NEWAG SA (16/2017) Conclusion of a contract for the modernization of diesel locomotives

The Management Board of NEWAG S.A. ("Company") informs that today the Company has entered into an agreement with PKP Linia Hutnicza Szerokotorowa sp. O.o. with the registered office in Zamość ("Agreement"). The subject matter of the Agreement is performance by the Company for PKP Linia Hutnicza Szerokotorowa sp. z o.o. based in Zamość ("Ordering Party") modernization of 10 diesel locomotives ("Locomotives"). Modernizations of Locomotives will be carried out in accordance with the schedule agreed upon by the parties, and the entire subject of the Contract will be performed until December 31, 2018. Estimated total value of the Agreement is PLN 96,267,900.00 net, which is PLN 95,80,000.00 net as remuneration for modernization of 10 Locomotives in the basic scope together with transport and PLN 987 900 net as estimated remuneration for performance of additional works not covered by the basic scope of modernization, the performance of which may be revealed after delivery Locomotives for modernization, the Employer is not obliged to order additional work. The company provides a quality guarantee for the executed object of the Contract for a period of 24 months from acceptance by each Ordering Party of each modernized Locomotive, subject to a longer one a guarantee period for the components indicated in the Contract. The Company is required to provide a performance bond which serves the Ordering Party's claims for non-performance or improper performance of the Contract, in the total amount of PLN 9,528,000.00 in the form of a bank guarantee or insurance. 70% of the collateral will be returned after receiving the modernized Locomotives by the Ordering Party, and the remaining part will be returned after the expiration of the guarantee period for works performed under the contract. The contract provides for contractual penalties due to the Ordering Party in the event of delay in executing the subject of the Contract to each Locomotive, delay in removing defects, delay in performance of transport duties and withdrawal from the Agreement for reasons attributable to the Company. The contract does not provide for limiting the amount of individual contractual penalties. The Ordering Party has the right to claim damages in excess of the contractual penalties indicated in the contract. In the remaining scope, the terms of the Agreement do not differ from the standards used in trading for this type of contracts. Legal basis: Art.17 sec. 1 MAR Regulation.

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Company information
Company name:Newag SA
Adress: ul. Wyspiańskiego 3 33-300 Nowy Sącz
Phone:+48 18 4496360

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