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.

For more information on companies in this article

Related Content

  • Russia to commission new Moscow-St Petersburg highway by 2020
    June 20, 2017
    Final delivery of the final stretch for Russia’s key highway project looks set to be delayed – Eugene Gerden writes. I now looks as if Russia’s most ambitious project in the field of road building in recent years, the building of a new high-speed road link between Moscow and St Petersburg, the country’s largest cities, will not be complete in time. The project was set up by the Russian government and several private investors. According to initial state plans, building of the new road should have been compl
    Read More
  • St Petersburg ring road row
    May 30, 2012
    A LEGAL dispute is now underway in Russia over the St Petersburg ring road project. Construction company Flora was awarded a €187.6 million contract for an 11km section of the ring road in 2008, winning the tender by making the lowest bid. However, the Russian authorities have taken the contract for this section of the ring road away from Flora claiming it did not meet set targets. Flora is disputing the loss of the contract with the authorities.
    Read More
  • China looking to export construction machines
    March 16, 2012
    Chinese firms are looking to develop overseas sales but are using very different strategies – Mike Woof reports. Aggressive expansion plans will see Chinese manufacturers boosting overseas sales in coming years. These companies are developing bigger sales profiles around the world, particularly in emergent markets such as Africa, the Middle East and Latin America. It is worth noting too that Chinese products continue to gain in terms of quality and performance. For LiuGong, Sany, Shantui, XCMG and Zoomlion
    Read More
  • Poland highway tender process opening
    January 3, 2017
    The tender process is opening in Poland for a stretch of highway connecting Napierki with Mlawa. This 14km stretch of the S7 dual carriageway is the first of four sections of the route to be offered for tender. The bidding process for the project is being managed by the Polish General Directorate for National Roads and Motorways (GDDKiA). Bids have to be received by the 21st February 2017, with 18 firms having been invited to tender for the work. The total value of the work to construct the four sections of
    Read More

Highlighted Content