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

  • Road savvy WIM prolongs highways and saves nations vital cash
    May 28, 2013
    A leading WIM system manufacturer is playing a key role in efforts to reduce the number of overloaded trucks costing developing economies around the world billions of dollars in accidents and damage to roads, while another company has won a major contract in South America. Guy Woodford reports. The prevalence of overloaded trucks on the road networks of developing countries and the accidents and structural damage they cause wastes valuable, limited resources in some of the world’s poorest economies, diverti
    Read More
  • Construction machine sales to grow worldwide?
    October 28, 2016
    A slow but steady recovery in machine sales worldwide is likely in the next few years, with India being one of the key growth markets for the future. However, this comes after the construction equipment sector has seen significant downturns as well as other major changes worldwide in the last few years, according to David Phillips, managing director of Off Highway Research. He said, “The industry structure has really changed.” Global sales of construction machines were worth around US$93 billion in 2014
    Read More
  • Mostostal Warszawa makes lowest bids in Poland’s S9 tenders
    November 24, 2017
    A Mostostal Warszawa consortium has reportedly made the lowest bids to build three sections of the S19 from Nisko to Sokolow Malopolski in south-eastern Poland. The consortium’s bid was just over €187 million in total. Other bids which were received from a Strabag consortium and a Budimex consortium.
    Read More
  • Asphalt advances and industry innovations in paving
    May 20, 2014
    Asphalt paving technology continues to develop, benefiting from new technologies and new diesel engines - Mike Woof reports The asphalt paving equipment market is seeing the introduction of new low emission engines that will meet the Tier 4 Final regulations for Europe and North America. These have required some major engineering changes, with firms now having to install bulky exhaust after-treatment systems and additional cooling for engines and turbos.
    Read More

Highlighted Content