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25 Oct 2013

Roads to Ruin - Reuters reports on Polish road-building scheme

International news agency Reuters interviewed EIC director Frank Kehlenbach for a special report on the state of Poland's road-building scheme and why it hurts contractors.

In the report, Reuters outlines how Poland wanted to modernise its transport system with European construction firms winning contracts at a time of recession and the European Union helping with funding. However, due to design flaws and unfair contract conditions the situation has turned sour and several contractors are in legal battles to recover billions of euros.

In the report, Mr. Kehlenbach explained that when contractors encountered unforeseen problems and needed to adjust the project costs, the Polish agency would consistently reject any change and refuse to clarify the cost with the contractors. Instead, Polish authorities referred contractors to the courts.

Reuters also pointed towards a letter of complaint by the ambassadors to Poland of Austria, France, Germany, Ireland, the Netherlands and Portugal to Deputy Prime Minister Janusz Piechocinski. This letter was initiated by EIC/FIEC joint working group Poland, which was formed by the two federations in November 2012 in order to contribute constructively to avoiding a further deterioration of the situation.

Picture credit: lichtkunst.73  / pixelio.de

You can read the Reuters report online here.

A PDF version of the report is available here.