8/2016 - Information on entering into material agreements
The Management Board of Trakcja PRKiI S.A. (hereinafter referred to as: the "Company") hereby announces that it has become aware of the fact that from 16 December 2015 to 29 April 2016, the value of the agreements executed by the Company's subsidiary – AB Kauno Tiltai with its registered office in Kaunas, Lithuania (hereinafter referred to as: "Kauno") and the Lithuanian Road Administration of the Ministry of Communications (hereinafter referred to as: the ˮCustomerˮ) reached a material value.
Value of agreements:
The total net value of agreements executed by Kauno calculated in PLN amounted to: PLN 146,595,585.42 (in words: one hundred and forty six million, five hundred and twenty nine thousand, five hundred and eighty five zloty, 42/100).
The agreement with the largest value was the agreement executed by a consortium, which includes Kauno, with the net value calculated in PLN amounting to: PLN 105,610,072.91 (in words: one hundred and five million, six hundred and ten thousand and seventy two zloty 91/100) (hereinafter referred to as: the "Agreement").
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.
Object of the Contract:
Pursuant to the Agreement, effective as of 29 April 2016 and executed between the Customer and the consortium composed of:
1. Consortium Leader – UAB "Alkesta", legal person code 249672710, with its registered office at ul. Naujoji 118, LT-62175 Alytus, Lithuania,
2. AB "Kauno tiltai", legal person code 133729589, with its registered office at Ateities pl. 46, 52502 Kaunas, Lithuania.
3. Uždaroji akcinė bendrovė "Lemminkainen Lietuva“, legal person code 122657512, with its registered seat at ul. Granito 4, Vilnus
the following construction works were ordered:
Extension of the E67 road (Via Baltica) within the Trans-European Network. Extension of the Kaunas – Marijampole section. Stage 1. Reconstruction of the section from 35.40 km to 45.15 km of the A5 road – Kaunas – Marijampole – Suwałki.
Term of the Contract:
The aforementioned construction works must be performed within 12 months from the effective date of the agreement, except the period commencing on 15 December 2016 and ending on 15 March 2017.
Liquidated damages:
The amount of damages for delays in the performance of the works shall be 0.02% of the net value of the Agreement for each day of delay.
The maximum amount of damages for delays in the performance of the works shall be 20% of the net value of the Agreement.
The other terms and conditions of the agreement are similar to those commonly used for these type of agreements.
The criterion applied to recognize agreements as material shall be the fact that their total value has exceeded 10% of the Company's equity.
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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