Current report no 83 / 2015

Signing of an annex to the contract on the design and construction of a power unit at Turów power plant

With reference to current reports No 56/2014 of 10 July 2014 and No 81/2015 of 25 November 2015, the Management Board of Budimex SA announces that on 14 December 2015 it was informed about the signing by all parties of an annex to the contract on the design and construction of a power unit at Turów power plant in the “turnkey” formula performed by a consortium composed of Mitsubishi Hitachi Power Systems Europe GmbH, Budimex SA and Tecnicas Reunidas SA, the other party to which is PGE Górnictwo i Energetyka Konwencjonalna S.A. with its registered office in Bełchatów.

Basic provisions of the annex:

The contract value was increased by the sum of PLN 280,000,000.00 (two hundred and eighty million) net (the share of Budimex in this annex amounts to approx. 25%) to the total of PLN 3,530,000,000.00 (three billion five hundred and thirty million) net.

The deadline for completion of works was extended by 9 months and amounts to 65 months from the date of issue of the Notice to Proceed by the ordering party.

The ordering party shall pay to the contractor an advance payment amounting to 10% of the price increase within 30 days from the receipt by the ordering party of the original annexes for advance payment guarantees, increasing the amount of security granted so that it reflects 10% of the value of the increased contract price.

Other provisions of the contract remain unchanged.

The value of the contract exceeds 10% of the equity of Budimex SA.