22/2014 – Information on Conclusion of Material Agreements
The Management Board of Trakcja PRKiI S.A. (“Company” or “Issuer”) hereby informs that the Company and PKP Polskie Linie Kolejowe S.A. in Warsaw (“PKP”) concluded material agreements with the total value of PLN 58,413,481.10 (in words: fifty eight million four hundred thirteen thousand four hundred and eighty one Polish zlotys, 10/100).
Agreement with the highest value
The agreement with the highest value among the aforementioned agreements is the agreement signed by both Parties today, i.e. on 4 September 2014, for the performance of the follow-up contract for the design and implementation of construction works consisting in the reinforcement of the embankment’s track bed and structure together with the reinforcement of the railway embankment’s buttress from km 266,195 to km 266,355 along the E65 Warszawa-Gdynia railway line in Jurkowice in the area of the Local Control Centre in Malbork under the OPIE Project 7.1-1.3 “Modernisation of the E 65/C-E 65 Railway Line in the Warszawa-Gdynia Section, Area of the Local Control Centre in Iława, the Local Control Centre in Malbork” (“Agreement”). The aforementioned Agreement was concluded between PKP Polskie Linie Kolejowe S.A. in Warsaw as the Contracting Entity and the Consortium of companies composed of: Trakcja PRKiI S.A. in Warsaw (Leader of Consortium), PKP Energetyka S.A. in Warsaw, Przedsiębiorstwo Robót Mostowych Mosty-Łódź S.A. in Łódź, INTOP Warszawa Sp. z o.o. in Warsaw, Pomorskie Przedsiębiorstwo Mechaniczno-Torowe Sp. z o.o. in Gdańsk as the Contractor.
Subject of the Agreement
The subject of the Agreement is the design and implementation by the Contractor of the construction works consisting in the reinforcement of the embankment’s track bed and structure together with the reinforcement of the railway embankment’s buttress from km 266,195 to km 266,355 along the E65 Warszawa-Gdynia railway line in Jurkowice in the area of the Local Control Centre in Malbork under the OPIE Project 7.1-1.3 “Modernisation of the E 65/C-E 65 Railway Line in the Warszawa-Gdynia Section, Area of the Local Control Centre in Iława, Local Control Centre in Malbork”.
Value of the Agreement:
The net value of the Agreement is PLN 20,982,861.00 (in words: twenty million nine hundred eighty two thousand eight hundred and sixty one Polish zlotys, 00/100).
The gross value of the Agreement is PLN 25,808,919.03 (in words: twenty five million eight hundred eight thousand nine hundred and nineteen Polish zlotys, 03/100).
Completion date of works
In accordance with the Agreement, the construction works enabling the construction of the track structure shall be completed by 20 November 2014. The other works under the Agreement shall be completed and the as-built documentation shall be issued by 31 December 2014.
Contractual indemnity for delay
The Contractor shall pay the Contracting Entity contractual indemnity in the following events and amounts:
- for delay in completing the subject of the Agreement, in the amount of 0.05% of the total gross price, for each day of delay;
- the maximum amount of contractual indemnity shall not exceed 10% of the total gross price.
Moreover, the Contractor shall cover the costs of:
- train delays resulting from causes attributable to the Contractor, caused by the prolongation of time limits for the scheduled track closures and unscheduled notification of the planned track closures that prevent arrangements with carriers on the timetable developed during the construction works to be concluded, unagreed occupation of active tracks during the works, repair or replacement of infrastructure damaged during the works, application of speed other than the speed limits indicated in the regulations regarding temporary speed limits during the works and after their completion,
- replacement bus services,
- use of locomotives for pulling trains.
The costs arising due to trains delays shall be calculated according to the notes or invoices submitted by the carriers and the costs of the replacement bus services and the use of locomotives for pulling trains, according to the invoices issued by the carriers.
Defect notification period
The defect notification period for works and their components is 36 months from the completion of such works or components.
Terms of the Agreement
The terms and conditions of the Agreement do not differ from those commonly applied to this type of agreements.
Criterion for considering the Agreement material
The agreements have been considered to be material due to the fact that the total value of the aforementioned agreements concluded between the Company and PKP exceeds 10% of the Company’s equity.
Legal basis for the report: § 5 item 1 point 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and the conditions for regarding information required by the law of a non-member state as equivalent.
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