36/2015 - Material agreement conclusion by a subsidiary

The Management Board of Trakcja PRKiI S.A. (the "Company”, "Issuer”) announces that today the Issuer's subidiary AB Kauno tiltai based in Kaunas (Lithuania) signed an agreement with the Lithuanian Roads Authority of the Lithuanian Ministry of Transportation, on extension of Road E67 (Via Baltica) of the trans-European network at the section Kaunas - Marijampole.

 

 

Value of the Agreement

 

Net value of the contract is EUR 31,831,964.31 that is PLN 134,728,788.94 (one hundred and thirty-four million, seven hundred and twenty-eight thousand, seven hundred and eighty-eight PLN 94/100).

Gross value of the contract is EUR 38,516,676.82 that is PLN 163,021,834.64 (one hundred and sixty-three million, twenty-one thousand, eight hundred and thirty-four PLN 64/100).

 

Work completion date

 

The above work must be performed within 9 months from the date the agreement becomes effective.

 

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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