3. - Zagope

Index1. 2.Chairman’s Statement 06Governing Bodies 08Organisational Chart 10AG Culture 12Main Indicators 14Commercial Activity in 2010 18Zagope and Andrade Gutierrezaround the world 26Featured Projects 28Contracts Awarded in 2010 42Production Activity in 2010 44Backlog 48ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

3. 4.Highlights of 2010 52Human Resources 54Quality, Safety and Environment 58Social Responsibility 60Economic and Financial Situation 64Affiliations 66Licences 68Financial Statements 72Balance Sheets 72Income Statements 74Cash Flows Statements 75Statements of Changes in Equity 76Notes to the Financial Statements 78Statutory Auditor’s Report 110Legal Certification of Accounts 11202 / 03

To found{ transitive verb }1. to lay the lowest part of a structure on the ground.2. to set up or establish on a firm basis.

1/Douro Litoral Highways(Portugal)1ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Chairman’sStatementIn 2010, the companies that operate in theconstruction sector once again faced greatdifficulties, arising from the economic scenario.Despite the unfavourable conditions, Zagopeachieved results that show the efficacy of theinternationalisation strategy adopted in 2004.The consolidation of business in the African andMiddle Eastern markets, with the entry in newcountries like Mozambique and Mali, has made itpossible for 82% of the company’s turnover to beearned through international operations.As a consequence, in 2010 Zagope increased itsturnover to 625 million Euros, a 9% growth overthe previous year.In Portugal, among other projects, Zagopeproceeded with the works at the Douro LitoralConcession. The company is part of theconcession and of the construction joint venture.Other projects carried out in 2010 include worksin the gallery between the existing terminal andthe new Reboleira Station (Lisbon Subway) andthe conclusion of the Anaerobic Digestion centre –Tratolixo (RSU).The new contracts in Equatorial Guinea, Mali,Mozambique and Republic of the Congocontributed to the widening of the internationalbacklog, now amounting to 1.71 billion Euros. Thisgrowth has also been made possible bya significant investment in equipment in the last5 years, surpassing 250 million Euros.These results translate the efforts of an engagedand consistent team, capable of identifyingimportant business opportunities in marketniches, allied to a driven management thatinvests in a sustainable manner in human andtechnical resources.Zagope is proud to wager on the personal andprofessional development of its more than 6thousand employees. In 2010 we reinforcedthe trend of recruiting qualified personnel inthe countries where the company is present,and, with the “People Cycle” project, analysedthe results of the performance evaluations withviews to distinguishing career developmentopportunities within the company.The culture of the company, based on its values,has now been translated in 12 behaviourorientatingprinciples. Our leaders were essentialin diffusing our corporate culture, that focus increative, capable, ambitious and passionatepeople.In this report, we proudly publicise some otherpublic achievements for Zagope: being classifiedas the 4th among the Greatest and Largestcompanies in the construction sector in Portugal;the 32nd among the 500 greatest Portuguesecompanies; the 9th greatest exporter and the16th largest employer in the country. Distinctionsmade possible by the endeavour of all of you –employees, shareholders, clients, suppliers andpartners – working together to make a greaterand better company.Leandrode AguiarChairman of the Board of DirectorsDespite the difficultconditions, Zagope achieved agrowth of 9% that confirmedthe efficacy of its strategy.06 / 07

General MeetingRui Manuel Fernandes AndradeChairmanMiguel Alexandre Martins Cardoso dos Santos BarreirosSecretaryGoverningBodiesStatutory AuditorMaria Amália BaleiroFull MemberManuel Caetano da FonsecaReserve MemberRepresenting Amália Baleiro & Manuel FonsecaStatutory Auditors Society2341ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Executive BoardLeandro de Aguiar (1)Arnaldo Gomes (2)Clovis Martines (3)José Francisco Cadório Ferreira Lino (4)José Nicomedes Moreira (5)Pedro Augusto de Jesus Ricco (6)Remo Loschi Brunelli Filho (7)Company SecretaryCarla Maria Guerreiro Dias AlvesEffectiveCristina Isabel do Nascimento CoisinhaReserve56708 / 09

OrganisationalChartCONCESSIONSOTHER BUSINESSESBaixoTejoauto-estradasAEBT – AUTO-ESTRADASBAIXOTEJOACROSSGIGAAEDL – AUTO-ESTRADAS DOUROLITORALCIMENTOS EUROPAELOSINZAGVIAEXPRESSOVORTALVIALITORALZAGOPE ALGERIEVIAMADEIRAZAGOPE ANGOLAZAGOPE GULF CONTRACTINGZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

ZAGOPE SGPSENGINEERINGNOVAZAGOPEINVESTIMENTOSZAGOPE CONSTRUÇÕESE ENGENHARIABRANCHES ANDStable ESTABLISHMENTSACE – JOINT VENTURESANGOLACONBATEALGERIADOURO LITORALCAMEROONDOURO LITORALOBRAS ESPECIAISUNITED ARAB EMIRATESHIDROALQUEVASPAINLGVGREECEMOTA-ENGIL, ZAGOPE,URBASEREQUATORIAL GUINEANOVAESTAÇÃOLIBYAZAGOPE - TECNOVIAMALIZAGOPE DRAGADOSMAURITANIAOTHER ACE’SMOZAMBIQUEREPUBLIC OF GUINEAREPUBLIC OF THE CONGO10 / 11

The international expansion of the Andrade Gutierrez Group andthe consequent need for global corporate processes lead to theconsolidation and dissemination of a single culture, strong andfocused on performance, which can be translated into 12 Principles.The Executive Committee of the Andrade Gutierrez Group hasembraced this project as the most important in the Group today.1. Dedicate Yourselfto People2. Meritocracy Policy3. Have the Owner’sAttitude4. Think Big1. People 2. Meritocracy3. Owner’s Attitude5. Seek Self-Development6. Do and Demandevery well-doneand with quality7. Work Hard4. Think Big 5. Self-Development6. Quality8. Deeply understandyour client andmake this an asset9. Promote LongTerm Relationships10. Promote andProtect ourReputation7. Work Hard 8. Client9. Relationships11. Fight Tirelesslyfor Profitability12. Promote anddisseminate ourculture everyday,in all your actions10. Reputation 11. Profitability12. CultureZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

AG CultureOVER6,000employeesUNITED BYA SINGLECULTURE12PrinciplesSUPPORTINGTHE GROWTHOF THE ANDRADEGUTIERREZGROUP ON ANINTERNATIONALLEVELMore and Better ZAGOPEConstructing with art for over 40 years12 / 13

625,235 thousands of EurosTURNOVER75,961 thousands of EurosEBITDA744,695 thousands of EurosTOTAL ASSETS800,00080,000700,000600,000575,114625,23571,60175,961500,000444,16470,000400,000300,000200,000100,000060,00050,00055,85650,00042,94040,00012.58%12.45%12.15%30,00028,07332,47020,00010,0000ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Mainindicators22.15%144.63%162.73%19.57%300,000800,000283,438 744,695250,000200,000150,000205,280226,826700,000600,000500,000400,000421,107543,345100,000300,000200,00050,000100,0000014 / 15

{ transitive verb }1. to build.2. to put together a structure.3. to architect.To construct

