PKP Polskie Linie Kolejowe (PLK) has withdrawn from its contracts with Przedsiębiorstwo Budowy Dróg i Mostów (PBDiM) for the construction of the cross-city rail tunnel in Łódź, covering the underground connection between Łódź Fabryczna and Łódź Kaliska/Łódź Żabieniec.
The terminated contracts include construction of the main cross-city tunnel, the Łódź Koziny stop, and the Włókniarzy traction substation. According to PLK, the decision was taken after months of mediation and technical assessment, during which the contractor failed to demonstrate the capacity to resume and complete the project.
PLK said analyses of contract documentation, progress reports, findings of the Contract Engineer, and opinions from independent experts showed that PBDiM lacked the organisational, financial, and technical resources required to continue the works. Particular concerns were raised over the contractor’s experience with tunnel boring machine (TBM) technology and its deteriorating financial position.
During tunnelling works, PLK identified multiple technical irregularities, including incorrect pressure control in the TBM chamber, insufficient monitoring of excavated material balance, inadequate soil conditioning, and frequent equipment failures. These issues culminated in a geotechnical incident in September 2024, when part of a building at al. 1 Maja collapsed. Expert opinions commissioned by PLK and decisions by construction supervision authorities linked the incident to tunnelling activities, citing design errors, insufficient geological surveys, and inadequate structural safeguards.
As a result of the incident, 227 residents from 130 residential units were relocated for an extended period. PLK states that despite available work areas outside the disaster zone, the contractor did not resume construction and has not presented a credible recovery plan since works were halted in November 2024.
Project progress remained significantly behind schedule. While the contract envisaged completion of the main tunnel drive within 14 months, only 1,496 metres were excavated over 4.5 years, with the TBM operational for around 17.5% of that time. Revised schedules submitted by the contractor over the past 15 months extended completion dates to as late as August 2028.
PLK also pointed to serious financial difficulties at PBDiM. The infrastructure manager reported settling approximately PLN 250m in subcontractor claims through direct payments, including PLN 196m in 161 applications submitted in 2025 alone. The contractor had previously received around PLN 119m in indexation payments, equivalent to roughly 10% of the contract value.
PLK is now initiating procedures to take over and secure the construction site and prepare the next stages of the project, including the selection of a new contractor. The infrastructure manager said the objective is to resume the works safely and stabilise the project, which is considered critical for rail operations in Łódź and the wider Polish rail network.
