Representation of Autostrada Wielkopolska S.A.

Representation of Autostrada Wielkopolska S.A. concerning the connection of S3 and S11 express roads to Autostrada A2 and the construction of Głuchowo and Kleszczewo interchanges

(in connection with the article in Gazeta Wyborcza of 3 December, by Lech Bojarski, editor).
1. Autostrada Wielkopolska S.A. (AWSA) does not question the necessity of building Głuchowo and Kleszczewo   interchanges connecting the motorway to S11 and S5 express roads.

2. The Concession Agreement signed with the government in 1997 contains no provisions concerning the construction of Głuchowo and Kleszczewo motorway interchanges in as large a scope as is currently presented by the General Directorate of National Roads and Motorways (GDDKiA).

3. AWSA has held negotiations with GDDKiA concerning the extension of the scope of works in connection with the construction and maintenance of Głuchowo and Kleszczewo interchanges, allowing the drivers to escape to a road which is alternative with respect to the A2 toll motorway. GDDKiA requires AWSA to finance the construction, and subsequently maintain the interchanges, and maintain free of charge a Poznań by-pass section, by 12 km longer. New circumstances require new agreements to be made and appropriate provisions to be incorporated in the Agreements.

4. Each change to the scope of works departing from the Concession Agreement involves the increase of costs. In this case the additional capital outlays not included in the Agreement with the government amount to several million, and thus AWSA costs to be borne would increase. All additional costs have to be economically justified, so that the project is stable, and the Company will be in position to timely pay the contracted credits. Both the private party, and the public party which granted a guarantee, is liable for the reimbursement of credits. Each change of the scope of works imposed on AWSA by the public party (GDDKiA) has to be agreed to by the banks which granted the credits for the project performance.

5. The „Material Adverse Event” term used in the article by Lech Bojarski is a typical legal term used by the banks financing the project. This definition was made upon an express request of the banks which trusted AWSA and agreed to grant credit for such an expensive and long term project.
6. AWSA has been holding intense negotiations with GDDKiA to determine the method of effectively performing the project in compliance with the Concession Agreement in order to open Głuchowo and Kleszczewo interchanges to traffic prior to EURO 2012 Championship.

Management Board of Autostrada Wielkopolska S.A.