40/2013 – Information regarding the conclusion of significant contracts

The Management Board of a company Trakcja S.A. (hereinafter: “the Company”) informs that the subject dependent on the Company: Przedsiębiorstwo Robót Kolejowych i Inżynieryjnych S.A. with its registered office in Wrocław (“PRKiI”), on 22 April 2013 concluded with Przedsiębiorstwo Napraw Infrastruktury sp. z o.o. in arrangement bankruptcy with its registered office in Warsaw (hereinafter: “PNI”) significant contracts of a total value of PLN 173.486,847.05 net (one hundred seventy three million four hundred eighty six thousand eight hundred forty seven and 5 groszy) and a contract of a highest value is:

the Executory Agreement (“the Agreement”) concluded on 22.04.2013 between PRKiI (“the Leader”) and PNI (“the Partner”) with regard to the conclusion by a consortium comprising of: PNI, PKP Energetyka Spółka Akcyjna with its registered office in Warsaw, PRKiI, Dolnośląskie Przedsiębiorstwo Napraw Infrastruktury Komunikacyjnej Spółka z o. o. with its registered office in Wrocław and PKP Polskie Linie Kolejowe S. A. with its registered office in Warsaw, at ul. Targowa 74 (“the Contracting Party”) a Contract No. 90/116/0006/11/Z/I (“the Main Contract”) for construction works regarding basic lines within the section Wrocław – Grabiszyn – Skokowa and Żmigród – a border of Lower Silesian Voivodeship, under the project POIiŚ 7.1. – 4 “Modernisation of a railway line E 59 within the section Wrocław – Poznań, Phase II – section Wrocław – a border of Lower Silesian Voivodeship”, conclusion of which the Company informed about in the current report no. 34/2011 of 25.05.2011 and an Annex no. 1 to the Main Contract concluded on 31.10.2012 pursuant to which PRKiI became a Leader of the aforementioned consortium.

Contract’s net value: PLN 169.207,415.37

Contract’s gross value: PLN 208.125,120.91

The Partner granted to the Leader a 1% discount on unit prices given in the bill of quantities.

The subject of the Contract is to perform by the Partner a part of industry construction works connected with the execution of the Main Contract.

The subject of the Contract shall be completed (together with conducting final trials in a positive manner) by the Partner until 30 June 2014.

In internal relations, the Party whose action or negligence (resulting from the division of accepted works) entails charging a contractual penalty shall be fully responsible for payment of any contractual penalties charged by the Contracting Party on the grounds of the Main Contract.

In a situation, where contractual penalties have been charged for reasons dependent on the Leader and the Partner, the Parties are obliged to participate in the contractual penalty in a proportion resulting from the relation between the value of works performed by one of them and the value of a contractual amount of the Main Contract. Upon payment of a contractual penalty, the Parties have a right to claim in internal relations relevant recourses specified on the basis of fault of either Party.

If improper or untimely performance of a part of works entrusted to a Party causes damage to the other Party (in particular, the one resulting form the obligation to pay contractual penalties or lost profits), the Party who caused the damage shall be liable for it pursuant to general principles.

The Parties can claim, pursuant to general principles, an indemnity exceeding contractual penalties in case the damage incurred by one Party exceeds the amount of penalties reserved to its benefit.

The remaining terms of the Contract do not differ from the terms commonly applied for this type of contracts.

The fact that the value of contracts exceeds 10% of the value of Trakcja S.A.’s equities was assumed as a criterion to deem the contracts as significant. 

Legal grounds of forwarding a report: paragraph 5, section 1, point 3 of the Resolution of the Minister of Finance of 19 February 2009 regarding current and periodical information forwarded by the issuers of securities and terms of considering the information required by legal provisions of a country not being a Member State as equivalent.