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October 5, 2022

Terminated construction contracts get precedence over running ones

The Ministry of Transport decided to terminate the contract for the Cernavoda-Medgidia motorway, which leaves Romania in a situation where the length of motorway segments whose contracts were terminated exceeds that of the motorways in construction, ‘Romania Libera’ newspaper reports.

The contract signed with COLAS, a subsidiary of the French giant Bouygues (EUR 5.6 bln in turnover last year) for the Cernavoda-Medgidia motorway segment (20 km) has been recently terminated by Transport Minister Anca Boagiu. Thus, the motorway which the minister promised would connect Bucharest to the Seaside this year enters a long list of discontinued projects, together with the 173 km-long Bucharest-Brasov motorway (concession contract terminated in 2005), Comarnic Brasov (55 km, terminated in 2010), the Sibiu ring (23 km, terminated in 2007). Only 100 km were completed after 2005, consisting in the Drajna-Fetesti segment (33 km), the rings around Sibiu and Pitesti, and the Turda-Gilau segment (50 km).

Unlike the contracts signed under the law of public acquisitions, the contract for this motorway has been signed under FIDIC (International Federation of Consulting Engineers) rules. This type of contract forced the Transport Ministry to strictly observe all its provisions, which was not the case. The feasibility study was conducted for a wrong route, which crossed a number of archeological sites, the Constanta County Council constantly refused issuing the urbanism certificate, and the expropriations due to be arranged by the Bostina law firm have not been completed. If upcoming talks between the two parties in the contract will not end with an agreement about compensations, Romania will go to an international court of arbitration, the quoted newspaper reads.

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