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Poland pulls out of two road contracts with Italy's Salini

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WARSAW (Reuters) – Poland has pulled out of two road-building contracts with Salini Impregilio and could impose fines of about 193 million zloty (38.88 million pounds), the roads authority said on Monday, saying the Italian firm had failed to carry out the work.

The General Directorate for National Roads and Motorways (GDDKiA) said it had cancelled contracts for the Czestochowa bypass, part of the A1 motorway, in southern Poland and part of the S3 road near Polkowice in the country’s west.

Total fines relating to the A1 contract are estimated at around 83 million zloty, with another 110 million zloty for the S3 contract. GDDKiA said in a statement that Salini owed around 5 million zloty and 41.3 million zloty respectively to its contractors.

In February GDDKiA said Salini Impregilio had requested an additional 449 million zloty payment for road works.

Salini was not immediately available to comment.

(Reporting by Alan Charlish; Editing by Kirsten Donovan and Catherine Evans)

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