1/Alqueva Installed Capacity Expansion(Portugal)2/El-Aouana Port(Algeria)1ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Report of theExecutive BoardCommercial Activity in 2010The global macroeconomic scenario in 2010was marked by the recovery initiated in thesecond semester of 2009 and by the revivalof international trade, particularly in emergingeconomies such as Brazil, India and China.Europe registered a deceleration of theeconomic growth, resulting from the debt crisisin some countries in the Euro-zone and of thestrict budget consolidation policies followed bycertain governments to face pressure from thefinancial markets.Anticipating itself to the changes in themacroeconomic scenario, Zagope identified newbusiness opportunities in international marketsand diversified its presence in Europe, Africaand the Middle East, a strategy that provedessential to the growth of the company.Thus, and despite the instability of the markets,in 2010 Zagope increased its turnover to 625 millionEuros - 82% of which were originated throughinternational construction activities - and its EBITDAto 76 million Euros.In Portugal, the budget constraint measuresadopted contributed to the deterioration of themacroeconomic indicators, with consumptionlevels showing a significant decrease. Portugalended 2010 with a 1.3% increase in its GDPand an average inflation rate of 1.4%, accordingto data from the Bank of Portugal. However, theexpected impact of the increase of VAT and othertaxes predict a significant increase in the annualvariation of the inflation rate.The construction sector in Portugal registeredanother difficult year, the 9th in a row, with adecrease of production accumulated since2002 and amounting to 36% and more than200 thousand jobs lost. The loss of dynamismin the public works sector, which resulted inthe cancellation or postponement of importantinfra-structure investments, led to a significantdecrease in the order books of the companiesthat operate in this area, and, consequently,in their financial results.218 / 19

1 2National MarketIn the national market, Zagope continuedthe works at the Alqueva Installed CapacityExpansion, an enterprise that comprises a newhydraulic circuit and a new hydroelectric centralequipped with two reversible pump-turbines.The alterations will increase the current installedcapacity from 260 MW to 520 MW and makeAlqueva the second largest hydroelectric energygenerator in Portugal.2010 also saw the conclusion of the AnaerobicDigestion Centre Tratolixo, in Abrunheira, whichwill receive and treat annually 40 000 tons ofbiodegradable urban waste and 160 000 unsortedurban solid waste.In the road sector, Zagope holds participationat the Baixo Tejo Concession, being incharge of the construction, maintenance andconservation of 70 km of roads that aim toimprove the quality of living of citizens at thesouth bank of the Tagus River. Zagope is alsoa shareholder of Auto-Estradas do DouroLitoral, as well as part of the joint-ventureresponsible for the works of this concessioncompanyFor the Lisbon Subway, Zagope executedthe building shells of the gallery between theexisting end of line and the new Reboleirastation, in an extension of 486m.Zagope is also part of ELOS S.A., a consortiumresponsible for the design and constructionof the High Speed Railway Line stretchPoceirão-Caia.At Madeira Island, Zagope initiated the accessworks to the Ponta do Pargo Golf Park andcontinued the construction of the MarítimoSports Arena and various projects for thereconstruction of the Island, damaged by thebad weather conditions in February 2010.3ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

546International MarketZagope has intensified its presence in theinternational market, adopting a clear strategy ofinvestment in countries such as Angola, Algeria,Cameroon, Republic of the Congo, EquatorialGuinea, Libya, Mali, Mozambique and Republicof Guinea - a behaviour that made it possiblefor the company to achieve in 2010 a sustainedgrowth of its global backlog to the amountof 2.1 billion Euros.The conquest of new markets resulted from theidentification of business opportunities and of thepresentation of the most efficient answer to eachsituation, through the best combination of thecompany’s competences and resources.In Angola, the Group kept its focus inthe construction and rehabilitation ofinfrastructures, namely roads, airportsand maritime ports. Despite the generaldeceleration that took place in 2010, theGroup believes conditions are being createdto allow for growth in 2011. A positivesign was the awarding of additions toexisting contracts and a new project: theRehabilitation of the Container Terminal ofthe Luanda Port.The company continues to bet on this countrywith perspectives that include new road andairport infrastructures as well as opportunitiesin the sectors of oil and gas and water,priorities for the Angolan government.1/Douro Litoral Highways(Portugal)2/Alqueva Installed Capacity Expansion(Portugal)3/Carcase works for the extension betweenAmadora Este and Reboleira stations –Lisbon Metro(Portugal)4/Container Terminal – Luanda Port(Angola)5/Tchibemba - Lubango Road(Angola)6/Luanda - Viana Expressway(Angola)7/Container Terminal – Luanda Port(Angola)720 / 21

123In Algeria, where Zagope operates since 2006,there has been a slowdown in the release ofnew contracts as well as delays in the entryinto force of newly awarded contracts, dueto the combination of internal factors and ofthe impact of the international crisis over theAlgerian economy. 2010 followed the sametrend as 2009, with no relevant new projects forpublic works released. In this scenario, Zagopeconcentrated its activities in the execution ofongoing works, namely the construction of astretch of the Algiers Subway; the TransrhumelBridge, in Constantine; gas pipelines in the westof the country; the Fishing and Leisure Port inJijel; and a sanitary landfill site to serve the cityof Algiers.The year of 2011 brings expectations of newpublic tenders, particularly starting in thesecond semester, with reflexes on the turnoverestimated for the company in 2012.Cameroon is going through an importantpolitical and economic moment. The new politiccycle has contributed to the beginning of manyworks, as is the case with the 85km road ofNgaoundéré-Mbéré,in the north of the country,a project that counts with Zagope’s expertise.In Spain, Zagope worked simultaneously inthree projects: the Novelle and Fonte Quentetunnels, both part of the High Speed Line –Platform for the North-Northwest High SpeedCorridor – Vigo-Pontevedra Axis; and thefinal stages of execution of the Burata Tunnel(Tunnel and Emergency Gallery), part of thePlatform for the North-Northwest High SpeedCorridor – Ourense-Santiago Axis, Ourense-Amoeiro segment. All projects were part of theexpansion of the High Speed Railway line in theAutonomous Community of Galiza.In Equatorial Guinea, Zagope has reinforced itsposition and widened its scope of activity in sucha scale as to be currently considered a referenceamong other companies, particularly in the publicconstruction sector. In 2010 the company startedthe Mongomeyen Urban Project as well as theMongomeyen-Nsok Nsomo – Ebebeyin Highway,with 63km of extension; and also concluded theworks at the Mongomeyen International Airport.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

4In 2010 the Group started infrastructure works inLibya. Four important projects had been awardedin 2009, all in the city of Tripoli: Souq Al-jummah,Saraj, Gargarej and Fellah. These projects includethe design and execution of water, sewage anddraining infrastructures and paving, in a total areaof approximately 4 200 hectares. The conflictstriggered in the country in February 2011 ledto an evacuation of all expatriate staff in thecountry and to the suspension of all constructionactivities. The process took place in an orderedmanner and with no relevant incidents. We awaitthe normalisation of the internal politic scenarioto restart the execution of the works.1/Algiers Subway(Algeria)2/Constantine Bridge(Algeria)3/Mongomeyen – Ebebeyin Highway(Equatorial Guinea)4/Ourense Railway Tunnel(High Speed Line)(Spain)5/New Urbanisation of Mongomeyen(Equatorial Guinea)522 / 23

12 31/Rehabilitation of Road Goma Coura –Leré, Lot 1(Mali)2/Kombo-Moukondo Connection Road(Republic of the Congo)3/Roads of Cabo Delgado Province(Mozambique)4/Kissigoudou-Guéckédou-Sérédou Road(Republic of Guinea)5/Anaerobic Digestion Centre - Tratolixo(Portugal)Throughout 2010, the market of Mali saw Zagopebegin the execution of the Construction andRehabilitation of Goma Coura – Léré, with 165kmof extension – Lot 1, for the Ministry of Equipmentand Transport, with financing from the EuropeanUnion.The enterprise comprises the rehabilitation andconstruction of a road in the north-western regionof Mali, near the frontier with Mauritania, and theroad will reach the city of Timbuktu (lots 1, 2 and3), with a total extension of 480 km.In Mozambique, Zagope was awarded a contractfor the construction of a road with 230km ofextension that will connect Mueda, Mocimboa daPraia and Namoto. The company also took part instudies for the design, feasibility and constructionof the Nacala Port, which will be used for coalshipping by the Brazilian company Vale, andfor the Moamba Major Dam. The perspectivesfor 2011 comprise public works in the sectorsof energy and water, sanitation, transport andhousing.The Group started the Pyloni and BoukeniRavine Projects, in Brazzaville, and was invitedto participate temporarily in the execution of theemergency works in the Emeraud Ravine, also inBrazzaville, a collaboration that may lead toa permanent position in 2011.In 2010, the Group implemented and stated theexecution of the Makoua-Etoumbi Road, with 98kmof extension; and was awarded the contracts for theconstruction of 80 km of the Buondji-Ewo Road andof streets in the village of Ewo. Many other importantprojects are in public tender stage in the Republicof the Congo, with works expected to begin in 2011and 2012. After its debut in the country, the worksat the road infrastructure Epena-Impfondo-Dongou,between 1984 and 1988, the Group will not missthe opportunity of playing a role in this new stageof politic and economic development in the Republicof the Congo.4ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

