Ferrovial, Técnicas Reunidas and the Japanese company Mitsubishi Power have received a new sanction from PGE, Poland’s main electricity operator, in the context of the dispute between them over the contract to expand a coal-fired power plant in the country. The amount of the claim amounts to 356.85 million zlotys (80 million euros at the current exchange rate). This is an additional amount to which in 2022 PGE already sued the consortium, for 122 million euros, for delays in the delivery of the works.
On this occasion, PGE has sent a debit note to Budimex, the Polish subsidiary of Ferrovial, Técnicas Reunidas and Mitsubishi for, in its opinion, failing to comply with some conditions of the exploitation agreement during the guarantee period. According to the contracting authority, this applies to the period from May 31, 2021 to October 30, 2024. The Polish electricity operator warns that the consortium did not correct the defects in the technological equipment in time.
In the 2022 lawsuit, PGE argued that the penalty responded to the consortium’s contractual failure to ensure that the plant was available during the first year of warranty, something that would not have occurred after the production unit had to be stopped for several days in 2021.
Ferrovial, Técnicas Reunidas and Mitsubishi delivered the facilities in May 2021, six months later than initially agreed. This delay is contextualized in the Covid-19 pandemic, which affected the development of the works. However, the parties had agreed on an extension for this period, as the sanction would respond to the interruptions in service that occurred in October 2021.
Both Ferrovial and Técnicas Reunidas then rejected PGE’s claim. Now Budimex also considers that the new penalty is “unjustified”, so it will not recognize it in its books either. The Polish company also ensures that within its participation in the consortium, it is not responsible for the supply of key technological equipment. Ferrovial, Técnicas Reunidas and Mitsubishi were awarded the contract to expand the Turów plant, located in southwestern Poland, in 2014 for an amount of 770 million euros. Budimex and Spanish engineering share around 45% and the Japanese multinational holds 55%.
360 million contract
On the other hand, Ferrovial continues to expand its portfolio of works in Poland. Budimex and the Turkish company Gülermak have signed the award of the contract, valued at 1,552 million zlotys (almost 360 million euros), with the General Directorate of National Roads and Highways for the design and construction of the Jaworni -Lutcza section of the S19 highway , with a length of 5.25 kilometers.
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