The PLUC scandal – the “Unirii” highway and the huge financial stake: how the state explains why it cannot accept the builder's request to submit less money as a guarantee

The Romanian ROAM builder asked on Friday to get out of two huge contracts, each of over 1 billion euros, on mountain lots of the “Unirii” A8 highway. Walk accuses of not accepting a request regarding the guarantee of good execution. Stake? Almost 26 million euros suddenly stuck in an account throughout the contract period.

RAM, the company of businessman Dorinel Umbrărescu, who became in recent years the most prolific builder of fast highways and roads in Romania, transmitted two simultaneous requests to the National Road Investment Company (CNIR) – the new specialized infrastructure company that took over the implementation of Lot A8. PLUM asks to get out of two of the most expensive highway contracts in the country.

The company asks, on the one hand, the termination of a contract already signed at the end of March for 1.2 billion euros for the 2A Ditrău-Grinţieș section, and, on the other hand, the exit from the auction procedure where it has already been declared a winner with 1 billion euros for Lot 1C Sărățeni-Joseni.

PLUM asks to pay a lower guarantee than in the original documentation at auction

Among other reasons, the builder claims that he was refused the request to pay a smaller guarantee of good works than the one stipulated in the documents auctioned, according to hotnews.ro sources.

Specifically, the builder announced its intention to constitute a good execution guarantee of 0.5% of the total value of the contract, compared to 1.5%, as it appears in the documentation released and on which the basis of which it won the competitive procedure.

In both cases, CNIR refused after asking for a point of view from the specialized direction in European projects in the Ministry of Transport.

Immediate financial stake: 26 million euros

• For lot 2A, the payment of 1.5% of the value of the contract means almost 22 million euros. According to the request of the RAM to pay 0.5%, the initial amount of the guarantee would be 7.3 million euros.

• For lot 1C, 1.5% of the value of the contract means almost 17.6 million euros. According to the request of the RAM to pay 0.5%, the initial amount of the guarantee would be 5.8 million euros.

Basically, for the two lots, according to the initial requirements in the contract, LEAs should deposit in an account, suddenly, 39.6 million euros. On the request of the 0.5% OM request the amount would have been 13.2 million euros.

We are talking about a difference of approximately 26.4 million euros in favor of the builder, which should deposit this money at once and block them in an account during the contract (54 months-4.5 years). An amount not to be neglected no matter what company would be in question.

Guarantee of good execution

What is the guarantee of good execution (GBe)? In each infrastructure contract, in order to provide the beneficiary with a guarantee for the quality of the works, a certain amount is charged which is subsequently returned to the builder if the works are compliant.

There are several methods of setting up this guarantee, but in this case the award documentation has provided the possibility of a guarantee by successive restraint.

Specifically, the builder is initially a guarantee in an account, and later during the settlement of the works, other amounts are held successively which-at the end of the contract-will form a total of 10% of the total value, as the guarantee of good execution.

If everything is okay at the final reception, much of the amount retained as GBE is returned to the builder, the rest being turned to the builder and after the expiration of the guarantee offered to the highway.

For the variant of successive detention, the legislation stipulates that “the initial amount deposited by the entrepreneur (…) should not be less than 0.5% of the contract price”, But this percentage can be higher if it is stipulated from the beginning under the conditions of the contract.

In the case of the lots on the A8, the documentation removed at the auction provided that this initial amount should be 1.5% of the total value.

“The clause is not only on these contracts, but on all the bids of CNAIR and CNIR lately. A fresh example: on the 41-kilometer lot initiated on April 10 on the A3 Gate of Salaj-Nușfalău, which includes the Meseș tunnel, the Turks from Makyol-Ozaltin deposited the initial amount 100 million lei, which is 1.5%, billions of lei with VAT ”, explains the Proinfrastructure Association in a position against the requests and the refusal of CNIR.

CNIR asked the opinion of a specialized direction from the Ministry of Transport

The requests for the CNIR ADDRESSED ADDRESSED to a request of the company from April to modify the good execution guarantee to 0.5%. In the tender documentation, the contractual conditions stipulated 1.5%.

