Construction contract

On 11 March 2010, AS Merko Ehitus and Constructions Industrielles De La
Méditerranée S.A signed a contract for the construction of the Iru
Waste-to-Energy facility. Pursuant to the contract, Merko Ehitus has undertaken
to carry out the general construction and special engineering works together
with all the required design engineering works; the purchaser will design,
supply and install all the necessary technical equipment. 

The new Iru Waste-to-Energy facility can incinerate up to 220 000 tonnes of
municipal, construction and industrial waste annually. The Iru Waste-to-Energy
facility will have a heating output of 50 MW and an electrical power output of
17 MW. 

The contract value is EUR 12 649 024 (EEK 197 914 219) exclusive of VAT.

The construction works will begin in summer 2010 and are planned to be
completed in 2012. 

Marko Pern
Financist
+372 6 805 130
marko.pern@merko.ee