The following decisions were adopted in the Extraordinary General Meeting of Shareholders of LITGRID AB (company code 302564383, registered office at A. Juozapavičiaus g. 13, Vilnius) on 12 March 2019.
In accordance with the clause 38 (viii) of the Articles of Association of LITGRID AB, to approve the decision by the Board of LITGRID AB dated 15 February 2019 as follows:

1. To approve creation of a fixed asset (Expansion of the Litpol Link interconnection, I Stage), and enter into a contract of purchase of design and construction works with „Žilinskis ir Co“ UAB (company code: 304317232, registered office address: Užtvankos g. 17, Dainių k. Jurbarko raj.); accepted contract value (excl. VAT) is EUR 21 647 000.00, and EUR 26 192 870.00 (incl. VAT).

2. Key conditions of the contract of purchase of Environmental Impact Assessment, Design and Construction Works of the I Stage of Expansion of the Litpol Link Interconnection:

2.1. General conditions shall be the Conditions of Contract for Plant and Design-Build for Electrical and Mechanical plant, and for Building and Engineering Works, designed by the Contractor (Yellow Book), first edition 1999 (second revised edition in Lithuanian 2007), issued by the International Federation of Consulting Engineers (Fédération Internationale des Ingénieurs-Conceils, FIDIC).

2.2. The scope of the Project (Object ant Subject of the Contract): Stages of the contract– the Contractor undertakes to carry out the works of the I stage Expansion of the Alytus converter station (Project).

The Subject of the contract: 400/330 kV autotransformers will be installed in the Alytus converter station to ensure transmission capacity of at least 1,800 MVA, and the expansion works of Alytus 400 kV and 330 kV switchyards will be performed, power lines installed and rearranged, and Alytus 400 kV switchyard internal power supply rearranged, expanding LitPol Link interconnection and ensuring technical measures of connecting Polish and Lithuanian power systems for operation in emergency synchronous mode  (all together in the Contract – the Object).

The Contract falls in three stages:

Stage I – to perform the procedures of environmental impact assessment of the planned economic activity which the Object is subject to, and to receive the screening conclusion regarding the environmental impact assessment;

Stage II – to prepare the Technical Design and to receive construction permit for the Object.

Stage III – to prepare the detailed design of the construction works of the Object, to execute and complete the construction works of the Object, including successful performance of all tests, to receive the Construction Completion Certificate and to submit it to the Employer.

2.3. The type of the contract – the contract for environmental impact assessment, design and construction works.

2.4. The terms of the Contract – project must be completed until December 31 of 2020. The Contract also includes liability of the Contractor during warranty period.

2.5. Contract performance guarantee – the Contractor must submit to the client: (A) the contract performance guarantee. Contract performance shall be secured by a first-demand, unconditional, and irrevocable guarantee to be issued by a bank. Contract performance security is set at 10% based on the initial price of the Contract.

2.6. Contract pricing and price - the amount of the contract for the whole project will be fixed.

Each stage of the Contract will have its own fixed price - the Agreed amount. The price for each stage will be paid in separate parts, the amount of which is fixed in the annex to the Contract as a percentage of the agreed total amount. Payments are linked to achieved milestones. Payment schedules will be laid out in annex to the Contract. Pricing rules will accompany the Contract as an annex.

2.7. Payment procedure – payments will be made according to the payment list. Term of the payment – 30 days after the Contractor submits VAT invoice via information system “E.sąskaita”. All payments are made in Euros.

2.8. Advance payment – the Contractor will have the right to receive advance payments - 5% of agreed Contract amount with a condition that the Contractor submits first-demand, unconditional, and irrevocable bank guarantee equal to the amount of advance payment and Contract performance guarantee.

2.9. General Liability Limits. 
The following limits will apply to the liability of the Parties for direct losses under the Contract:
(A) The total liability of the Contractor shall not exceed 100% of the Contract Price;
(B) The Contractor's liability for delays shall not exceed 10% of the Contract Price;
• The total liability of the Client shall not exceed 100% of the Contract Price.
• Penalty for delay in submitting a program – EUR 5 000 fine for late submission of the initial program.
• A fine of EUR 100 for each delayed day when the updated program is delayed.
• The total liability for delays in submitting a program or updated program may not exceed EUR 10,000.
• Delinquency Compensation – for Delay in Stage I - 0.04% of Agreed amount of the Contract for Phase I for each day paid in Euro.
• Delay in Stage II - 0.04% of the Agreed amount of the Contract for Phase II for each day paid in Euro.
• For missing a Critical Date by which the Contractor is required to provide the Customer with the Final Technical Solutions - 0.04% of the Agreed Amount of the Contract for the entire Project for each day paid in Euro.
• Delay in Stage III - 0.04% of the Agreed amount of the Contract for the entire Project for each day paid in Euro.


The individual authorized by LITGRID AB to provide additional information:
Jurga Eivaitė
Head of Communication Division
 phone: +370 613 19977