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Signing of the settlement agreement regarding the agreement for designing and construction of power unit in Turow power plant

  • No. of the report: 6/2021
  • Report date: 25.02.2021 13:07
  • Report legal ground: Art. 17 sect. 1 of MAR – inside information.

Contents of the report

With reference to the current report no. 23/2020 dated July 28, 2020, the Management Board of PGE Polska Grupa Energetyczna S.A. („PGE”) discloses that on February 25, 2021 PGE Górnictwo i Energetyka Konwencjonalna S.A. (PGE’s subsidiary), after detailed analysis of the Consortium’s proposal for change in the schedule and price of the contract with regard to methodic accuracy of assumptions taken, reasons for delay and planned methods of further management of the project execution, concluded a settlement agreement in front of the mediator that concerns designing and turn-key construction of power unit in Turow power plant (the “Agreement”), being realized by consortium including companies: Mitsubishi Hitachi Power System GmbH (Consortium leader), Tecnicas Reunidas S.A. and Budimex S.A. (the “Consortium”).

The main conditions of the settlement agreement are presented below.

The value of the Agreement was increased by approx. PLN 108 million net, i.e. to PLN 3 755 million net.

The commissioning date of the unit was postponed by 6 months i.e. until April 30, 2021 what is in line with the earlier proposal of the Consortium, about which PGE informed in the above mentioned current report.

At the request of the parties, the settlement agreement shall be submitted to the court for approval.

Other material terms of the Agreement remain unchanged.