Decisions taken in the extraordinary general meeting of shareholders of LITGRID AB

The following decisions were adopted in the extraordinary General Meeting of Shareholders of LITGRID AB (company code 302564383, registered office at Viršuliškių skg. 99B, Vilnius) on 25 May 2020:

1.        Regarding approval of LITGRID AB Board’s decision No. 1 of 4 May 2020 (minutes No. 8)

1.1.          To approve the conclusion of the Implementation Phase Cooperation Agreement (IPCA) with PSE S.A. in the Harmony Link Interconnector Project under the following essential terms and conditions:

1.1.1.     Parties to the Contract – electricity transmission system operator of Lithuania - LITGRID AB and electricity transmission system operator of Poland - PSE S.A.

1.1.2.     Object of the Contract - terms and conditions of the cooperation between LITGRID AB and PSE S.A during the implementation phase of the Harmony Link Interconnector Project.

1.1.3.     Responsibilities of the Parties – LITGRID AB shall be responsible for conducting the procurement procedure for the HVDC Cable, selecting the contractor, concluding the bilateral works contract and managing its performance. PSE S.A. shall be responsible for conducting the procurement procedure for HVDC Converter Stations in Lithuania and Poland, selecting the contractor, concluding the bilateral works contract and managing its performance. LITGRID AB and PSE S.A. shall jointly procure the services of the Contract Engineer and conclude a trilateral contract on supervision of the works in the Project.

1.1.4.     Financing - LITGRID AB and PSE S.A. shall finance the Project under the principle of “50%:50%”. The project shall be funded by the Connecting Europe Facility (CEF) and the transmission system operators' own / borrowed funds. Upon agreement of the Parties, PSE S.A. shall act as the coordinating Party for the CEF financial aid. Final investment decisions shall be made by the Parties by May 31, 2021.

1.1.5.     Allocation of the Project costs between the Parties – Costs related to HVDC Converter Stations: LITGRID AB shall cover 100% of the costs incurred for construction of the HVDC Converter Station in Lithuania; PSE S.A. shall cover 100% of the costs incurred for construction of the HVDC Converter Station in Poland. Costs related to the HVDC Cable: LITGRID AB shall cover 100% of the costs incurred for construction of the Lithuanian onshore part of the HVDC Cable, PSE S.A. shall cover 100% of the costs incurred for construction of the Polish onshore part of the HVDC Cable, costs incurred for construction of the entire offshore part of the HVDC Cable shall be shared in equal parts - “50%:50%”.