10.05.2012
Conclusion of an agreement between the subsidiary ZRUG Zabrze sp. z o.o. and OGP Gaz-System SA to construct a gas pipeline DN 700 Szczecin-Gdańsk, Phase II-IV
With reference to the current report no. 7/2012 the Board of Stalprofil SA informs that on 10 May 2012, the subsidiary of Zabrze ZRUG sp. z o.o., as the leader of a consortium of companies (Contractor), composed of Zabrze ZRUG sp. z o.o. in Zabrze (consortium leader), Stalprofil SA in Dąbrowa Górnicza (consortium member) and Oil- Gas-Services SA, based in Sanok (consortium member), entered on behalf of the consortium into agreement with Operator Gazociągów Przesyłowych Gaz-System SA with its seat in Warsaw (Employer).
Under the agreement, realization of investment as a general contractor (including the execution of any works and to obtain permission to use for each step) in accordance with regulations, contract and tender documentation, consisting of construction of the pipeline DN 700 Szczecin-Gdańsk: Phase II pipeline DN 700 Karlino-Koszalin, Phase III pipeline DN 700 Koszalin-Słupsk, Phase IV pipeline DN 700 Słupsk-Wiczlino.
Net value of the contract is 223 882 200 PLN (275 375 106 PLN gross), and its terms provide for construction of gas pipeline DN 700, with a length of approximately 204 km, within a period until 09/28/2013 (final acceptance). Construction will start immediately, but no later than 30 days from the date of signing the contract. The Contractor is obliged to pursue investments in accordance with established schedules, in particular the deadlines for various milestones, after which payments will be made with the term 30-day period.
Terms of the contract are similar to those commonly used for this type of agreement.
The contract contained the following provisions regarding penalties:
1. The Contractor shall pay for damages for delay in time to develop or update any of the following, complete documents:
- Plan of Works
- Schedules,
- Quality Assurance Plan,
- Plan of Control and Research,
- Plan for Safety and Health,
- Plan for Environmental Protection Tasks,
- Schedule of Investor\'s Supplies
of 1000 PLN for each day of delay for each of the above documents. For the purpose of calculating the penalty due to the running of time to develop or upgrade the documents does not include periods of reconciliation by the Employer and the Contractor Supervision, and the Contractor shall include the time used to make the necessary changes in them.
2. The Purchaser shall be entitled to demand payment of the following penalties:
a) for the delay in achieving final acceptance by the deadline
- during the first four weeks of delay - 0.05% of gross salary for each commenced day of delay;
- in case of delay exceeding four weeks - 0.1% of salary gross per each commenced day of delay;
b) for the delay in the removal of the defects found during the acceptance part
appropriate Stage II or Stage III, or final acceptance, or disclosed in
warranty or guarantee of quality - of 0.01% of gross salary
for each commenced day of delay of the expiry of the period prescribed by the Employer to remove the defects;
3. In the case of termination of the Agreement for reasons attributable to the Contractor the Employer shall be entitled to claim from the Contractor liquidated damages of 10% of gross salary.
The total amount of contractual penalties listed above is restricted to 25% of gross salary. Employer shall have the right to claim additional compensation if the damage will exceed the amount of the reserved contractual penalties.
The Contractor shall have the right to claim liquidated damages from the Purchaser in respect of cancellation for reasons attributable to the Purchaser, at 10% of gross salary.
In order to secure the claims of the Employer for failure to perform or improper performance of the Contract, the Contractor paid a performance bond in the amount of 10% of total gross payment in the form of insurance guarantee issued at the request of Stalprofil SA for all participants in the consortium.
Contractor shall guarantee the quality and guarantee the execution of the Contract for the period ending 36 months after the date of completion of each stage. Employer to secure claims under the guarantee of quality and warranties made by a security equal to 3% of total gross payment in the form of insurance guarantee issued at the request of Stalprofil SA, all members of the consortium.
The leader of the consortium company ZRUG Zabrze sp. z o.o. is a subsidiary of Stalprofil SA Capital Group (Stalprofil SA holds 88.57% stake in the company).
This agreement with OGP Gaz-System SA meets the criterion of a significant agreement because its value exceeds 10% of the equity of the issuer.
Under the agreement, realization of investment as a general contractor (including the execution of any works and to obtain permission to use for each step) in accordance with regulations, contract and tender documentation, consisting of construction of the pipeline DN 700 Szczecin-Gdańsk: Phase II pipeline DN 700 Karlino-Koszalin, Phase III pipeline DN 700 Koszalin-Słupsk, Phase IV pipeline DN 700 Słupsk-Wiczlino.
Net value of the contract is 223 882 200 PLN (275 375 106 PLN gross), and its terms provide for construction of gas pipeline DN 700, with a length of approximately 204 km, within a period until 09/28/2013 (final acceptance). Construction will start immediately, but no later than 30 days from the date of signing the contract. The Contractor is obliged to pursue investments in accordance with established schedules, in particular the deadlines for various milestones, after which payments will be made with the term 30-day period.
Terms of the contract are similar to those commonly used for this type of agreement.
The contract contained the following provisions regarding penalties:
1. The Contractor shall pay for damages for delay in time to develop or update any of the following, complete documents:
- Plan of Works
- Schedules,
- Quality Assurance Plan,
- Plan of Control and Research,
- Plan for Safety and Health,
- Plan for Environmental Protection Tasks,
- Schedule of Investor\'s Supplies
of 1000 PLN for each day of delay for each of the above documents. For the purpose of calculating the penalty due to the running of time to develop or upgrade the documents does not include periods of reconciliation by the Employer and the Contractor Supervision, and the Contractor shall include the time used to make the necessary changes in them.
2. The Purchaser shall be entitled to demand payment of the following penalties:
a) for the delay in achieving final acceptance by the deadline
- during the first four weeks of delay - 0.05% of gross salary for each commenced day of delay;
- in case of delay exceeding four weeks - 0.1% of salary gross per each commenced day of delay;
b) for the delay in the removal of the defects found during the acceptance part
appropriate Stage II or Stage III, or final acceptance, or disclosed in
warranty or guarantee of quality - of 0.01% of gross salary
for each commenced day of delay of the expiry of the period prescribed by the Employer to remove the defects;
3. In the case of termination of the Agreement for reasons attributable to the Contractor the Employer shall be entitled to claim from the Contractor liquidated damages of 10% of gross salary.
The total amount of contractual penalties listed above is restricted to 25% of gross salary. Employer shall have the right to claim additional compensation if the damage will exceed the amount of the reserved contractual penalties.
The Contractor shall have the right to claim liquidated damages from the Purchaser in respect of cancellation for reasons attributable to the Purchaser, at 10% of gross salary.
In order to secure the claims of the Employer for failure to perform or improper performance of the Contract, the Contractor paid a performance bond in the amount of 10% of total gross payment in the form of insurance guarantee issued at the request of Stalprofil SA for all participants in the consortium.
Contractor shall guarantee the quality and guarantee the execution of the Contract for the period ending 36 months after the date of completion of each stage. Employer to secure claims under the guarantee of quality and warranties made by a security equal to 3% of total gross payment in the form of insurance guarantee issued at the request of Stalprofil SA, all members of the consortium.
The leader of the consortium company ZRUG Zabrze sp. z o.o. is a subsidiary of Stalprofil SA Capital Group (Stalprofil SA holds 88.57% stake in the company).
This agreement with OGP Gaz-System SA meets the criterion of a significant agreement because its value exceeds 10% of the equity of the issuer.