The minister explained the contract would not be made public, as Bechtel insisted that its terms remain confidential.
She did say the contract no longer includes a clause barring the government from holding tenders for any of the highway’s sections for two years, should the contract be terminated. Therefore, an auction for the Gilau-Nadasel sector will be held shortly.
Bechtel’s total bill to the National Road and Highway Company has been reduced from EUR380 million to EUR115 million, to be paid in three installments: one by December 31, 2011, another by March 31, 2012 and the last one by May 31, 2012.
Payment periods have also been extended, from a maximum of 25 days to 65 days, while the stipulations on indexation and indirect costs have been eliminated. “Through these clauses, [Bechtel] was entitled to EUR1 million per month even if they did not work,” said the minister.
The contracts for the sections due to be constructed by Bechtel now include clauses similar to those found in other highway construction contracts, regarding construction deadlines and daily penalties, between 0.05% and 10% of the remaining value.
“There is also a change regarding the warranty period, which was increased from 24 months to 30 months,” the minister added.
Bechtel will continue working only on the sections Campia Turzii-Gilau and Suplacu de Barcau-Bors, 118 km of the highway’s planned length of 415 km. The cost of these sections will be reduced to EUR6.9 million per km from the current EUR14.7 million per km.
In August, Boagiu said the state’s debts to Bechtel, around EUR90 million, would be paid in two installments – one soon and the other by the end of the year.
The government will take bids for the other six sections, which have a total length of 297 km: Brasov-Fagaraa (53 km), Fagaras-Sighisoara (52 km), Sighisoara-Ogra (56 km), Ogra-Campia Turzii (36 km), Cluj Vest-Mihailesti (24 km) and Mihailesti-Suplacu de Barcau (76 km).
Work on the Suplacu de Barcau-Bors section will be finished by Bechtel in 2013. Boagiu did not provide a date for the entire highway’s completion.
The construction of the Transylvania Highway, which links central Brasov to western Bors on the Hungarian border, began in 2004 with a EUR2.2 billion contract awarded to Bechtel. The highway is designed to be 415 km long, but only 52 km have been built so far.