Main reason which is not mentioned here is the fact that Chinese are boycotted by suppliers who do not supply them sufficiently with products needed for road construction. Especially they are boycotted by concrete producers ( international corp with mixed polish capital ).
Yes, I have heard about it. The suppliers decisively deny any wrongdoings.Highway A2: negotiations are so secret that it is not known whether they actually happenedAccording to unofficial information GDDKiA wants to entrust the completion of the A2 to other companies, without the tender.
Minister of Infrastructure Cezary Grabarczyk argued yesterday in parliament, the Sejm, that the roads are being built at a good pace. The Sejm, however, has not heard any specifics on the situation on the two key sections of the highway between £ódź and Warsaw, which the Chinese want to abandon.
Completing the work without going through a tender would not be a precedent. For example, the city of Wroclaw has removed an original contractor from stadium construction and entrusted the work to another contractor. This decision was taken to the European Commission and the eventual defeat of Wrocław will mean massive damages to be paid.
The presidents of the largest construction firms, interviewed by our editorial staff, responded that it is still possible that the highway will be usable in June 2012.
- This would mean entering the construction site in the next dozen or so days and starting working on three shifts - says President Bu-dimex Mark Blocher. Unofficially, we have heard that in such scenario the cost of construction will grow up by 600 million to 1 billion more than the price of 1.3 billion, negotiated with the Chinese.
There are growing doubts about the credibility of the COVEC. We have no contact with them, but the Polish PR company, which works for them, argues that - according to a reputable website of the construction industry "Engineering News Report" - they are the 127th biggest company in Asia.
A simple verification shows that the supposedly reputable website belongs ... to the same company that owns the domain Covec.com, or Network Solutions, llc. This American company offers services on the Internet, such as creation of mutually linked Web pages, to add credibility to their customers.
The original financial documents of Chinese COVEC show that their cash flow in 2009 was about 1.7 billion zł - that is, only slightly more than the value of the contract for the construction of two sections of A2.
What do we actually know about the COVEC? It was established in 1987, and for several years his sole shareholder has been the China Railway Group Limited.
Thomas Starzyk, with a reputable business information agency Dun & Bradstreet, told us that he ranks them at 5, on scale 1 to 10, with 7 being an average for the construction industry. - Our assessment of China Railway is even worse - he said.
Polish source, Gazeta Prawna.
boycotted by suppliers
Apparently there is more to that than I thought. So yes, a clean good bye seems the best of bad options.Will Chinese move from Poland to Hungary?
According to our source the Chinese consortium COVEC, constructing highway A2, won the tender for the construction of an airport in Hungary. The Chinese therefore might be no longer interested in continuing work on the A2. It may be possible that this new contract is influencing the Chinese to protracted talks with GDDiK.
According to experts, COVEC underestimated how hermetic the Polish market is. Native contractors have long ago divided the country regions among themselves and they do not interfere with a process of winning contracts by the others. This is why they waited for a new rival from such a big country, which can easily provide cheap labour, with such an anxiety. However, Polish companies have found a weak point of COVEC - lack of specialists who know the language, the Polish law and the twists and turns of the complicated bureaucracy.
- This is the problem the Chinese business faces everywhere in Europe. In Poland it is so much greater, because finding engineers cost them more than they have bargained for - says a market analyst. The same was true with contractors. No one seemed eager to work with the Chinese, because he knew that if he accepted such an order the Polish contractors will not forgive him and he will be literally "cut" of the market - tells us a person with the industry.
Those who have decided to cooperate, demanded exorbitant rates, and - in addition - were systematically "warned" againsted further cooperation. - This practice is an open secret - says the analyst.
The Chinese have problem not only with specialists and subcontractors but also with a "civilization leap", which emerged since the UEFA has awarded us the rights to host Euro 2012. Prices of building materials in Poland, where strategic investments are carried out, went up sharply.
- Imagine that the price of sand, for example in the area motorway A2 under construction, has increased from several to tens of złoty per ton. Seller knows that the client is at his mercy, because the time limits he chases, so he will not be fussy - says a person with the road industry.
Everything changed when COVEC realized that they might get their references (to European market) somewhere else - and with a smaller financial loss. This is why they recently put forward the matter differently - they want to negotiate a better price, and they have their arguments. The GDDKiA agency knows well that full recovery of damages is almost impossible.
- Banks will pay 130 million guarantee, that's for sure. But what about the rest of the 741 million zloty penalty, written in contract? COVEC in Poland has only a desk with a secretary. Therefore the full recovery amounts to a dream. Polish side knows that it is irresponsible to throw COVEC out just like this. So they must negotiate - says the analyst.