State cancels contract with bankrupt construction firm

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Norway’s state highway department (Statens Vegvesen) has cancelled all three contracts it had with bankrupt Austrian construction firm Alpine Bau, after the firm’s bankruptcy estate failed to respond to inquiries about its future operations.

Both the highway department and the state railroad (Jernbaneverket) feared lengthy delays on three major construction projects for which Alpine Bau was responsible: Expansion of the E6 highway and train tracks along Lake Mjøsa, completion of a bridge over the Kåfjord near Alta in northern Norway and improvements to the E6 highway near Trondheim.

Alpine Bau’s bankruptcy last week shut down operations at the projects but state officials have claimed they have a bank guarantee and want work to resume as soon as possible, especially during the crucial summer months in Norway. Now they may seek new agreements with Alpine Bau’s sub-contractors, to get the projects back on track.

newsinenglish.no staff