Transport Ministry Steps Up To Fire Highway Section Constructor

04.18.2011 By Gavrila Oana

Romania’s Transport Ministry has sent a contract termination notice to the constructor of a highway section linking capital Bucharest to Ploiesti, in southern Romania, because the builder left the site and raised its price 47%.

Romania's Transport Ministry has sent a contract termination notice to the constructor of a highway section linking capital Bucharest to Ploiesti, in southern Romania, because the builder left the site and raised its price 47%.

The 42.5-kilometer long Moara Vlasiei-Ploiesti highway section was under construction by Romanian the consortium of UMB Spedition, Pa&Co International, Euroconstruct Trading '98 and Tehnostrade.

"This is a prior notice to the termination of the contract for the Moara Vlasiei - Ploiesti section.

The constructor has left the site and is claiming a 47% price increase," Transport Minister Anca Boagiu said Monday.

Boagiu said new constructors will be selected in August, according to an analysis of the public roads authority (CNADNR).

UMB Spedition is owned by businessman Dorinel Umbrarescu, Pa&Co International is owned by Costel Casuneanu, and Euroconstruct Trading '98 is owned by Dan Besciu.

The consortium won the auction for the highway section in 2006 for an initial contract value of 702.58 million lei (EUR1=RON4.0869), net of VAT. In 2009, the price of works increased 25%, to RON883.7 million, net of VAT. The works are financed from the state budget.

"The contractor has not worked on the highway section for over 16 months, blocking the necessary resources," the roads authority said in a statement, adding the contract will be terminated.

The authority added the construction project will be revised and new auction documents will be ready in about one month.