Decisions adopted at the Extraordinary General Meeting of Shareholders of LITGRID AB

The following decisions were adopted at the Extraordinary General Meeting of Shareholders of LITGRID AB (company code 302564383, registered address at Karlo Gustavo Emilio Manerheimo st. 8, LT-05131, Vilnius) which was held on 13th September 2024:

1) Regarding the adoption of financial investment decision for the project Construction of the Harmony Link Interconnector

1. To approve the 22 August 2024 LITGRID AB decision of the Board, in accordance with Clause 5.3 of the 12 July 2024 Harmony Link Cooperation Agreement (hereinafter - HLCA), concluded between the Polish electricity transmission system operator PSE. S.A. (hereinafter - PSE S.A.) and LITGRID AB on the basis of the 10 July 2024 decision of the LITGRID AB Board, to adopt a Financial Investment Decision (FID) for the implementation of the technical solution for the overland link of the project "Construction of the Harmony Link Interconnector" in the territory of the Republic of Lithuania (hereinafter - the Project), as well as adopt the following essential terms and conditions of the financial investments:

1.1. The object of the investment is the implementation of the Project, which consists of:
1.1.1. the construction of the new double circuit 220kV alternating current (AC) over-land cable/overhead interconnection between the Polish-Lithuanian border and the substation Gižai 330/220/110kV;
1.1.2. the construction of the substation Gižai 330/220/110/10 kV in Lithuania.
1.2. The maximum estimated budget for the Project shall be EUR 220 030 000;
1.3. The expected amount of EUR 147 232 471,5 shall come from CEF funding, with 75 % pro-rata share of the estimated eligible costs.

1.4. The estimated duration of the Project - 30/06/2031.
2. Taking into account that the Amendment No. 2 to the CEF Grant Agreement No. INEA/CEF/ENER/M2020/2226437 entered into force on 26 July 2024, Clause 1 of this Decision shall enter into force upon the occurrence of both of the following circumstances:
2.1. PSE S.A. adopts a corresponding positive Financial Investment Decision;
2.2. The 26 May 2020 Cooperation Agreement for the Implementation Phase of the Submarine Poland-Lithuania HVDC Harmony Link interconnector project (hereinafter - IPCA), concluded between LITGRID AB and PSE S.A., is terminated.

3. If LITGRID AB fails to fulfil its obligations under the HLCA, LITGRID AB may be liable for up to EUR 100 million in direct damage suffered by PSE S.A.

2) Regarding the termination of the 26 May 2020 Cooperation Agreement for the Implementation Phase of the Submarine Poland-Lithuania HVDC Harmony Link interconnector project

2.1. To approve the 22 August 2024 decision of the LITGRID AB board to terminate the Cooperation Agreement for the Implementation Phase of the Submarine Poland-Lithuania HVDC Harmony Link interconnector project (IPCA), which was concluded on 26 May 2020 on the basis of the 4 May 2020 decision of the Board of LITGRID AB (Minutes No. 8, Item No. 1) between LITGRID AB and the Polish electricity transmission system operator PSE S.A., which was approved by the 25 May 2020 decision of the LITGRID AB Extraordinary General Meeting of Shareholders decision (Minutes No. 2, Item No. 1).

3) Regarding the declaration of the 23 April 2021 decision of the LITGRID AB Board null and void

3.1. To approve the 22 August 2024 LITGRID AB decision of the Board to declare the 23 April 2021 decision of the LITGRID AB Board "Regarding the adoption of the investment decision for the implementation stage of the Harmony project and the convening of an Extraordinary General Meeting of Shareholders" (Minutes No. 13, Item No. 10), which was approved on 17 May 2021 by the Extraordinary General Meeting of Shareholders (Minutes No. 3, Item No. 1), null and void.

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