Signing of agreements concerning Ostrołęka C project
Belongs to:
- Current reports
Current report No 84/2020
Date: 22 December 2020
Topic: Signing of agreements concerning Ostrołęka C project
Legal basis: Article 17(1) MAR - inside information.
The Management Board of Energa SA (the "Company") informs that on 22 December 2020 the following were signed:
1) an agreement between the Company, ENEA S.A. ("ENEA") and Elektrownia Ostrołęka Sp. z o.o. (entity implementing the construction of the Ostrołęka C Power Plant) (the "SPV") on the cooperation in the division of the SPV ("Division Agreement"),
2) an agreement between the Company and ENEA on the cooperation in the settlement of Coal Project as defined below (the "Settlement Agreement").
These agreements were signed in connection with the decision to change the power source for the Ostrołęka C Power Plant under construction, with a capacity of approximately 1,000 MW, from coal (the "Coal Project") to gas (the "Gas Project"), of which the Company informed in current report No. 51/2020 of 2 June 2020, and the decision of ENEA on not participating in the Coal Project as reported by ENEA in its current report no. 55/2020 of 22 December 2020.
In accordance with the provisions of the Division Agreement the division of the SPV will be made by separating (within the meaning of the Commercial Companies Code) the assets and liabilities (rights and obligations) and other elements comprising the Gas Project. The separation of the Gas Project will be made into an acquiring company, designated by the Company and being its subsidiary. The completion of the separation of the SPV is planned for the second quarter of 2021.
The Settlement Agreement has been concluded as necessary to implement the provisions of the Division Agreement requiring the cooperation of shareholders of the SPV, including the necessary settlement of costs associated with the Coal Project. The Settlement Agreement expects that the costs associated with the Coal Agreement will be settled proportionately by the parties to this agreement in accordance with the existing rules and within the limits adopted in the agreement concluded between the Company and ENEA on 30 April 2019, as reported by the Company in current report No. 7/2019 of 30 April 2019. The Company will inform of the final settlement of all the costs associated with the Coal Project in a separate current report.