Railway subcontractors steaming over losses

Subcontractors of Polish Railway Lines (PKP PLK) have suffered losses because of contracts denominated in Euros. In 2004, when the consortium of PRKiI, PRK Poznań, PRK Kraków and Torpol entered into a contract for modernization of the E-30 railway, the exchange rate was one Euro to over zł.4.80. When the project was realized, however, the rate was one Euro to zł.4 - a decrease of about 25%. Marek Wyszyński, a subcontractor from the Projekt-Bud company, says that the exchange rate, as well as increased prices for cargo tariffs, patrol and materials for rail works, contributed to his company's losses. Projekt-Bud's losses amounted to zł.3.2 million for 2005 and has seen losses of zł.1.9 million in H1 of this year. The only solution to the problem would be an annual revaluation of contracts or resigning contracts denominated in Polish currency. (Puls Biznesu, p.7) H.D.