Builders Pledge To Resume Work On S Romania Highway Sector

05.25.2011 By Bostan Radu

Romania's Transport Ministry will not terminate the contract with the constructor of the Moara Vlasiei-Ploiesti highway section, as the consortium has withdrawn its request for a 47% price increase, minister Anca Boagiu said Wednesday.

The ministry was planning to terminate the contract as the UMB Spedition-Pa&Co-Euroconstruct Trading '98 consortium asked for the contract value to be increased by 47% and had left the construction site 17 months ago, said Boagiu.

UMB Spedition and then the other companies withdrew their request for more money and committed to completing work on time. The deadline stands as provided by the contract - December 15.

National road authority CNADNR has so far paid the consortium 671 million lei (EUR162.5 million), VAT included.

The Moara Vlasiei-Ploiesti sector is 42.5 km long. The consortium was awarded the contract in 2006, with an initial price of RON702.58 million, net of VAT. In 2009, the price was increased by 25%, to RON883.7 million, net of VAT. The work is financed from the state budget. (EUR1=RON4.129)