Title: Agreement regarding the construction of the Ostrołęka C Power Plant
Date: 29th of December 2018
Report no.: Current report no.55/2018
Legal basis: Article 17(1) MAR - confidential information
The Management Board of ENERGA S.A. ("Issuer") hereby informs that in connection with obtaining favourable result, by Elektrownia Ostrołęka Sp. z o.o. ("Company"), in the capacity market auction and financial support following the conclusion of the conditional capacity agreement of 15 years and in connection with the readiness to move to the next stage of the investment schedule of the Ostrołęka C Power Plant, ie the Construction Stage, on December 28th, 2018, ENERGA S.A., ENEA S.A. and Elektrownia Ostrołęka sp. z o.o. terminated the investment agreement dated December 8th, 2016 and the annex no. 1/2018 dated March 26th, 2018, bound the above mentioned entities, of which the Issuer informed in current reports no. 49/2016 dated December 8th, 2016 and current report no. 12/2018 dated March 26th, 2018 and they signed the agreement, the intention of which is to conclude a new investment agreement specifying the terms of cooperation between the Issuer and ENEA S.A. and financing the Ostrołęka C Power Plant ("Project") in the Construction Phase.
ENERGA S.A. and ENEA S.A. declared a financial commitment for the implementation of the Construction Stage to the amount of: ENEA PLN 1 billion, ENERGA not less than PLN 1 billion and other investors - in the remaining scope necessary to cover the Project's financial outlays, according to the financial model of the Project, which will be finally agreed by the parties and will also take into account funds involved by the parties in the Project before the date of the Agreement and funds from lenders and other investors.
The schedule and terms of financial involvement of individual entities will be agreed by January 28, 2019.
Loans necessary to complete the Construction Stage granted to the company by the lenders will occur in a way that does not violate the obligations set out in the external financing agreements concluded by the Issuer (so-called financial covenants).
The Issuer will inform in a separate current report the conclusion of an agreement or agreements regarding the financing of the Project.