Transport Ministry To Launch Auction For Cernavoda-Medgidia Highway Section

05.27.2011 By Tudor Ioana Raluca

The Romanian Transport Ministry will launch an auction next week to award a new contract for the design and construction of the Cernavoda-Medgidia highway section, in southeastern Romania.

The ministry estimates the contract will be signed in August.

Transport Minister Anca Boagiu said Friday the contract will run for 15 months (three months for design and 12 months for construction work).

The minister said the auction winner will have to present six intermediary construction deadlines.

"If they fail to observe deadlines, they will be forced to pay penalties amounting to EUR500,000, plus 0.1% of the total value of the contract per day for the entire period of delay," said Boagiu.

Initially, the construction contract for the Cernavoda-Medgidia highway section had been awarded to French constructor Colas. The Transport Ministry cancelled the contract in April as the constructor asked for extra EUR8 million to carry out works, after the highway's route had been changed.

According to the national roads authority CNADNR, construction work on the Cernavoda-Medgidia highway section will cost between 500 million lei (about EUR121 million) and RON700 million, VAT excluded. (EUR1=RON4.1315)