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Consortium Including Merko Ehitus Eesti Earns Construction Contract in Estonia

On 23 January 2014, consortium consisting of AS Merko Ehitus Eesti – part of the AS Merko Ehitus group, KMG Inseneriehituse AS and Ratatek OY, and the city’s transport operator Tallinna Linnatranspordi AS entered into a contract to perform the design and renovation work on the infrastructure of Tallinn tram line no. 4.

The contractor was chosen on the basis of a public procurement organised by Tallinna Linnatranspordi AS (public procurement no. 12-13 RH/146293, “Design and renovation of the infrastructure of tram line no. 4”) where the project was awarded to AS Merko Ehitus Eesti, KMG Inseneriehituse AS and Ratatek OY consortium who submitted a joint bid. The evaluation criteria for the bidders were the lowest price. On 3 January 2014 AS Merko Ehitus released a separated Stock Exchange announcement regarding the preferred bidder status.

Major work to be performed in the framework of the contract will be renovation of the tram tracks of tram line no. 4 and renovation of the Pärnu mnt depot tracks along with transferring the tracks to a concrete base, replacing the catenary power lines from Tondi to Ülemiste and Kadriorg, and upgrading the six substations. Following that, the tram tracks will be extended to the Peterburi tee 2 plot, where a tram turnaround loop will be built.

The value of the contract is EUR 26.0 million, plus value added tax. The works will be performed during 2014 and 2015.

Merko Ehitus Eesti is the leading Estonian construction company that performs general construction, engineering, electrical engineering, road and residential construction. KMG Inseneriehituse AS, established in 2007, is active in civil engineering, including constructing energetic facilities (power plants), ports, water-treatment plants, landfills, highways, overpasses, etc. Ratatek OY, established in 2008, is a Finnish company offering the design and construction of electrical transport systems and substations.

AS Merko Ehitus ( comprises the leading Estonian construction company AS Merko Ehitus Eesti, the Latvian market based SIA Merks and the Lithuanian market based UAB Merko Statyba as well as the group’s real estate development business unit together with companies holding real estate properties. As at the end of 2012, the group employed 915 people and the 2012 revenue amounted to EUR 249.1 million.


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