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2020.01.23 12:00

Turkish company contests Kaunas stadium contract termination

Evelina Povilaitytė, BNS2020.01.23 12:00

Turkish construction company Kayi Construction has appealed against the decision by the authorities of Kaunas, Lithuania's second-biggest city, to terminate its contract for the construction of the Darius and Girėnas Stadium.

The company's construction workers had staged several protests over unpaid wages before the city said it was terminating the contract due to schedule delays.

Read more: Kaunas cancels contract with Turkish company after workers' strike

Milda Bučnytė, a spokeswoman for Kaunas Regional Court, told BNS that Kayi Construction lodged its appeal on January 20, asking the court to pronounce the unilateral contract termination null and void.

The court has not set the date for a court hearing yet.

Moreover, on Tuesday the court rejected Kayi's request to temporarily halt the payment of SEB bank's guarantee of 2 million euros to the municipality. The decision can still be appealed with the Court of Appeals.

The Kaunas authorities decided to terminate the contract, signed in 2018 and worth 46 million euros, with the Turkish company in early January, citing schedule delays as one of the reasons.

According to the municipality, the Turkish company had promised to bring in 400 workers and most of construction equipment, but has no such workforce and has rented equipment from Lithuanian subcontractors.

Alper Dedeoglu, a deputy project manager at Kayi Construction, told BNS then the work had stalled due to problems with the technical project.

Fifty-three Turkish citizens who worked on the project went on strike late last year over pay arrears.

Read more: Turkish workers and supporters march in Kaunas over fair pay

According to the authorities of Kaunas, around a quarter of the total work has been completed. Once the contract is terminated, the city plans to find a new contractor.