranging between 6.2 and 8.8 m. Virtual image of TCVAL s future Terminal 2 in the Port of Valparaíso. Studies and prequalification OHL Concessions maintained an extensive backlog of projects under study in 2014, for the purpose of consolidating its investment and development strategy in its home markets: Spain, Central and Eastern Europe, the U.S., Canada, Mexico, Colombia, Peru and Chile. At the end of the financial year, the main projects in which it was prequalified were as follows: Canada New bridge over the St. Lawrence River The St. Lawrence New Bridge Partnership consortium, led by OHL Concessions together with Acciona, Samsung and the DIF investment fund, was prequalified for participating in the call for tenders for the concession of the design, financing, building, operation and maintenance of the new bridge over the St. Lawrence River in Montreal. Activities of the OHL Group 21

15 Prequalification has been obtained following a competitive process in which several consortiums participated, bringing together all of the world s major infrastructure developers, construction companies and engineering firms. The new toll bridge will replace the present Champlain Bridge, which is one of the most heavily traveled bridges in Canada, with a traffic flow of close to 70 million vehicles yearly. This infrastructure will serve as a connection between the city of Montreal and the State of New York and is one of the most vital routes for the Canadian economy. Eglinton Crosstown LRT Project A project tendered by Metrolinx and Infrastructure Ontario for the development of the light rail crossing through the city of Toronto. OHL Concessions participates in one of the two consortiums prequalified, together with Fengate, STRABAG, Bechtel and Obayash. The Eglinton Crosstown LRT project is comprised by a 19-km corridor that runs from east to west along Eglinton Avenue between Mount Dennis (Weston Road) and Kennedy station, connecting a number of city bus routes, three subway stations and several railway and suburban bus lines. Colombia OHL Concessions has been prequalified in six of the toll road projects that the Government of Colombia plans to tender in the framework of its infrastructure promotion program for national development. The projects are as follows: Rumichaca-Pasto: 80 km of toll road, with the construction of a second roadway and the upgrade of the existing roadway. Villavicencio-Yopal: 264-km project for upgrading the total length of the road and the conversion of 49 km into a divided highway. Santana-Mocoa-Neiva: 413 km of toll road including the rehabilitation and upgrade of 415 km, 38 km of new construction and 22 km of dual highway and rehabilitation Popayan-Santander de Quilichao: conversion into a divided highway of a 77 km section of toll road and operation of the existing roadway. Autopista al Mar 2: 246-km project, for the construction of a new 18-km section of road and the rehabilitation and upgrading of 119 km. Autopista al Mar 1: 176 km of toll road. The project includes the conversion into a divided highway and the upgrading of 33 km, the construction of 9 km of new road and the rehabilitation of 66 km. These six projects, with an estimated investment of more than 3 billion euros, belong to the second phase of the fourth generation program of road concessions promoted by Colombia s National Infrastructure Agency for improving the connectivity of the country s principal production and export hubs. 22 OHL Group Annual Report

16 Other significant events OHL México included in the IPC Sustentable index of the Mexican Stock Exchange Subsequent to the end of the financial year, the Mexican Stock Exchange (BMV) published a significant event on January 30, 2015, announcing the new composition of the IPC Sustentable index basket. OHL México is now included in the basket of companies of this select index that will remain in effect from February 3, 2015 to January 29, Mexican Stock Exchange. Activities of the OHL Group 23