Torpol, a unit of Polimex may lose a PLN 546 m railway contract as rail company PKP PLK reassessed the bids and changed the choice of the best offer following a ruling of national appeal chamber KIO. Torpol intends to appeal against the decision. Torpol's PLN 546 m consortial deal for modernization of a stretch of E 59 railway, with Torpol's share in the consortium at 80%, was previously chosen by PKP PLK as the best.
Lost contract of Torpol is a significant drawback in the wake of planned disposal of the rail construction unit by Polimex. It may alter the valuation of the company for the future branch investor or during the IPO process.