|GDDKiA is now looking for new contractors to finish the construction|
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Polimex-Mostostal will not complete the construction of two sections of the A1 and A4 highways, the General Directorate of National Roads and Motorways (GDDKiA) announced, Tuesday.
The reason for dissolving the contract were major delays the company has had with construction.
“New contractors will be selected for both roads,” Krzysztof Nalewajk of the GDDKiA told PAP.
Polimex-Mostostal won a tender back in 2010 to build 45 km of the A4 highway between Rzeszów and Jarosław in southeastern Poland and 40 km of the A1 highway between Stryków and Tuszyn in central Poland.
The construction of these roads will likely be delayed even further, until 2016.
In December, the Directorate also dissolved a contract with Polimex-Mostostal to build a section of the S69 expressway between Bielsko-Biała and Żywiec in southern Poland, also due to a major delay.
Last year the troubled construction firm managed to reach an agreement with its creditors, which helped save the company from bankruptcy. As of June 2013 Polimex-Mostostal had PLN 800 million in debt. The group is undergoing restructuring, selling non-essential assets and attempting to lower its debt.
As Polimex-Mostostal is a key player in several major energy projects, including a PLN 6 billion power block in Kozienice, government agencies have also come to the group’s rescue. The Industry Development Agency (ARP) has bought PLN 150 million worth of the firm’s newly issued shares.
On February 1 the firm is set to commence the construction of another major energy project – two power blocks in Opole for PGE worth PLN 11.6 billion, in consortium with Rafako and Mostostal Warszawa.
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