Tytuł
Contract for the construction of a ring road of Przemyśl. The issuing of a material guarantee.
Report No:26/2013
Date:2013/08/13
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.
Content:

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 subject of the contract consists in the "Construction of a ring road of Przemyśl, connecting national road no. 28 with Voivodeship road no. 885".

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 shall start not later than 30 days from the signing of the Contract.

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).
The term of the contractor's quality guarantee is 60 months, with the exception of horizontal thin-layer marking with a 12-month guarantee.

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:
a) for exceeding the Deadline for the Completion of Works: 0.03% of the gross Approved Contractual Amount for each day of delay,
b) for failure to perform the Required Minimum Performance Quantity on time: 0.02% of the gross Approved Contractual Amount for each day of delay, subject that the Contractor may provide the Contracting Authority with a security for the completion of the Works by the Completion Deadline in the form of a bank guarantee or an insurance guarantee in the amount equal to the liquidated damages. If the Completion Deadline is observed, the said guarantee shall be reimbursed to the Contractor by the Contracting Authority.
d) for failure to observe the deadline:
1) set by the Engineer for:
 - repairing defects and performing minor outstanding works stated in the Acceptance Certificate,
 - repairing defects during the term for reporting defects,
2) set by the Contracting Authority for:
 - repairing defects during the remaining term of the Quality Guarantee in the amount of PLN 5,000 for each day of delay. In addition, the Contractor shall pay liquidated damages if the Contracting Authority does not suffer any damage, subject that the Contractor may provide the Contracting Authority with a security for the completion of the Works by the Completion Deadline in the form of a bank guarantee or an insurance guarantee in the amount equal to the liquidated damages.
e) for withdrawal from the Contract for reasons attributable to the Contractor: 10% of the gross Approved Contractual Amount.

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 Parties shall have the right to supplementary damages which adjust the amount of liquidated damages for the amount of damage actually suffered.
The Contractor is entitled to an advance payment in the amount of 10% of the Approved Contractual Amount.

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.
The total amount of the guarantee is PLN 4,445,000.43, whereby:
- the amount of up to 4,445,000.43 secures compensation claims due to non-performance or ill-performance of contractual obligations,
- the amount of up to PLN 1,333,500.13 is the equivalent of the costs of repairing faults and/or defects, is valid until 23 March 2016 and constitutes security for failure to repair or for incorrect repair of physical faults or defects in the subject of the contract.

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.

Attachments:
 
POLAQUA Mostostal Wyroby betonowe TECO