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In Reunion, disputes over the new coastal road pose a serious threat to the regional council’s finances

Almost the equivalent of the annual budget of the Réunion regional council. And a little less than its total outstanding debt. Valued at 971 million euros, the compensation requests from the two groups of companies led by Vinci and Bouygues for the additional costs of building the new coastal road (NRL), represent a sword of Damocles for the community’s finances. Financial claims qualified on numerous occasions “indecent” and “extravagant” by the president of the community, Huguette Bello (several on the left).

Read also: Article reserved for our subscribers. In Reunion, (very) partial opening of the new coastal road

Following a failed conciliation and mediation procedure, the dispute must first be settled by the administrative court of Saint-Denis de La Réunion. On Tuesday 17 September, the court examined a first wave of claims relating to seawall projects between 2014 and 2019. That is to say, nearly 300 million euros, including late payment interest.

The NRL, a strategic 12.3-kilometre axis connecting the north and west of the island to replace the old road prone to rock falls, was partially opened to traffic in August 2022. It is used daily by around 85,000 users.

Important environmental “limitations”

In the coming weeks, the judges will examine other disputes related to the first marine viaduct (5.4 kilometres built on 48 concrete piles). On this side, the claims of the major construction companies and their subsidiaries amount to 687 million euros, almost as much as the cost of a 751 million euro project.

As regards the dykes, which were delivered more than thirty-five months late, the main complaints raised by the companies relate to problems with the supply of rocks and embankments, which led to an extension of the duration of the work and significant additional costs. The companies believe that they had to carry out additional work, studies and investments that were essential to complete the works. They also claim to have faced significant “limitations” Environmental factors, such as the presence of dolphins, humpback whales and seabirds, forced a reduction in daily working hours.

Read also | Article reserved for our subscribers. In Reunion, a second viaduct to complete the new coastal road

In her conclusions, the public rapporteur, Elisabeth Baizet, considered that the faults attributed to the regional council in the design and execution of the contracts could not be accepted, and that the compensation requested was not “justified”. According to the judge, the group cannot invoke, in many cases, “unpredictable and exceptional material difficulties” having resulted in “a disruption of the contractual economy.” He requested the dismissal of almost all the appeals.

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Anthony Robbins
Anthony Robbins
Anthony Robbins is a tech-savvy blogger and digital influencer known for breaking down complex technology trends and innovations into accessible insights.
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