Romanian Cernavoda-Medgidia Hwy Segment To Cost Up To EUR170M

The contract, for the design and construction of almost 20 km of highway, will run for one year, plus a two-year warranty. The tender procedure will begin on May 30.

Financing will be provided by the European Investment Bank, non-refundable community money and the state budget.

Colas was awarded the RON634 million (without VAT) contract for the construction of the Cernavoda-Medgidia segment in November 2008. The company cashed RON97 million, including VAT. The contract was terminated by CNADNR in April 2011, citing Colas' failure to expropriate land and delays in designing an alternative route and obtaining construction authorization.

In response to Transport Minister Anca Boagiu's announcement about the contract's imminent termination, Colas said in March that it was given authorization and the land for only 6 km and was waiting for the official decision on the remaining 14 km.

The contract's value was calculated using the central bank's Wednesday exchange rate of 4.0868 lei to a euro.

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