Flyover Agreement Concluded
Tuesday, 2009-12-01
On 30 November 2009 Lubelski Węgiel Bogdanka S.A. concluded an agreement with Polimex – Mostostal S.A. on the construction of a flyover for the delivery of the spoil from shaft 2.1 in the Stefanów Field to LW Bogdanka S.A.’s Mechanical Coal Processing Facility in the Bogdanka Field.
It is one of the more significant investments related to the development of existing infrastructure in the Stefanów Field and the construction of the new one. Bogdanka has named this investment as one of the vital issue goals presented in the issue prospectus prior to the Company’s entering the stock market. The development of the Stefanów Field will allow LW BOGDANKA S.A. to increase its production capacity twofold, consequently allowing it to increase the annual output of coal. Beginning with 2011, the Company is planning to grow the current output of 5.3 million tons to 7.4 million tons. The target amount is an annual output of 11.1 million tons, to be reached in 2014.
The tender for the construction of the flyover was announced in March 2009, prior to the Company’s stock market debut. The tenderers’ envelopes were opened in June. Eleven offers included submissions from international consortiums including entities from Spain and Ireland. Bogdanka’s expected deadline for the investment, 24 months, was in some cases reduced by the tenderers to a range of 12 to 21 months. None of the offers exceeded the investment value estimated in the issue prospectus at PLN 120 million.
The most advantageous offer, priced at PLN 99.5 million with a timeframe of 12 months from the date of concluding the agreement, was submitted by Polimex – Mostostal S.A. with registered office in Warsaw. The work will commence within 14 days of the conclusion of the agreement. The deadline for the works was agreed by the Parties to be 1 December 2010.
After the fulfilment of the tender procedures, the agreement was concluded.
The construction of the delivery system for the output of shaft 2.1 in the Stefanów Field to the Mechanical Coal Processing Facility in the Bogdanka Field will include the preparation of plate conveyors, construction of transitional stations, raw coal storages and conveyor bridges. The entire flyover used for the transport of coal from the Stefanów Field to Bogdanka will be 3.5 km long.
Polimex – Mostostal has undertaken to complete detailed designs, construct the facilities, supply the machinery and equipment and install it on the construction site, start-up the machinery and equipment, and obtain appropriate permits for their use.
It is the opinion of the Company’s Management Board that due to the shorter time of the execution of the investment in, that is 12 months, as opposed to the estimated 24 months, the timetable of the work connected to the development of the Stefanów Field will not be at risk.
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It is one of the more significant investments related to the development of existing infrastructure in the Stefanów Field and the construction of the new one. Bogdanka has named this investment as one of the vital issue goals presented in the issue prospectus prior to the Company’s entering the stock market. The development of the Stefanów Field will allow LW BOGDANKA S.A. to increase its production capacity twofold, consequently allowing it to increase the annual output of coal. Beginning with 2011, the Company is planning to grow the current output of 5.3 million tons to 7.4 million tons. The target amount is an annual output of 11.1 million tons, to be reached in 2014.
The tender for the construction of the flyover was announced in March 2009, prior to the Company’s stock market debut. The tenderers’ envelopes were opened in June. Eleven offers included submissions from international consortiums including entities from Spain and Ireland. Bogdanka’s expected deadline for the investment, 24 months, was in some cases reduced by the tenderers to a range of 12 to 21 months. None of the offers exceeded the investment value estimated in the issue prospectus at PLN 120 million.
The most advantageous offer, priced at PLN 99.5 million with a timeframe of 12 months from the date of concluding the agreement, was submitted by Polimex – Mostostal S.A. with registered office in Warsaw. The work will commence within 14 days of the conclusion of the agreement. The deadline for the works was agreed by the Parties to be 1 December 2010.
After the fulfilment of the tender procedures, the agreement was concluded.
The construction of the delivery system for the output of shaft 2.1 in the Stefanów Field to the Mechanical Coal Processing Facility in the Bogdanka Field will include the preparation of plate conveyors, construction of transitional stations, raw coal storages and conveyor bridges. The entire flyover used for the transport of coal from the Stefanów Field to Bogdanka will be 3.5 km long.
Polimex – Mostostal has undertaken to complete detailed designs, construct the facilities, supply the machinery and equipment and install it on the construction site, start-up the machinery and equipment, and obtain appropriate permits for their use.
It is the opinion of the Company’s Management Board that due to the shorter time of the execution of the investment in, that is 12 months, as opposed to the estimated 24 months, the timetable of the work connected to the development of the Stefanów Field will not be at risk.
