Hungary's National Infrastructure Development Company (NIF) has cancelled a road construction contract with a consortium of companies led by Vegyépszer, NIF told MTI on Thursday, confirming a report by gazdasag.hu.
The consortium started the construction of the 9.2km road in western Hungary in March 2010 and was to have completed the stretch by July 29, 2011. Because the consortium failed to meet the deadline, NIF cancelled the contract and initiated the call-down of Vegyépszer's HUF 397 million indemnity, 15pc of the value of the project.
NIF already paid the consortium about HUF 267 million plus VAT for work completed.
NIF will call a new tender this year to complete the road, which could be finished by the end of 2013.