Ukravtodor terminates contract with Chinese company

Ukravtodor terminates contract with Chinese company

Ukraine's State Agency of Motor Roads (Ukravtodor) has terminated a contract with China's Sinohydro Corporation Limited, engaged in the construction of a northern bypass road around Zhytomyr, due to breach of contract and slow pace of work, Ukravtodor's press service has reported on Facebook.

"Ukravtodor initiated the termination of the contract with a company working on the bypass road around Zhytomyr. China's Sinohydro Corporation Limited has been operating on the M-06 road since November 2017. Under the contract, the company undertook to reconstruct 22 kilometers of the road by June 2020," the report reads.

According to the report, the contract was terminated due to several factors: the contractor did not extend the term of ensuring the performance of the contract and the work under the contract and it does not comply with the need to correct the results of its work.

Among the specific examples of failure is the destruction of the concrete surface. According to the findings of the inspection company IRD ENGINEERING S.R.L., the damage occurred due to non-compliance by the contractor with the methodology of construction work. In addition, violations related to the installation of asphalt concrete and the construction of road facilities were also detected.

"It's a pity that cooperation with Sinohydro has reached a point of no return. For our part, we tried to do everything to give the company a chance to change the situation. However, the state and citizens lose because of this attitude. We cannot wait any longer or expect some steps forward. Ukraine needs the road now," Head of Ukravtodor Oleksandr Kubrakov said.

As of the beginning of October, the percentage of construction work to be performed by the contractor should be about 80%. Instead, the actual performance is 49.17%.

This section of the road is being reconstructed as part of the Pan European Corridors Project / European Roads of Ukraine II between Ukravtodor, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).


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