China Overseas Engineering Group
Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile1 entries
2009
Polish A2 highway project abandoned after low-price bid; 200 million euro claim filed
In 2009, a consortium led by China Overseas Engineering Group (COVEC) won two sections of Poland's A2 highway with a bid far below budget. During construction, costs spun out of control, payments to local subcontractors were overdue, and work stopped. In June 2011, the Polish road authority terminated the contract, sought about 741 million zloty (about 200 million euros), and banned the consortium from participating in Polish public tenders for several years, making it a typical lesson for Chinese enterprises 'going global.' In May 2017, the two sides reached a settlement, the relevant lawsuits were withdrawn, and the settlement amount was not disclosed.