39/2023 – Settlement Agreement with PKP PLK

In reference to the information provided in the consolidated report for the first half of 2023 concerning ongoing negotiations with PKP Polskie Linie Kolejowe S.A. (“PKP PLK”) regarding mediation agreements related to claims arising from certain contracts, the Management Board of Trakcja S.A. (“Company”) informs that today, with the participation of a mediator from the Arbitration Court at the Attorney General’s Office of the Republic of Poland, a settlement agreement was reached with PKP PLK concerning contract No. 90/101/0094/17/Z/I dated August 16, 2017, for the design and execution of construction works on the E20 railway line Siedlce – Terespol for the task titled “Works on the E20 Railway Line on the Siedlce – Terespol Section, Stage III – LCS Terespol” (“Settlement”).

Under the Settlement, in order to amicably resolve the dispute, mutual concessions were agreed upon, and a final settlement of mutual claims under the contract was made. The Settlement resolves uncertainties regarding the mutual rights and obligations related to the contract, particularly concerning indexation. Additionally, PKP PLK has committed to pay the Company the amount of PLN 31,408,548.11 gross.

The Company will inform about the conclusion of other proceedings related to remaining contracts involved in the ongoing mediation discussions, as indicated in the consolidated report for the first half of 2023, in subsequent reports.

Legal Basis: Article 17 MAR