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Norway’s Road Administration clashes with Itinera over exclusion from billion-dollar highway project in Oslo

Monday 16th 2024 on 18:43 in  
Denmark

A significant legal dispute is currently unfolding in an Oslo courtroom, where Norway’s Road Administration is facing off against the Italian construction company Itinera. This case is drawing attention in both Denmark and Norway as the Norwegian government agency has barred Itinera from bidding on a multi-billion-dollar highway project in northern Norway.

The Norwegian Road Administration has approved four companies to participate in the bidding process, but Itinera has been excluded due to its previous allegations of underpaying workers on major construction projects in Denmark, including the New OUH hospital in Odense and the Storstrøm Bridge. Itinera has filed a complaint regarding its exclusion, prompting the court to determine whether this rejection is justified.

Norway, not being a member of the EU, has specific regulations allowing it to pre-screen companies and exclude them if necessary. According to legal expert Line Voldstad, authorities can dismiss a supplier when documented evidence demonstrates severe and repeated violations of environmental and labor regulations. Such investigations can be prompted by the authorities themselves or by competitors informing the Road Administration about potential concerns.

Norwegian public procurement emphasizes fair competition and compliance with labor agreements and social standards. Past issues involving underpayment by Itinera on Danish projects have raised significant concerns. The decision made by the Oslo court can be appealed, which could prolong the case further. Meanwhile, the Norwegian Road Administration has put the billion-dollar project on hold while this legal matter is resolved. The project involves a 21.5-kilometer stretch of the E6 highway, with plans to award the contract by early 2025.

Source 
(via dr.dk)