|Contract for the construction of a ring road of Przemyśl. The issuing of a material guarantee.|
|Legal basis:||Art. 56 section 1 item 1 of the Act of Public Offering – confidential information|
|Signatures:||Servando Sierra Martí, President of the Management Board of P.R.I. POL-AQUA S.A.
Marek Sobiecki, First Vice-President of the Management Board of P.R.I. POL-AQUA S.A.
The Management Board of Przedsiębiorstwo Robót Inżynieryjnych POL-AQUA S.A., with its registered office in Warsaw (later referred to as the "Company"), announces that today a material contract has been signed between the Company and Przemyśl Municipal Gmina in Przemyśl.
The net value of the contract amounts to PLN 72,276,429.75 (the gross Approved Contractual Amount is PLN 88,900,008.59).
The deadline for carrying out the subject of the contract is 16 months from the Commencement Date.
The works forming the subject of the aforementioned contract shall be performed pursuant to Contractual Terms for construction as well as construction and engineering works designed by the Contracting Authority, English – Polish edition 2000 (translation of the first FIDIC edition 1999).
Payments shall be made 30 days from the day of delivering the invoice to the Contracting Authority.
The minimum amount of the Interim Payment Certificate is PLN 2,500,000.
The required Minimum Performance Quantity comprises the works which are performed within 3 months from the Commencement Date, approved and have a value not lower than 5% of the Approved Contractual Amount.
The Contractor shall pay to the Contracting Authority the following liquidated damages:
For withdrawing from the contract for reasons attributable to the Contracting Authority, the Contracting Authority shall pay liquidated damages in the amount of 10% of the gross Approved Contractual Amount. The liquidated damages shall not apply if the withdrawal from the contract is due to the reasons referred to in Subclause 15.2 FIDIC and in the event of a substantial change of circumstances causing that the performance of the contract is no longer in the public interest, which could not have been predicted when the contract was concluded (article 145 of Public Procurement Act).
The contract has been concluded on terms and conditions normally used in this type of contracts.
The value of the said contract does not exceed 10% of the value of sales revenue of the issuer's capital group.
In addition, the Management Board of P.R.I. POL-AQUA S.A. announces that, in connection with the said contract and the contractual terms, the Company issued an irrevocable and unconditional performance bond and a guarantee for correct repair of any faults and defects.
This guarantee is equivalent to 5% of the Approved Contractual Amount and exceeds 10% of the issuer's equity.
The said guarantee has been issued by Towarzystwo Ubezpieczeń Euler Hermes to POL-AQUA.