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January 23, 2022

Canceling contract with Bechtel means paying damages of up to EUR 200 M

Although the Transylvania Highway project is the most controversial contract signed by Romania, a project through which Bechtel won approximately EUR 1.3 bln for building 52 kilometers of highway, Dan Sova, the delegated minister for infrastructure projects, forgot that the contract signed by the National Highway Company and Bechtel contains certain clauses with the help of which the American company could obtain a minimum of EUR 100 M before leaving, money.ro informs. “Most of the clauses are not favorable for the Romanian state. If an agreement to cancel the contract with Bechtel is reached, the Ponta Government will have to bear the cost of the equipment and materials ordered for the 64 kilometers of highway, between Suplacu de Barcau and Borsu, a section of highway that Bechtel still has to build. The National Highway Company will have to cover the costs for the repatriation of the personnel and work force used on the Suplacu de Barcau – Bors section too. The Romanian state will also bear the cost of canceling the contracts signed with subcontractors. If Americans stand their ground we will lose EUR 100-200 M just to get rid of Bechtel,” an unnamed National Highway Company employee stated.
At the same time, although works on the Suplacu de Barcau – Bors section of the Transylvania Highway started in the summer of 2004, less than half of the project has been completed. “The works are not being conserved and are falling into disrepair. Approximately EUR 250 M was invested in construction works that fell into disrepair. Tens of millions of Euros will have to be invested to restore the construction works that fell into disrepair. If a cancelation agreement is reached no constructor will be allowed to work on the site for at least a year. The National Highway Company can sign a new contract only after mid-2014,” the National Highway Company employee added.

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