Current reports

Current reports

Current reports

Current report no. 15/2016

Conclusion of the material agreement


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. (“Company”) announces that on 26 April 2016, the Company signed a repair and service of machinery agreement (“Agreement”) with the PAK-Serwis SP. z o.o. (a subsidiary of the Company).


The subject of the agreement is services provided by PAK Serwis SP. z o.o. for the Company aimed at maintenance of the equipment used to generate electricity in optimal technical condition, in particular allowing to keep operational and technical parameters and proper availability and security of immediate access to repair services in the event of a failure. The agreement is valid within 2016-2021, whereas for each of the six annual periods, estimated remuneration resulting from the service, workshop and repair works schedule was specified. The total estimated agreement value throughout its validity is PLN 277 million net.


As a security for due performance of the Agreement, PAK Serwis SP. z o.o. has undertaken to submit an irrevocable and unconditional bank/insurance guarantee payable on first demand without the need for acceptance of the Company’s claims by PAK Serwis SP. z o.o. to the Company. The guarantee is to be shown yearly and have the amount of 8% of the amount of the net remuneration for the repair works resulting from the schedule for a given year.


In accordance with the provisions of the Agreement, the Company is required to obtain the consent of the Supervisory Board for the conclusion of the agreement. The Agreement’s provisions will enter into force on the day of obtaining the consent. In the case of not obtaining the consent by 30 June 2016, the Company will inform PAK Serwis SP. z o.o. about this fact and the parties will immediately agree on the rules of the further cooperation.


The other terms of the agreement do not differ from those commonly used in the agreements of this type.


The parties bear responsibility for non-performance or improper performance of the obligations laid down in the Agreement on the terms described herein and in cases not regulated by the Agreement – on the general principles of the civil law. The total contractual penalties’ limit for a given year of the Agreement’s validity is 20% of the PAK Serwis SP. z o.o.’s remuneration in a given year. Whereas the right to charge contractual penalties does not exclude the right to claim supplementary compensation in excess of the contractual penalties’ amount. However, charging the contractual penalties is not mandatory.


The criterion of recognition of the concluded agreements as significant ones is the fact that their total value exceeded 10% of the value of the Company’s equities.


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:

Aneta Lato-Żuchowska - Vice President of the Management Board

Zygmunt Artwik - Vice President of the Management Board