Cernavoda-Medgidia Highway Segment To Cost Up To EUR170M

04.21.2011 ZF English

Completing the Romanian Cernavoda-Medgidia highway segment will cost between 500 and 700 million lei (EUR120-170 million), without VAT, according to public road authority CNADNR's new tender announcement, published after terminating the contract with French constructor Colas.

Completing the Romanian Cernavoda-Medgidia highway segment will cost between 500 and 700 million lei (EUR120-170 million), without VAT, according to public road authority CNADNR's new tender announcement, published after terminating the contract with French constructor Colas.

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.