Current report no 30 / 2014

Construction of a new power unit at Turów power plant - selection of the Budimex SA bid

The Management Board of Budimex SA announces that on 18 March 2014 it was informed by PGE Górnictwo i Energetyka Konwencjonalna SA with its registered office in Bełchatów that the bid by the consortium of Hitachi Power Europe GmbH and MHPS Europe GmbH (leader, 55.38%), Budimex SA (partner, 22.31%) as well as Tecnicas Reunidas SA (partner, 22.31%) as having the most favourable bid in the proceedings for awarding a contract for the construction of a new power unit at Turów power plant.

• Contract value: PLN 3,250,000,000.00 net
• Work commencement date: the issue date of the commencement order set by the Ordering Party
• Work completion date: not longer than 56 months from the commencement date
• Primary warranty period: 24 months
• Extended Warranty Period: 36 months on building structures and thermal and acoustic insulation of buildings and structures; 48 months on chemical resistant lining, anti-corrosion, heat-resistant and fire-resistant protection of structural elements of buildings and structures
• Financial terms and conditions:
  • Advance payment: 10% of the net contract value
  • Payment: 30 days
  • Performance bond: 10% of the net contract value
• Maximum penalties paid by the Contractor: 25% of the net contract value
• If the value of the damage exceeds the contractual penalties, the Contracting Authority shall have the right to claim compensation on general terms. In total, the maximum liability of the parties in respect of non-performance or improper performance of the contract or tort liability will not exceed 100% of the contract value.

The contract value exceeds 10% of the equity of Budimex S.A.