A BRIEF PRESENTATION OF THE ACTIVITY OF “AB” JSC HASKOVO

“AB” Ltd. Haskovo has been registered with a decision of Haskovo district court N 90/04.06.1993 with subject of activity: building, road repair and maintain, road equipments, town communications, infrastructure around them, scientific, research, design, engineering, investment and commercial activity in the country and abroad, all types of service with building and other technique, transport of passengers and loads, with capital stock of 30 845 000 leva. In 1996 in the Commercial Register of Haskovo district court page 143, volume 6, file 80 it has been written increasing of the capital stock of the partnership to 34 274 000leva.

With a decision of Haskovo district court from 07.03.2000 written in volune 1, page 172, file 86 the partnership has reorganized in “AB” JSC haskovo.

With a decision of Haskovo district court N 387/24.02.2006 the JSC passed over to two-tier system of management. Supervisory board has been elected: Stanimir Rusinov Milev-chairmen of the supervisory board, Mitko Tonchev Tsvetkov and Teljat Sali Hasan-members. The managing board consists of: Plamen Petkov Vanev and Hristo Lambov Deliginev-chief executive directors, Venzislav Ivanov Pandulev and Dimitar Gueorgiev Talev-executive directors and Milko Petkov Armutliev and Gueorgi Hristozov Gueorgiev-directors. The organization is beeng presented always by 2 of 4 autorised members of the managing board- : Plamen Petkov Vanev, Hristo Lambov Deliginev, Venzislav Ivanov Pandulev and Dimitar Gueorgiev Talev.

As it is clear from the subject of activity our company can perform the overall process connected with the building of road objects as following:

1. Road design and works

2. Production of inert materials to build road bases, asphalt mixture and concrete solutions

3. Road building, including all activities of constructing the earth and road bed, draining works-drain pipes, draining trenches and drainage, protective elastic fences

4. Asphalt works-asphalt production, transport of ready asphalt mixture, laying and packing

5. Vertical signalization and horizontal marking

The road and asphalt works we do are of high quality. These activities are performed in accordance to BDS and the actual technological instructions and rules. The road repairs we perform considerably improve the existing parameters road surface-roughness, carrying possibility, providing comfort and safety when traveling.

The used materials are of high quality, corresponding exactly to BDS requirements, which guarantees the solid bases of the road surface and the newly put asphalt.

The financial condition of “AB” JSC Haskovo has been very good which is seen in the information for the annual turnover about performing the building and constructive works for the last years:

1995 - 239 131 000 leva

1996 - 396 504 000 leva

1997 - 3 569 621 000 leva

1998 - 3 764 000 000 leva

1999 - 4 086 000 leva

2000 - 8 437 000 leva

2001 - 9 993 909 leva

2002 - 5 433 000 leva

2003 - 7 125 000 leva

2004 - 19 030 064 leva

2005 - 17 101 966 leva

2006 24 763 000 leva

2007 - 31 862 000 leva

2008- 52 087 329 leva

There are well qualified technical managers and specialists for producing road building activities in “AB” JSC.

Our company owes stone-pits with total reserve as followed: stone-pits “Lisovo” and “Garvanovo” with 2 mln. m3 each and stone pit “Klokotniza” with 22 mln.m3. We possess TCI with the possibility to produce 300 000t annually inert materials for the production of asphalt mixture, concrete solutions and road bases. The produced stone fractions refer all requirements concerning BDS for production of all types asphalt mixtures.

The equipment used by “AB” JSC for the minor extraction, transport and crush and grading and separating is as follow:

• drilling is performed by drills type “SNB-114P” and this allows laying low-graded drills – 3 pcs.

• Taking the explosive rocky aggregation from the pile and loading in the trucks is performed by using electrical rope-bucket excavator-spade ЭКГ-5А and diesel hydraulic excavator type “UB-1232”

• The transport of the explosive rock aggregation to TCI is performed by auto tip-lorry KRAZ-256 – 2 pcs. and BELAZ-540 – one.

