Current report no 67 / 2016

Mostostal Kraków SA (a wholly owned subsidiary of Budimex SA) signed an agreement with Budimex SA and Tecnicas Reunidas SA

The Management Board of Budimex SA informs that on 30 September 2016 Mostostal Kraków SA (a wholly owned subsidiary of Budimex SA) signed an agreement with Budimex SA and Tecnicas Reunidas SA, conducting a joint activity under the name of “Budimex SA, Tecnicas Reunidas SA – Turów Spółka Cywilna”, for the supply and erection of steel structure of the engine room building under the “turnkey” construction of a new power unit with a capacity of approx. 450 MWe at the Turów Power Plant for PGE Górnictwo i Energetyka Konwencjonalna SA. The net value of the contract is PLN 37,966,895.93.

This is another agreement of Mostostal Kraków SA concluded in the last 12 months with Budimex SA, while the agreement of the highest value was the one signed on 18 February 2016 with the consortium of Budimex SA (leader – with 50% share), Strabag Sp. z o.o. (partner with 50% share) for the execution of works related to the recovery plan for the structures WA-4 and WA-9 under the investment project: “Continuation of the construction of the A4 motorway within the section from Rzeszów (Eastern Junction) to Jarosław (Wierzbna Junction) from km 581+263.44 to km 622+463.44, along with the necessary technical infrastructure, structures, and building equipment” of a net value of PLN 43,884,829.40.

Works completion date: 31 August 2016

Guarantee period: 60 months

Advance payment: none

Payment term in days: 30 days from the receipt of a VAT invoice

Maximum contractual penalties: 2.7% of gross contract value

The Employer has the right to seek damages on general terms.

The total value of agreements concluded by and between Mostostal Kraków SA and Budimex SA during the last 12 months exceeds the threshold of PLN 102,680 thousand.