2010-07-30
Current report no 31/ 2010 - Signature of a significant contract for the construction of the S5 Poznań - Wrocław expressway, section Kaczkowo - Korzeńsko
The Board of HYDROBUDOWA POLSKA S.A. informs that on the 30th of July 2010 a Consortium of companies (The "Executor”) including:
1. ALPINE Bau GmbH – Consortium Leader
2. PBG S.A. – Consortium Partner
3. APRIVIA S.A. – Consortium Partner
4. HYDROBUDOWA POLSKA S.A. – Consortium Partner
Signed a contract with the Poznań Branch of the General Directorate of National Roads and Motorways (“Ordering Party”) for the construction of the S5 expressway from Poznań (A2 – “Głuchowo” intersection) to Wrocław (A8 – “Widawa” intersection), Kaczkowo-Korzeńsko section (Bojanowo and Rawicz bypass).
The agreed net Contract Sum is 777 239 570,60 PLN, that is a gross amount of 948 232 276,21 PLN. The performance bond for this contract is a bank guarantee for a sum equal to 5% of the gross Contract Sum.
The Consortium is obliged to conclude the work which is the subject of the discussed agreement within 20 months following the work commencement date. The execution time does not include the periods between the 15th of December and 15th of March.
The following contract penalties were established for this contract:
The Executor will pay the Ordering party the following contract penalties:
a) for exceeding the Work Completion Deadline, a contract penalty of 0,03 % of the Agreed Contract Sum for every day of delay;
b) for not using the annual limit for 2010 and 2011 – 0,01 % of the annual limit for every day of delay;
c) for withdrawing from the Contract for reasons on part of the Executor – 10 % of the Agreed Contract Sum;
d) for failure to meet the deadlines of fault removal and execution of minor overdue works specified in the Take-over Certificate or failure to meet the deadlines of fault removal and execution of minor overdue works during the warranty period before the deadline specified by the Engineer/Ordering Party – 0,01 % of the Agreed Contract Sum for every day of delay.
The Ordering Party will pay a contract penalty for withdrawing from the contract for reasons on part of the Ordering Party in the amount of 10 % of the Agreed Contract Sum.
Payment of contract penalties by the Executor does not relieve them from the obligation to conclude the Works or carry out any other responsibilities and obligations resulting from the Contract.
The Parties are entitled to supplementary compensation transferring the amount of contract penalties to the actual incurred damage amount.
The Ordering Party may deduct the contract penalty amount from every payment due to the Executor. Payment of contract penalties by the Executor or deduction of penalties from the amounts due to the Executor in cases specified by point a) and b) does not relieve them from the obligation to conclude the Works or carry out any other responsibilities and obligations resulting from the Contract.
The Parties established the following percentage distribution of work:
1) ALPINE Bau GmbH, as the Consortium Leader will be responsible for 60% of the work scope associated with carrying out the contract;
2) PBG S.A., APRIVIA S.A. and HYDROBUDOWA POLSKA S.A. as Consortium Partners will be responsible for 40% of the work scope associated with carrying out the contract.
HYDROBUDOWA POLSKA S.A. is part of the PBG Capital Group.
The criterion for considering this contract as significant is the equity capital height of HYDROBUDOWY POLSKA S.A.
Legal foundation:
§ 5 item1 point 3 of the 19th of February 2009 resolution regarding current and periodic information published by issuers of securities and conditions of equivalent treatment of information required by legal regulations of countries which are not member countries.
