Consortium with Unibep builder inks deal for construction of cogeneration system

A consortium of listed builder Unibep and listed engineering company Introl Elektromontaz has entered into a conditional agreement for the construction of a cogeneration system at a cogeneration plant in Poland, in terms of execution and service, the companies said in the market filings. Unibep is to receive around PLN 166.7 million (EUR 39.2 mln) and Introl - PLN 216 million (EUR 50.8 mln) net for completing the task.

The companies said that the contract was concluded on March 8, but the information had been delayed.

The condition for the agreement to enter into force was that the ordering party obtain a positive result of the auction organised by the chairman of Poland's energy market regulator URE for the cogeneration bonus for the sale of electricity, as well as obtain corporate approvals.

According to Unibep, this condition has not been met. However, the consortium has entered into annexes with the contracting authority modifying the agreement.

The condition now is to obtain the corporate consents specified in the agreement and to see a positive outcome of the auction scheduled for the third quarter of 2024. The agreement provides for regulations allowing the parties to make additional arrangements for the continuation of the agreement until October 31, 2024.

The commencement of the contract in the executive part was originally scheduled to start in 2024 and be completed in the last quarter of 2025, while the service part was scheduled to start in the first quarter of 2025 and be completed in the last quarter of 2035.

However, it has now been assumed that the investment in the execution part will be completed within 25 months from the date of commencement of works, while the execution of the service part has been scheduled for a 10-year period.

doa/ ao/