The conclusion of the significant agreement

Home page Investor relations Current reports The conclusion of the significant agreement

Date of publication:16.11.2018

The Management Board of PROCHEM S.A. with its registered office in Warsaw, with reference to the information in Current Report No. 32 of June 20, 2018, informs that on November 16, 2018 received from BIOAGRA S.A. confirmation on commencement of full implementation of the contract of the execution of design work and performing the works in the formula of the Management Contracting for the extension and modernization of technological installations in the Ethanol Production Plant “Goświnowice”.
Time of execution was set out in the contract for the first half of 2020.

The remuneration formula for performing the works in the scope of GRI (the Management Contracting) includes a margin and covering the costs of the subject of the contract, hence the final remuneration of PROCHEM S.A. will be possible to determine after settling the incurred costs, at taking into consideration of the investment budget and the size of the works, the expected remuneration will amount to over PLN 150 million.

The contract provides for contractual penalties, their value is limited to PLN 2.4 million. Each party shall be entitled to seek for compensation on general principles above the amount of contractual penalties, but no more than PLN 12 million.