Contract with Alstom Power for assembly works as part of the modernisation of power unit No. 6 at the Bełchatów Power Plant

Publish date: 05.25.2010


With reference to Current Report No. 19/2010 published on 17 March 2010 the Management Board of Energomontaż-Południe S.A. (the Company) announces that on 25 May 2010 the Company concluded an agreement with Alstom Power Sp. z o.o. (the Contracting Party) for the performance of assembly works as part of the modernisation of power unit No. 6 at Elektrownia Bełchatów S.A.

 

With reference to Current Report No. 19/2010 published on 17 March 2010, the Management Board of Energomontaż-Południe S.A. (the Company) announces that, on 25 May 2010, the Company concluded an agreement with Alstom Power Sp. z o.o. (the Contracting Party) for the performance of assembly works as part of the modernisation of power unit No. 6 at Elektrownia Bełchatów S.A. The value of the contract is PLN 72 million. The contract is to be implemented in the period from August 2010 to March 2011.

The contract contains provisions on contractual penalties.
The contractual penalty for delays in performing the contract amounts to 2.5 per cent for each commenced week of delay at any intermediate stage of the project, up to a maximum of 10 per cent of the value of the contract. The Contracting Party also has the right to impose a contractual penalty for delays in providing documentation, in the amount of 0.5 per cent for each commenced week of delay at any intermediate stage of the project, up to a maximum of 5 per cent of the value of the contract. The total amount of contractual penalties is restricted to 15 per cent of the value of the contract.

The implementation of the contract is governed by German law.

The Issuer accepted 10 per cent of the value of its own equity as the criterion for recognising the contract as significant.

Taking the above contract into consideration, the estimated value of the Company's portfolio of orders is PLN 489 million (the portfolio contains export orders in the amount of EUR 63 million). The value of the portfolio was calculated using the euro exchange rate accepted by the Company in calculating orders.

 

SIGNATURES OF THE PERSONS REPRESENTING THE COMPANY 

Andrzej Hołda	-President of the Management Board
Alina Sowa	-Vice President of the Management Board