Acceptance of the application ZRUG Zabrze S.A. for not culpable delay in the contract for the construction of the pipeline DN700 Szczecin-Gdańsk

On 3 December 2015 the Management Board of the subsidiary ZRUG Zabrze S.A. (Leader of the executive consortium composed of ZRUG Zabrze S.A. and Stalprofil) has received a written decision of OPG GAZ-SYSTEM SA (Employer) on the request by the Leader of the consortium on no culpable delay the date of the Final Acceptance Contract of 10 May 2012 on general realization of the investment project: "Construction of the pipeline DN 700 Szczecin-Gdańsk: PHASE II KARLINO-KOSZALIN, PHASE III KOSZALIN-SŁUPSK, PHASE IV SŁUPSK-WICZLINO", worth PLN 275,375,106 (gross).
After examining the request of ZRUG Zabrze Employer agreed with the statement that there is no culpable delay in the execution of the contract and therefore considers that the date of October 9th 2015 is the date not fault. Accordingly, the Employer has informed the Leader of the consortium that they will not be charged penalties for the delay in Final Acceptance of the pipeline, because the delay in implementation of the Agreement was the result of circumstances for which the contractor can not be held responsible.
At the same time in relation to the current report 30/2015 we announce that on 2 December 2015, in connection with still pending financial settlement of the contract for general implementation of the investment project: "Construction of the pipeline DN700 Szczecin-Gdańsk", at request of Stalprofil PKO Bank Polski S.A. with its registered seat in Warsaw extended the period of validity of advance payment guarantees granted to the beneficiary - OGP Gaz-System S.A.
According to the annexes to the advance payment guarantees issued by PKO Bank Polski S.A., these guarantees extend its validity from the date of 8 December 2015 to 1 March 2016. Total advance payments received by the Consortium Leader - ZRUG Zabrze S.A. from OGP Gaz-System S.A. and allocated to the financing of the contract amounted to PLN 51.5 million (gross). In connection with the effective settlement of the Contractor installment and part II installment of the amount advanced, the above-mentioned total amount of the advance payment guarantees was reduced by the bank and at the date of this report amounts to PLN 21,372,404.59 (gross).
The financial terms on which the guarantees were granted are similar to those expected for this type of agreements. The original value of guarantees issued by the issuer to Gaz-System S.A. exceeded 10% of the equity of the issuer.