Tallinna Vesi
Sewerage and stormwater construction agreement amendments
Tallinna Vesi / Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- On 30 November 2007 AS Tallinna Vesi announced the details of a contract it had signed with the City of Tallinn to construct and finance the sewerage extension programme. When this contract was signed in November 2007 the construction prices were significantly higher than today. These higher costs were reflected in the compensation payable by the City of Tallinn, and consequently led to a compensation period that was longer, with the City of Tallinn having the obligation to compensate the Company until 2017 for the sewerage system that had to be built by 2011. Today the Company has concluded an amendment to one part of this agreement with the City of Tallinn. This amendment reflects the reduction in construction prices, the current macroeconomic situation and the good cooperation between the parties. As a result of the reduction in construction prices incurred by the Company the compensation payable by the City of Tallinn for sewerage extensions will reduce, the City will now pay a development component of 0 EEK per m3 in November and December 2009 and 8.75 EEK per m3 thereafter instead of current 9 EEK per m3. As a consequence of this reduction the parties have agreed to shorten the compensation period by 3,5 years to June 2014. AS Tallinna Vesi has also agreed a change in the payment profile for stormwater constructions, initially the City paid 53 million kroons each year based on the construction costs of the program during 2008-2011, whereas now they will pay based on a four year payment plan until the end of 2012. Compared to the original contract signed in November 2007 the impact of all these changes is not material on the financial results of the Company. None of this will affect the construction of the sewerage system, which is still planned to be completed by 2011. Priit Koff Head of Communications +372 6262209 priit.koff@tvesi.ee News Source: NASDAQ OMX 29.07.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Tallinna Vesi Estonia Phone: Fax: E-mail: Internet: ISIN: EE3100026436 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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