Romanian Public Road Authority Claims EUR40M In Penalties From Contractors

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Colas (France), which was contracted to build the Cernavoda-Medgidia highway segment, was ordered to pay EUR16.08 million as penalties for failing to expropriate land and delays in designing an alternative route and obtaining construction authorization, the Transport Ministry said in a press release. The ministry terminated the contract with Colas over these problems.

The FCC Construccion-Astaldi (Spain-Italy) consortium, working on the Constanta beltway, is liable for EUR12.38 million for „utility relocation, requiring additional land.”

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FCC, in consortium with German firm Porr Technobau, has been asked by CNADNR to pay EUR1.59 million for delays in the design and construction of the Arad beltway.

CNADNR claims EUR8.23 million from the Egis Route-Egis BCEOM partnership, working on the Timisoara-Arad highway segment, for problems with the construction plan, changing the project without the authority’s permission, lack of utility identification in the auction papers, errors in cadastre documentation.

The authority said Astaldi, which is working on the national road between Arad and Oradea, has received a deposit it could not justify through work completed by the end of 2009 and has been ordered to pay penalties of EUR1.5 million.

The Carena-Tunele Brasov partnership, which is overdue on its work on a bridge, is asked to pay EUR13,458.

Other companies liable for more than EUR10,000 are Egis Romania and WSP Sweden.

The ministry also mentions EUR2.15 million won in arbitrage from Secol, over a contract to restore national road DN65 and certain projects financed by the International Bank for Reconstruction and Development.