5In the Republic of Guinea, Zagope has carried outthe rehabilitation works of the Guéckédou-SérédouRoad, with financing from the European Union.The project was concluded in June 2010, within theoriginal deadline, and plays an essential role in thelives of the population in that part of the country.In 2010 Zagope was awarded two importantcontracts, for different reasons. The constructionof the road in the Forest Region is another steptowards the goal of establishing the companyin Guinean territory. The Trans-Guinea Railwayis an opportunity to work with VBG – Vale Guinea,a very strong partner with a great investment planfor the country. This grand enterprise representsa real possibility of the Republic of Guineabecoming a reference market among Zagope’sinternational activities.In 2011 Zagope plans to establish an office inMalawi, with the goal of participating in publictenders for the sectors of mining, energy, roads,transports, logistics and others infrastructures tobe built in the country.In Mauritania, where Zagope marked its presencewith the construction of two roads, the intentionis to continue to contribute to the improvementof infrastructure and, consequently, to the qualityof life of the population.Ghana, India, Nigeria, Saudi Arabia and Qatarare some of the markets that integrate Zagope’sexpansion plans. The company is alert to everyopportunity that may arise from the developmentof these countries.The intensification of the international activitiesof the company is based on the efforts of the sixthousand-strong team that is currently Zagope, andthat has contributed decisively for the consolidationand growth of the company, now known as the 4thlargest construction company in the country and2nd largest exporter in the sector (as published inmagazines Focus and Exame). In 2010 Zagopemaintained a strong investment in HumanResources, with projects such as the InternationalTrainee Challenge - Training and DevelopmentProgram, which in 2010 involved young talentsfrom Angola, Brazil, Belgium, Spain and Portugalin training and professional experience.The magnificationof the international activitiesof the company in 2010is based on the efforts of thesix thousand-strong team thatis currently Zagope.24 / 25

Zagope and Andrade Gutierrezaround the world05070108040603ANDRADEGUTIERREZ0201 Antigua02 Argentina03 Brazil04 Ecuador05 Mexico06 Peru07 Dominican Republic08 VenezuelaZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

1310050807020614110304120109ZAGOPE01 Algeria02 Angola03 Cameroon04 Equatorial Guinea05 Greece06 Libya07 Mali08 Mauritania09 Mozambique10 Portugal11 Republic of Guinea12 Republic of the Congo13 Spain14 United Arab Emirates26 / 27

AlgeriaAlgeriaFeaturedProjectsAlgiers MetroStretch between Emir Abdelkader Square and Martyrs SquareFor the Algiers Metro, Zagope started theconstruction of the stretch between EmirAbdelkader and Martyrs Square, an investmentestimated at 140 million Euros. The line will have1.7 km of extension and will be concludedin 42 months.The project includes the execution of twounderground stations and the preservation ofthe city’s archaeological treasures. The MartyrsSquare station will be converted into a MuseumStation, bringing together the population andtheir cultural heritage.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

AlgeriaConstantine Viaduct3D Model of the completed projectConsidered by the Algerian press to be “TheProject of the Century”, this cable-stayed bridgewill mark the beginning of the modernisation andurban renovation of Constantine, a city foundedby the Carthaginians almost three thousand yearsago. The main viaduct will be 449 m long, andthe access viaducts will have 360 m of extensioneach. The pillars will be 130 m high, and the deckwill be 27.34 m wide, with two lanes, with 8 km inaccess roads. Face to the problem of earth slides,very common in the region of Constantine, andthe possible consequences to the foundations ofthe bridge, an international technical team withadvanced experience in various geologic andgeotechnical subjects, was gathered to take chargeof the project.28 / 29

AngolaAngolaRehabilitation of the Luanda – Viana Expressway Stretch 1,Km 0+800 to Km 7+360The enterprise of construction of streets andavenues in Luanda for our client, INEA, is part ofa program for the Construction and Rehabilitationof the Streets and Structuring Avenues of the Cityof Luanda.Zagope is responsible for Stretch 1, km 0+800to km 7+360 of the Luanda-Viana Expressway.The cross-section is composed of two hardshoulders and six lanes, three in each direction.The works include a road divider with a 10 mwidth, considering the future addition of oneextra lane in each side. This is one of the mainaccess roads to the city of Luanda, connectingthe capital to the municipality of Viana, where islocated an industrial section of the city.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

AngolaContainer Terminal for the Luanda PortThe rehabilitation of the container terminal forthe Luanda Port comprises a dock extensionof 55 m. The total area to renovate is of163 000 m 2 , 90% of each correspond to thecontainer patio, and 10% to the docks.The project is an important challenge for Zagope,considering the traffic around the Terminal andthe need to conciliate the works in the area andthe normal operation of the Port. In order to keepthe Port operational, the works in the docks havebeen divided in three stages so that 2-3 of theextension of the Terminal will be always availablethroughout the execution of the works.30 / 31

CameroonEquatorial GuineaCameroonMbéré-Ngaoundéré Connection RoadThe connection between Mbéré and Ngaoundéré,with 85 km of extension, is integrated in theconstruction of the Garoua-Ngaoundéré road,a project that will facilitate the traffic in the so-called“Douala-Bangui Njamena Corridor”.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

EquatorialGuineaRoad Mongomeyen-EbebeyinThis new road connection will ease traffic in theNorthwest of Equatorial Guinea and in the roadsconnecting to neighbouring countries (Cameroonand Gabon) through the frontier in Ebebeyin.The opening of the new international airport inMongomeyen has given new importance to thehighway between this location and Ebebeyin.The road, with 63 km of extension, acquiredmore importance due to the increased trafficcaused by the opening of the airport.32 / 33

MaliRehabilitation of the Goma Coura-Timbuktu RoadLot 1: Goma Coura-LéréIn Mali, Zagope won the public tender for theexecution of 165km of the Goma Coura-TimbuktuRoad, Lot 1 between Goma Coura and Léré.The contract was awarded to Zagope by theMinistry of Foreign Business and InternationalCooperation, with financing by FED – EuropeanDevelopment Fund. The execution of the GomaCoura-Tomboctou Road will benefit 30 cities,an unquestionable contribution to the economiccompetitiveness of the region.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

MaliMozambiqueMozambiqueDesign and rehabilitation of roads at Cabo Delgado ProvinceZagope won the public tender launched bythe Ministry of Public Works and Housing ofMozambique for the conception and rehabilitationof 230 km of Roads N380, R762, R775 andR1260, between Mueda, Oasse, Mocímboa daPraia, Palma and Namoto, in the Cabo DelgadoProvince. The works will enable the roadconnection to neighbouring Tanzania, reinforcingthe development of the region.34 / 35

PortugalPortugalConcession of Douro Litoral HighwaysConstruction of highways A43, A41 and A32, withtwo or three traffic lanes each. Over 70 km ofextension and 20 millions m 3 in earth works. Theproject, which includes 11 km of double tunnels,a new bridge over the River Douro and two tunnels,was started in January 2009. The A41 and A43Highways are already open to traffic, and the A32should be concluded by September 2011.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

