Current report no 33 / 2022

Current report no 33 / 2022 - 26 May 2022 / 18:02

Issue of a debit note to the consortium building unit No 7 of the Turów power plant

The Management Board of BUDIMEX S.A. informs that on 26 May 2022 it received from PGE Górnictwo i Energetyka Konwencjonalna S.A. (“Ordering Party”) a debit note in the amount of PLN 561,516,981.74, issued by the Ordering Party to the consortium of Mitsubishi Power Europe Gmbh, Tecnicas Reunidas S.A. and Budimex S.A. (“Consortium”), which had implemented a project involving design and turnkey construction of a power unit in the Ordering Party’s Branch of the Turów power plant (“Contract”). The note was issued to the above-mentioned Consortium members as joint and several debtors.

The basis for issuing the above-mentioned debit note by the Ordering Party is the liability, disputed by the Consortium, for failure to meet the availability of the unit as stipulated in the Contract.

In the opinion of the Management Board of Budimex S.A. the charging of the aforesaid penalty by the Ordering Party is unjustified, and the debit note will not be disclosed in the books of Budimex S.A.

The share of Budimex S.A. in the Consortium is 23.58%. At the same time, the Management Board of Budimex S.A. informs that, as part of its share in the Consortium, it is not responsible for delivery of key technological equipment used to generate electricity. Moreover, in the opinion of Budimex SA, the scope of works performed by it did not affect the availability of the unit challenged by the Ordering Party.

In addition, Budimex S.A. points out that pursuant to Article 15r(1) of the Act on special solutions related to preventing, counteracting and combating COVID-19, other infectious diseases and emergencies caused by them, during a state of epidemic emergency and within 90 days of the date of its cancellation, the Ordering Party may not deduct a contractual penalty from the Contractor’s receivables or satisfy its claims in respect of penalties from performance bonds.