32/2015 - Information on entering into material agreements

The Management Board of Trakcja PRKiI S.A. (“the Company”, “the Issuer”), hereby announces that the Company concluded material agreements of total value of PLN 440,052,706.4 (four hundred and forty million, fifty-two thousand, seven hundred and six PLN, 40/100) with PKP Polskie Linie Kolejowe S.A. based in Warsaw (“PKP”) within the period from 5.01.2015, i.e. from the publication date of the Current Report No. 2/2015, until today.

Agreement of the highest value

The highest value agreement of these above mentioned is the agreement mutually signed today, i.e. on 27 July 2015, on development of detailed designs and performance of work for LCS Warszawa Okęcie as part of the Operational Programme Infrastructure and Environment 7.1-19.1.a. entitled “Upgrade of the railway line No. 8, section Warszawa Okęcie – Radom (LOT A, B, F)” (“the Agreement”).

Value of the Agreement

Net value of the Agreement is PLN 376,199,967.00 (three hundred and seventy-six million, one hundred and ninety-nine thousand, nine hundred and sixty-seven PLN).

Gross value of the Agreement is PLN 462,725,959.41 (four hundred and sixty-two million, seven hundred and twenty-two thousand, nine hundred and fifty-nine PLN 41/100).

Work completion date

According to the Agreement, the Company shall design and perform the work within 20 months from the date of commencement thereof.

Contractual Penalties

The Agreement comprises provisions on contractual penalties to be paid by the Issuer that may exceed at least 10% of the value of the Agreement.                                                                                                                     

For the withdrawal from the Agreement for reasons attributable to the Contractor, the Contractor shall pay a penalty of 30% of the value of the Agreement.

Payment of the contractual penalty does not waive the PKP’s right to claim, under general rules of law, damages in excess of the contractual penalty stipulated.

Terms of the Agreement

Terms of the Agreement do not differ from contractual terms that are usually used for this type of agreement.

Criterion 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 concluded by the Company with PKP exceeded 10% of Company’s equity capital.

In addition, the Issuer announces that one of the agreements forming part of the material agreements covered by this report. i.e. the agreement for designing and performance of work as part of the project “Upgrade of the railway line No. 20 within the PKP Warszawa Gdańska station in conjunction with the Line E65 and A17 Dworzec Gdański metro station stage II” as part of the project “Work on the ring rail line in Warsaw (section Warszawa Gołąbki/Warszawa Zachodnia – Warszawa Gdańska)” of 12 June 2015 amounting to PLN 43,188,770.00 (forty-three million, one hundred and eighty-eight thousand, seven hundred and seventy PLN) will be carried out by a consortium (composed as follows: Trakcja PRKiI S.A. as the Consortium Leader, COMSA S.A. based in Barcelona, Spain and ZUE S.A. based in Krakow). The Issuer’s share in the value of this contract is 58.9%.

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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