Tuesday, September 1, 2026

Termination of PLN 1 Billion S19 Contract Impacts Via Carpatia Project

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A significant construction contract in Poland valued at PLN 1 billion for a section of the S19 expressway between Domaradz and Krosno in the Podkarpackie region has been terminated. This development has stalled progress on the Via Carpatia route, a key transportation project designed to enhance connectivity within southeastern Poland and link to the broader European road network. Originally, the General Directorate for National Roads and Motorways (GDDKiA) awarded the contract to Mostostal Warszawa in November 2022, with an expected completion date of June 2026. However, by spring 2026, only about 5 percent of the work had been accomplished.

In April, Mostostal Warszawa informed GDDKiA of its intention to withdraw from the contract, attributing its decision to delays in the fulfillment of contractual obligations by the road authority and unresolved issues with the project. The company cited unexpected ground conditions that increased costs by approximately PLN 150 million, coupled with modifications mandated by the environmental authority that could potentially raise expenses by another PLN 400 million. Despite these claims, GDDKiA dismissed the contractor’s arguments, holding Mostostal accountable for the lack of progress on the project.

By May, the GDDKiA officially terminated the agreement and proceeded to secure the construction site while assessing the work completed to date. With the inventory now finalized, the road authority plans to initiate a new tender around the end of August or the beginning of September to complete the Domaradz–Krosno section. The new contractor will be expected to finalize the project within a 26 to 28-month window after the contract is signed, maintaining the existing budget constraints.

Delays are not isolated to this section alone; other parts of the Via Carpatia route in the Podkarpackie region are also experiencing setbacks. The segment from Babice to Jawornik has seen its completion date moved to October 2027. Similarly, the stretch from Rzeszów Południe to Babice, which includes a tunnel exceeding 2.2 kilometers, is now anticipated to be finished by January 2028.

These delays are compounding the pressures on the Via Carpatia project, which aims to serve as a vital transport corridor linking southeastern Poland with the wider European road network. The ongoing challenges highlight the complexities of large-scale infrastructure projects and the critical need for resolving contractual and environmental issues promptly to avoid further setbacks.

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