PortugalAlqueva Installed Capacity ExpansionThe works at the Enterprise of Expansion of theInstalled capacity at Alqueva were continuedthroughout 2010. The expansion consists in theinstallation of a new hydraulic circuit and a newhydroelectric central, equipped with two reversepump-turbines, on the right margin of the GuadianaRiver. The project will double the current installedcapacity of the Alqueva Hydroelectric (from 260 to520 MW), which will then become the second largestof its kind in Portugal.36 / 37

PortugalRepublic of GuineaPortugal– MadeiraIslandClub Sport Marítimo Stadium – ArenaThe project comprises the total demolition of theoriginal Barreiros Stadium and the construction of anew stadium in the same location. The constructionarea comprises approximately 60 000 m 2 , of which50 000 m 2 correspond to the stadium itself and5 000 m 2 to the surrounding streets and 5 000 m 2will be used for the construction of a parking lot inthe existing multi-sports pavilion.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Republicof GuineaRehabilitation of the Trans-Guinea RailwayZagope was chosen by Brazilian company Vale torebuild the first 40km of the Trans-Guinea Railway,which links Conakry to Kankan and will be used totransport passengers. The enterprise comprisesthe recovery of the super-structure of the line,supply and sealing of the rails, rehabilitation ofthe level-crossings, signage; recuperation of thedrainage along the entire line. The base projectfor kms 40 to 330 is also included.38 / 39

Republic of the CongoRepublicof the CongoRehabilitation and Paving Works at Buondji-Ewo RoadRepairs and paving of the road between Boundji andEwo (80 Km). The preparation works include thedeforestation and cleaning, excavation and landfillworks. The enterprise also includes the constructionof three bridges.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Republicof the CongoEmergency Works to Combat Erosion and RavinesThe Government of the Republic of the Congoinvited the AG Group to integrate the project“urgent works to combat Erosion and Ravines”,with interventions in three emergency zones.The works aim to rehabilitate areas of the capitalthat suffered strong damage from bad weather.The invitation came following the enterprise ofexecution of the Kombo-Moukondo ConnectionRoad, an avenue with 6.2 km of extension that wasconsidered a reference in road engineering in thecountry.40 / 41

Contracts Awardedin 2010Description ClientAngolaCUITO CANAVALE INFRASTRUCTURESADDITION TO THE CONTRACT FOR THE REHABILITATIONOF ROAD MENONGUE/CAIUNDOREHABILITATION WORKS AT THE CONTAINERTERMINAL IN LUANDAEquatorial GuineaROAD MONGOMEYEN - NSOK NSOMO - EBEBEYININEA - Instituto de Estradas de AngolaINEA - Instituto de Estradas de AngolaSOGESTAR - Sociedade Gestora de Terminais, S.A.Gouvernement de la Guinée EquatorialeMaliREHABILITATION OF ROAD GOMA COURAMinistère des Affaires Etrangères- TIMBUKTU - LOT 1: GOMA COURA - LÉRÉ et de la Coopération InternationaleMozambiqueELABORATION OF PRE-PROJECT FOR WORKS AT MOAMBA MAJORELABORATION OF PRE-PROJECT FOR WORKSAT NACALA PORTREHABILITATION OF ROADS N380, R672, R775 AND E1260BETWEEN OASSE, MOCIMBOA DA PRAIA, PALMA AND NAMOTOAT CABO DELGADO PROVINCE - LOT 1DNA - Direção Nacional de Águas de MoçambiqueVale MoçambiqueANE - Administração Nacionalde Estradas de MoçambiqueZAGOPE – Construções e Engenharia S.A. | Annual Report 2010

SpainPortugalGreeceAlgeriaLibyaMaliUnited Arab EmiratesMauritaniaRepublic of GuineaCameroonEquatorial GuineaRepublic of the CongoAngolaMozambiqueDescription ClientPortugalDESIGN & CONSTRUCTION OF THE DOURO LITORAL HIGHWAYSEP - Estradas de PortugalPortugal - Madeira IslandALTERATIONS TO THE ROAD NETWORK FOR PONTA DO PARGO GOLF COURSE Sociedade de Desenvolvimento da Ponta do OesteREPAIRS TO THE BITUMINOUS PAVING - LOW AREA OF THE CITYMunicípio do FunchalGREAT REPAIRS TO PAVING AT VR1 - SEGMENTS 2, 17 AND 18Vialitoral - Concessões Rodoviárias da Madeira, S.A.RECONSTRUCTION OF ER 104 - SEGMENT MEIA LÉGUA / SERRA DE ÁGUA RAMEDM - Estradas da MadeiraEMERGENCY WORKSGREAT REPAIRS TO PAVING AT VR1 - SEGMENT 12 AND ACCESSVialitoral - Concessões Rodoviárias da Madeira, S.A.SCENARIO 3 - CONSOLIDATION OF THE EXCAVATION SLOPESAT VR1RECOVERY OF SANTO DA SERRA LAGOONIGA - Investimentos e Gestão de Água, S.A.RECONSTRUCTION OF ER 104 - SEGMENT MEIA LÉGUA / SERRA DE ÁGUA RAMEDM - Estradas da MadeiraRepublic of GuineaROAD AND URBAN WORKS AT THE FOREST REGIONREHABILITATION OF THE TRANS-GUINEA RAILWAY - KM 0 TO KM 40Republic of the CongoREHABILITATION AND ASPHALTING WORKS ATROAD BOUNDJI - EWORECOVERY OF THE RAVINES PYLONI - BOUKANIMinistère des Travaux PublicsVBG - Vale BSGR GuineaDélégation Générale des Grands TravauxDélégation Générale des Grands Travaux42 / 43

Production Activityin 2010Description ClientAlgeriaEXECUTION OF A FISHING AND LEISURE PORTIN EL AOUANA, WILAYA DE JIJELALGIERS SUBWAY – SEGMENT BETWEEN EMIR ABDELKADER SQUAREAND MARTYRS SQUARECONSTANTINE VIADUCTCONSTRUCTION OF HIGH PRESSURE GAS PIPELINESLOT NO. 61 - REALIZANE - MAGHNIAREHABILITATION OF THE CORSO WASTETREATMENT CENTREAngolaCONSTRUCTION OF THE LUANDA / VIANA EXPRESSWAYSEGMENT 1: KM 0-800 TO KM 7+360REHABILITATION OF THE N´ANGOLA KILUANJE AVENUE - PHASE 1REHABILITATION OF ROTA DO GOLFE/VIANA ROAD AND RUA DO SANATÓRIOREHABILITATION OF QUARTA AVENIDA (AVENUE) - LUANDAREHABILITATION OF ROADMATALA/MENONGUE - SEGMENT MENONGUE - CUTATOREHABILITATION OF STREETS OF THE CITY OF MENONGUEREHABILITATION OF ROAD MENONGUE/CAIUNDOREHABILITATION OF ROAD LUBANGO/TCHIBEMBAREHABILITATION OF THE CONTAINER TERMINALIN LUANDALUBANGO AIRPORTDirection des Travaux Publics de la Wilaya de JijelEMA - Entreprise de Réalization et Exploitation duChemin de Fer Urban pour l’Aglomeration d’AlgerDirection des Travaux Publics de ConstantineSonelgaz, SpaMinistère de l´Aménagement du Territoire,de l’Environnement et du TourismeINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaINEA-Instituto de Estradas de AngolaSOGESTER - Sociedade Gestora de Terminais, S.A.ENANA - Empresa Nacional de Exploraçãode Aeroportos e Navegação AéreaZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

