2/2015 - Information on the conclusion of the material agreements - update
With respect to the current report no. 34/2014 of 4 December 2014, the Management Board of Trakcja PRKiI S.A. ("Company", "Issuer", "Contractor") hereby informs about the mutual signing by PKP Polskie Linie Kolejowe S.A. in Warsaw ("PKP", "Ordering Party") of the Agreement for the "Performance of additional works such as designing and constructing the collision-free two-level crossing of the railway line no. 17 and Niciarniana street in Łódź, under the OPIE 7.1 – 24.2 "Improvement of the Łódź Railway Junction (TEN-t), stage 1, Łódź Widzew – Łódź Fabryczna section"" ("Agreement").
Subject Matter of the Agreement
The subject matter of the Agreement is the performance of additional works such as designing and constructing the collision-free two-level crossing of the railway line no. 17 and Niciarniana street in Łódź, under the OPIE 7.1 – 24.2 "Improvement of the Łódź Railway Junction (TEN-t), stage 1, Łódź Widzew – Łódź Fabryczna section".
Value of the Agreement
The net value of the Agreement is PLN 56,045,000.00 (fifty-six million forty-five thousand Polish zlotys).
The gross value of the Agreement is PLN 68,935,350.00 (sixty-eight million nine hundred thirty-five thousand three hundred fifty Polish zlotys).
Completion date
The date of the completion of the works being the subject matter of the Agreement has been divided into parts, where the last part shall be delivered by 30 August 2016.
Liquidated damages
The Agreement contains provisions on liquidated damages, which the Contractor may pay and whose amount may exceed the equivalent of at least 10% of the value of the Agreement provided that the total amount of the accrued liquidated damages as provided for in the Agreement shall not exceed 30% of the value of the Agreement.
Due to the withdrawal from the Agreement for reasons directly attributable to the Contractor, the Contractor shall pay damages in the amount of 30% of the value of the Agreement.
The payment of the liquidated damages shall not terminate the right of PKP to seek damages on general terms in the amount exceeding the value of the reserved liquidated damages.
The Issuer informs that in the period from 4 September 2014 , i.e. from the date of the publication of the current report 22/2014 regarding the agreements executed with PKP Polskie Linie Kolejowe S.A., the Issuer additionally signed other agreements with PKP of the total net value of PLN 1,910,000.
Criterion for considering an agreement material
The Agreement shall be considered material if the total value of the above-mentioned agreements concluded by and between the Company and PKP exceeds 10% of the Company’s equity.
Legal basis for the report:
§ 5, sec. 1 point 3 of the Ordinance of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.
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