Chinese allowed to continue A2 construction

Chinese worker at A2 construction site. Photo: PAP/Grzegorz Michalowski

Deputy head of the Directorate, Andrzej Maciejewski told Polish Radio that the firm would only be allowed to return to the construction site as per the terms of the contract signed two years ago.

“There is no chance of any revaluation of the contract or any unjustified price hikes,” Maciejewski said, adding that “when the [the Directorate’s] decision becomes comes into force in two weeks’ time, COVEC will be able to return to the construction site.”

If the Chinese-led consortium does not return to the site, however, a new contractor will be found to continue the work on the A2 highway, Maciejewski stated.

COVEC itself is surprised at the decision, stating in a release that it “is still counting on a breakthrough in negotiations.”

Last Wednesday, the General Directorate for National Roads and Motorways and representatives from the troubled COVEC consortium held talks on whether the Chinese firm would ultimately abandon works.

If COVEC returns to the construction site, it will have to renegotiate terms with the majority of its subcontractors and suppliers.

The consortium has announced that if it were to return to the site, however, then “there has to be better communication between the contract engineers, investor, as well as the general contractor,” adding that the firm should be treated in the same way as the other general contractors working on the A2.

On Monday, the General Directorate for National Roads and Motorways announced that COVEC had withdrawn from the terms of the contract.

Maciejewski stated that the Directorate will also demand a sum of 741 million zloty (188 million euro) in compensation for not fulfilling the contract, as well as a 130 million zloty fine for withdrawing from its terms.

Meanwhile, banks which have guaranteed the contract with COVEC have confirmed that they will pay out any fines arising from the terms of the contract. (jb)