The consortium was led by the French company Vinci and also included Austria’s Strabag and Hungary’s Hídépítő. BAMCO argued that the multi-year delay in building the metro tunnels had left it with substantial additional costs. It held the City of Budapest responsible for the delay.
A fraction of the original claim was awarded
BAMCO originally sought EUR 34 million in the case, which began in 2017. Kontroll described this as approximately HUF 12.4 billion at current prices. According to the outlet’s information, the arbitration panel awarded the consortium EUR 5.5 million, including interest and legal costs.
For BKV, the decision means a payment of more than HUF 2 billion. The company must settle the amount by the reported November deadline, even though the case has not yet been fully concluded.
The money will come from a contingency reserve set aside for the Metro Line 4 project. That reserve is funded from Budapest’s municipal budget, adding another cost from the earlier investment to the capital’s finances.
A long construction project and an even longer legal aftermath
Construction of Budapest’s fourth metro line began in January 2006 after more than two years of preparation. The first tunnel-boring machine started work in April 2008, and the tunnels were completed by July 2010.
BAMCO brought a total of 35 proceedings against BKV. Across the project as a whole, the transport company was involved in 43 legal cases with various contractors. Figures published by Kontroll show that BKV lost 20 of them in full or in part and won 17. Other disputes ended in settlements or were discontinued.
As a result of earlier rulings, BKV has so far paid HUF 16.6 billion to successful claimants, including interest and other costs. The latest award adds to that total.
Source: Kontroll
