Approval of the offer by the consortium of General Electric and Polimex for construction of CCGT units in Dolna Odra power plant

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that on January 3, 2020 the Management Board of PGE Górnictwo i Energetyka Konwencjonalna S.A. (“PGE GiEK”, PGE’s subsidiary) has decided to accept the offer of the consortium consisting of General Electric Global Services GmbH (Consortium leader), Polimex Mostostal S.A. and General Electric International Inc. submitted in the proceeding “Construction of two CCGT units in PGE GiEK S.A. Branch Zespół Elektrowni Dolna Odra”. Net value of the offer for the construction of units amounts to approx. PLN 3.70 billion and the related 12-year service agreement to approx. PLN 1.03 billion.

The conclusion of the contract for the construction of units is planned until the end of February 2020. The project start date will be determined after the conclusion of the contract and after the elaboration of a detailed task implementation schedule. With accordance to the conditions set out in the in the Terms of Reference, PGE GiEK S.A. expects that the commissioning of the new units will take place in December 2023. The Management Board of PGE indicates that the planned CCGT units in Dolna Odra power plant were among the generating units that obtained a 17-year contract in the main capacity market auction for delivery year 2024.