PKP Polskie Linie Kolejowe terminated contract with PBDiM over financial disputes, delaying Łódź tunnel construction indefinitely.
Contract Termination
PKP Polskie Linie Kolejowe has terminated its contract with Przedsiębiorstwo Budowy Dróg i Mostów z Mińska Mazowieckiego for the construction of the tunnel between Fabryczny and Kaliski stations in Łódź. The termination follows months of disputes over the project’s execution.
According to Marcin Mochocki, vice president of PKP Polskie Linie Kolejowe, the company lacked the appropriate capacity to complete the investment and committed numerous technical errors. However, financial disputes appear to have been the decisive factor in ending the contract.
Financial Disputes
The contractor argued during nearly a year and a half of mediation that the previously granted 10% valuation barely covered the increased costs. They noted that the contract was signed in 2017, and since then, material and labor costs have risen dramatically.
However, PKP maintains that PBDiM failed to provide justification for the requested additional amounts, making it impossible to reach an agreement on the terms.
Construction Delays
The termination of the contract means that trains will not run under Łódź for years to come. The dismissed firm has refused to return the software necessary for the tunnel shield, further complicating the project’s future prospects.
The tunnel was a critical infrastructure project expected to improve rail connectivity in the Łódź region, but its indefinite delay represents a significant setback for regional transportation plans.