SpainPortugalGreeceAlgeriaLibyaMaliUnited Arab EmiratesMauritaniaRepublic of GuineaCameroonEquatorial GuineaRepublic of the CongoAngolaMozambiqueDescription ClientCameroonROAD MBÉRÉ - NGAOUNDÉRÉEquatorial GuineaURBANISATION OF THE TOWN OF MONGOMEYENMONGOMEYEN - NSOK NSOMO - EBIBEYIN HIGHWAYCONSTRUCTION OF THE INTERNATIONAL AIRPORTOF MONGOMEYENLibyaEXECUTION OF URBAN INFRASTRUCTURES AT SOUK AL-JUMMAHEXECUTION OF URBAN INFRASTRUCTURES AT SARRAJMaliCONSTRUCTION AND REHABILITATION OF ROADGOMA COURA-LÉRÉMauritaniaCONSTRUCTION OF ROAD ROSSO / BOGHÉSEGMENT ROSSO - LEXEIBAMozambiqueREHABILITATION OF ROADS AT CABO DELGADO PROVINCEELABORATION OF PRE-PROJECT FOR WORKSAT MOAMBA MAJORELABORATION OF PRE-PROJECT FOR WORKS AT THE NACALA PORTMinistère des Travaux PublicsMinistère des Travaux PublicsMinistère des Travaux PublicsDywidag International GmbHHIB - Housing and Infrastructure BoardHIB - Housing and Infrastructure BoardMinistère des Affaires Étrangèreset de la Coopération InternationaleMinistère de l’Équipementet des Transports - NouakchottANE - Administração Nacional das Estradasde MoçambiqueDireção Nacional de Àguas de MoçambiqueVale Moçambique44 / 45

Description ClientPortugalDESIGN/CONSTRUCTION OF AN ANAEROBIC DIGESTIONCENTRE AT ABRUNHEIRA (MAFRA)DESIGN & CONSTRUCTION OF THE DOURO LITORAL HIGHWAYSALQUEVA II CAPACITY EXPANSIONBLUE LINE - AMADORA - REBOLEIRA (580 m SEGMENT+ RAILWAY INTERFACE)BAIXO TEJO CONCESSIONCONCESSION, DESIGN AND CONSTRUCTION OF THE HIGH SPEEDRAILWAY LINE, SEGMENT POCEIRÃO - CAIA,LISBON-MADRID AXIS, HIGH SPEED RAILWAY LINEPHASE 2A OF THE SECONDARY SCHOOL MODERNISATIONPROGRAM - LOT 2AN5Portugal - Madeira IslandPONTA DO PARGO GOLF COURSECLUBE MARÍTIMO STADIUM ARENARECONSTRUCTION WORKS OF MADEIRA ISLANDGENERAL INFRASTRUCTURES AT MADEIRA TECNOPOLO - 3RD PHASETratolixo, EIMEP - Estradas de PortugalEmpresa Hidroeléctrica do GuadianaMetropolitano de Lisboa, S.A.EP - Estradas de PortugalRAVE - Rede Ferroviária de Alta VelocidadeParque EscolarSociedade de Desenvolvimento da Ponta do OesteClub Sport Marítimo da MadeiraSREST - Secretaria Regional do Equipamento Sociale Transportes; Município do Funchal;RAMEDM - Estradas da MadeiraSREST - Secretaria Regionaldo Equipamento Social e TransportesZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

SpainPortugalGreeceAlgeriaLibyaMaliUnited Arab EmiratesMauritaniaRepublic of GuineaCameroonEquatorial GuineaRepublic of the CongoAngolaMozambiqueDescriptionClientRepublic of GuineaREHABILITATION OF NATIONAL ROAD NO. 2 GUÉCKÉDOU (PK 35)Ordonnateur National du FED de la République- SÉRÉDOU de GuinéeREHABILITATION OF THE TRANS-GUINEA RAILWAY - CONAKRYVBG - Vale BSGR Guinea- KANKAN (KM 0 - 40)ROAD AND URBAN WORKS OF THE FOREST REGIONMinistère des Travaux PublicsRepublic of the CongoREHABILITATION AND ASPHALTING OFDélégation Générale des Grands TravauxCONNECTION ROAD KOMBO - MOUKONDO IN BRAZZAVILLEROAD MAKOUA - ETOUMBIROAD BUONDJI - EWOEMERGENCY WORKS TO COMBAT EROSION AND RAVINESDélégation Générale des Grands TravauxDélégation Générale des Grands TravauxDélégation Générale des Grands TravauxSpainPLATFORM OF THE NORTH/NORTHWEST HIGH SPEED CORRIDORIsolux CorsanOURENSE / SANTIAGO, SEGMENT OURENSE / LALIN,SUBSEGMENT: OURENSE-AMOEIRONOVELLE TUNNEL - ATLANTIC HIGH SPEED AXISIsolux Corsan / Vias y ContruccionesSEGMENT BETWEEN MACEIRAS AND REDONDELA (PONTEVEDRA) - PLATFORMFONTE QUENTE TUNNEL - ATLANTIC HIGH SPEED AXISAldesaSEGMENT VILABOA / PONTEVEDRA46 / 47

SpainPortugalGreeceAlgeriaLibyaMauritaniaMaliUnitedArabEmiratesRepublic of GuineaCameroonEquatorial GuineaRepublic of the CongoAngolaMozambiqueBacklog2,5002,0001,5001,0005000ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

47 works CURRENTLY IN EXECUTIONOVER 6,700 employeesIN MORE THAN 14 countries48 / 49

3.{ intransitive verb }1. to support.2. to hold.3. to withstand.

To sustain

Highlights of 201016 th InternationalRoad FederationWorld Meetingand Hydro 2010Zagope marked its presence in two importantinternational events that took place in Lisbon in2010. In May, Zagope was a Gold Sponsor of the16th International Road Federation (IRF) WorldMeeting, one of the greatest international eventsin the road sector. September saw the companyparticipate in the Hydro 2010 InternationalConference, focused on the development in thewater sector in African, Asian and Latin Americancountries. Delegations from many markets weregathered in these meetings and had a greatopportunity to find out more about Zagope. /Start of theImplementationof the Quality andSafety ManagementSystem in Angola1The year of 2010 saw Zagope take another steptowards sustainable development: the decisionto extend its Quality and Safety certification. Theprocess of adaptation and implementation of theQuality and Safety Management System in Angolawas started, with aims to the acquisition of thecertification during 2011. /ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

324AG CultureThe international expansion of the AndradeGutierrez Group and the consequent need for globalcorporate processes lead to the consolidation andpropagation of a single culture, strong and focusedon performance, which can be translated into 12Principles. The Executive Comitee of the AndradeGutierrez Group has embraced this project as themost important in the Group today. /Mozambiqueand MaliNew contracts in two new markets: Mozambiqueand Mali. In Mozambique, Zagope is responsiblefor the design and rehabilitation of Roads at CaboDelgado Province; and in Mali the company hasbeen awarded the contract for the execution of 165km of Road Goma Coura-Timbuktu – Lot 1 – GomaCoura to Léré. /54 th largest andbest companyin the sector,32 nd among the 500greatest Portuguesecompanies,2 nd largest exporteramong constructioncompaniesZagope is the 4 th largest and best company in thenational construction sector and the 32 nd among the500 greatest Portuguese companies, according to aranking published in magazine “Exame”. In anotherpublication, “Focus”, Zagope appears as the 2 ndlargest exporter among construction companies and9th among the largest companies in the country.2010 also saw Zagope ranked as the 16 th among thelargest employers in the country. /Completionof the BoussiabaDam, AlgeriaIn 2010 Zagope successfully completed theBoussiaba project, in Algeria. 2010. The dam,with a water capacity of 120 million m3, willprovide potable water to the Jijel Province andirrigation for the great agricultural surfaces in thecoastline. Zagope is proud of its contribution to theconstruction of the of the best dams ever built inAlgeria. /1/Zagope’s stand in the 16th InternationalRoad Federation Meeting2/Boussiaba Dam(Algeria)3/Stretch of Road Goma Coura -Timbuktu(Mali)4/Road in the Cabo Delgado Province(Mozambique)5/Head office of the AG-Zagope Branchin Mozambique6/Zagope’s stand at the Hydro 2010International Congres652 / 53

