Polimex-Mostostal drops ca. PLN 3.3bn motorway construction deals
January 15, 2014
Troubled builder Polimex-Mostostal and consortial partners terminated the agreements with Poland's road authority GDDKiA for the construction of stretches of A1, A4 and S69 motorways, Polimex said on Tuesday.
Polimex presented GDDKiA's failure to present payment guarantees in the amount of PLN 2 billion as the reason for terminating the contract.
The firm cannot provide data on financial effect of the terminations as they will be a subject of contention between Polimex and GDDKiA, Polimex said.
Polimex's statement follows an announcement by GDDKiA that the firm will not complete the north-south A1 and west-east A4 motorway contracts, which will be finished by new contractors to be selected soon, GDDKiA said on Twitter earlier on Tuesday. The tenders to select new contractors will be launched soon, the tweet read.
The A4 contract involves a PLN 2.2 billion project for building the Rzeszow-Jaroslaw motorway stretch in eastern Poland. Polimex holds 51% in the consortial deal signed in September 2010.
The A1 contract concerns a PLN 1.16 billion consortial project with the works to be completed in October 2014, according to the information on GDDKiA's website.
The S69 construction agreement was terminated by GDDKiA in mid-December.