Construction of Polish roads under threat

Italian companies responsible for the construction of Polish roads are demanding additional hundreds of thousands of zlotys due to an increase in price of building materials. If this demand is not fulfilled, the Italian companies are ready to terminate works on some of Poland’s most important roads.

Graphics above: Green - Highways constructed, Red - under construction, Grey - planned (as for 21.12.2018) source: GDDKiA

Italians have demanded PLN 1.215 bln from the Polish General Directorate for National Roads and Highways (GDDKiA). The sum is meant to be an addition to the earlier signed contracts. The companies in question are Salini Impreglio and Impresa Pizarotti, who are currently constructing nine segments of Polish roads. 

The companies argue their case due to the increase in price of building materials. Salini has claimed losses of up to PLN 100 mln.

The contracts with Salini were signed for PLN 3.54 bln and the company is demanding a further PLN 449 mln. In the case of Pizarotti, the contracts were signed for PLN 1.65 bln and their demands amount to PLN 776 mln. 

The Italian companies have threatened to not finish the road construction if they are not paid by March 15th

Rejected demands

The GDDKiA has rejected these demands and underlines that it will not negotiate such high additions. The directorate claims that their contracts do not foresee such additional payments and warns, that terminating works on the roads will result in high fines amounting to hundreds of millions of PLN. 

The fines, however, may turn out to be much less than the costs of continuing the work for the Italian companies. GDDKiA argues that a company signing a contract must keep in mind that building material prices may rise.

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