Human ResourcesTraining and KnowledgeIn 2010, Zagope’s investment in training andknowledge reflected the company’s bet on thepersonal and professional development of itsemployees.Number of employees:6,704Zagope finished the year of 2010 with a totalof 6 704 employees, The number representsan approximate increase of 25% from theprevious year; a result of the consolidation ofthe company’s internationalisation policy and ofits ever growing presence in Angola, EquatorialGuinea, Republic of the Congo, Algeria andCameroon, among others. 665 admissions for theoperational, medium and executive levels tookplace in Portugal and Brazil.One of the highlights was the Defensive DrivingTraining, that took place in the last semester ofthe year. The action had as its goal to conveythe benefits brought by the practice of proactivedriving, which include savings in fuel, smallerdepreciation of the vehicles, less maintenanceexpenses, less accidents, less noise and reducedgas emissions..The Planning and Management Control Processwere also in evidence in 2010, inspiring a numberof training actions in Portugal and in variousmarkets where Zagope is present.Despite the construction sector being traditionallymasculine, women represent 9% of Zagope’swork force, with positions in the administrativeand production divisions of the company.The launch of AGente Culture, in the end of 2010,involved various training actions to disseminatethe 12 principles and 34 behaviours, reaching outto the Company’s employees in a short space oftime.As in the past, the Quality, Safety andEnvironment training remains a much-valuedprocess within the company.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Total of hours of trainingper fieldPerformance and Carreers8,438 Technical1,0201,020 BehavioralVolume of hours of trainingper location3,8928,438LanguagesThe year of 2010 saw the consolidation of project“Talentus”, created in 2009 and consisting inthe analysis of all the general and individualresults of employees involved in the performanceevaluation that took place in the previous year.HR Development Committees took place in allthe markets, analysing and discussing the resultof the evaluations of employees of the middleand executive levels in terms of performance andcareer development potential. The goals wereto trace career management measures, aligncompetences and define provisional and strategicHuman resources plans. The Committees weredeveloped based in the information obtained fromthe Performance and Potential Evaluation, andorganised by the HR Corporate Department as“potential and performance matrixes”.6,226In Portugal3,8926,226InternationalAs well as collecting information for theidentification of employees that show potentialfor transfers and promotions, the process alsoresulted in the registering and implementation of200 individual monitoring measures.No. of participantsIn the end of 2010, the “Talentus” Programwas improved and expanded in order tobe assimilated into the career and talentmanagement process carried out by the AndradeGutierrez Group, and was renamed “AnnualPeople Cycle”.1,7181,718 TechnicalBehavioralLanguages54 / 55

1International Trainee ChallengeAfter the success of the first program, a secondedition of the International Trainee Challenge waslaunched in February 2010.Some adjustments were made in relation to the2008/2009 edition, including changing the durationof the program to 12 months. The “pioneer” groupconcluded their program in the final meeting inDecember, in Lisbon. The former “Trainees” wereraised to “Juniors” starting in January, when theircomplete integration into the organizational structureof the various markets took place.This new edition of the program brings in a fewambitious novelties while keeping the originalcorporate dimension (cost support, training basedin Lisbon, coordination by the HR Dept. andothers). Most significantly, the program has beenextended to include candidates from Brazil, Angola,Belgium and Spain as well as Portugal. A greatrecruiting operation was in place in the countriesinvolved between October and December 2009,selecting recent graduates in Civil Engineering,Mechanical Engineering and Management. Theadvertisements placed in the mainstream local mediawas accompanied by partnerships with variousUniversities and other organisms in each country,such as the Xunta de Galicia, in Spain.Another new feature of this edition of the programwas the Campus ITC, where the Trainees werelodged and attended the various stages of behavioraltraining in Portugal. The objective of the programremains to be reinforcing the work teams in theinternational markets where the company operateswhile simultaneously promoting the integration ofyoung trainees who show development potential thatmatched the challenges in the future of the Company.Personnel AdministrationOne of the great Human Resources projects in2010 was the implementation of new personneladministration software. The new systems allowsfor better adaptation to the Human Resourcesstrategy of the Company, namely in the salaryprocesses, which are now faster and moreflexible. Salary information can now be obtainedin a short period of time and with better quality,and data from the training registers and medicalreports can also be accessed.2ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

313 th Best Companyto Work For2010In 2010, Zagope participated in the BestCompanies to Work For study, promotedby magazine Exame, which distinguishesthe companies with best work environmentand highest commitment level among theiremployees.AGente CultureThe international expansion of the AndradeGutierrez Group and the consequent needfor global corporate processes lead to theconsolidation and propagation of a singleculture, strong and focused on performance.The Culture of the Company, based in itsvalues, has been translated into 12 orientatingprinciples, with the goal of maintaining Zagope’sposition as one of the best companies in thesector. The “AGente Culture” was created inthe Executive Committee (main shareholders)of Andrade Gutierrez and considered to be theGroup’s most important project currently.The HR Department, responsible for thedissemination of the project, developed acommunication plan that, beyond the productionof various promotional materials (pamphlets,posters and others), promoted introductionmeetings in every one of the markets, alwayswith the presence of members of the ExecutiveBoard.1/International Trainee Challenge Program- 2011 Edition (Portuguese version)2/Participants of ITC 2011 Edition3/Zagope Recruitment Campaignin Portugal4/Diffusion of AGente Culture in theRepublic of Guinea456 / 57

Quality, Safetyand EnvironmentManagement (QSEMS)1The year of 2010 was marked by the launch ofthe Design and Implementation Project for theQuality, Safety and Environment Systems in themarket of Angola, according to standards ISO9001:2008 and OHSAS 18001:2007, respectively.Another important event was the renovation ofthe Quality, Safety and Environment ManagementSystem (QSEMS) in Portugal and Spain, bycertifying entity APCER (Portuguese CertificationAssociation).Another successful venture was the achievementof certifications from the Production ControlSystem for the Concrete and Bituminous Concreteproduction installations in Madeira Island, incompliance with European standards EN 206-1and EN 13108, respectively.This exercise included the elaboration of acorporate welcome guidebook, published inthree languages, promoting Quality, Safety andEnvironment rules of the Company and invitingemployees to follow them. The book takes adidactic approach and is illustrated with originaldrawings. The manual will be a tool to reach andconvey information to all levels of the entity.The consolidation of these new steps validatesour volunteer commitment to the continuousimprovement of the performance of theorganization, a fundamental pillar for oursustainable growth in every country where weoperate.We will keep our endeavour in the challengeto implement the Integrated System in all themarkets where Zagope is present, reinforcingthe technical levels for these areas (Table I),promotion training actions (Table II), monitoringvisits and internal audits (Table II).23 4ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

5The FutureAlong the year of 2011, the QSEMS will remainas a management tool within Zagope,promoting the standardisation and synergiesin all the markets where the company operates,in continuity of the continuous managementimprovement policy. These improvements willbe materialized through the following projects,to be developed next year:Table IHUMAN RECOURSES ALLOCATED TO THE QUALITY,SAFETY AND ENVIRONMENT AREACoordinators-technicians QSE 7Safety Engineers/Sup. Technicians 4Safety Technicians 29Occupational Medics 9Nurses 11Quality and Environment Technicians 16TOTAL 761/Zagope Employee in Angola2/ZAPE, the QSE mascot3/Cover of the Welcoming Manual4/Zagope Employee in Angola5/Alqueva Installed Capacity ExpansionEnterprise1. Conclusion of the Implementation of the Qualityand Safety System in Angola, obtaining theextension of the certification in this market;2. Conception and Implementation of the Qualityand Safety System in the projects in Algeria;3. Expansion of the current Safety Comission,with representatives for every market in whichZagope operates;4. Evaluation of the implementation of theimprovement actions developed through theInternal Client Satisfaction questionnaire thattook place in 2009.Table IITable IIIVOLUME OF QSE SPECIFIC, AWARENESSAND WELCOMING TRAINING ACTIONSVolume of specific training actionsVolume of awareness andwelcoming actionsNO. OF HOURS USED IN MONITORING VISITSAND AUDITS2.548 h35.405 h2008 2009 2010Portugal 170 days 111 days 157 daysInternational 0 days 108 days 169 days58 / 59

