Romanian roads company CNADNR has terminated two contracts worth almost EUR130 million with Alpine Bau.
The Austrian company, whose majority shareholder is Spanish group FCC, has turnover of over EUR3.6 billion internationally and filed for bankruptcy at the end of June in Austria because it could no longer meet its debt payments.
“The bankruptcy of Alpine is a big shock for the Austrian construction industry, the overall impact, particularly on its various suppliers and contractors, remains to be seen,” Arnulf Gressel, commercial attaché of the Austrian Embassy told Ziarul Financiar. He added there was a good chance many of Alpine’s projects would be taken over and continued by other construction companies.
The first contract to be terminated, two weeks ago, was the one for building the second section of Nadlac-Arad highway, between CNADNR and Alpine Bau.
“Because Alpine Bau GmbH went bankrupt, the design and execution contract for section 2 of Nadlac-Arad highway, sealed by CNADNR and Alpine, was terminated on July 9 2013, in accordance with contract terms. In the coming period CNADNR will take the necessary measures to start the procurement procedures for the remaining works, so that the conditions of project eligibility are not compromised,” CNADNR representatives said in response to ZF’s request.
The section is 16.7-km long, costs EUR96 million, and was almost 85% completed at the beginning of July.
The contract for building Brasov’s beltway, for which Alpine was set to get around EUR29.1 million, was also terminated about two weeks ago, according to sources close to the situation (CNADNR did not confirm by deadline whether this contract had also been terminated).
Belgian group Atenor in turn decided to suspend its contract with Alpine Bau for the construction of office project Hermes Business Campus in northern Bucharest, and is set to continue works with the subcontractors of the Austrian group.
Alpine recorded turnover of around EUR115 million in Romania last year.
(English version by Daniela Stoican)