6
NEWS
CONSTRUCTION EUROPE
OCTOBER 2013
Polish contractor crisis
stalls big LNG project
Bankruptcy leads to Treasury pushing back
completion date by six months
P
oland’s Treasury has been forced to push back the completion date of a major
new liquefied natural gas (LNG) terminal for six months after a contractor
bankruptcy and additional costs delayed the project.
The Ministry said the 5 billion m
3
per year LNG Terminal in Swinoujscie on the Baltic
Sea was now expected to be completed at the end of 2014.
It said the key reason for the delay was the “rising and current crisis in the
construction market,” as well as the bankruptcy of Polish company PGB, one of
the members of the consortium building the project. The other members of the
consortium are Saipem, and Technit.
Polskie LNG, the state-controlled client, said a further €67.5 million had been added
to the cost of the original €714 million contract.
A wave of bankruptcies have affected Poland’s construction sector, with around
300 companies going bust in 2012. On top of this, contractors complain of weak
procurement controls.
In June, Spanish contractor FCC Construccion withdrew from a contract to build a
ring road around the Polish town of Szczuczyn, blaming failures by the national road
agency, the GDDKiA, in disclosing key information during the tender phase.
And this summer also saw six European ambassadors write to Poland’s Deputy Prime
Minister Janusz Piechociński expressing concern over claims that PLN10 billion (€2.35
billion) worth of construction claims were pending before Polish courts.
They said this indicated some “fundamental and systematic challenges connected
with the execution of major infrastructure projects in Poland”.
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Market outlook is
examined in video
A new video evaluating the construction market in
Europe is now available on the khl.com Video Zone.
Sandy Guthrie, editor of
Construction Europe
(
CE
),
takes a quick look at the region and assesses how
the various markets are faring, as well as highlighting
Europe’s position from a global perspective.
The construction markets in Europe have been
having a tough time during the economic crisis of
the past few years, with some countries weathering
the storm better than others.
Pulling together figures from a variety of sources,
the video gives an idea of where the construction
markets of Europe stand, and which direction they
might be going in the future.
In addition to the European market outlook, a new
video assessing prospects for the global construction
industry this year and in 2014 is also available on the
khl.com Video Zone.
Chris Sleight, editor of
CE
’s sister publication
International Construction
, presents the video,
which has a focus on key international regions and
hotspots in emerging markets.
To view either video, go to
and search for ‘outlook’. The videos will also appear
in the right-hand column, which shows the latest
uploads.
To go straight to the
CE
market
outlook video on your smart phone
or tablet device, scan the QR code
on the right.
KHL.COM
This month’s podcast for
Construction Europe
will be available online within a few days of the
magazine’s publication. To listen, go to:
Europe’s construction
output fell in July
Construction output in
Europe fell year-on-year
in July, according to the
latest data from Eurostat.
Seasonally-adjusted
output in the Eurozone
was down 1.2%
compared to July 2012,
while output across all
member states (EU28)
fell 1.1%.
The strongest year-
on-year declines were
registered in Portugal
(-16.3%), Bulgaria
(-6.9%), Slovakia (-6.8%)
and Poland (-6.4%). The
highest increases were
seen in Romania (14.2%),
Spain (2.9%), Hungary
and the UK (both 2%).
In terms of sectors,
building construction
output decreased 1.0%
year-on-year in both the
Eurozone and the EU28,
while civil engineering
output dropped 2% in
the Eurozone and 2.3%
in the EU28.
However, growth was
reported on a month-on-
month basis. Comparing
July with June this year,
construction output
increased 0.3% in the
Eurozone and was also
up 0.7% in the EU28.
The strongest month-
on-month increases were
registered in Romania
(8.6%), Portugal (5.1%),
Poland (5.0%) and the
Czech Republic (4.9%).
Decreases were observed
in Sweden (-4.1%), Spain
and Hungary (both
-1.6%), and Slovenia
(-0.5%).
Building construction
output increased 1.1% in
the Eurozone between
June and July, and
1.3% in the EU28. Civil
engineering output
was down 0.2% in the
Eurozone, but rose 0.5%
in the EU28.
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An iPad app has been
launched by the
Spanish Association
of Equipment
Manufacturers for the
Construction & Mining
Industries (ANMOPYC).
Designed to provide
information about
association members
and promotional
activities, the new app is available to download
for free via iTunes. The app offers information
on ANMOPYC as well as linking directly to the
association’s social network profiles on YouTube,
LinkedIn, Twitter and Facebook. The app also links
to the ANMOPYC blog.