• Fragmentation to no dimension peaces is performed by hydroimpactor with diesel operating “Hydratan” in 80% of worked off no dimension aggregation or secondary explosion is performed /20% of the aggregation/ through blasts in explosion halls. They can be drilled by drilling pistol type “Bjoler BH 16L”.

• We have movable compressors type PK-10 – 3 pieces for supplying the drills and the drilling hammer with pneumo energy /compressed air/

• For the additional activity in the stone-pit as leveling the ground, cleaning of soil and mould, pushing non-dimensions and support the car roads and others we possess a chain bulldozer “Caterpillar TD 20 E”

Rebreaking the crashed stone is performed in this way:

First breaking – jaw crusher SPD – 9x12, sift with vibroscreen and as result the material is divided into crushed stone for road bases and measures 0/40 or 0/75 and the kernel of the stone with measures 40/130

Second breaking – a big rotor crusher SMD 86 and a little rotor crusher SMD 75. sieve of the rebroken material got with vibro sieve and the measure of the rebroken fractions is from 0/25. The separation of the fractions is in accordance to the necessity as followed 0/5, 5/10, 10/15, 5/15, 15/20 and 15/25.

The crushed separating installation is used also for the production of andesite fractions, necessary for the production of string amissete asphalt concrete and for the purpose we buy crushed stone from the stone-pit in Garvanovo with measures 5/75 and this material is being crushed and sieved to receive fractions with size 0/3, 3/5, 5/10 and 10/15.

All these equipment, machines and vehicles mentioned above are in good condition.

The number of the staff in the Garvanovo stone-pit is in according to the specific of the activity. The firm has well-qualified workers. They have also long service. There are specialists for developing opened stone fields.

The inert material which has been produced for the last years in stone-pit “Klokotniza” :

1995 - 294 733 t.

1996 - 154 225 t.

1997 - 120 829 t.

1998 - 188 482 t.

1999 - 212 325 t.

2000 - 202 981 t.

2001 - 199 804 t.

2002 - 160 800 t.

2003 - 181 310 t.

2004 - 188 001 t.

2005 - 248 417 t.

2006 - 262 735 t.

2007 - 491 840 t.

2008- 528 503 t.

The extraction of the last 5 years has been lower than the capacity of the machinery. The reason is that this has been the optimum production satisfying the necessity of stone fractions for the objects.

Our company possesses also some asphalt bases. At the asphalt base “Krepost” there are installed 2 asphaltmixers TELTOMAT 4S with capacity 50t per hour, mills for activated stone flour – 2 pieces, warehouse farm for bitumen and technological fuel, black oil and gas oil, warehouses for different kinds of inert materials divided by partition walls, which don’t allow to intermingle the different fractions.

The produced and putted asphalt mixtures in the last years are as follow:

1995 - 84 625 t

1996 - 23 750 t

1997 - 14 940 t

1998 - 43 400 t

1999 - 25 994 t

2000 - 77 155 t

2001 - 86 380 t

2002 - 43 551 t

2003 - 40 064 t

2004 - 70 204 t

2005 - 67 881 t

2006 - 87 011 t.

2007 - 94 352 t.

2008- 52 174 t.

We have a licensed lab which is situated on the territory of the asphalt base. The lab makes all kinds of experiments and tries according to BDS and gives certificates for the produced by the stone-pit farm inert materials, prepares the necessary recipes for the production of the asphalt mixture. The lab controls every day the production of the asphaltmixer and tests the quality of the ready asphalt mixture which is put and made tight at the object.

The asphaltmixer produces all kinds of asphalt mixture – bituminous base, porous asphaltconcrete, binder, asphaltconcrete compact mixture, stringanisette asphaltconcrete and cold asphalt mix to repair the road surface in winter.

Two mills for activated stone flour/stone grinder/ work at the area of the asphalt base. We produce this flour to be useful for our activities and also for selling.

