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There is a threat of further delay in the construction of the Brenner base tunnel between Austria and Italy. BBT SE, the installation company responsible for the major project, announced Wednesday that it would terminate the € 966 million contract for the 37-kilometer heart of the tunnel. The trigger for the dispute with the Porr consortium is, among other things, the resistance of the segments that support the tunnel pipes. The result is likely to be a lawsuit and a new tender.
“The definitive refusal of the contractually promised services at various points and the loss of confidence that has now occurred, unfortunately has forced us to terminate the contractual relationship with ARGE H51,” said the two BBT SE directors, Gilberto Cardola and Martín Gradnitzer in a transmission. In addition to Porr Bau GmbH, G. Hinteregger & Söhne Bau GmbH, Condotte SpA and Itinera SpA belong to the ARGE H51 consortium. Additional costs of less than 100 million euros were reportedly disputed. In the new tender, Porr wants to bid again, as stated in a conference call with journalists.
According to Porr, the technical requirements were already incorrectly projected in the tender. The construction company considers the declaration of resignation illegal. Porr boss Karl-Heinz Strauss referred to a legal opinion commissioned by university professor Andreas Kletecka, warning of double costs. “In the event of an illicit dissolution, the BBT would have to fulfill the contract with the ARGE and, if necessary, a second contract with a new contractor. The BBT would not only have lost benefits, but also all costs for the permanent commitment of all ARGE ARGE-Technik template. That may be close to the original order amount. “
Porr expect a delay of years
Porr described the termination of the contract as “highly irresponsible for Austrian taxpayers.” The construction company now considers a new delay of years and “cost increases in the millions” inevitable. Strauss accuses the project company of oversight errors. “For at least two years, BBT SE’s board of directors and supervisory board have known that they made a mistake in the tender that would jeopardize the safety of the tunnel.”
The installation company said on Wednesday that ARGE H51 presented the situation to the public in a unilateral and very simplified way and limited only to the subject of the segments. BBT SE itself did not want to publish any details on the various legal positions of the contractual partners with the exception of the segment system to “protect ARGE H51 from damage to its reputation and not anticipate the threatened legal process.” Construction of the lot began in late fall 2018 and construction time was estimated at 74 months. They have already entered the tranche 160 million euros. The project area extends from the municipality of Pfons to the state border in Brenner.
New tender required
However, the end of the cooperation could also alter the overall planned completion date for the Brennero tunnel in 2030 and lead to higher costs. The new bidding process required by the contract termination now requires “a careful and in-depth analysis of the construction schedule and the award plan.” They will continue “to do everything possible to advance the pioneering Brennero base tunnel infrastructure project in the best possible timeframe,” said BBT SE. Based on an updated schedule, it will then be verified whether the provisions for risks are sufficient to cover the additional costs resulting from the liquidation and inflation or value adjustment, he said.
The railway tunnel through the Brenner has a long history: planning started in 1986, originally the tunnel works in Austria and Italy were supposed to be completed in 2016, meanwhile there was talk of 2027, now it will falter in 2030. Furthermore, the German path could possibly only be between 2040 and will be completed in 2050. The delays also led to massive increases in costs. Originally, construction costs of 6 billion euros were planned, but now they should be at least 10 billion euros.
The governors of Tyrol and South Tyrol, Günther Platter (ÖVP) and Arno Kompatscher (SVP), called for a “specific time” on Wednesday. The decision to dissolve the H51 Pfons-Brenner construction contract is the operational responsibility of BBT’s board of directors, both said. The Vienna Ministry of Transport made a similar statement, but they are behind the rapid implementation of this central project for the future of climate-friendly mobility in terms of content and finances.
In response to a request from APA, the Austrian Federal Railways (ÖBB) stated that they would support the decision of the installation company: “ÖBB supports the decision of BBT SE”. As a European limited company, BBT SE is 50% owned by ÖBB-Infrastruktur AG. The remaining 50 percent are held by Italians, specifically the Brennero Railway tunnel as a representative of the Italian state railway RFI and the regional authorities.
The opposition in Tyrol was critical. FPÖ spoke of a “worst case scenario” and a “catastrophe”. The NEOS demanded an annual assessment and the SPÖ opposes a temporary suspension of the construction site. (apa)
