The Management Board of ZUE S.A. with its registered office in Kraków (the Company, the Issuer) informs that on May 22, 2018, the Company received a mutually signed copy of the contract with PKP Polskie Linie Kolejowe S.A. (PKP PLK) for the task titled Designing and execution of construction works related to the comprehensive replacement of the traction network on railway line No. 146 within the framework of the project OPI & E 5.2-4 "Works on the railway line No. 146 on the section Wyczerpy -Chorzew Siemkowice" (Agreement).
The scope of work specified in the Contract is additional work for the contract carried out by the Company in the area of "Wyczerpy - Chorzew Siemkowice" (Contract). About signing the contract for the above The contract was announced in the current report No. 38/2017 dated 5 June 2017.
Net value of the Agreement: PLN 35.5 million.
Gross Contract value: PLN 43.7 million.
Completion date: March 2020.
The quality guarantee period granted to PKP PLK by the Company is 6 years from the date of completion of works. The period of liability of the Company under the warranty for defects is the same as the warranty period. The agreement provides for the possibility of payment of contractual penalties by the Company to PKP PLK in the cases specified in the Agreement, including the penalty for late execution of a particular construction stage in relation to the dates indicated in the Agreement or delays in removing defects and faults . The company will also pay PKP PLK a penalty of 30% of the gross value of the Agreement in the event of withdrawal from the contract for reasons attributable to the Company. The total amount of accrued contractual penalties may not, however, exceed 30% of the gross value of the Contract.
The payment of a contractual penalty does not deprive PKP PLK of the right to claim damages exceeding the amount of the contractual penalty as a general rule.
Other terms of the Agreement, including but not limited to as regards the possibility of withdrawal from it or collateral, do not differ from the standard conditions for this type of contracts. At the same time, the Company informs that in connection with the conclusion of the Agreement, as of the day of submitting this current report, companies from the ZUE Capital Group have a portfolio of orders with a total value of approx. PLN 2.3 billion, while the expected remuneration of the Company from tenders in which the company itself has submitted the best offers is approximately PLN 239 million.
Source: company website, investor relations, current and periodic reports.