The project companies of OWF Bałtyk II and OWF Bałtyk III, in which Polenergia has a 50% stake, have concluded contracts with contractors for the design, production, testing, transportation, installation and protection of cables, which initially amount to a total of about €372 million, Polenergia announced.
On October 5, 2023, the project companies OWF Bałtyk II Ltd. and OWF Bałtyk III Ltd. (project companies), in which the issuer holds a 50% stake, developing offshore wind farm projects under a joint venture between the issuer and Equinor Wind Power AS, viz. offshore wind farm Bałtyk II and offshore wind farm Bałtyk III, respectively (collectively, the projects), have entered into agreements for the design, manufacture, testing, transportation, installation and protection of export cables from the offshore transformer station to the onshore energy output point (each individual agreement or collectively, the agreements), with MFW Bałtyk II sp. z o.o. entering into an agreement with Jan De Nul Luxemburg SA Hellenic Cables S.A. Consortium Baltyk 2 spółka jawna, and IMF Baltyk III sp. z o.o. – with Jan De Nul Luxemburg SA Hellenic Cables S.A. Consortium Baltyk 3 general partnership (contractors), it was announced.
The contractors’ companies were established for the purpose of contract execution as a joint venture between (i) the assembly company, Jan De Nul Luxembourg SA, and (ii) the cabling manufacturer, Hellenic Cables SA Hellenic Cable Industry Single Member Societe Anonyme, it was stated.
The total remuneration of the contractors under the two contracts (i.e., for both projects) has been tentatively set – as of the date of signing the contracts – at approximately €372 million, and includes partly lump-sum rates and partly rates depending on the indexation of raw material prices, fuel prices and the actual workload of the contractors and the resources involved, and the contractors’ remuneration thus determined also takes into account the optional scope of work provided for in the contracts, the company reported.
The final remuneration of the contractors will be determined in accordance with the provisions of the contracts on the basis of the final completed scope of work and after taking into account factors depending on the market situation, the company reported.
Under the agreements, the issuer will be required to provide payment security in the form of a corporate guarantee (PCG). The PCGs issued by the issuer will be for 50% of the value of the existing obligations of the project companies to the contractors. The maximum expected amount of the issuer’s PCG obligations is (for both contracts combined): (i) 36 million euros until 01.10.2024 (purchase of raw materials), and (ii) in the further period until financial close confirmed by the financing institution is reached: 156.5 million euros. The agreements stipulate the need to increase the required guarantee limit in case the project companies take advantage of the additional optional scope of work of the contractors, the company further reported.
Source: Polenergia and ISBnews
