82/2012: Termination of contract for construction of A4 Motorway
Further to Current Report No. 32/2010 of July 7th 2010, the Management Board of PBG S.A. in company voluntary arrangement (the Company) hereby reports that on July 24th 2012 the Consortium comprising:
Hydrobudowa Polska S.A. (in company voluntary arrangement) – Consortium Leader,
SIAC Construction Ltd. of Ireland – Consortium Partner,
PBG S.A. (in company voluntary arrangement) – Consortium Partner, and
APRIVIA S.A. – Consortium Partner
(the Contractor)
submitted to the State Treasury – General Director for National Roads and Motorways, represented by the General Directorate for National Roads and Motorways, Rzeszów Branch (the Principal), the original of the Notice of termination by the Contractor of Contract No. 2811/30/2010 of July 7th 2010 – “Construction of the Krzyż – Dębica Pustynia section of the A4 Tarnów – Rzeszów motorway, from km 502+796.97 to km 537+550”.
The notice was served in accordance with Clause 16.2.D of the Terms and Conditions of the Contract, reading: “The Principal substantially fails to meet its obligations under the Contract.”
Pursuant to Clause 16.2 of the Terms and Conditions of the Contract, the Contractor may exercise its right to terminate the Contract upon serving a 14 days’ notice.
Bearing in mind the provisions of the Polish Civil Code, the Contractor also notes that: “it terminates the Contract exclusively with respect to that part of the services under the Contract which would have to be delivered after the termination date.”
HYDROBUDOWA POLSKA S.A. (in company voluntary arrangement) and APRIVIA S.A., the Consortium members, are direct subsidiaries of PBG S.A. (in company voluntary arrangement).
The agreed Contract Price was PLN 1,434,761,287.80 (VAT exclusive), that is PLN 1,750,408,771.12 (VAT inclusive). As a result of the Contract termination, the separate and consolidated revenue recognised by the Company under the Contract will be lower than previously assumed, but its precise value will only be estimated upon completion of the ongoing inventory taking process. To date, the percentage completion of the Contract is approximately 59%.
At the same time, the Company reports that on July 25th 2012, the Contractor received from the Principal the original of the Notice of termination of Contract by the Principal, notifying that “the Principal terminates the Contract at a 14 days’ notice.”
In the Notice, the Principal states that it is acting “pursuant to Subclauses 15.2 (a), (b) and (e) of the Terms and Conditions of the Contract, and Art. 635 in conjunction with Art. 656 of the Polish Civil Code.”
Pliki:
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