26/2024 – Information on the Conclusion of a Significant Contract by a Subsidiary – AB Kauno tiltai

The Management Board of Trakcja S.A. (the “Company”, “Issuer”) informs that today a contract was signed by its subsidiary AB Kauno tiltai, based in Lithuania (the “Contractor”), with AB „Via Lietuva” (formerly Lithuanian Road Directorate Joint Stock Company), also based in Lithuania (the “Client”), for the reconstruction of the section A5 Kaunas–Marijampolė–Suwałki from km 85.00 to km 97.06 (the “Contract”).

The total net value of the Contract is EUR 154,700,154.55 (PLN 658,589,497.95). The scope of additional works cannot exceed 15% of the original project price. The Contract provides for salary indexing to be done no more frequently than every 6 months if the index of material prices exceeds the level set in the Contract.

The completion deadline specified in the Contract is 11 months from the Contract’s effective date. The Contract becomes effective upon signing by the Parties and the submission of performance security by the Contractor.

According to the Contract, the Contractor will provide a quality guarantee for 10 years, including 10 years for hidden elements of the building (structures, pipelines, etc.), and if defects were intentionally hidden in these elements, a 20-year guarantee.

Other conditions of the Contract are standard for agreements covering such construction work.

The Issuer has decided to publish this information because the execution of the contract constitutes a significant portion of the order portfolio of the Trakcja Group and its subsidiary AB Kauno tiltai, and it impacts the maintenance and growth of current and future revenues and results of the Trakcja Group and AB Kauno tiltai.

Legal Basis: Article 17 MAR