SocialResponsibilityWith an active socialresponsibility policy,Zagope has developedvarious initiatives involvinginstitutions that operatein the communities of thevarious markets where theCompany is present.1With an active social responsibility policy, Zagopehas developed various initiatives involvinginstitutions that operate in the communities of thevarious markets where the Company is present.Project “Cleaning Portugal”Zagope collaborated with Project “CleaningPortugal “, which aims to clean illegal wastedumps in the Portuguese Forest.In March 20th 2010, the RAIA Sanitary Landfill, atthe time under Zagope’s management, was openfor three hours longer than usual (from 14h to17h) in order to receive, free of charge, the wasteobtained after the cleaning of the dumps in theRaia Pinhal municipalities.Zagope’s association with this initiative sought topromote environmental sensibility and instigatesustainable behaviour.Reconstruction of Madeira IslandThe bad weather in February 2010 wascharacterized by torrential rains occurring ina short period of time, which resulted in greatfloods throughout Madeira Island, originatingstrong flows that travelled from the banks andhad great capacity to carry solid material andcause much destruction. Zagope was immediatelyinvolved, mobilising all available resources andoperating in various fronts to fight off silting andclean involving zones, helping the populationreturn to its normal activities as swiftly aspossible. The Company later intervened incritical points, where populations had remainedisolated. Zagope is currently still working in thereconstruction and rehabilitation of damagedroads in the region.Mountain Reforestation ProgramThe Mountain Reforestation Program ofMadeira Island, operating especially at theFunchal Echo Park, has received financialsupport from Zagope. The park, created by theMunicipal Council of Funchal in 1994, plays animportant role in defending the city from erosionphenomena – an issue that acquired greatimportance after the disaster that hit the islandin 2010.The initiative, promoted by the Municipal Councilin a partnership with the private sector, hadthe objective of boosting a reforestation policythat hopes to half soil erosion and also retainrainfall and restore the original vegetation thatcovered the region. All these measures are partof a sustainable development policy, and, in themedium and long term, will translate into greatersafety for the population and avoid the repetitionof tragedies such as the one seen in the Islandin February.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

Donations to social solidarityinstitutions in Continental Portugaland the Madeira RegionIn the end of 2010 Zagope contributed withdonations towards various social solidarityinstitutions in Continental Portugal and inMadeira Island. The institutions selected wereCasa da Criança (Tires); CEDEMA – Associaçãode Pais e Amigos dos Deficientes MentaisAdultos; Obra da Imaculada Conceição e SantoAntónio; Association Crescer Ser – Casa doInfantado (Loures); Day Care Centre of Tourigoand an entrepreneurship project promoted bythe Oeiras Municipality. At Christmas time anaction saw employees gather toys, food articlesand hygiene products that were donated toan institution that cares for children in risksituations between ages 3 and 9.21/Zagope takes place in the reconstructionof Madeira Island2/Pedro Ricco, member of the ExecutiveBoard, delivers Zagope’s donation to thehead of CEDEMA, Maria Machado3/Toys, food articles and hygiene productsdelivered to the children hosted by Casade Tires360 / 61

1/AG Group employees at the Diogo FrançaIT School, in Cameroon2/Employees take part in volunteercampaign in Mozambique1Zagope and AG interact with the localcommunity in CameroonThe Diogo França School of IT, in the Republic ofCameroon, was opened in September 2010, afterrenovation works that included painting, electricinstallations and door installation, among others,executed by Zagope and Andrade Gutierrez. Theinstitution was named in a tribute to Diogo França,a former mechanical engineer at Zagope’s Mbéré-Ngaoundéré who unfortunately passed awaythis year. The school has a capacity for 40students. Classes are free and there is alreadya long waiting project for new students.Two Zagope employees, Mamoudou Abba andDouglas Carvalho, teach classes as volunteers.The plans are for students who conclude theircourses to become themselves teachers andhelp others.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

MozambiqueThe cosmopolitan Avenida Marginal, in Maputo,was the scenery of a volunteer action coordinatedby Vale Mozambique, to which Zagope isassociated since December 2010. The initiativeinvolved cleaning and removal of waste fromthe ground, and had the collaboration of ourpersonnel in the country, who, in uniforms andwith appropriate equipment, worked in cleaningthe avenue usually frequented by young localsand tourists.Equatorial GuineaIn Equatorial Guinea, Zagope purchasedan energy generator for the use of the localpopulation around Nsoc Nsomo. The companyalso worked in the construction of a schoolwith two classrooms, accommodation facilitiesfor one teacher and public washing roomsand toilets.Zagope employees in volunteeraction in AngolaZagope and Andrade Gutierrezworking in the preventionof DrepanocytosisThe Andrade Gutierrez Group collaborated witha campaign to prevent Drepanocytosis, launchedin June with sponsorship from the CongoAssistance Foundation.The campaign peaked in August 9th with thedelivery of a cheque for the acquisition of screeningmaterial for the disease to the University HospitalCentre of Brazzaville. The ceremony counted withthe presence of high authorities of the Governmentof the Republic of the Congo.The Group’s donation is part of a program tohelp fight of one of the diseases that most affectthe children population of the country. With thenew equipment, the Group contributed to theimprovement of living conditions of the localpopulation, particularly children, by creatingconditions for the early detection of the illness.2In Angola, employees from Zagope donatedbasic food products to the elders hosted byCentro Trânsito de Kavikiviki, at Menongue,Kuando Kubango province,in an initiative thatwas carried out for the second time now. Thedonations will help approximately 70 people.62 / 63

Economic andFinancial Situationother hand, new internal control concepts wereintroduced, especially an audit, leading to theselection of a multinational auditing companyto guarantee the uniformity of procedures andmethodologies for all the countries in which theGroup is active.The value attributed to people has been a constantworry for Zagope and Andrade Gutierrez, a policythat can be confirmed by the implementationof the AG Culture. During the year of 2010 theAccounting, Taxes and Planning and Controldepartments invested heavily in training, aiming togive people the appropriate conditions to maintainZagope in its top position among other companieswhen it comes to knowledge and performance; andreinforcing the idea that reliability, trustworthinessand transparency in our operations in the marketwill take us to the next level.1The year of 2010 was marked by the restructuringof the Company’s economic and financialprocesses, with changes imposed by lawalterations or for internal purposes of betterintegration with policies from the AG Group.Thus, in 2010, taking the opportunity of the entryin force of new accounting standards in Portugal,Zagope implemented a conciliation policy to itsinternal accounting standards in all the marketsit operates, facilitating the global or individualinterpretation of financial statements. On theIn the subject of financial indicators, the year of2010 was marked by great investments madeby the Company in external markets, reinforcingits international position and surpassing theadversities presented by global economy. Thesuccess of this policy is confirmed by a 9% growthof the Company’s turnover to €625 millions, 82%of this amount is relative to the internationalmarket. The strategy of market diversification ispart of the reason for this result, and has involvedgreat learning for us, namely in what relates to ourever growing backlog, which remains unharmedby the small issues affecting global economy andreached 2,010 millions in 2010.ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

