Legal tangle over Polish highway project

The complex legal tangle over Poland's troubled A2 highway project is continuing to develop.
February 29, 2012 Read time: 1 min
The complex legal tangle over Poland's troubled A2 highway project is continuing to develop. The Polish road authority, 1361 GDDKiA, has launched a legal bid for compensation from the Chinese construction firm 2487 COVEC, which had a contract to build a number of sections of the highway. COVEC was hit by spiralling materials costs once work started and was forced to relinquish its contract for the project by the Polish authorities after failing to meet construction deadlines. However COVEC has also launched a counter-suit against GDDKiA for compensation for its losing the contract. The size of COVEC's compensation claim from GDDKiA has not been revealed. However GDDKiA is said to be asking for ?200 million compensation from COVEC. The legal case looks likely to rumble on through the Polish courts for some time. There is also a risk of further or additional action in Europe's courts from other parties involved in this complex legal dispute. COVEC is a subsidiary of 890 China Railway Group Limited.

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