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

  • Legal step for Czech tunnel project
    April 23, 2014
    The torturous legal case regarding the stalled Blanka Tunnel project in the Czech Republic has taken one step forward. An arbitration court in the country has ruled that the tunnel has to be completed within five months' time. The construction work was halted earlier due to a dispute between the contractor and the city authorities. The tunnel is required to help reduce traffic congestion in the Czech capital Prague with work having commenced in 2007. The project was originally supposed to be ready for traff
    Read More
  • Poland's big transport plans
    July 6, 2012
    The European Investment Bank (EIB) looks likely to grant Poland a loan of €1.6 billion to carry out several key infrastructure projects. Some of the money will be used to finance the A2 highway from Lodz to Warsaw; Warsaw's southern ring road and a 50km section of the A4 highway to link with Germany.
    Read More
  • Minimising the problems of construction disputes
    September 30, 2013
    *Nigel Grout discusses methods for minimising the risk of potential legal issues in construction projects Disputes and the construction industry are synonymous with each other. In a climate of economic downturn, the prevalence of major disputes will continue to be high as parties are unwilling or not able to compromise to reach a settlement. According to the latest ‘Global Construction Disputes’ report by EC Harris, the global average value of a construction dispute in 2012 was nearly US$32 million.
    Read More
  • Polish deal done
    February 29, 2012
    The Hermann Kirchner consortium will build a 20km section of Poland's S8 express road linking Walichnowy and Zloczew.
    Read More

Highlighted Content