Construction contract in Estonia (reconstruction of Peterburi road section in Tallinn)

On  August  19, 2025, Tallinna  Teede  AS,  part  of  AS Merko Ehitus group, and
Tallinn  Urban Environment  and Public  Works Department,  with co-financiers AS
Tallinna  Vesi and  OÜ Rail  Baltic Estonia,  entered into  an agreement for the
reconstruction  of the  Majaka -  Väike-Paala section  of the  Peterburi road in
Tallinn.

The  590 m long section to be reconstructed starts at the intersection of Majaka
Street  and  ends  at  Väike-Paala  Street.  The works include renewing the road
surface   and   underground  communications,  making  the  intersections  safer,
constructing  nearly 3.5 km of new water  and sewage pipelines and approximately
600 m  of a new  gas pipeline. In  addition, more than  a kilometre of separated
pedestrian  and bicycle paths  will be constructed,  making access to the future
Ülemiste joint terminal smoother and safer, creating a balanced traffic space.

The  contract value  is 6 million  euros, plus  VAT. The  construction works are
scheduled for completion in the fall of 2026.

Tallinna  Teede  AS  (ttas.ee  (https://www.ttas.ee/))  is  a  road construction
company  that performs road construction, maintenance  and repair works all over
Estonia.  The company has its own asphalt plant and an accredited laboratory for
testing road construction materials.

Additional   information:   Jüri   Läll,   CEO  of  Tallinna  Teede  AS,  phone:
+372 606 1901.

Urmas Somelar
Head of Finance
AS Merko Ehitus
+372 650 1250
[email protected] (mailto:[email protected])

AS  Merko  Ehitus (group.merko.ee  (https://group.merko.ee/en/)) group companies
construct  buildings and  infrastructure and  develop real  estate. We  create a
better  living environment and build the  future. We operate in Estonia, Latvia,
and  Lithuania. As at  the end  of 2024, the  group employed 605 people, and the
group's revenue for 2024 was EUR 539 million.