18/2009 - Information on the value of contracts with one trading partner exceeding 10% of the value of Trakcja Polska S.A.?s equity by the Issuer?s subsidiary

The Management Board of Trakcja Polska S.A. (“Company”) hereby announces that, on 5 May 2009, Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A., with its registered office in Wrocław (“PRKiI S.A.”), the Company’s subsidiary, concluded a contract with Przedsiębiorstwo Budownictwa Kolejowego i Inżynieryjnego "INFRAKOL" Zenon Buca, Jan Paruch S.C. with its registered office in Jawor (“Infrakol”), for the fulfilment of a contract named“Reconstruction and modernisation of the E-30/CEW-30 railway line on the Opole – Wrocław – Legnica section, Środa Śląska – Malczyce route, tracks nos. 1 and 2, together with the Malczyce station”. As a result of this contract, the total value of contracts concluded by PRKiI with Infrakol over the past 12 months is PLN 38,386,447.29, which exceeds 10% of the Company’s equity.

 

Of the contracts concluded, the contract of the highest value is Contract no. 90-a/2008, concluded on 22 December 2008 in Wrocław, for construction and assembly works within the task of “Reconstruction of the eastern side of the Poznań Główny station, platforms 1, 2 and 3, platform roofs and stairways leading to the underground passageway, together with its modernisation, as well as construction of a new passageway at the level of the tracks and putting order to the drainage system, including replacement of the track surface”.

 

Net contract value: PLN 14,317,342.40

 

Gross contract value:PLN 17,467,157.73

 

Deadline for the completion of the works:15 November 2009

Security for the performance of the contract:

 

The contract performance bond is 5% of the price for the performance of the subject of the contract and shall be deposited at the amount of PLN 873,358.00 in the form of a bank or insurance guarantee by 31 January 2009.

 

70% of the value of the security, i.e. the amount of PLN 611,351.00, constitutes security guaranteeing the performance of the work and works in accordance with the contract. The security will be valid until 31 December 2009 (namely 45 days from the end of the expected final acceptance of the whole of the task).

 

30 % of the value of the security, i.e. the amount of PLN 262,007.00 constitutes security covering the claims from the quality guarantee. The security will be valid until 15 January 2013 (namely 45 days from the date of the end of the guarantee).

 

Payment terms:

 

Settlements for the performance of the subject of acceptance shall take place against interim invoices issued at the end of the month for the work and works conducted during this period.

Payment term:the payment term for the invoices shall be 35 days.

Advance:none.
Liquidated damages:

 

PRKiI may charge liquidated damages which Infrakol shall pay:

 

1)    at a level of 0.01 % of the price for the performance of the subject of the contract (gross) for every day of delay in completing the work and works after the passage of the contractual deadline;

2)    at a level of 0.005 % of the price for the performance of the subject of the contract (gross) for every day of delay in eliminating defects found by authorised representatives of PRKiI and Infrakol after the passage of the deadline for their elimination;

3)    at a level of 0.005 % of the price for the performance of the subject of the contract (gross) for every day of delay in delivering the documents listed in the contract after the passage of the contractual deadline;

4)    PLN 1,000.00 for every commenced hour of delay in starting the works during the assigned closures or openings of the tracks for traffic with respect to the specified closures of tracks, which are contained in the approved closures schedule; these liquidated damages may also be charged for every hour of closure of tracks received by Infrakol for the fulfilment of works after their contractual completion date,

5)    at a level of 0.03% of the price for the performance of the whole of the task (gross) for Infrakol subcontracting work or works to subcontractors without the required consent of PRKiI;

6)    at a level of 10% of the price for the performance of the contract (gross), in the event of the withdrawal from the performance of the contract as a result of circumstances for which Infrakol is responsible.

 

PRKiI shall charge the costs of compensation paid to railway hauliers (until the end of the period of the quality guarantee) to Infrakol, if the need to pay them arises through Infrakol’s fault.

 

Infrakol may charge liquidated damages which PRKiI shall pay:

 

1)    at a level of 0.01 % of the price (gross) for the delayed fulfilment of the works for every day in handing over the construction site;

2)    at a level of 0.005 % of the price (gross) for the performance of works which are subject to acceptance for every day of delay in starting partial acceptance with partial or final handover of the subject of the contract for operation;

3)    at a level of 10% of the price for the performance of the contract (gross), in the event of withdrawal from the performance of the contract as a result of circumstances for which PRKiI is responsible.

 

The other Party shall set an additional deadline for fulfilment for the Party which fails to perform its contractual obligation within the specified deadline. In the event of the additional non-performance of this obligation within the set deadline, the level of the liquidated damages shall be increased by 50% (this applies to liquidated damages for the Contractor’s delays, handover of the construction site and acceptance of the works by the Contracting Party).

 

The Parties have reserved the right to claim supplementary compensation in excess of the value of the liquidated damages to the value of the damage actually incurred.

 

Legal grounds:Article 56 section 1(2) of the Act on the public offering and the conditions for introducing financial instruments into an organised trading system and on listed companies, as well as § 5(1)(3) of the Regulation of the Minister of Finance of 19 February 2009 on current and regular information published by issuers of securities and the conditions for accepting information required by the provisions of the law of a state which is not a Member State as being equivalent.

 

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