OREANDA-NEWS . September 4, 2012. LLC Transstroymekhanisatsiya(TSM, a Mostotrest subsidiary) has been granted the right to enter into the government contract for construction and assembly works under the Vnukovo Airport development project. The contract is valued at RUB 2.6 billion (including VAT). The work must be completed within 448 days of the contract’s signing.

Federal state unitary enterprise Administration of the Civil Airports acts as the client under the contract for this project designed by State Design and Research Institute of Civil Aviation Aeroproject.

The project involves an upgrade of the airport’s infrastructure. The contract provides for completion of reconstruction of the Paved Runway 1, to be extended to 3,500 meters (including installation of a rainwater drainage system, lighting navigation aids and landing facilities), and construction of the RD-M2 and RD-A13 taxiways. The contract also provides for construction of the Firefighting Pad 4 and a rapid-response emergency and rescue station.

Vnukovo Airport is part of the Moscow air hub (MAH). According to the estimates of the specialized aviation institutions, passenger volumes at MAH airports could increase from 51 million to 90 million a year from 2011 through 2020. Vnukovo Airport served more than 4 million passengers in the first half of 2012, a 19.7% increase over the same period in 2011. The rapid growth of passenger traffic necessitates an increase in airfields throughput capacity and development of terminal structures, airspace, and the external ground infrastructure.

TRANSSTROYMEKHANISATSIYA (TSM) is focused on construction and renovation of transport infrastructure, including automobile roads, airports and railways. The Company operates in the Central, Southern and Far Eastern Federal Districts of Russia. TSM is currently involved in airfield upgrade projects at the airports of Vnukovo, Sheremetyevo, Sochi and Petropavlovsk-Kamchatsky, as well M-5 "Ural", M-9 "Baltiya", M-10 "Russia" and M-4 "Don" road construction projects, is in charge of full-scope preparatory construction for the Moscow -Saint Petersburg Toll Highway and participates in a number of other infrastructure projects.

Mostotrest (including LLC Corporation Engtransstroy and LLC TRANSSTROYMEKHANISATSIYA) is the largest diversified infrastructure and bridge-building company in Russia. According to EMBS Group, the independent industry consultancy, Mostotrest had an 8.6% share of the total Russian infrastructure construction market in 2011 (excluding road maintenance and rehabilitation). Mostotrest’s core competences include construction and rehabilitation of automobile, railway and urban bridges, automobile roads and other transport infrastructure.

The company was established in 1930 as a developer of complex and oversized bridges, and has built and rehabilitated more than 7,500 infrastructure projects (bridges, flyovers, tunnels and interchanges) to date.

Mostotrest is currently implementing major infrastructure development projects across Russia, including transport infrastructure for the 2014 Sochi Olympics, Enthusiasts Avenue traffic interchange in Moscow, as well as infrastructure projects along M-4 Don, M-7 Volga and other highways.

Mostotrest Ownership Structure:

38.6%: Marc O’Polo Investments (beneficiary shareholders: Arkady and Igor Rotenbergs and top-managers of N-Trans, including Konstantin Nikolaev, Nikita Mishin and Andrey Filatov);

27.1%: Transfingroup Asset Management Company, trustee of Blagosostoyanie Pension Fund

34.3%: free float.