Profil:
Newag SANewag inks PLN 2.7 bln contract with PKP Intercity
Listed rolling stock producer Newag has signed a contract with Poland's long-distance railway carrier PKP Intercity for supply and maintenance of dual drive multiple unit trains valued at over PLN 2.7 billion (EUR 630.64 mln), Newag wrote in a market filing.
The subject of the contract is a delivery of 35 dual drive multiple unit trains together by Newag as well as providing maintenance for 10 years with additional service included.
The deliveries of the trains will be realised in years 2027 to 2029.
As stated, the estimated value of the contract amounts to over PLN 2.753 billion (EUR 643.02 mln) net, which is made up by the delivery charge of the trains of PLN 1.977 billion (EUR 461.77 mln) combined value paid in parts proportionally to the progress of production and units commissioning as well as PLN 758.47 million (EUR 177.16 mln) net for estimated fee for the provision of maintenance services, payable in proportion to the maintenance services provided.
The company has provided a security for the proper execution of the contract with regard to the supply of the train units, which serves to cover the ordering party's claims for non-performance or improper performance of contractual obligations in the amount of PLN 85.11 million (EUR 19.88 mln). 70 percent of the security will be returned to the company once the last train unit has been delivered and the documents authorising its operation have been obtained and the ordering party has recognised its proper fulfilment. The remainder of the security will be returned after the end of the guarantee and warranty period.
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