43/2015 - Information on entering into material agreements
The Management Board of Trakcja PRKiI S.A. ("the Company"), hereby announces that the Company concluded today, i.e. 12 October 2015, two material agreements with the General Directorate of National Roads and Motorways based in Warsaw ("Awarding Entity”). The Company also announces that the total value of other agreements concluded with the Awarding Entity within last 12 months is PLN 5,396,041.42 (say: five million, three hundred and ninety-six thousand, forty-one zloty , 42/100).
First agreement
The first of the agreements signed today is the contract for "Design and construction of Expressway S-5 at the section Nowe Marzy-Bydgoszcz-border of Kujawsko-Pomorskie Province and Wielkopolskie Province. Part 4 – Design and construction of Expressway S-5 at the section from Szubin junction (junction inclusive) to Jaroszewo junction (junction inclusive) with a length of approx. 19.3 km”.
The agreement was concluded between:
1. a Consortium composed as follows:
Trakcja PRKiI S.A. based in Warsaw (as consortium leader),
Przedsiębiorstwo Usług Technicznych INTERCOR sp. z o.o. based in Zawiercie (as consortium partner)
("the Consortium”, "the Contractor”)
and
2. General Directorate of National Roads and Motorways based in Warsaw.
The net value of the agreement is: PLN 286,155,940 (say: two hundred and eighty-six million, one hundred and fifty-five thousand, nine hundred and forty zloty).
The gross value of the agreement is: PLN 351,971,806.20 (say: three hundred and fifty-one million, nine hundred and seventy-one thousand, eight hundred and six zloty, 20/100).
The Company's share in the value of this contract is 85 %.
According to the agreement, the Consortium shall complete the work within 34 months from the date of signing the agreement. The period for completion of the work, except for the period of designing, does not include wintertime periods (i.e. from December 15 to March 15).
The Agreement comprises provisions on contractual penalties to be paid by the Contractor that may exceed at least 10% of the value of the Agreement.
For withdrawal from the Agreement for reasons attributable to the Contractor, the Contractor shall pay a penalty of 15% of the value of the agreement, and for withdrawal from part of the work a penalty of 15% of the value of the work concerned.
Total amount of contractual penalties charged shall not exceed 20% of the contractual value.
Payment of the contractual penalty does not waive the Awarding Entity's right to claim, under general rules of law, damages in excess of the contractual penalty stipulated.
Terms of the Agreement do not differ from contractual terms that are usually used for this type of agreement.
The criterion for deeming the Agreement a material agreement was the fact that the value of the Agreement concluded by the Consortium with the Awarding Entity exceeded 10% of Company's equity capital.
Second Agreement
The second of the agreements signed today is the contract for "Design and construction of Expressway S-5 at the section Nowe Marzy-Bydgoszcz-border of Kujawsko-Pomorskie Province and Wielkopolskie Province. Part 1 – Design and construction of Expressway S-5 at the section from Aleksandrowo junction (junction inclusive) to Tryszczyn junction (junction inclusive) with a length of approx. 14.7 km”.
The agreement was concluded between:
1. a Consortium composed as follows:
Przedsiębiorstwo Usług Technicznych INTERCOR sp. z o.o. based in Zawiercie (as consortium leader)
Trakcja PRKiI S.A. based in Warsaw (as consortium partner)
("the Consortium”, "the Contractor”)
and
2. General Directorate of National Roads and Motorways based in Warsaw.
The net value of the agreement is: PLN 300,000,000 (say: three hundred million zloty).
The gross value of the agreement is: PLN 369,000,000.00 (say: three hundred and sixty-nine million zloty).
Shares of consortium members in the value of the agreement are currently under negotiation and the decision on final distribution will be announced by the company in a current report concerning this issue.
According to the agreement, the Consortium shall complete the work within 34 months from the date of signing the agreement. The period for completion of the work, except for the period of designing, does not include wintertime periods (i.e. from December 15 to March 15).
The Agreement comprises provisions on contractual penalties to be paid by the Contractor 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 15% of the value of the agreement, and for withdrawal from part of the work a penalty of 15% of the value of the work concerned.
Total amount of contractual penalties charged shall not exceed 20% of the contractual value.
Payment of the contractual penalty does not waive the Awarding Entity's right to claim, under general rules of law, damages in excess of the contractual penalty stipulated.
Terms of the Agreement do not differ from contractual terms that are usually used for this type of agreement.
The criterion for deeming the Agreement a material agreement was the fact that the value of the Agreement concluded by the Consortium with the Awarding Entity 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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