Romania Insider

Romanian state, damaged with EUR 0.5 bln by Bechtel contract

The Romanian state took a EUR 526 million damage from the contract with U.S. company Bechtel for building the Transylvania highway, according to a report of the Finance Ministry dating from December 2016, reports local News.ro.

Of this sum, some EUR 300 million were payments that the state, through the National Highways Company made to Bechtel without a legal basis, and EUR 227 million represents interest and penalties added to those sums, according to the Finance Ministry.

The contract for building the 415-km Transylvania highway was awarded by the Romanian Government led by Adrian Nastase to U.S. group Becthel in 2003. The contract had an initial value of EUR 2.2 billion and the highway should have been completed in 2012. However, work on the highway was delayed and the contract was was modified with several addendums.

The Romanian Government cancelled the contract in 2013 after paying some EUR 1.2 billion to Bechtel. The U.S. group only finalized a 52-km segment of the highway.

Romanian prosecutors close investigation on missing highway contract with Bechtel

editor@romania-insider.com

Normal
Romania Insider

Romanian state, damaged with EUR 0.5 bln by Bechtel contract

The Romanian state took a EUR 526 million damage from the contract with U.S. company Bechtel for building the Transylvania highway, according to a report of the Finance Ministry dating from December 2016, reports local News.ro.

Of this sum, some EUR 300 million were payments that the state, through the National Highways Company made to Bechtel without a legal basis, and EUR 227 million represents interest and penalties added to those sums, according to the Finance Ministry.

The contract for building the 415-km Transylvania highway was awarded by the Romanian Government led by Adrian Nastase to U.S. group Becthel in 2003. The contract had an initial value of EUR 2.2 billion and the highway should have been completed in 2012. However, work on the highway was delayed and the contract was was modified with several addendums.

The Romanian Government cancelled the contract in 2013 after paying some EUR 1.2 billion to Bechtel. The U.S. group only finalized a 52-km segment of the highway.

Romanian prosecutors close investigation on missing highway contract with Bechtel

editor@romania-insider.com

Normal
 

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