Current report no 20 / 2012

Current report no 20 / 2012 - 23 April 2012 / 00:00

A concession agreement for the design, construction and operate of an underground parking structure in Wrocław

The Management of Budimex SA advises that on 23 April 2012 a concession agreement was concluded between Budimex Parking Wrocław Sp. z o.o. (a wholly owned subsidiary of Budimex SA) and Wrocławskie Przedsiębiorstwo Hala Ludowa Sp. z o.o. with its registered office in Wrocław for the design, construction and use of a two-storey underground parking structure with a ground-level part with a total of 800 parking spaces for passenger vehicles and 20 parking spaces for buses at the Centennial Hall Complex in Wrocław at 1 Wystawowa Street.
The contract is conditional in character. The conditions suspending the enforcement of the agreement are: a credit agreement concluded by the operator by 30 April 2012 and obtaining of a legally binding environmental decision from the grantor by 15 July 2012. If the suspending conditions are not fulfilled within the deadline, the agreement shall not be enforced entirely or partially, and the parties shall have no claims against one another resulting from the nonfulfillment of suspending conditions or the lack of agreement enforcement.

  • Value of construction works: PLN 43,300,000 net
  • Commencement date: after the enforcement of the agreement
  • Deadline for construction works: 31.12.2013
  • Start date of operate: 31.12.2013
  • Validity of the concession: 30 years
  • Financial terms and conditions:
    • Successful completion guarantee: corporate guarantee of Budimex SA of 5% of the gross contract value
  • Maximum penalties: 10% of the net contract value.
  • The Parties reserve the right to claim supplementary compensation which carries contractual penalties to the amount of damage actually suffered.

The value of the construction contract and the expected revenue from the parking use estimated at 200 million PLN net in current prices exceeds 10% of the own capital of Budimex SA.