BUSINESS

Metrorex strikes penalties exemption agreement with Alstom

After months of negotiations, Metrorex and Alstom signed an agreement that will exempt the Bucharest subway operator from paying delay penalties worth RON 20.6 M for the debts cumulated during 2007-2010, while the French company will significantly lower the cost of the maintenance services it provides, Mediafax reports. Another modification of the contract refers to superimposing contract years to calendar years, starting January 1, 2011. So far, the contract started on July 1 and ended on July 30 next year. The changes are provided by an additional document to the contract that must be approved by the government, and will become effective on condition that Metrorex pays its debts for the services provided by Alstom during August-December 2009 and August-December 2010. Earlier this year, Metrorex general manager Gheorghe Udriste warned that, if a cost-cutting agreement is not reached, the contract with the French group might be terminated.

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