42/2023 – Information on the Conclusion of a Significant Contract by Trakcja S.A.

The Management Board of Trakcja S.A. (“Company”, “Issuer”) announces that today it has signed a contract, with the Company as the “Contractor” and the City of Łódź – Municipal Investment Board based in Łódź as the “Ordering Party”, for the execution of design and construction works related to the construction/expansion of access roads to the expressway S-14 and the improvement of communication in the Złotno/Teofilów districts, under the project titled “Construction/Expansion of Access Roads to the Expressway S-14 and Improvement of Communication in the Złotno/Teofilów Districts” (“Contract”).

The subject of the Contract is divided into:

• Task 1: Expansion/rehabilitation of Rąbieńska Street from Szczecińska Street (excluding the intersection) to Traktorowa Street, including the intersection up to Snopowa Street, and expansion of Wykowa Street from Rąbieńska Street to Kotarbińskiego Street;
• Task 2: Construction of Kaczeńcowa Street from Rąbieńska Street to Odrowąża Street;
• Task 3: Construction of Wojska Polskiego Street from the projected Kaczeńcowa Street to Traktorowa Street, and reconstruction of Traktorowa Street from the projected Wojska Polskiego Street to Judyma Street.

The signing of this Contract follows the selection of the Company’s offer as the most advantageous one in the open tender.

The total value of the Contract is set at PLN 77,755,265.43 net (lump-sum remuneration). The value of the Contract comprises:

1. Preparation of design documentation: PLN 2,255,135.96 net
2. Author supervision: PLN 110,501.66 net
3. Execution of construction works: PLN 75,389,627.81 net

The works are to be completed within 48 months from the date of the Contract’s conclusion. The start date for the Contract’s execution is the date of its signing by the Parties.

The Ordering Party has provided for remuneration adjustment to be made no more frequently than once every 6 months, in case the change in material prices and costs exceeds the level set in the Contract. The maximum adjustment thresholds are set at 10% separately for the design and author supervision phase and separately for the construction works phase. Each Party may request a change in remuneration within 30 days after the end of the first and each subsequent 6-month period of the Contract’s execution.

Other terms of the Contract do not differ from those commonly used for such contracts.

The Management Board decided to publish this information because the execution of this investment project represents a significant portion of the Company’s order portfolio and impacts the maintenance of current and the increase of future revenues and results of the Company.

Legal Basis: Article 17 MAR