35/2012: Execution of a material contract for the construction of a football stadium in Białystok
The Management Board of PBG S.A. reports that on May 23rd 2012 a contract was signed to finish construction of the project "Football stadium in North East Poland with training facilities" in Białystok.
The contract was signed between Miejski Ośrodek Sportu i Rekreacji w Białymstoku (Municipal Centre for Sports and Recreation in Białystok) (the Principal) and a consortium comprising HYDROBUDOWA POLSKA S.A. (consortium leader), PBG S.A. and Obrascon Huarte Lain S.A. (the Contractor). HYDROBUDOWA POLSKA is a member of the PBG Group. The contracted work is to be delivered within 21 months of the contract date, with Phase I of the work (which involves the finishing of western section of the stadium and support infrastructure) to be completed within 9 months of the contract date.
The agreed fixed remuneration payable to the Consortium for proper performance of the contract is PLN 206,450,000 (PLN 253,933,500 VAT-inclusive). The Consortium members agreed on the following division of the construction work:
a) HYDROBUDOWA POLSKA S.A. and PBG S.A. – 50% of the work,
b) Obrascon Huarte Lain S.A. – 50% of the work.
The contract provides for liquidated damages payable to the Principal whose maximum amount may exceed the equivalent of at least 10% of the contract value. The contract does not specify the maximum amount of the liquidated damages. Percentage of the total value of contracted work, percentage of VAT-inclusive remuneration for each day of delay, fixed remuneration amount, and percentage of the VAT-inclusive remuneration amount are to serve as the basis for calculating the amount of liquidated damages and assessing whether the stated threshold is to be exceeded.
The contract provides for liquidated damages payable to the Contractor whose maximum amount may exceed the equivalent of at least 10% of the contract value. The contract does not specify the maximum amount of the liquidated damages. Percentage of VAT-inclusive remuneration amount for each day of delay and percentage of the VAT-inclusive remuneration amount are to serve as the basis for calculating the amount of liquidated damages and assessing whether the stated threshold is to be exceeded.
Furthermore, pursuant to the contract the parties are entitled to seek compensation up to the amount of damage actually incurred.
The contract is considered material based on the criterion of PBG’s equity.
Legal basis:
Par. 5.1.3 of the Minister of Finance’s Regulation on current and periodic information to be published by issuers of securities, dated February 19th 2009.
Pliki:
Full version of report (.pdf - 85,15 kB)