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Monday, December 11, 2023

WITH PACK. Construction of a steam and gas unit in Poland. There is a contract for over PLN 2 billion

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PAK CCGT, a subsidiary of Zespół Elektrowni Pątnów-Adamów-Konin SA (ZE PAK), has an agreement with a consortium led by Siemens Energy Global regarding the construction of a steam and gas unit at the Adamów power plant. The information was made public with a delay. The estimated value of the investment is approximately PLN 2.3 billion.

The Management Board of ZE PAK announced in a stock exchange announcement on Monday that on September 1, 2023, it received information about the signing of an agreement by its subsidiary – PAK CCGT with the consortium of Siemens Energy Global companies based in Germany (consortium leader), Siemens Energy and Mytilineos based in Greece. The contract concerns the construction of a 600 MWe class CCGT unit (steam and gas unit – ed.) along with accompanying infrastructure at the Adamów power plant, for an estimated amount of approximately PLN 2.3 billion.

A maintenance agreement for the unit was also concluded with Siemens Energy for a period of 12 years from the date of commissioning of the CCGT unit.

ZE PAK on contracts

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The announcement indicated that signing the above agreements does not result in financial obligations on the part of PAK CCGT.

“Financial liabilities on the part of PAK CCGT sp. z o. o. will arise only when PAK CCGT sp. z o. o. issues an Order to Commence Work (“Notice to Proceed”, NTP), effective only when it is submitted together with the Guarantee for payment of PAK CCGT liabilities sp. z o. o. resulting from the EPC Agreement issued by ZE PAK SA to the General Contractor and the provision of a valid Construction Permit to the General Contractor,” we read.

The issuance of the Work Commencement Order by PAK CCGT must be made no later than November 30 this year. under penalty of invalidation of contracts without financial consequences for both parties.

The Adamów Power Plant was closed at the beginning of January 2018TVN24

Information with delay

The justification for the delay in disclosing confidential information to the public was also provided. “The public disclosure of confidential information was delayed on September 1, 2023 pursuant to Article 17(4) of the MAR,” explained ZE PAK.

As emphasized, in the opinion of the company’s management board, the delay in providing this information met – at the time the decision to delay was taken – the conditions set out in the MAR Regulation and in the guidelines of the European Securities and Markets Authority on delaying the disclosure of confidential information of October 20, 2016.

“At the stage of signing the above-described agreements, it was not yet certain whether they would actually enter into force, i.e. whether the ‘Notice to Proceed’ (NTP) procedure (order to commence work) would be launched, in particular due to the fact that at the time of signing EPC agreement and LTSA agreement, the company did not yet have a building permit. Therefore, it was not certain whether the subject of the agreements would actually be implemented,” explained ZE PAK.

The company’s shares are listed on the Warsaw Stock Exchange.

Main photo source: TVN24

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