Koninklijke Heijmans N : Royal Heijmans welcomes positive final ruling in Wintrack II proceedings
October 16, 2023 at 01:23 am EDT
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Following the final ruling of the Arbitration Board on appeal, the Wintrack II case is now over for Heijmans. The ruling in this case, which has been ongoing since 2018, is positive for Heijmans, enabling us to release the majority of the (remaining € 15 million) provision taken as a precautionary measure.
In 2021, Heijmans appealed against the ruling of the Arbitration Board for the building industry on the dissolution of two contracts put out to tender in 2015. TenneT had awarded these contracts to the Heijmans-Europoles consortium and were related to the realisation of the Wintrack-II high-voltage pylons. On appeal, the Arbitration Board ruled that TenneT was not entitled to dissolve both contracts and thus found in favour of Heijmans.
The Arbitration Board ruled that there was no question of default by the Heijmans-Europoles consortium and, moreover, that termination of the contracts would have been disproportionate. However, TenneT was entitled to terminate the contracts and, in so doing, owed the Heijmans-Europoles consortium the contractual termination fee. Heijmans-Europoles and TenneT do not owe each other damages. Combined with the previous rulings in this case, this means that TenneT will make no further payments to Heijmans-Europoles.
Financial consequences
The release of the remaining €15 million of the provision Heijmans had set aside as a precautionary measure will have a positive impact on Heijmans' 2023 results, most of which will be reflected in the statement of income. This ruling will have no material impact on our 2023 forecast for net debt. Heijmans will incorporate the exact financial impact in its 2023 annual results.
Outcome
Heijmans feels this ruling confirms its initial belief that TenneT's termination of the contracts was unlawful. This is the final ruling in this case.
Koninklijke Heijmans NV published this content on 16 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 October 2023 05:22:27 UTC.
Koninklijke Heijmans N.V. is the No.3 in the Netherlands of building and public works group. Net sales break down by activity as follows:
- construction and restoration of buildings (43.9%): houses, offices, schools, hospitals, stadiums, industrial sites, etc.;
- construction and maintenance of infrastructures (36.6%): highways, bridges, pipelines, roads, tram lines, etc.;
- property development (19.4%);
- other (0.1%).
KONINKLIJKE HEIJMANS N.V. 
