Brief: Grupa Azoty Says Hyundai Engineering Proposes Two Changes To Polimery Police Project Deal

Hyundai Engineering & Construction Co

09/09/2024 07:06

Sept 9 (Reuters) - Grupa Azoty SA  ATTP.WA :
    * SAID ON FRIDAY ITS UNIT GRUPA AZOTY POLYOLEFINS HAS
RECEIVED TWO
PROPOSITIONS OF CHANGES TO POLIMERY POLICE PROJECT EPC CONTRACT
FROM HYUNDAI ENGINEERING (GENERAL CONTRACTOR)
    * THE FIRST PROPOSITION REGARDS EXTENSION OF THE DEADLINE
FOR
COMPLETING THE POLIMERY POLICE PROJECT BY AN ADDITIONAL 43 DAYS
AND INCREASING GENERAL CONTRACTOR'S REMUNERATION BY EUR 9.6 MLN
    * THE GENERAL CONTRACTOR INDICATED THAT THE BASIS FOR
APPLYING FOR
AN EXTENSION OF THE PROJECT IMPLEMENTATION TIME AND AN INCREASE
IN REMUNERATION UNDER THE FIRST CHANGE PROPOSAL ARE EVENTS
RELATED TO INDIVIDUAL PARTS OF THE PROJECT THAT OCCURRED AS A
RESULT OF INSUFFICIENT COORDINATION OF WORK
    * THE SECOND PROPOSITION OF CHANGE REGARDS INCREASING THE
REMUNERATION OF HYUNDAI ENGINEERING BY EUR 116.2 MLN
    * THE GENERAL CONTRACTOR INDICATED THAT THE BASIS FOR
APPLYING FOR
AN INCREASE IN REMUNERATION UNDER THE SECOND CHANGE PROPOSAL ARE
THE INCREASED COSTS INCURRED BY THE GENERAL CONTRACTOR IN
CONNECTION WITH THE ACTIVITIES OF THE UNIT'S STAFF UNDERTAKEN
DURING THE LAUNCH PHASE
    * BOTH CHANGE PROPOSALS WILL BE SUBJECT TO THOROUGH ANALYSIS
AND
VERIFICATION OF THEIR VALIDITY IN THE LIGHT OF THE PROVISIONS OF
THE EPC AGREEMENT AND OTHER CONTRACTS
    * CONNECTING THE UNIT WITH THE GENERAL CONTRACTOR, AS WELL
AS THE
FACTUAL CIRCUMSTANCES
    * CURRENTLY, UNIT IS CONDUCTING NEGOTIATIONS WITH THE
GENERAL
CONTRACTOR REGARDING THE FINAL SETTLEMENT OF THE POLIMERY POLICE
PROJECT, INCLUDING REACHING AN AGREEMENT REGARDING MUTUAL CLAIMS
    * AS PART OF THE NEGOTIATIONS, UNIT INFORMED THE GENERAL
CONTRACTOR ABOUT ITS POSITION AND ASSESSMENT OF THE PREVIOUSLY
SUBMITTED PROPOSALS FOR CHANGES
    * IN ITS POSITION, GRUPA AZOTY POLYOLEFINS INDICATED THAT
BASED ON
THE DOCUMENTS AND INFORMATION PROVIDED, MOST OF THEM FOUND NO
GROUNDS TO ACCEPT THE GENERAL CONTRACTOR'S CLAIMS FROM 2023 AND
FROM FEBRUARY 2024

        
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