625millions of EurosTURNOVER2,110millions of EurosBACKLOG2Also, our working attitude and respect for the highefficiency standards and satisfaction of our clients,following the AG Group policies, continue to takethe Company to ever higher profitability levels.Our EBITDA, currently reaching an amount of 76millions of Euros - equivalent to 12.15% of ourturnover – is a most visible sign of this reality.In spite of all this, our net result this year was of5,865 thousands of Euros, having decreased incomparison to the previous year due to our heavyinvestments; but still keeping us on our way to thegreat objectives we have established for ourselves.Allocationof ProfitFinalNoteWe cannot finish this report without expressingour deep acknowledgements to all the entitiesto which we are connected and which havedistinguished us with their preference, namely,Clients, Suppliers, Financial Institutions andSub-Contractors.To our Statutory Auditor and to the Board of theGeneral Meeting we would like to convey ourgreat esteem for the endeavour and dedicationoffered to Zagope.To all our employees, our special thanks fortheir commitment and dedication to Zagope.1/Anaerobic Digestion Central Tratolixo(Portugal)2/Alqueva Installed Capacity Expansion(Portugal)We propose the following allocation for our netresult:For Legal Reserves:293 thousands of EurosFor Surplus Brought Forward:5,572 thousands of EurosLisbon, March 3 2011.The Executive BoardLeandro de AguiarArnaldo GomesClovis MartinesJosé Francisco Cadório Ferreira LinoJosé Nicomedes MoreiraPedro Augusto de Jesus RiccoRemo Loschi Brunelli Filho64 / 65

Zagope is affiliatedto the followingentitiesZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

AECOPS – Associação de Empresas de Construção e Obras PúblicasAENOP – Associação Nacional de Empreiteiros de Obras PúblicasAICOPA – Associação dos Industriais de Construção e Obras Públicasdos AçoresAPQ – Associação Portuguesa para a QualidadeAEPSA – Associação de Empresas Portuguesas para o sector doAmbienteASSICOM – Associação da Indústria e da Construção da RegiãoAutónoma da MadeiraCCIAP – Câmara do Comércio e Indústria Árabe – PortuguesaCCIPA – Câmara do Comércio e Indústria Portugal – AngolaCCILE – Câmara do Comércio e Indústria Luso – EspanholaCCILB – Câmara do Comércio e Indústria Luso – BrasileiraCâmara de Comércio Luso-UcranianaCRP – Centro Rodoviário PortuguêsIPQ – Instituto Português da QualidadeSociedade de Beneficiência BrasileiraAKWA-SAMBILA, Angola66 / 67

LicencesCONSTRUCTION PERMIT NO. 92Decree-Law no. 12/2004, of the 9 th of JanuaryZAGOPE - CONSTRUÇÕES E ENGENHARIA, S.A.LAGOAS PARK EDF 6 PISO 12740-024 PORTO SALVOTax No. 500302200Company Registered on 12-01-1968 – Validity 31-01-2012QualificationsCategory Class Sub-category9 General Contractor of General Builder of Buildings with a Traditional Construction9 General Contractor of General Builder of Buildings with Metallic Structure9 General Contractor of General Builder of Wooden Buildings9 General Contractor of General Builder of Rehabilitation and Conservation of Buildings9 1 st Concrete structures and elements7 2 nd Metallic structures1 st Category - Constructed Buildings9 3 rd Wooden structuresand Assets9 4 th Masonry, plaster and laying of ashlar masonry9 5 th Plaster, painting and other linings9 6 th Carpentry6 7 th Works on non-structural profiles9 8 th Plumbing and pipes in buildings6 9 th Facilities with no specific qualification1 10 th Restoration of historical-artistic assets9 General Contractor of General Builder of Road Works9 General Contractor of General Builder of Railway Works9 General Contractor of General Builder of Urbanisation Works9 1 st Road circulation paths and aerodromes9 2 nd Railway circulation paths2 nd Category - Communication Paths, 9 3 rd Concrete bridges and viaductsUrbanisation Works and Other9 4 th Metallic bridges and viaductsInfrastructures9 5 th Civil engineering works9 6 th Basic Sanitation9 8 th Pavings3 9 th Gardens9 10 th Sport and leisure infrastructures9 11 th Non-electrical signalling and protection and safety devices9 1 st River works and hydraulic development9 2 nd Port works9 3 rd Coastal protection works3 rd Category - Hydraulic Works9 4 th Dams and dykes9 5 th Dredging9 6 th Outfalls7 1 st Low voltage usage electrical installations7 2 nd Low voltage electrical networks and transformer stations7 3 rd Service voltage electrical networks and installations up to 60 KV7 4 th Service voltage electrical networks and installations greater than 60 KV7 5 th Electrical energy production installations8 6 th Electric traction installations6 7 th Telecommunications infrastructures4 th Category - Installations7 8 th Fire extinguishing, safety and detection systemsElectrical and Mechanical6 9 th Lifts, mechanical stairs and conveyor belts7 10 th Heating, ventilation, air conditioning and refrigeration9 11 th Environmental treatment stations9 12 th Gas distribution networks and installations6 13 th Compressed air and vacuum networks7 14 th Support and signalling installations for transport systems7 15 th Other mechanical and electromechanical installations9 1 st Demolition9 2 nd Earthmoving9 3 rd Tunnels and other geotechnical works9 4 th Special foundations9 5 th Rehabilitation of concrete structural elements9 6 th Containment walls and anchoring5 th Category - Other Works9 7 th Drainage and treatment of slopes6 8 th Surface repair and treatment of metallic structures8 9 th Reinforcement for reinforced concrete9 10 th Formworks6 11 th Waterproofing and insulation8 12 th Scaffolding and other temporary structures9 13 th Agricultural and forest pathsvs.13ClassValue of the works1 Up to 166,000 €2 Up to 332,000 €3 Up to 664,000 €4 Up to 1,328,000 €5 Up to 2,656,000 €6 Up to 5,312,000 €7 Up to 10,624,000 €8 Up to 16,600,000 €9 Above 16,600,000 €ZAGOPE – Construções e Engenharia, S.A. | Annual Report 2010

REPUBLIC OF ANGOLAMINISTRY OF PUBLIC WORKSNATIONAL COMMISSION FOR THE REGISTRATION AND CLASSIFICATION OF PUBLIC WORKSDESIGNERS, PUBLIC WORKS CONTRACTORS, CONSTRUCTION INDUSTRIALISTSAND WORKS SUPPLIERS(CONICLE)PUBLIC WORKS CONTRACTOR’SPERMITThe National Commission for the Registration and Classification ofContractors declares that the company “ ZAGOPE – CONSTRUÇÕES EENGENHARIA, S.A.” registered at said body under no. 329/EOP/2007, wasattributed the following classification upon this Commission’s deliberation:1 st Category – Buildings and MonumentsIn the Sub-categories – 1 st , 2 nd , 4 th , 5 th , 6 th , 7 th , 9 th , 10 th , 11 th , 12 th , 13 th 14 th , 15 th , and 16 th .(8 th Class)2 nd Category – Passageways and Infra-Structure WorksIn the Sub-categories – 1 st , 2 nd , 3 rd , 4 th , 5 th , 6 th , 7 th , 8 th , 9 th , 10 th , 11 th , 12 th , 13 th , 14 th ,15 th and 16 th .(8 th Class)3 rd Category – Hydraulic WorksIn the Sub-category – 1 st , 2 nd , 3 rd , 4 th , 5 th , 6 th , 7 th and 8 th .(8 th Class)4 th Category – Special FacilitiesIn the Sub-category – 1 st , 2 nd , 3 rd , 4 th , 5 th , 6 th , 7 th , 8 th and 9 th .(8 th Class)The company “ZAGOPE – CONSTRUÇÕES E ENGENHARIA, S.A.”is enabled to carry out Public Works under the conditions of paragraphs e)of article 3 of Decree 9/91 dated 23 rd March.(SEE OBSERVATIONS ON REVERSE SIDE)This Permit is valid until 27 th January, 2011Luanda, on 27 th January, 2010THE PRESIDENT OF THE CONICLELUÍS FILIPEOBSERVATIONThe Bearer of this Permit enables him to participate in Public tenders and to carry out registered Public Worksfrom the 1st to the 8 th Class, in the entire National Territory.The amounts of the Works mentioned above correspond to the equivalent in local currency of:1) Minimum – Thirty Thousand American Dollars.2) Maximum – without limitation.68 / 69