Ashtrom, Dragados to pay NIS 24m compensation to Danish co
Chen Ma'anit. . . .06/27/2012
Ashtrom and Spain's Dragados were the chief
contractors for Ashdod Jubilee Port, where Per Aarsleff was a subcontractor. 27
June 12 14:02, Chen Ma'anit
The Tel Aviv District Court yesterday ruled that
Ashtrom Properties Ltd. (TASE:ASPR)
and Spain's Dragados SA, the chief contractors for Ashdod Jubilee Port, must pay
Danish subcontractor Per Aarsleff A/S (KFX: PAAL) NIS 20 million in
compensation, plus NIS 4 million in court costs. The decision brings to an end
the eight-year case.
Judge Avi Zamir accepted most of Per Aarsleff's claims, and rejected in full
the claims of Ashtrom and Dragados for NIS 24 million in damage they allege were
due to Per Aarsleff. The judge criticized Ashtrom and Dragados' negligent
management of Ashdod Jubilee Port project. He said that Per Aarsleff "proved
throughout that it operated under very difficult conditions which were mainly
due to the flawed and negligent management by the respondents' work, management
that was accompanied by acrimonious relations between the respondents and the
Israel Ports Development &
Assets Company Ltd."
Judge Zamir said that amateurish, negligent, not to say scandalous conduct
and management of Ashtrom and Dragados were the reason for various failures
throughout the project.
Ashtrom and Dragados won the international tender to expand the Ashdod Port,
and they were the chief contractors for the complex marine infrastructure work.
The project began in September 2000. They hired marine infrastructures
engineering company Per Aarsleff to build the Jubilee Port's wharfs, pilings,
and other work.
The Jubilee Project was scheduled for completion in August 2004, but was only
finished in January 2007. The delay caused Ashtrom and Dragados to file a NIS 1
billion suit against the Ports Development Company for financial damages. The
parties settled the suit, the details of which are confidential.
The dispute between Ashtrom and Dragados and the Ports Development Company
caused Per Aarsleff's work to take sixteen months, instead of the nine months
planned, and it ultimately left the country when its work was halted altogether.
Per Aarsleff sued Ashtrom and Dragados in 2004 for compensation.
Published by Globes [online], Israel business news -
www.globes-online.com - on June 27,
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012 at: