Current reports
Current report no. 23/2013
Material contract conclusion
Legal basis:
Art. 56 section 1 point 2 of the Public Offering Act - Current and periodic information
Contents of the report:
Zespół Elektrowni "Pątnów - Adamów-Konin" S.A. ("the Company") informs that on 31 July 2013, the Company concluded with Przedsiębiorstwo Investycyjno – Remontowe Energetyki i Przemysłu "Remak-Rozruch" S.A. and Przedsiębiorstwo Remontowe "PAK Serwis" Sp. z o.o. (subsidiary of the Company), acting as consortium (referred to as the "Contractor"), a contract for "turnkey" modernization of Boiler K1 and Boiler K2 at the Pątnów Power Plant along with construction of NOX emission reduction system for these boilers ("the Contract").
The subject matter of the Contract includes the Contractor's "turnkey" modernization of the boiler room building, the boiler pressure section and auxiliary devices of units 1 and 2 at the Pątnów Power Plant along with construction of NOX emission reduction system by using non-catalytic methods, so as not to exceed the level of 180 mg/mu3 (6% of oxygen, dry flue gases), adding urea solution to the combustion process to the level of 200 mg/mu3, using primary methods with regard to design, delivery, assembly, services, start-up and commissioning, in accordance with the Contract provisions.
The net Contract value is:
1) for boiler K-1 – PLN 195 430 000.00,
2) for boiler K-2 – PLN 186 570 000.00.
The total net Contract value for boiler K-1 and boiler K-2 is PLN 382 000 000.00.
The Parties agreed in the Contract that boiler K-1 would be commissioned until 31.12.2014 and boiler K-2 would be commissioned until 28.02.2015.
The other terms of the Contract do not differ from the terms customarily used in this kind of contracts.
The Contractor is liable for default or defective fulfilment of the obligations set out in the Contract, and to cases not regulated in the Contract the general terms of the civil law will apply. The total limit of all contractual penalty fees on the side of the Contractor for boiler K1 under any title is 22% of the net Contract value for this boiler. The total limit of all contractual penalty fees on the side of the Contractor for boiler K2 under any title is 22% of the net Contract value for this boiler. In the cases when the Contractor defaults on the obligations resulting from the Contract, for which contractual penalty fees were stipulated, the Company may not claim compensation on the general terms exceeding the amount of stipulated contractual penalty fees.
The criterion for recognition of the concluded Contract as material is the fact that its value exceeded 10% of the value of the Company's equity.
Legal basis: § 5 section 1 item 3 and § 9 of the Finance Minister’s Regulation of 19 February 2009 on the Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a Non-Member State as Equivalent.
Signatures of persons representing the company:
Katarzyna Muszkat – President of the Management Board
Piotr Jarosz – Vice President of the Management Board