CRCC14, the lost legal battle for EUR 400 million

China Railway 14th Bureau Group Co., Ltd. (abbreviated CRCC14) is an enterprise under the supervision of the Assets Supervision and Administration Commission of the State Council of China.

CRCC14 manages railway infrastructure, highway, bridge, tunnel, airport, terminal, light transport, metro and municipal infrastructure construction projects. The company also develops real estate development projects.

The Ecuadorian ambassador to China delivers thanks to CRCC14 for providing 50,000 face masks during the coronavirus pandemic. The Chinese company builds the Guaranda highway in Ecuador. Source: Twitter/Embassy of Ecuador in Chile

The Chinese company came in Romania in 2016 when it entered the tender for section 5 of the Sibiu – Pitești Highway. The company association consisting of China Railway 14th Bureau Co Ltd and Viaponte Rom participated in the tender and ranked first with the best score.
CNAIR has twice tried to remove CRCC14 from the race, but the National Council for Solving Complaints (CNSC) has taken the Chinese back to tender. The reason for their exclusion was a negative certificate of the Viaponte Rom associate for not fulfilling an older contract.
Only after the competitor Astaldi won a case against CNSC at the Bucharest Court of Appeal, the Chinese were taken out of the race.

However, being a RON 1.83 billion (EUR 400 million) business, the CRCC14 – Viaponte Rom association submitted, at the end of March 2020, a new appeal to CNSC by which, in addition to cancelling the tender exclusion document, it also demanded the removal of the Italian Astaldi rivals from the race. It is rumoured that the reason for the Italians elimination was their takeover by another Italian giant, namely Salini, thus violating the tendering procedures.
Eventually, on May 11th 2020, Astaldi was awarded the contract for RON 1.71 billion (RON 120 million less than estimated).

 

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