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Current report No.: 40/2018

Title: Notification on receiving from the Management Board of Elektrownia Ostrołęka sp. z o.o. of a motion for granting consent to the conclusion of the Public Procurement Agreement with a General Contractor selected in the course of a procedure for awarding a (utilities) sector-specific public contract under the name of "Construction of Ostrołęka Power Plant C with approx. 1,000 MW power output" through a competitive dialogue
Date: 2018.02.07
Report no.:  Current report No.: 40/2018

Current report No.: 40/2018

Date of preparation: 2 July 2018

Short name of issuer: ENEA S.A.

Legal basis: Art. 17 item 1 of MAR - confidential information

Subject: Notification on receiving from the Management Board of Elektrownia Ostrołęka sp. z o.o. of a motion for granting consent to the conclusion of the Public Procurement Agreement with a General Contractor selected in the course of a procedure for awarding a (utilities) sector-specific public contract under the name of "Construction of Ostrołęka Power Plant C with approx. 1,000 MW power output" through a competitive dialogue

Content of report:

The Management Board of ENEA S.A. ("Issuer") hereby informs that on 2 July 2018, as a shareholder of Elektrownia Ostrołęka sp. z o.o. ("Ordering party", "Company"), it received from the Company's management board a motion addressed to the general meeting of the Company's shareholders for granting consent to the conclusion of the Public Procurement Agreement with the General Contractor - the Consortium of GE Power sp. z o.o. (Leader of the Consortium) and Alstom Power Systems S.A.S. - selected in the course of the procedure conducted by the Company for awarding a (utilities) sector-specific public contract under the name of "Construction of Ostrołęka Power Plant C with approx. 1,000 MW power output" ("Contract") through a competitive dialogue. The Company's management board stated that it asks for the consent of the general meeting to the conclusion of the Agreement with the General Contractor, i.e. the Consortium of GE Power Sp. z o.o. (Leader of the Consortium) and Alstom Power Systems S.A.S., whose bid was to deliver the subject matter of the Contract according to the specifications set out in the offer for the amount of PLN 5,049,729,000.00 net, PLN 6,023,034,950.00 gross.

Pursuant to the Company's Statute, the general meeting of the Company's shareholders grants its consent to the conclusion of an Agreement with a General Contractor by virtue of a resolution.

The granting by the Company's general meeting of the consent to conclude an Agreement with a General Contractor is subject to prior obtaining other corporate approvals, including the consent of the Issuer's Supervisory Board.

Submission by the Company's management board of said motion to the general meeting of the Company's shareholders, as well as the possible adoption by the general meeting of the Company's shareholders of the aforementioned resolution, is not tantamount to granting a consent to issue a Notice to Proceed (NTP) - issuing of the NTP requires, among others, a prior consent of the Issuer's Supervisory Board and a prior qualified consent given by the Issuer's General Meeting to proceed to the Construction Stage.

It is estimated that the capital expenditure related to the conclusion of the Agreement between the Ordering party and the General Contractor will not exceed the equivalent of 4% of the Contract price until the NTP is issued.

The Issuer will provide further information concerning the procedure of obtaining consent to the conclusion of the Agreement in separate current reports.

Having in mind the diverse and international nature of Enea SA's shareholding, and also the provisions of the Best Practices of WSE Listed Companies, Enea SA guarantees the availability of its website also in English. In case of any interpretation doubts and discrepancies between the Polish and English versions, the Polish version shall prevail.