Current report no 56 / 2017

Construction of a steam turbine generator with balance of plant equipment at the ZW Kraków plant within the project entitled: Construction of a gas-fired generating unit for blast furnace gas and natural gas with a total electrical capacity of 55MW.Stage2

The Management Board of Budimex SA reports that on 13 July 2017 it concluded the contract for the construction of a gas-fired generating unit for blast furnace gas and natural gas with a total electrical capacity of 55 MW. Stage 2. Construction of a steam turbine generator with balance of plant equipment at the ZW Kraków plant, which will be implemented by Budimex SA as commissioned by TAMEH POLSKA Spółka z o.o.

The Company announced that the Employer chose the Budimex SA bid as the most advantageous one in the current report No 41/2017 of 30 May 2017.

Value of the subject matter of the contract: PLN 125,680,000.00 net.

Works commencement date: date of concluding the contract

Work completion date: 12 August 2019.

Basic guarantee period: 24 months.

Guarantee period for the following: civil structures, foundations, reinforced concrete and steel structures of equipment, chemical-resistant lining and corrosion protection, refractory materials and fireproofing of the structural members of buildings and other structures and thermal and noise insulation of buildings and other structures – 60 months.

Advance payment: 10% of the contract price (including VAT).

Payment terms: 45 days from the delivery of a correct invoice to the Employer.

Bank performance bond for the construction period: 10% of the contract price (including VAT).

Maximum liquidated damages that may be charged to the Contractor: 35% of the contract price (excluding VAT).

The Employer is entitled to supplemental damages in the event of withdrawing from the Contract.

The maximum total liability of the Contractor to the Employer arising from any claims under the Contract (including claims for liquidated damages) is limited to 100% of the contract price (excluding VAT) – this does not include the liquidated damages to be paid by the Contractor upon breach of the internal regulations of the Contracting Authority or ArcelorMittal Poland S.A by the Contractor.

The value of the contract exceeds the threshold of PLN 111,446 thousand.