31/2015 - Material agreement conclusion by a subsidiary
The Management Board of Trakcja PRKiI S.A. (“the Company”, “the Issuer”) hereby announces that Issuer's subsidiary AB Kauno tiltai of Kaunas (Lithuania) has signed today an agreement on construction of a Trans-European Network Node – 3rd stage of the Western Ring Road of the City of Vilnius – from Ozo Street to Ukmergės Street.
Parties to the Agreement
The parties to the agreement are as follows:
- Vilnius Municipality,
and
a Consortium composed as follows:
- AB Kauno tiltai (Consortium Leader),
- Uždaroji akcinė bendrovė “Fegda” based in Vilnius,
- Uždaroji akcinė bendrovė “Lemminkainen Lietuva“ based in Vilnius,
- AB “Eurovia Lietuva” based in Vilnius,
- Tiltų statybos uždaroji akcinė bendrovė “Tilsta” based in Vilnius,
- Uždaroji akcinė bendrovė “Axis Power” based in Kaunas,
Value of the Agreement
The tender procedure was announced by the Municipality of Vilnius. As part of the tender procedure for the construction of the Trans-European Network Node - 3rd stage of the Western Ring Road of the City of Vilnius, an agreement of net value of PLN 271,592,969.47 has been signed today (gross value: PLN 328,627,493.08).
The share of subsidiary AB Kauno tiltai in the value of the contract is 68%.
Work completion date
The work must be completed within twenty months from the date of handing over the construction site. During the term of the contract, the time limit for work completion may be extended, once for no more than six months, due to unforeseen circumstances (lawsuits, adverse weather conditions, delay in commencement of the work, change in technical design).
Contractual penalties for delay
The amount of compensation for delays is 0.02% of the net value of the contract per each day of delay, however no more than 20% of the net value of the contract. The payment of contractual penalties shall waive the right to claim damages exceeding the amount of these penalties.
Terms of the Agreement
Terms of the Agreement do not differ from contractual terms that are usually used for this type of agreement.
Criteria for considering the Agreement a material agreement
The criterion for deeming the Agreement a material agreement was the fact that the value of the Agreement exceeded 10% of Company's equity capital.
Legal basis:
Section 5 paragraph 1 subparagraph. 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognizing information required by laws of non-member states as equivalent.
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