Tunnel contractor sues Gibraltar government for £20 million

By James Bryce

A CONSTRUCTION company contracted to complete Gibraltar’s airport tunnel project is suing the government for £20 million.

OHL was handed the lucrative £34.1 million deal by the previous administration, before the contract was later cancelled.

The Spanish-based firm is demanding damages for breach of contract as well as other costs including loss of profits, despite having received £14 million.

The case has now gone before the High Court in the UK, with the government required to file their defence by May 22.

The Rock’s administration is being supported in the case by the opposition GSD party, who awarded the original contract in 2008.

In a strongly-worded statement, the GSD said the OHL claims were ‘an unmeritorious ‘try on’ by a company that had demonstrably ceased to carry out the contract and the works and were in flagrant breach of their contract.’

The contract awarded to OHL was for the design and construction of a 1.24 km four-lane dual carriageway connecting Devil’s Tower Road with the Spanish border.

The plan also included parallel lanes for pedestrians and cyclists and access to Eastern Beach Road and Catalan Road.

Local firm JBS has taken on the contract, with opposition leaders calling for the project to be completed before summer 2013.