There are three asphalt-putting teams equipped with the necessary machinery for the asphalt surface producing:

1. Asphaltlayer Voegele Super 1800” - 2001

2. Asphaltlayer Voegele Super 1505” - 1986

3. Asphaltlayer Voegele Super 1502” - 1985

4. Steam roller tire BW202AD2 and BW100ADM2 - 2001

5.Steam roller tire VHS100- 3 pieces 1983 and 1986

6. Pneumatic steam roller VP200 – 3 pieces 1988,1996

7. Truck-gudronator ZIL – 3 pieces

8. Water-carrier with brush ZIL-130 – 2 pieces 1990

9. Gap-cutters 2 pieces

10.Asphalt cutting machine ABG - 1 piece 2001

11.Asphalt cutting machine WIRTGEN W 1000 2003

12.Frontal loader DRESSTA 534 2005

13.Wheel carrier excavator HUNDAY 2005

14. Combined excavator КОМАТЦУ- 1 piece 2007

15. Tonal station JAPAN - 1 piece 2007

“AB” JSC Haskovo has got well qualified technical managers and specialists for the fulfilling of the asphalt work.

A brief presentation of the bigger road objects performed by the company during the last years:

In 1994/1995 we realized with excellent quality the road segment E-80 /Haskovo-Harmanli/ - a part of the project TRANSITE ROADS Republic of Bulgaria LOT N 5, financed by EBRD.

In 1996 we realized the repair of the asphalt surface of landing-strip “Airport Sofia” in working regime of the landing-strip with excellent quality. In 1997 we took place in the repair of the surface of the platform of Airport Sofia-change of the existing asphalt surface with two new layers asphalt concrete according to the due terms and with very good quality.

In 1998 we realized the road segment E-85 /Dimitrovgrad-Haskovo/ and a part of the asphalt and other types of activity of the road segment AM Maritza which are part of LOT N3 of the Project for recovery of the national road net in the Republic of Bulgaria TRANSIT ROADS II Project `96, financed with the participation of EEB and Phare.

In 1999 we finished building the road II – 55 /Glavan-Goliamata zvezda/ from km 149+402 to km 155+143. We did the repair of GKPP Kapitan Andreevo according to the recovery program Frontier Checkpoints of the Republic of Bulgaria.

Since our company has been established, we took place in the regular tenders presenting Executive agency “Road” Haskovo to repair local parts of the road net in Haskovo district. We have won the first place and we have fulfilled the work according to the due terms and with excellent quality.

In 2001 we realized LOT 7 of the Project Transit roads – 3 – 1998, financed by EEB. We finished the road segment of road I-5 “Stara Zagora-Dimitrovgrad” from km 235+400 to km 266+500 in July 2001, and the road segment of road III – 534 “Radnevo-Galabovo” from km 100+300 to km 117+997 in November 2001.

“AB” JSC finished in terms Lot 1, to the value of 6 124 247 leva with VAT and Lot 2, to the value of 6 608 654leva with VAT – Rehabilitation and reconstruction of roads to tourist objects in the regions of Smoljan, Kardjali and Haskovo /Lot 1/ and the region of Pazardjik /Lot 2/. The projects are financed by Phare and performed in collaboration with Strabag Austria and “ENGSTROI-Sofia” JSC.

During the 2005 our company took place in the tenders financed by SAPARD and PRON programs. We won same tenders and these are fully finished:

• “Improving the existing municipal roads, connecting some towns and villages in municipality Mineralni Bani”, ref.N HQ-001149/3/3/090 to the value of 2 889 934,44 lv with VAT.

