Current Report No.: 35/2012
Current Report No.: 35/2012
Date of preparation: 20.09.2012
Short name of issuer: ENEA S.A.
Subject: Conclusion by ENEA Wytwarzanie S.A. of an agreement for the construction of a power unit
Legal basis: Article 56 item 1(2) of the Act on Offerings - current and periodic information
Content of report:
Acting pursuant to § 5 item 1(3) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities [...], The Board of ENEA S.A. (Company, Issuer) informs that on 21 September 2012, a subsidiary of the Issuer - ENEA Wytwarzanie S.A. signed an agreement with the consortium of Hitachi Power Europe GmbH and Polimex-Mostostal S.A. (Contractor) on the construction of a supercritical bituminous coal fired power unit with the electric capacity of 1,075 MWe gross and the efficiency of 45.6 % net (Agreement).
The net value of the Agreement is around PLN 5.1 bln. The Parties decided that the Agreement would be realised within 58 months of the date of its execution.
The investment in the construction of the power unit is one of the key undertakings taken up in order to enhance the generating capacities of the ENEA Group and constitutes an element of the long-term strategic directions of the Group, which is acquiring of an access to own sources of energy generation with a potential enabling at least a satisfaction of the demand for electricity of all the customers of the ENEA Group. The new power unit in Kozienice will be the most modern unit fired with coal in Poland and Europe. A successful completion of the investment will allow for increasing generating capacities of the power plant in Kozienice by ca. 30 per cent. The technical solutions applied will enable equipping the unit with the installation for capture and condensation of carbon dioxide, which may have a substantial importance in the future in relation to the policy of the European Union within reduction of CO2 emissions.
The total amount of contractual penalties of the Contractor is limited to the amount of 25 per cent of the net price of the subject of the Agreement. The Contractor is liable towards the Ordering Party by title of failure to perform or improper performance of the subject of the Agreement or for a damage caused in another way, subject to the rules specified in the Civil Code, including the detailed provisions of the Agreement. The entities comprising the consortium realising the subject of the Agreement hold a joint and several liability for its realisation. The Agreement anticipates no penalties in relation to the Ordering Party.
The value of the Agreement exceeds 10 per cent of the equity of the Issuer and thus fulfils the criterion for recognition of the agreement as significant.