DESIGN AND CONSTRUCTION OF THE RAIL BALTICA MAIN LINE IN ESTONIA. PÄRNU SECTION – LATVIAN BORDER ("ALLIANCE") – signature of the Agreement
The Management Board of Budimex S.A. announces that on 16 May 2025 an Agreement was concluded between a consortium consisting of BOUYGUES TRAVAUX PUBLICS, France, BUDIMEX S.A., Poland, KMG INFRA OÜ, Estonia, (jointly the "Construction Group") and INGEROP CONSEIL ET INGENIERIE (ICI), France, WSP FINLAND OY, Finland (jointly the "Project Group") and the Contracting Authority – OÜ Rail Baltic Estonia for the implementation of Part 2 covering the Pärnu – Latvian border section in the public procurement procedure entitled 'RAIL BALTICA ÜLEMISTE-PÄRNU, Pärnu–Latvian border mainline design and build' (Alliance)). The contract covers the construction of a railway line with a length of 58.08 km.
The information that the consortium's offer was selected as the most advantageous was published on 12.03.2025 in current report No. 8/2025.
Contracting authority: OÜ Rail Baltic Estonia
Consortium members:
Construction Group:
BOUYGUES TRAVAUX PUBLICS – share in the Construction Group: 47.5 %
BUDIMEX S.A. – share in the Construction Group: 40%
KMG INFRA OÜ, Estonia – share in the Construction Group: 12.5 %
Project Group:
INGEROP CONSEIL ET INGENIERIE (ICI) – share in the Project Group: 50 %
WSP FINLAND OY – share in the Project Group: 50 %
All consortium members are jointly and severally liable towards the Ordering Party.
The Contracting Authority intends to allocate the net amount of EUR 332,000,000.00, i.e. PLN 1,407,414,400.00 net, for the design and execution of construction works. The estimated value of the remuneration for the Construction Group is approx. EUR 313,707,000.00 net, i.e. PLN 1,329,866,714.00 net.
The agreement will be implemented in the "Alliance" formula.
The contract is a framework agreement and is divided into 3 phases: design, construction works and liability for defects in design works and construction works (liability for defects), with the design phase and the construction works phase commissioned separately, in accordance with the Ordering Party's independent decision.
Estimated completion date of construction works: end of 2030.
Period of liability for defects: 5 years.
Payment terms: monthly, according to the progress of work, invoice payment term – 21 days.
The contract does not provide for a performance bond. The contract does not provide for contractual penalties.
The Ordering Party may only claim compensation if the damage was caused intentionally or as a result of gross negligence and if the damage was caused by an infringement of intellectual property rights or a negligence of the obligation to take out insurance/protection instructions or a breach of confidentiality. The maximum amount of liability for damages of the Construction Group is limited to the equivalent of 14% of the costs incurred by it.
Governing law: the laws of the Republic of Estonia.
Other contractual terms do not differ from market standards.
The value of the Agreement exceeds the threshold of PLN 182,357 thousand net.
