Orco said today that it will call for arbitration proceedings in its dispute with the Polish government, which it charges has done nothing to change the way administrative courts work
Orco will seek damages of PLN600m (€150m), arguing that it has been “patently harmed by the Polish legal system”. In a statement, Orco CEO Jean Francois Ott said that “the Polish regulations allow administrative courts to make invalid any construction permit, on the basis of any, more or less peculiar, excuse”.
“Courts are reviewing cases for months, or even years, because they’re not liable to any deadlines. So an investor only waits, losing money, while the state authorities change nothing. They are taking on the responsibility then, its consequence being a possibility of having to pay damages,” Ott also said.
Orco estimated its losses over the halted project at PLN45,000 (€11,250) daily. The amount of damages that the developer is seeking covers €75m of Orco’s costs, like buying the plot, procedures and the construction completed thus far and another 75€ in what the company describes as “lost profits”.
Orco is now awaiting the Warsaw province governor’s decision on the validity of Złota 44 construction permit, after Poland’s Supreme Administrative Court ruled it was invalid in June. According to today’s press, the decision could be made this week.