Mota-Engil

M&A Activity • Aug 1, 2018

MOTA-ENGIL WINS A CONSTRUCTION AND CONCESSION CONTRACT IN ARGENTINA

MOTA-ENGIL S.G.P.S., S.A. ("MOTA-ENGIL") through its subsidiary MOTA-ENGIL LATIN AMERICA, has won through a consortium with a 33% stake, the construction and concession contract of Corredor Sur in Buenos Aires District in Argentina. MOTA-ENGIL won the contract under the PPP Vias Seguras tender sponsored by the Argentine Government.

The concession has a length of 247 kilometers (km), which includes the connection to the Buenos Aires airport, with an agreed annual average daily traffic of circa 250,000 vehicles and a period of 15 years. The concession holder has to perform construction works in 20 km in urban areas and 227 km in rural ones, in a consideration in excess of US\$900 million, with more than 95% corresponding to road widenings and rehabilitation. The main works are expected to length about five years.

The financial framework of the concession includes an availability payment, assuring the amount of the rehabilitation and the road widening works in an amount of 80% of the total investment, being the remaining investment and operation covered by the toll collection.

The availability payment is guaranteed by a trust belonging to the Argentina's Government, which receives the tax fuel income, as well as the partial contribution of some toll collection, with the Government's contingent obligation to complete any shortfall. These Public Private Partnerships were agreed upon with the recent negotiations between the State of Argentina and the International Monetary Fund.

Porto, August 1 st , 2018

THE REPRESENTATIVE FOR THE MARKET RELATIONS LUÍS SILVA