CONTRACT WORTH BILLIONS OF CROWNS SIGNED AT PRAGUE CASTLE

08. 12. 2011

Prague, 8 December 2011 – During the state visit by Dmitry Medvedev a contract was signed between OHL ŽS, a.s. (Czech Republic) and Yamal Railway Company (Russia).

The contract entitled “SMLOUVA č. 520/11 na výstavbu železničního úseku Obskaja – Salechard – Nadym, včetně Mostu přes řeku Ob, Ruská federace” (Contract number 520/11 on the construction of the Obskaya – Salechard – Nadym railway line, including a bridge across the Ob River, Russian Federation”) is part of the railway construction project entitled “Severnyj shirotnyj chod”.

The contract is divided into three sections as follows:
1st section:    Salechard – Nadym
2nd section:   Obskaya – Salechard
3rd section:    Bridge across the Ob River

The joint stock company OHL ŽS will serve as the general contractor for this contract, the value of which is expected to exceed EUR 1.5 billion, excluding VAT. Realisation shall commence once issues of financing from the respective Czech and Russian parties have been resolved. Signing the contract is closely related therefore to approval of the Czech Export Bank’s mandate regarding financing the project in cooperation with Czech and Russian commercial banks.

OHL ŽS, a.s. anticipates the participation of numerous Czech companies in carrying out this contract. These companies will include ŽPSV, AŽD, Sudop, DT Prostějov, Třinecké železárny and Vítkovice. In addition, Czech companies have many other opportunities to become involved in contracts offered in and by the Russian Federation. “There will be many follow-up projects associated with the construction of this railway line, especially in power engineering and the processing industry. We see this contract as leaving the door wide open for other leaders of Czech industry, who will now have new opportunities to export their services and technologies,” says Michal Štefl, Chairman of the Board of Directors and General Manager of OHL ŽS, a. s.