With reference to current report no. 5/2012 of 2 March 2012, the Management Board of Przedsiębiorstwo Robót Inżynieryjnych “POL-AQUA” S.A. with its registered office in Warsaw (hereinafter referred to as the “Company”) reports that today a significant agreement has been concluded between the consortium of P.R.I. “POL-AQUA” S.A. (leader), Dragados S.A. (partner), Vias y Construcciones S.A. (partner), Electren S.A. (partner) and PKP Polskie Linie Kolejowe S.A. of Warsaw.
The object of the contract is the “Design and execution of construction works for LCS Łuków - Siedlce, Łuków and Międzyrzec Podlaski stations (full extent of works), as well as sections of the mainline (only signalling systems and telecommunications) under the OPIE project 'Modernisation of the E 20/CE 20 railway line in the Siedlce–Terespol section, stage II'”.
The value of the contract amounts to: PLN 427,390,878.05 net (PLN 525,690,780 gross). The participation of P.R.I. “POL-AQUA” S.A. in the consortium is 31% (Dragados S.A. – 20%, Vias y Construcciones S.A. – 42%, Electren – 7%).
The deadline for carrying out the object of the contract, i.e. the design and execution of construction works is 35 months from the Commencement Date.
The works being the subject of the contract will be carried out in accordance with the Conditions of Contract for Plant and Design-Build for Electrical and Mechanical Works and Engineering Works Designed by the Contractor, General Conditions, English-Polish edition, 2000 (translation of the first FIDIC edition, 1999).
The period of warranty for defects is 36 months, counting from the date of issuance of the Works Taking Over Certificate.
Payments will be made within 30 business days from the day of delivering the invoice to the Contracting Authority.
The minimum amount of the Interim Payment Certificate amounts to PLN 500,000.
The consortium submitted an insurance guarantee of proper performance amounting to 8% of the gross remuneration. The liability of consortium partners for the performance of the contract shall be joint and several.
The Contractor shall obtain all permissions, approvals and other documents required to carry out the Works and supply or remove Materials, Goods and Equipment that were not obtained or provided to the Contractor by the Contracting Authority on or before the day of Contract conclusion.
The Contractor shall pay the Contracting Authority the following liquidated damages:
– For a delay in the works: 0.05% of the total gross remuneration for each day between the Completion Date and the date quoted in the Taking Over Certificate.
– The maximum amount of liquidated damages for delay is 10% of the total gross remuneration.
The liquidated damages for delay shall be the only penalty paid by the Contractor for this type of breach in the event other than termination under clause 15.2
Furthermore, the Contractor shall cover the costs of:
Delays resulting from reasons attributable to the Contractor and caused by extension of track closing time, delayed notification of intended track closing that prevented consulting the timetable for the period of works with operators, non-approved use of tracks being in normal use during the works, repair or replacement of infrastructure damaged during the works, using speeds other than defined in the temporary traffic rules and regulations during the works,
Substitute bus transport,
Using locomotives for moving trains.
The costs arising on account of train delays shall be calculated on the basis of notes or invoices presented by operators, while the costs of substitute bus transport and using locomotives to move trains – in accordance with invoices presented by operators.
The Contract has been concluded on terms and conditions normally used in such agreements.
The criterion which caused the contract to be classified as significant is the value of sales revenue of the issuer's corporate group for the period of the last four financial quarters.
The value of the Contract in question exceeds 10% of the value of sales revenue of the issuer's capital group.