Current report no 84 / 2011

Current report no 84 / 2011 - 10 October 2011 / 00:00

Construction of an office building complex Libra Business Centre – annex to the conditional contract

With regard to Current Report No. 26/2010 of 25 March 2010, No. 59/2010 of 23 July 2010, No. 42/2011 of 20 May 2011, No. 59/2011 of 4 July 2011, No. 70/2011 of 29 July 2011 and 80/2011 of 26 September 2011 the Management Board of Budimex SA reports that on 10 October 2011 it was informed of the conclusion on 7 October 2011 of an annex to the agreement with Palatium Sp. z o.o. Sk with its registered office in Warsaw for the construction of the Libra Business Centre office building complex STAGE II.
Due to the fact that the condition consisting in the investor submitting a bank representation confirming the fact of the investor having security of financing was not fulfilled in the previously intended deadline the parties agreed that if the contract does not enter into force before 15 December 2011, the contract does not expire but the parties will be obliged to agree on new conditions resulting from the change of deadline to 6 weeks from this date. If within those 6 weeks the parties do not come to an agreement with regard to the new deadline of the contract entering into force and to the conditions of further cooperation, the contract expires.
Moreover, the parties agreed on the increase of remuneration to the contractor for the realisation of the Stage II of the investment (Building A) by 6,165,298.06 PLN net and consequently the remuneration is 49,918,157.73 PLN net in total. The amount will be the total remuneration to the Contractor if the contract for the realisation of Stage II enters into force on 2 November 2011 the latest. If the contract enters into force after 2 November 211 the Investor will be obliged to cover additional indirect construction costs incurred by the Contractor in the amount of 117,500 PLN net per month for the period from 3 November 2011 to the day of the contract entering into force. If the contract does not enter into force, the investor will be exempt from this charge.
In other regards, the wording of the contract remains unchanged.