The world-wide call for tender for the supply of pipes was made at the end of November, 2006. Nord Stream, together with its shareholders, had already conducted an international study aimed at identifying possible suppliers, on the basis of which six manufacturers in Germany, Russia, and Japan were invited to bid. The companies participating had to prove that they were able to supply suitable large-diameter pipes for offshore use, in accordance with international quality standards and in the volume required, and four companies met these criteria. After examining their offers, the two current contracts were awarded. A second tender will be held in due course for the second pipeline. By then, Nord Stream anticipates that the number of technically-qualified pipe mills is expected to increase. Nord Stream is now undertaking further detailed planning, based on the costs of the supply of pipes and the provision of logistics services and installation capacity. At the moment, Nord Stream calculates the project cost to be at least 5 billion Euros. However, a long-term cost comparison shows the economic benefits of laying the pipeline across the Baltic Sea rather than onshore. Total costs for Nord Stream, including operating costs for a period of 25 years, are estimated to be around 15% lower than those for an equivalent onshore pipeline with the same transport capacity. The saving is mainly due to the compressor stations needed for an onshore pipeline which contribute to comparatively-high operating costs. Further orders for the offshore work are expected imminently: the bid process for concrete coating and logistics will be completed at the end of 2007, and that order will lead to short-term investments worth tens of millions of Euros in machinery and infrastructure equipment which will mean, in turn, further employment benefits for work on infrastructure improvement. Such work could, for example, create jobs at the port of Sassnitz/Mukran, on the German island of Rügen, which has been proposed as a possible logistics site. For the pipe laybarges, a letter of intent has already been signed with Saipem (UK), and a detailed contract is expected to be finalized by February.