Chinese Covec hampers A-2 freeway construction

July 15, 2011

Chinese builder China Overseas Engineering Group Co. (Covec) has appealed against the decision of the national road authority GDDKiA to select new contractors for stretches of A2 freeway between Warsaw and Lodz.
The Polish government canceled a contract for building the A2 freeway linking the Polish and German capitals Warsaw and Berlin with Covec-the first Chinese firm to win a major public works deal in the European Union.
Construction of a 50-kilometer stretch of the freeway stopped in May after the Chinese builder failed to pay Polish subcontractors.
The Chinese company, which claims it was treated unfairly by the Polish authorities, expressed intention to withdraw from the project, which was being carried out in consortium with Polimex-Mostostal and Budimex builders, on June 3.
Lawyers representing Covec have now filed a complaint with the Appeals Department of the Public Procurement Office, stating that by awarding of a commission to a second party without a tender GDDKiA has broken the public procurement law.
The Chinese company intends to complain against further decisions of the road authority to select contractors for subsequent stretches of the motorway.
The case may also end up in court.

Source: The Warsaw Voice