The Management Board of Mostostal Warszawa S.A. announces that on 10 October 2016, the Company signed a contract with HENNIGER INVESTMENT Spółka Akcyjna for construction of a residential building with service functions on the ground floor, an underground garage, with unfinished interiors, infrastructure and area management, area levelling and construction of access roads, networks and any connections as part of an investment under the working name of “KBR_CE1” (second stage of the “Mieszkaj w Mieście” housing estate).

The deadline for implementation of the object of the contract was determined at 18 months from the date of signing the contract by the Parties, however not later than 6 April 2018.

The value of the contract amounts to: PLN 34.25 million net.

Payment deadline: 7 days from presentation of an invoice along with required documents.

Warranty period: 72 months of quality guarantee and warranty for defects in the performed work, excluding the building structure, tightness of the roof and insulation of the underground garage for which the period of warranty amounts to 120 months.

Performance bond: deposit or bank guarantee constituting 10% of the accepted net contractual amount.  

The Management Board of Mostostal Warszawa S.A. hereby informs that yesterday it received an initial decision of the Court of Arbitration at the Polish Chamber of Commerce of 29 September 2016 issued in case No. SA 258/12 initiated by Mostostal Warszawa S.A., Acciona Infraestructuras S.A., Marek Izmajłowicz – IWA against Wrocław Municipality.

In the decision, the Court of Arbitration decided that the Consortium of Contractors (Mostostal Warszawa S.A. – consortium leader, Acciona Infraestructuras S.A., Marek Izmajłowicz – IWA, WPBP Wrobis S.A.) efficiently withdrew, on 05.10.2012 from Contract No. 7/2009/NFM of 22.12.2009 for the construction of the National Forum of Music in Wrocław. The Issuer informed about withdrawal from the contract in current report No. 43/2012 of 5 October 2012.

According to the grounds of the decision, as a consequence of determining the efficiency of the declaration on withdrawal from the contract filed by the members of the Consortium of Contractors, the contract expired and therefore the subsequent declaration (filed already after the receipt of the effective declaration of the members of the Consortium of Contractors about withdrawal) of the Wrocław Municipality about termination of the contract due to reasons encumbering the members of the Consortium of Contractors could not have had any legal effects.

The initial decision stating that the withdrawal of the members of the Consortium of Contractors was effective and took place due to causes attributable to the Employer determines the validity (with respect to the substance) of financial claims of the members of the Consortium of Contractors against Wrocław Municipality for final settlement of the above contract, which are currently sought in the same arbitration procedure. The decision also stipulates that, in principle, any financial claims of the Wrocław Municipality towards the members of the Consortium of Contractors relying on the assumption that withdrawal from the contract on the part of the members of the Consortium of Contractors was unauthorised and ineffective, are groundless.

Mostostal Warszawa S.A., as the leader of the Consortium of Contractors, is a party in two procedures for payment conducted before the Court of Arbitration, with ref. No. SA 258/12, where the value of the object of dispute amounts to PLN  82,061,709.43, whereas interest from the total amount sought as of 21 October 2016 amounts to PLN 31,624,109.73, as well as case with ref. No. SA 383/10, where the value of the object of dispute amounts to PLN 56,555,123.11, whereas interest from the total amount sought as of 21 October 2016 amounts to PLN 26,094,249.15.