14/2009 - Conclusion of a contract by a subsidiary

In connection with report no. 12/2009 of 7 April 2009 on the selection of the best proposal in public procurement proceedings conducted in the form of an unlimited tender, the management board of Trakcja Polska S.A. hereby announces that, on 17 April 2009, the Issuer’s subsidiary, Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A. with its registered office in Wrocław, as the leader of the Consortium of companies consisting of:

-         Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A. with its registered office in Wrocław (Consortium Leader and Proxy),

-         Biuro Projektów i Usług Inwestycyjnych Sp. z o.o. with its registered office in Łódź (Partner),

(hereinafter jointly referred to as the "Contractor”) signed a contract with PKP Polskie Linie Kolejowe S.A., Regional Branch in Lublin. The signed contract applies to the performance of design work and construction works related to the "Modernisation of the viaduct at km 180.905 on the Psary – Góra Włodowska route on tracks nos. 1 and 2" as a part of the task named: "Modernisation of railway line No. 4 E-65 Grodzisk Mazowiecki – Zawiercie section".

The net contract value is PLN 6,310,999.68. The works related to the performance of the contract shall be completed by 30 November 2009.

The Contractor has granted a three-year guarantee on all construction and installation works performed, the materials used and the equipment installed. The parties have also agreed a warranty period on physical defects on the subject of the contract for 1 year longer than the term of the guarantee.

The performance bond securing the proper performance of the contract by the Contractor is 4% of the gross proposal price, i.e. PLN 307,976.78, and shall be provided in the form of an insurance guarantee. 70% of the value of the security shall be released within 30 days of the final acceptance and the presentation of evidence of payment of the fees due to the subcontractors. The remainder of the security, i.e. 30%, shall be returned within 15 days of the date of expiry of the warranty for defects.

Legal grounds:Article 56(1)(1) of the Act on the public offering and the conditions for introducing financial instruments into an organised trading system and on listed companies.