Polimex Mostostal decided to terminate the agreement for the construction of the coal block in the Zakłady Azotowe Puławy, demanding payment of over PLN 189 million. The reason for this decision is the deficiency of cooperation from the Azota Group and the dispute over payment guarantees. This is another tension in the implementation of the investment, whose completion date has been postponed many times since 2022.
Polimex Mostostal, the leader of the consortium implementing the construction of the power block, reported that he had resigned from the contract due to the contracting party's fault. He pointed out that there was no warrant of payment for further work, despite requests to the Azota Group in October 2024. The deadline for the presentation of the warrant was 9 December and the warrant provided by Nizota for PLN 2.3 million was considered insufficient.
Polimex demands payment of the remaining remuneration of PLN 189.16 million over 2 weeks. The Azotas reject the allegations, pointing to many delays on the part of the contractor, who was originally to complete the investment in the 3rd 4th of 2022. The deadlines were repeatedly moved – the current plan was to complete the block only in April 2025.
Claims, fines and financial settlements – Polimex Mostostal
The contract for the construction of the power block in Puławy was worth PLN 1.16 billion net. Grupa Azoty Puławy issued Polimex a debit note of over PLN 358.9 million for contractual penalties for failure to meet the key deadlines. The contractor defended himself by claiming that delays consequence from obstacles beyond his control.
With bank guarantees to safe the investment, Azota has already obtained PLN 106 million, which covered any of the claims. However, the conflict remains unresolved and both parties accuse themselves of not cooperating and complying with the agreement.
Read more: Energy policy of Germany. The closure of atomic power plants made the neighbours dependent on Russian gas
Strategic importance of investment and possible consequences of the conflict
The construction of the coal block in Puławy was crucial for the modernisation of energy in the Azoty Group, 1 of the largest fertiliser producers in Europe. A dispute with Polymex Mostostal may affect the future of the task and make further costs. In the background, there is force to reduce emissions and questions about the relevance of investments in the coal block in the face of energy transformation.
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