34/2024 – Information on Settlement Agreement with PKP PLK

The Management Board of Trakcja S.A. (the “Company”) refers to the information provided in the consolidated periodic report for Q1 2024 regarding ongoing negotiations with PKP Polskie Linie Kolejowe S.A. (“PKP PLK”) related to signing mediation agreements concerning claims associated with the execution of certain contracts. The Company informs that today, with the participation of a mediator from the Arbitration Court at the General Prosecutor’s Office of the Republic of Poland, a settlement agreement was reached. The parties to the agreement are the consortium of companies consisting of Trakcja S.A. [as the Consortium Leader] and Comsa S.A. with PKP PLK concerning contract no. 90/107/0011/17/Z/I dated April 18, 2017, for the execution of construction works in the LCS Łowicz area – Sochaczew – Żychlin section and the Placencja – Łowicz Główny section as part of the project: “Works on the E20 railway line on the Warsaw-Poznań section – remaining works, Sochaczew-Swarzędz section”, implemented under the EU financial instrument Connecting Europe Facility (CEF) (“Settlement”). Under the Settlement, PKP PLK has committed to pay the Company the amount of PLN 66,444,134.75 gross after mutual settlements. PKP PLK will make this payment to Trakcja within 7 days of the Settlement’s approval by the District Court in Warsaw.

This signed settlement is the final one among the group of mediation proceedings in which the Company has been negotiating with PKP PLK regarding claims related to the execution of certain contracts, as reported in points 10 and 33 of the consolidated periodic report of the Trakcja Group for Q1 2024.

The signing and execution of this settlement significantly impact the improvement of the Company’s current financial liquidity and fulfill one of the key conditions for extending financing, namely reaching settlement agreements with PKP PLK in ongoing mediation processes.

The effects of this mediation settlement with PKP PLK have already been accounted for in the cyclical review of long-term contracts for Q4 2023, as reported by the Company in current report 3/2024.

Legal Basis: Article 17 MAR