Position of the Management Board of Mostostal Warszawa SA on the stock exchange reports regarding the Annex to the Agreement between Tauron Polska Energia SA and Rafako SA.
We present the position of the Management Board of Mostostal Warszawa SA on the stock exchange reports regarding the Annex to the Agreement concluded on February 7, 2023, within the mediation pending before the Court of Arbitration at the General Prosecutor's Office of the Republic of Poland, disclosed by Tauron Polska Energia SA and Rafako SA.
In line with the Annex, Tauron Wytwarzanie SA (Employer) and the consortium: Rafako SA and Mostostal Warszawa SA along with E003B7 sp. z o.o. (Contractor) decided to amend the Agreement by extending the due date of their claims until March 22, 2023. No claims have been waived following the extension of the due date.
In addition, the Employer undertakes to refrain from pursuing any claims against the Contractor arising out of or in relation to the execution of the contract for construction of 910 MW unit in Jaworzno (“Contract”) until March 22, 2023 in relation to the amount of PLN 549,820,561.76 and until March 24, 2023 in relation to the amount of PLN 762,619,657.15.
Amendments to the Agreement are subject to a suspensive condition that by March 8, 2023 the Contractor should deliver to the Employer annexes, signed by the guarantors, to all performance bonds issued under the Contract and securing good performance of the Contract that extend the validity of the bonds until March 24, 2023.
At the same time, the Parties declared that they intend to continue with the mediation before the Court of Arbitration at the General Prosecutor's Office of the Republic of Poland with the intention to amicably settle claims included in requests for payment and notes.
The Parties see a real possibility to conclude a settlement agreement that will determine the way of terminating the Contract and finalizing mutual settlements related thereto by March 22, 2023.
The Management Board of Mostostal Warszawa SA informs about the Company's involvement in the final stage of the mediation process and that it fully supports the efforts of the Parties to reach a satisfactory agreement, the purpose of which is to ensure the legal security of the Company as a passive consortium partner. At the same time, the Management Board informs that corporate consents necessary to conclude a settlement agreement concluding the mediation process will be obtained - provided that the legal interest of Mostostal Warszawa SA is properly secured.
With reference to the Company's earlier announcements, we would like to remind that Mostostal Warszawa SA is a passive member of the Consortium that performed the Contract, and Rafako SA was and remains the leader of this Consortium and the actual contractor of the works. The Company's share in the Consortium is formally 0.01%. The Company - in accordance with the consortium agreement concluded in 2014 - did not perform any works, did not provide any services or deliveries. In addition, the Company indicates that the status of the Company as a passive member of the Consortium, as well as the content of the Consortium Agreement, were known to Tauron Wytwarzanie SA already at the stage before the conclusion of the Contract.
In addition, we indicate that Rafako is obliged, in accordance with the Consortium Agreement, concluded before the commencement of the Contract works, to release Mostostal Warszawa SA from any obligations related to non-performance or improper performance of the Contract by Rafako SA.