The Management Board of Mostostal Warszawa S.A. informs that today the company signed with Medical Investment Trust Sp. z o.o., a contract for “the execution of works under the general contractor for the investment involving the construction of the hotel building with apartments at the intersection of Mestwina and Międzymorze in Jurata with an underground garage with land development and technical infrastructure on the plot with registration number 326 of 0003 precincts Jastarnia".

The parties agreed the deadline for the completion of contract till 6 February 2018. 
The value of the contract amounts to PLN 14.50 million net.

Payment deadline: 30 days from the date of filing the invoice.

Guarantee periods: 60 months for the quality guarantee and guarantee for physical defects in the object of the contract.

The security for the proper performance of subject of the Agreement and claims arising from it is unconditional insurance performance guarantee of 10% of net salary. In the guarantee and warranty period the Contractor shall provide an unconditional and payable on each request bank or insurance guarantee removal of faults and defects after the final acceptance of the subject of the Agreement in the amount of 5% of the net salary.

In reference to current report No. 14/2014 of 17 April 2014 on conclusion of a material agreement pertaining to the Jaworzno project, the Management Board of Mostostal Warszawa S.A. („Company”, “Contractor”) hereby informs that today the Company, as a partner in a consortium composed of Rafako S.A. (Consortium Leader) and Mostostal Warszawa S.A. (Consortium Partner) concluded annex No. 5 to contract No.  2013/0928/Ri with Tauron Wytwarzanie S.A. (“Employer”) for construction of new capacities in coal technology in Tauron Wytwarzanie S.A. – construction of a power generation unit with the capacity of 910 MW for super-critical parameters in the Jaworzno II Power Plant – Power Plant II with respect to steam boiler, turbo unit, main building, electric section and measurement and monitoring equipment of the unit.

In line with the consortium agreement (cf. current report No. 42/2013 of 5 August 2013), Rafako S.A. is responsible for performance of 99.99% of work required under the agreement and shall receive remuneration corresponding to the above-mentioned share of work required under the agreement.  

Annex No. 5 shall result in:

1. increase in the Price of the Main Contract by the amount of PLN 71.05 million net, increased by VAT (i.e. up to the amount of PLN 4.47 million);

2. extension of the implementation deadline of the object of the contract by 8 months and 5 days; signing of the Report on Acceptance of the Unit for Operation shall take place, at the latest, within 67 months and 5 days calculating from the date of conclusion of the Main Contract (November 2019);

3. The Contractor (Rafako S.A. and Mostostal Warszawa S.A.) declares that it completed evaluation of the existing conditions at the Construction Site along with the process of verification of the Employer’s Documentation specified in Schedule No. 14 to the Contract submitted to the Contractor (Rafako S.A. and Mostostal Warszawa S.A.) and lodges no claims in this respect;

4. waiver of other claims of the Contractor (Rafako S.A. and Mostostal Warszawa S.A.) against the Employer – the parties to the Contract have declared that settlements performed pursuant to Annex 5 fully exhaust their mutual claims related to the Change Order Reports and declared that they would not lodge any other claims on account of the above. The Contractor (Rafako S.A. and Mostostal Warszawa S.A.) waives, irrevocably and unconditionally, any claims formulated in the Change Order Reports, deeming any claims related to the change in technical standards (from the so-called old Polish standards to the Eurokod standards as principally groundless);

5. extension, by 6 months in reference to the availability of the unit for general supplies of Rafako S.A., of the maximum permanent capacity of the boiler, technical minimum of the unit and content of free water in exhaust according to IOS, level of vibrations for the structure, and by 12 months with respect to structural and construction of supplies. The contractor (Rafako S.A. and Mostostal Warszawa S.A.) shall also ensure relevant extension for the performance bond for the agreement.

The Extended Guarantee Period encompasses a two-year quality guarantee and warranty for defects (basic Guarantee Period) and extended quality guarantee period for the above-listed structural and construction elements of the unit.

6. extension of guaranteed parameters type B for specific parts of the unit.

Other material terms of the Contract remain unchanged.