Changes and clarification concerning the terms and conditions of the agreement with regard to the performance of the contract for designing and constructing the concession section of the A1 highway between Stryków and Pyrzowice
With regard to Report No. 08/2009 of 23rd January 2009, the Management Board of Budimex S.A. would like to announce that arrangements concerning the contract for designing and constructing the concession section of the A1 Stryków – Pyrzowice highway have been made more specific by means of concluding, on 19th January 2010, an agreement by and between Autostrada Południe S.A. and the general partnership pursuing a business activity under the name “Budimex Spółka Akcyjna Ferrovial Agroman Spółka Akcyjna Spółka Jawna” (henceforth referred to as the “General Partnership”); the partners in the General Partnership are Budimex S.A. (the legal successor of Budimex Dromex S.A.) and Ferrovial Agroman S.A. (shares: 50/50).
The agreement was concluded in order to perform the Agreement with regard to the construction and operation of the A1 highway between Stryków I and Pyrzowice (henceforth referred to as the “Main Contract”) which was itself concluded on 22nd January 2009 by and between Autostrada Południe S.A. and the State Treasury – the Minister of Infrastructure.
The subject matter of the Agreement is the design and construction of the A1 highway between Stryków I and Pyrzowice.
Budimex S.A. would like to announce that the following changes have taken place and that the following terms and conditions have been made more specific as far as the above-indicated report No. 08/2009 of 23rd January 2009 is concerned:
Contract value: PLN 5,791,000,000, net amount (PLN 6,728,000,000, net amount, in report No. 08/2009), including work comprising Phase I (i.e. design work) – PLN 180 million, net amount.
The agreement concluded includes provisions parallel to the provisions of the Main Contract as far as the division into phases is concerned (report 07/2009) (Phase I – 12 months – design work, Phase II – construction work and the preparation of the as-built documentation).
Phase II depends on the fulfilment, by 22nd January 2010, of a condition (precedent) –obtaining funds for the investment (the State Treasury and the Minister of Finance have to agree upon the financial obligations of the State Treasury and to “close” the financing by Autostrada Południe S.A.).
Deadline for the performance: 60 months as of the General Partnership being urged by Autostrada Południe S.A. to commence with construction work; an additional reservation here is that the line between Stryków and Rząsawa shall be completed by 31.05.2012 and the line between Rząsawa and Pyrzowice shall be completed by 01.01.2014.
Payment for the work constituting Phase I: 30% – advance payment, 50% – in monthly instalments in agreement with the progress of the work, 20% – after the project has been accepted (the above-indicated percentages are calculated on the basis of the remuneration for the design work of Phase I).
Payment for Phase II: advance payment – 10% – minus the value of work in Phase I, then monthly instalments in agreement with the progress of work (percentages calculated on the basis of remuneration for Phase II).
Payment deadline: within 30 days of the submission date of an appropriate invoice.
Guarantees concerning successful execution:
Phase I – corporate guarantee of successful execution amounting to PLN 20,050,000.
Phase II – bank guarantee – 5% of the contractual price.
The guarantee shall expire after a period of one year, calculated as of the date of the permit concerning the commencement of operation of the entire investment being granted.
Contractual penalties and compensations paid by the General Partnership:
Compensations and contractual penalties (defined in amount) for failing to observe contractual deadlines shall not exceed 15% of the contractual price; the above-indicated limitation to 15% shall not be applicable if the State Treasury – the Minister of Infrastructure should terminate the agreement with Autostrada Południe S.A. due to delays attributable to the General Partnership.
The value of the contract exceeds 10% of the equity of Budimex S.A.