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New Bechtel contract approved by Government

The Government has approved the new contract with U.S. company Bechtel for building the Transylvania Motorway. According to the executive, the costs fell by almost 50 percent, the economy rising up to six billion.

New Bechtel contract approved by Government
A section of the Transylvania Motorway. Photograph: Agerpres.

Articol de Petruţa Obrejan, 30 Septembrie 2011, 13:56

According to the executive, the modification of the contract with the Bechtel company allows significant reductions in the costs of building the Transylvania Motorway, and also the auctioning of the new sections.

Even more, according to the Minister of Transport, Anca Boagiu, at this time, the budget economy amounts to almost six billion euro.

According to Anca Boagiu, the main provisions which have suffered modifications and also brought substantial savings are "reducing the object of the contract by the six sections that have not been started, resolving the claims raised by the company, the 380 million euro claims have been reduced to 265 million".
Furthermore, Anca Boagiu said that even the payment terms were changed.

"We were obliged to pay any invoice within 25 days, now we will be paying within 65 days. All the provisions regarding the index and indirect costs have been eliminated”, AncaBoagiu said.

Also, the Minister of Transport said that the old contract contained a provision according to which " working or not, they were entitled to receive one million euro every month".

If the work on Transylvania Motorway would have been continued at the initial contract prices, the total project cost would have been10 billion euro.

Translated by: Anca Toma
MA Student, MTTLC, BucharestUniversity

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