The CNIR was directed to the General Directorate of European Transport programs from the Ministry of Transport and demanded “a point of view regarding the possibility of concluding an additional act that provides for the modification of the amount of the initial amount related to the guarantee of good execution by successive detention to 1.5%”, according to a document consulted by HotNews.ro.

The specialized direction from Transports shows that in the documentation removed the auction was stipulated the condition of 1.5% for the initial constitution of the guarantee of good execution.

The same body mentions that “the mandatory contractual clauses can be modified and made to the knowledge of all those interested until the deadline for submission of tenders, while the specific clauses can be negotiated/modifying time that does not introduce conditions that would allow the contract to another economic operator or if the modification does not change the economic balance of the contract”.

“The modification of the minimum percentage would have been possible and correct until the offers are submitted”

The specialized direction from Transporti shows that, during the public auction, “all the economic operators, potential bidders, were informed and considered that in the situation they opt for the guarantee of good execution by successive deductions, the minimum amount to be submitted in the account constituted for this purpose to be 1.5% the minimum of the contract; offers ”.

The Directorate of the MT also discusses an instruction of the National Agency for Public Procurement (ANAP) from which the changes that can be considered substantial of a contract are described.

Such a substantial modification of the contract implies that “changes the economic balance of the public procurement contract/ framework agreement in favor of the contractor in a way that has not been stipulated in the public procurement contract/ initial framework agreement;”

“Changing the economic balance of the contract in favor of the contractor covers several types of situations such as the following: (…) Contractual changes are made that have the effect of improving the cash flow of the contractor compared to the initial one (for example, the value of the contract advance increases, the value of some contractual penalties decreases, the value of the good execution decreases”).

The reasons invoked by the walk: accuse to CNIR

Among the reasons for termination submitted on Friday, the builder claims that he was refused to pay a smaller guarantee of good works than the one stipulated in the documents discounted, according to HotNews sources.

Among other reasons invoked by the OMB, according to the request consulted by HotNews.ro, are the defective communication with CNIR and supposed “serious, repeated and continuous violations” of the legal provisions and of the principles underlying the award and carrying out the public procurement contracts.

He walks accuses that “the current collaboration framework with CNIR does not reflect a true partnership, as devoted by the legislation in force and the legitimate expectations of both parties involved.”

In his request, the Romanian builder also accuses CNIR of “violating both the understanding of the parties and the principles regarding the proportionality and assuming the responsibility”.

• “Given the gravity and repeated character of the abuses committed by the CNIR management, of the serious, repeated and continuous violations of the CNIR management of the legal provisions and the principles underlying and carrying out the public procurement contracts (…) the obvious and justified consequence of the total lack of confidence With the management of CNIR, we consider that the legal conditions for the request by the Subscription of the termination are met, for imputable reasons, of the procedure ”, it is shown in both requests of the OMB.

CNIR has not transmitted an official reaction or point of view so far.

The PLOP did not respond to clarification requests.

Discussions in the public space on the activity of the OMB and a possible financial blockage

The situation now comes just two weeks after the press appeared from information taken from Facebook discussion groups in which it was conveyed that PLAT stops the work on some sites due to financial blockages.

The authorities came out immediately and claimed that the news is false, that the work schedule is an atypical one – it works for three weeks, then a break, and that the builder is mobilized with over 7,000 people.

LAV did not respond to the requests to explain the situation.

The PLAT group (LAV SPEDITION, TEHNOSTRADE, SA & on Construct) is the largest builder in the country, having contracts signed better from half of the total highway projects and express roads in the country.

Among the big projects where the employee is employed are: the A7 sites in Moldova, from Buzău to Pascani and further to Suceava, on the “Unirii” Highway of the Moțca to Târgu Neamț and Pipirig, but also the expensive sections of mountain Ditrău – Grințieș and Sărăăi, Craiova – Pitești, Lot 4, Transylvania Highway A3, the section from Nădășelu to Zimbor and the Sălaj Gate, as well as on A1 Margin – Holdea, the famous missing lot where the “bears tunnels” are built.