G Energy Spolka Akcyjna

Regulatory Filings • Jun 7, 2023

Conclusionby the Issuer of an Agreement for comprehensive performance of worksrelated to the construction of connections for new customers along withthe expansion of gas pipelines with Polska Spółka Gazownictwa sp. z o.o.with its registered office in Tarnów, Branch of Zakład Gazowniczy inKraków (area of operation of the Tarnów gasworks).ManagementBoard of G-Energy S.A. (GENERGY, Company, Issuer) with its registeredoffice in Warsaw, informs that today the Company received a signedAgreement as part of the procedure: Agreement for comprehensiveperformance of works related to the construction of connections for newcustomers along with the expansion of gas pipelines (excludingagreements below 10m3/h from existing gas pipelines) - a branch of thegas plant in Kraków, the area of operation of the gas plant in Tarnów.Thecontract for the preparation of design documentation and execution ofconstruction works obliges GENERGY to prepare design documentation andcarry out comprehensive works related to the construction of connectionsfor new customers along with the expansion of gas pipelines (excludingcontracts below 10m3/h from existing gas pipelines) on the premises ofthe Gas Plant Branch in Kraków, area operation of the Gasworks in Tarnówon the terms set out in the further part of the Agreement, whichtogether will constitute the subject of the agreement (Subject of theAgreement). The Employer allows the execution of the Tasks outside thearea specified in the Appendix to the Agreement, and in the areasadjacent to the Gasworks within the scope of a given Branch of the GasPlant in Krakow with the consent of the Contractor.Thesubject of the contract are tasks consisting in the design andconstruction of medium and low pressure gas pipelines (PE). The subjectof the Agreement includes in particular: 1) execution of theconstruction and detailed design of the outsourced Tasks, hereinafterreferred to as the Project, 2) obtaining all required opinions, permitsand decisions, including obtaining, on behalf of and for the benefit ofthe Employer, from the competent authority, the final decision onpermission to construction or notification on behalf and for the benefitof the Employer of the intention to start construction works orconstruction that does not require a building permit, 3) author'ssupervision, 4) construction or reconstruction of medium and lowpressure gas networks, earthworks, and reconstruction of pavement afterworks and bringing the site of works to the condition before the workswere performed, hereinafter referred to as the Works, 5) execution ofworks accompanying the Works, 6) preparation of as-built documentationand as-built geodetic inventory required by law, 7) preparation ofdocumentation for the purposes of drawing up notarial deeds written downin the process of establishing transmission easement, 8) performance ofother works accompanying the Works as well as legal, administrative anddocumentation activities not listed above, but specified and required,specified in the requirements of decisions of government and publicadministration units and specified in the Orders.GENERGYis obliged to perform the Subject of the Agreement within 24 months fromthe date of conclusion of the Agreement, i.e. from June 5, 2023. TheAgreement is terminated upon reaching the amount of remuneration, of theAgreement, provided that the amount of total remuneration is reachedbefore the expiry of the term of the Agreement. Orders submitted by theOrdering Party to the Contractor during the term of the Agreement willbe carried out under the conditions resulting from the Agreement alsoafter the expiry of the deadline. The date of commencement of work onthe Subject of the Agreement will be determined individually for eachOrder. The deadline runs from the date of receipt of the Order issued bythe Ordering Party.GENERGYwill be entitled to remuneration will receive a total remuneration notexceeding PLN 15,000,000.00 (in words: fifteen million zlotys) net. Thisamount will be increased by the due tax on goods and services (VAT) atthe rate applicable on the date of performance of the Subject of theAgreement. The remuneration will be paid after the completion and finalacceptance of the Task, on the basis of a correctly issued finalinvoice. The contracting authority made a reservation in the Terms ofReference (SWZ) that it envisages awarding a supplementary contract,consisting in repeating similar construction works as the main contract,to the same contractor within 3 years from the award of the maincontract. The contracting authority provides for the possibility ofawarding a supplementary contract constituting no more than 50% of thevalue of the basic contract.TheOrdering Party is entitled to demand from the Contractor the payment ofcontractual penalties, in particular: for delay in final acceptance ofthe Works on time, unless the Contractor is not at fault for failure toperform the Works on time - in the amount of 0.2% of the total netremuneration for the execution of the Order, for each day of delay, butnot more than 20% of this amount; for delay in handing over the Projecttogether with obtaining the final decision on the building permit, ifrequired, or a certificate from the competent administrative authoritythat there are no grounds for objection to the Contractor's notificationof the intention to start works that do not require a building permit ontime, unless the Contractor is not at fault for failure to perform thisobligation on time - in the amount of 0.2% of the net remuneration forthe execution of the Order, for each day of delay, however, not morethan 20% of this amount.Thetotal amount of contractual penalties due to the Ordering Party underthe Agreement may not exceed 30% of the total net remuneration.Theother detailed terms and conditions of the above agreements do notdiffer from those commonly used in this type of agreement.Legalbasis:Art.17 sec. 1 of the Regulation (EU) No 596/2014 of the European Parliamentand of the Council of 16 April 2014 on market abuse (market abuseregulation) and repealing Directive 2003/6 / EC of the EuropeanParliament and of the Council and Commission Directive 2003 / 124 / EC,2003/125 / EC and 2004/72 / EC (also known as MAR).