• “Streets building in the village of Svetoslav, municipality Stambolovo, district Haskovo”, ref N HQ-00012/3/3/022 to the value of 646 377,50lv with VAT

• “Building of streets and drainages in the town Ardino, housing complex “Bostandjiite”, ref N HQ-0035/3/3/042 to the value of 565 920,31 lv with VAT

• “Water supply of the group “Bakadjik”, diversion to the village Voinika”, Municipality Straldja, ref N HQ-00025/3/3/036 to the value of 719 572,91 lv with VAT

• “Reconstruction and building of water main and drainages in towns and villages in municipality Kula”, ref N HQ-00052/3/3/052 to the value of 1 682 741,10 lv with VAT

• Municipality Zavet “Rehabilitation of road IV-230119 “Zavet-Sushevo” from km 0+000 to km 6+871”, ref N HQ-00164/3/3/098 to the value of 1 271 420 lv with VAT

• Municipality Tzar Kalojan “ Reconstruction of part of the streets in Municipality Tzar Kalojan”, ref N HQ-00042/3/3/046 to the value of 1 283 795 lv with VAT

• Municipality Losnitza “Road building, asphalt putting and developing the streets in the territory of municipality Losnitza – 4 936 m in five towns and villages”, ref N HQ-00123/3/3/077 to the value of 1 033 886 lv with VAT

• Municipality Sadovo-“Improving the streets in Municipality Sadovo”, ref N HQ-00040/3/3/044 to the value of 1 212 768,72 lv with VAT

• Municipality Venetz-“Building water pipe-line in the village Jasenkovo”, ref N HQ00009/3/3/030 to the value of 1 421 272lv with VAT

• Water supplying the town Omurtag from Jastrebino-dam”, by PROON program to the value of 3 280 562 lv with VAT

In the following municipalities we shall finish very soon some of the objects on which our company works as a leading partner in the Consortium

• Municipality Antonovo – “Water supplying Municipality Antonovo from Jastrebino dam”, ref N HQ-00125/3/3/079 to the value of 3 716 724 lv with VAT

• Municipality Glavinitza- “Purifying station for water waste” to the value of 1 644 940lv with VAT

During the 2006 we have finished Rehabilitation of II-76 Kniajevo – Topolovgrad from km 1+700 to km 17+800 and section from km 19+610 to km 20+384 to the value 10 857 713 lv. with VAT, financed by Fund “Republic Road Infrastructure”/Executive agency “Road”/, with investor Regional Road Direction – Haskovo. AB Jsc have worked as sub-executor on the Highway Trakia - 47 883 with VAT, road variation on road III-534 Gulubovo – asphalt works on the value of 804 052 lv. incl. VAT and on the road III-5071 – Perpirikon to execute asphalt works to the value – 2 145 376 lv. with VAT. As a partner in consortium AB Jsc execute construction works on the “Consolidation of the riversides of Arda river in the Kardjali region” to the value of 53 410 239, financed by Ministry of regional developments and public works.

“AB” JSC Haskovo took place and won tenders set by Fund “Republic Road Infrastructure”/Executive agency “Road”/ and it has been worked hard on:

• Road III-506 Dobrich-Gorski izvor, to the value of 2 794 915lv with VAT

• Bridge on road III-554 Galabovo-Simeonovgrad, to the value of 499 920 lv with VAT

• Road II-59 Slaveevo-frontier Greece, to the value of 1 076 766 lv with VAT

• Road II-21 – an encircling road of Silistra town from km 106+151 to km 112+235 – 9 742 075 lv. with VAT

• Recovering of bridge and road part by km 16+200 on the road III-598 :Ivailovgrad – Mandrotsa – Meden buk” – 995 280 lv. with VAT

• Engineering – project and building of road III-506 Gorski izvor – Svetlina – Mineralni bani – Karamantsi from km 15+100 to km 40+700 – 14 m940 456 lv. with VAT

• Engineering – project and building of road III-505 road knot with I-5 – Road knot with III-507 (behind village Manastir) from km 0+000 to km 3+918 – 2 379 996 lv. with VAT

• Road III- 591 “Krumovgrad – p.u. with road II-59 – Studen Kladenets dam lake from km 0+000 to km 24+860; Road II-59 Momchilgrad – Krumovgrad from km 6+230 to km 24+522; Road III-5082 Djebel – Mishevsko – Tsarkvitsa – Sinchets from km 14+230 to km 17+365; Road III-5071 Chiflik – Murgovo – Gorna krepost – Stremtsi – Tri mogoli – Draganovo – Chernoochene from km 0+000 to km 17+865 to the value of 42 691 762 lv. with VAT as leader in Consortium.

