Signing of the agreement for the construction of power units in DolnaOdra power plant

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")discloses that on January 30, 2020 PGE Górnictwo i EnergetykaKonwencjonalna S.A. ("PGE GiEK S.A."), a subsidiary of PGE, concluded anagreement (the "Agreement") with syndicate of companies: GeneralElectric Global Services GmbH, Polimex Mostostal S.A. and GeneralElectric International Inc. (later referred to as the "Contractor").

Subject matter of the agreement is realisation by the Contractor ofturn-key construction of two gas-steam units with a gross capacity of683 MWe each at PGE GiEK S.A. Branch Zespół Elektrowni Dolna Odra (Unit9 and Unit 10). The units will be in CCGT technology.

In accordance with the provisions of the Agreement, the commissioning ofboth units is to take place by December 11, 2023.

The value of the Agreement for construction of units, includingautostart option, amounts to PLN 3 701 092 633.13 net. In connectionwith the Agreement, a LTSA (Long-Term Service Agreement) was also signedwith regard to service of two gas turbines during 12-year period fromthe commissioning date of the units. The value of the LTSA amounts toPLN 1 030 053 269.69 net. Total value of all concluded agreementsamounts to PLN 4 731 145 902.82 net (PLN 5 819 309 460.47 gross).

The Agreement provides for contractual penalties for the Contractorrelated to, among others, failure to meet the deadline for commissioningof the units, failure to comply with the guaranteed rated capacity,failure to deliver the guaranteed level of availability, and failure todeliver the guaranteed average net efficiency of the unit. The total sumof contractual penalties resulting from all titles provided for in theAgreement will not exceed 25% of the net value of the Agreement.

In case of withdrawal from the Agreement in whole or in the scope of thenon-performed part for reasons for which one of the parties is liableunder the Agreement, the other party shall be entitled to charge theresponsible party with a contractual penalty of 10% of the value of theAgreement.