Current report no. 26/2015
Title:
Conclusion of the sales contract of tractors, trailers and spare parts of the value 31 million USD
Legal basis:
Art. 56 sec. 1 point 2 of the Act on Public Offering – current and periodical information
Message:
With reference to the current report no. 25/2015, the Management Board of the Issuer hereby informs that on 26 August 2015 URSUS S.A. concluded with The Federal Democratic Republic of Ethiopia (FDRE) SUGAR CORPORATION (Ethiopian Sugar Corporation) the sales contract of cane haulage tractors, tandem cane haulage trailers and spare parts thereof.
The total value of the concluded contract is 30.672.075,00 USD. Ethiopian Sugar Corporation accepted the technical and financial proposal submitted by the Issuer in the offer to the Tender No. FP/OT/19/SC 2014/15.
On the basis of the concluded contract the Issuer will supply to the buyer 174 tractors and 390 trailers, as well as he will assure spare parts for the machines. Deliveries within the contract implementation will take place in the fourth quarter of 2015 and the first quarter of 2016.
Ethiopian Sugar Corporation has the right to give additional order for the subject of the agreement up to 25% of the contract value till 30th September 2015, according to the prices stipulated in the sales contract.
The contract shall enter into force 15 days after the date of its approval of the Ministry of Finance of the Republic of Poland, according to the terms of the Agreement between the Government of the Republic of Poland and the Government of the Federal Democratic Republic of Ethiopia on extending a tied aid credit, dated 20th March 2015.
All payments for goods being subject of the contract will be effected in accordance with the above-mentioned intergovernmental agreement and the terms of the banking arrangements to be entered into between Bank Gospodarstwa Krajowego (BGK) and Ministry of Finance and Economic Development of the Federal Democratic Republic of Ethiopia or its authorized representative within 30 days from entering into force of the credit agreement.
The payments under the contract shall be made as an advance payment of 40% of the contract value, i.e. in the amount of 12.268.830 USD, while the remaining amount of 60%, i.e. 18.403.245 USD, shall be paid in three installments following the submission of the appropriate transport documents after shipment of the goods.
The provisions of the above-mentioned contract provides for contractual penalties in the event of delays in delivery of the subject of the contract over two weeks from the agreed delivery dates, in the amount of 0,1% of the value of the delivered lot for each week of delay. Moreover, the contract provides for contractual penalties for Ethiopian Sugar Corporation for delay in issuing the authorization to BGK to make payments for URSUS S.A. After two weeks after the due date, Ethiopian Sugar Corporation shall pay shall contractual penalties in the amount of 0,1% of the due payment amount for each week of delay.
The Issuer is obliged to furnish in favor of Ethiopian Sugar Corporation the unconditional performance security in the amount of 10% of the contract value, within 21 days from the date of its entry into force.
Any disputes arising out of or in connection with the contract shall be settled by International Chamber of Commerce - International Court of Arbitration in Paris. The contract shall be interpreted and enforced in accordance with the laws of Ethiopia.
Other provisions of the concluded agreement do not differ from the terms commonly used in this kind of agreements.
The agreement is considered material due to the fact that its total amount exceeds 10% of the Issuer’s equity.