• Road II-21 an encircling road of Silistra town – 1 stage from km 106+150 to km 112+230 – actualization of the road covering and regional road by km 108+070, agriculture subway L= 8.0 m, to the value of 9 742 075 lv.

• Engineering – project and building of road II-55 Dripchevo – Mladinovo, sections from km 161+787 to km 161+928; from km 163+651 to km 164+783 and from km 165+132 to km 166+089 to the value 3 557 902 lv. with VAT

A lot of orders are fulfilled in the municipalities of district Haskovo and district Kardjali. We are working on the objects:

-Rehabilitation of road III-806 in Haskovo to the value of 787 099 lv with VAT

-Road IV-50050 between villages Jabalkovo-Krum, municipality Dimitrovgrad to the value of 1 209 436 lv with VAT

-Drainage village Susam, municipality Mineralni bani to the value of 1 631 787 lv with VAT

-Road building village Novo selishte-Bakalite-Borovotza dam, municipality Chernoochene, district Kardjali to the value of 1 171 758 lv with VAT

-Reconstruction street Republikanska-street Washington, municipality Kardjali to the value of 1 582 702 lv with VAT

-Extension the inner waterpipeline in municipality Venetz, district Shumen to the value of 257 941 lv with VAT

The company also works like subexecutor of that following targets: Highway “TRAKIA” -47 883 lv. with VAT., road III-534 Variety Galabovo town to accomplish asphalt works to the value of 804 052 lv. with VAT and the road III-5071- PERPERIKON- to accomplish asphalt works to the value of 2 145 376 lv. with VAT.

The company at the moment accomplish objects of the European Road Net entrust a mission to “ National Agency Road Infra-structure” –Sofia and municipalities as followed:

• Engineering – project and building of road III-506 Gorski izvor – Svetlina – Mineralni bani – Karamantsi from km 15+100 to km 40+700 – 14 m940 456 lv. with VAT

• Engineering – project and building of road II-55 Goliamata Zvezda – Mladinovo – Svilengrad from km 157+800 to km 187+300 – 17 656 798 lv. with VAT

• Engineering – project and building of road III-507 frontier Regional Road Direction Kardjali – Most – D. voivodino – Manastir from km 26+200 to km 39+700 – 8 675 760 lv. with VAT.

• Engineering – project and building of road III-761 Kniajevo-Ustrem-Radovetz-Matochina-Boundary of Turkey from km. 13+528 to km. 26+700- 5951981 lv. with VAT.

• Building of the circular road of Svilengrad to the value of 7 418 537 lv. with WAT.

• “ V & K” infrastructure of the road II-55 “ Goliama zvezda- Mladinovo- Svilengrad”- passing over Mladinovo and Pastrogor municipality of Svilengrad to the value of 1 461 824 lv. with VAT.

• Reconstruction of the “Republikanska” street- “ Vashington” street municipality of Kardzali to the value of 1 582 702 lv. with VAT.

Like a collaborator in union “ AB” JSC Haskovo accomplish building and montaging works for the objects financed by THE MINISTRY OF THE REGIONAL DEVELOPMENT AND PUBLIC UTILITIES of the Republic of Bulgaria as followed:

1. Consolidation of Arda’s beaches in the region of Kardzali to the value of 53 410 239 lv. with VAT.

2. Inner net of plumbing and canal net of section “ Borovitza” Kardzali to the value of 7 197 544 lv. with VAT.

3. Building of PSOV “ Zentar” and PSOV” Iztok” Svoge –the municipality of Sofia to the value of 24 407 505 lv. with VAT.

The company has introduced a system of quality control with certificate HU 04/0898 ISO 9001:2000, ISO 14001: 2004, OHSAS 18001:1999 a system of producing control. The company is a member of the Bulgarian building chamber and at the moment is introducing a system of managing healthy and safety conditions of work according to the international standard OHSAS 18001: 2002.