The conclusion of a memorandum of understanding

Legal basis: Article 17 para. 1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Regulation on market abuse) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission Directive 2003 / 124 / EC, 2003/125 / EC and 2004/72 / EC

The Management Board of Polimex-Mostostal S.A. having its registered address in Warsaw (hereinafter referred to as the "Company") announces that the Company and Mitsubishi Hitachi Power Systems Europe GmbH, a company incorporated under German law, with its registered address in Duisburg, Germany (hereinafter referred to as "MPSE”), have today concluded a memorandum of understanding expressing their will to cooperate in the scope of: (i) joint participation in a tender procedure concerning the design, purchase, construction and commissioning of a "combined gas and steam plant” with net electrical capacity from 420 MWe to 490 MWe and thermal power above 250 MWt in Żerań, Poland (hereinafter referred to as the "Project"), and (ii) performance of works as part of an agreement that will be concluded in the event the Company - MHPSE consortium is awarded a public procurement contract covering the Project on the terms and conditions and within the time limits specified in such an agreement.

The Parties wish to participate in the Project as a consortium with MHPSE as the leader. The Parties intend to conclude a consortium agreement the content of which will be determined by way of negotiations but which will correspond to arrangements made between the Parties. Subsequently, the Parties will indicate the details of the division of labour between the Parties.  

Each Party is required to bear its own costs related to the completion of the tender bid for the Project and the tender procedure, including the award of a contract for construction works and a related notice to proceed. If the call for tender requires a bid guarantee, each Party will be responsible for filling such a guarantee in the required amount, proportionately to its tender bid price and in accordance with the terms and conditions specified in the call for tender.

The Parties cooperate in the implementation of the Project on the basis of exclusivity.

The Memorandum of Understanding is executed and enters into force upon its signing by the Parties. It is subject to Swiss law.