AS Merko Ehitus 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.