Overview of LITGRID AB's Recent Shareholder Meeting
The Extraordinary General Meeting of Shareholders for LITGRID AB recently convened to conduct important business. This meeting brought together stakeholders eager to discuss key decisions impacting the company’s growth trajectory. During this assembly, the shareholders took decisive actions which will guide LITGRID AB as it progresses towards its operational goals.
Approval of Reconstruction Project
Contract Conclusion Details
At the forefront of the discussions was the approval of the contract regarding the "Reconstruction of the 330 kV overhead line Tytuv?nai-Kaunas." This contract stipulates critical terms and conditions essential for the execution of the project. A significant factor in this decision-making process was the collaboration with the suppliers AS “Connecto Infra” and UAB “Connecto Lietuva,” ensuring that the expertise of well-established companies is leveraged.
Key Terms of the Contract
The detailed provisions of the contract highlight crucial elements of the project. The primary parties involved include LITGRID AB and its suppliers, each bringing their unique competencies to the initiative. The project aims to upgrade and maintain the vital infrastructure that supports energy transmission and distribution across the region.
To facilitate the project, the completion timeline is set at 1,370 days, with significant milestones divided into two stages. The first stage will conclude within 620 days, while the second stage wraps up by the end of the complete timeframe.
Financial Aspects and Payment Structures
Contract Pricing and Payment Procedure
In financial terms, the total contract price is established at EUR 42,493,742, excluding VAT. This figure underscores the financial commitment LITGRID AB is making towards enhancing its infrastructure. The payment structure is designed to ensure that payments align with the achievement of predefined milestones, helping to facilitate accountability and transparency throughout the project's duration.
Additionally, there are clear stipulations regarding advance payments and payment procedures. LITGRID AB will reserve a 10% advance based on the initial contract price, ensuring that contractors have the necessary funding to kickstart the project effectively.
Modifications and Price Revisions
As with any significant project, potential fluctuations in pricing are anticipated. The contract includes provisions that allow for adjustments based on changes to the construction input price index. This flexibility will ensure that the project remains financially viable under varying economic conditions. Revisions due to changes in laws and regulations are also detailed, emphasizing LITGRID AB's commitment to compliance and adaptability.
Security and Performance Assurance
Contractual Security Measures
To safeguard the integrity of the project, a performance security equivalent to 10% of the contract price is mandated. This measure protects the company's investments while ensuring that all parties involved are accountable for their obligations.
Moreover, compensation for any delays has been specified, further entrenching a culture of punctuality and efficiency. The inclusion of a warranty period assurance for the construction work demonstrates LITGRID AB’s dedication to quality and sustainable infrastructure development.
Empowering Leadership Decisions
Authority Delegation to the CEO
As part of the resolutions, shareholders authorized the Chief Executive Officer of LITGRID AB to negotiate and finalize non-essential terms of this critical contract. This step is vital as it empowers leadership to make timely decisions that can further enhance operational efficiency.
Contact Information for Further Inquiry
For interested parties seeking additional information, they can reach out to Jurga Eivait?, the Communications Project Manager at LITGRID AB. She is available via phone or email, ensuring that shareholders and stakeholders can engage directly regarding this significant development.
Frequently Asked Questions
What was the main decision made at the meeting?
The primary decision was the approval of the contract for the reconstruction of the 330 kV overhead line with AS “Connecto Infra” and UAB “Connecto Lietuva.”
How long is the project expected to take?
The project is set to be completed within 1,370 days, divided into two stages for effective management.
What is the total contract value?
The total contract price is established at EUR 42,493,742, excluding VAT.
Who oversees the execution of the contract?
The Chief Executive Officer of LITGRID AB has been tasked with overseeing the contract's execution.
Where can I find more information?
Individuals seeking further insights can contact Jurga Eivait?, the Communications Project Manager of LITGRID AB.
