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[BUSINESS] · Poland · 3 sources

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Chełm faces budget crisis for major road investment

The city of Chełm is facing a financial crisis regarding the completion of its largest urban road investment, which includes the development of an intermodal terminal and the construction of a new viaduct.

Following the termination of a previous contract with the Warsaw-based firm Sarinż, new tenders were announced to finish the project. However, both recent bids exceeded the city's allocated budget of 223 million PLN. The lower bid from Duna Polska S.A. was approximately 257.6 million PLN, while the higher bid from Przedsiębiorstwo Drogowo-Mostowe S.A. reached approximately 349.2 million PLN.

Mayor Jakub Banaszek noted that the project requires 88 million PLN in local contribution, a sum that is difficult to manage alongside current investments and would significantly increase the city's debt. Officials are currently deciding whether to cancel the proceedings or seek additional funding.

Entities

Chełm · Public Procurement Office