Highway deadline extended till year's end

After days of internal rifts over construction of the Horgos-Pozega highway, the technical govt. has found a solution. The concessionaire, who had not been able to secure a banker’s guarantee by yesterday, has now been given until the end of the year to secure full financing for the project. Highway deadline extended till year's end Democratic Party (DS) ministers have called this outcome a compromise, while the Democratic Party of Serbia (DSS)-New Serbia (NS) coalition say that they regret that building cannot start tomorrow, as originally planned, buy that they are, nonetheless, glad that the contract has remained in force. DS Minister Dragan Djilas said that the government had decided to grant the concessionaire more time, until the end of the year, to secure full funding for the highway’s construction. However, Djilas said that the next three months of negotiations with Deutsche Bank would be vital. “Let’s hope that in the next 90 days, by June 30, Deutsche Bank and the concessionaire reach an agreement with the government over meeting all the technical conditions that are necessary for the bank to enter this project financially. Which means that, when the bank gives the government the official guarantee that it will finance the project, the government will immediately be able to approve the start of works on the Horgos-Pozega highway,“ said the minister. DSS-NS ministers, who were in favor of allowing the concessionaires PORR-Alpine to begin work tomorrow, despite not having banker’s guarantees for the project, believe that they are still in the picture. Trade and Industry Minister Predrag Bubalo did not, however, hide his disappointment that work had been suspended at this particular moment. “I can guarantee the citizens that the new government, that will include the DSS-NS coalition, will begin construction of the highway on its first day. Because of the completely erroneous decision of our coalition partners, the DS and G17 Plus, work has not started for now, but , as I said, I guarantee that the new government will definitely start construction immediately,“ Bubalo vowed. Deputy Prime Minister Bozidar Djelic had a different take on the matter. Djelic told B92 that the concessions contract would fall if the concessionaire failed to meet the established conditions by the new deadline, though he added that he hoped it would not come to this. “It’s not done and dusted, but I find it hard to believe that the government will offer another extension after the additional 90 days . That’s enough time for financing to be fully arranged. I think that, unless all the technical and financial conditions are met, this concession will definitely collapse,“ the minister predicted. Economic journalist Dimitrije Boarov does not believe that the government conference call ironed things out completely. Boarov told B92’s Poligraf that the job itself was still far from certain. “Even if the DS, G17 Plus part of the government had given in and accepted the concessionaire’s word, papers etc., if the digging had begun, that does not mean by any stretch of the imagination that the job is done. Because it all depends on the path Serbia takes. If Serbia decides to fall out with the EU over Kosovo and everything else, that road won’t come to fruition,” the journalist warned. The highway is planned to be 244km long, and most of the section running through Vojvodina has already been built. Velimir Ilic holding the concessions contract (Beta, archive)

Highway deadline extended till year's end

Democratic Party (DS) ministers have called this outcome a compromise, while the Democratic Party of Serbia (DSS)-New Serbia (NS) coalition say that they regret that building cannot start tomorrow, as originally planned, buy that they are, nonetheless, glad that the contract has remained in force.

DS Minister Dragan Đilas said that the government had decided to grant the concessionaire more time, until the end of the year, to secure full funding for the highway’s construction.

However, Đilas said that the next three months of negotiations with Deutsche Bank would be vital.

“Let’s hope that in the next 90 days, by June 30, Deutsche Bank and the concessionaire reach an agreement with the government over meeting all the technical conditions that are necessary for the bank to enter this project financially. Which means that, when the bank gives the government the official guarantee that it will finance the project, the government will immediately be able to approve the start of works on the Horgoš-Požega highway,“ said the minister.

DSS-NS ministers, who were in favor of allowing the concessionaires PORR-Alpine to begin work tomorrow, despite not having banker’s guarantees for the project, believe that they are still in the picture.

Trade and Industry Minister Predrag Bubalo did not, however, hide his disappointment that work had been suspended at this particular moment.

“I can guarantee the citizens that the new government, that will include the DSS-NS coalition, will begin construction of the highway on its first day. Because of the completely erroneous decision of our coalition partners, the DS and G17 Plus, work has not started for now, but , as I said, I guarantee that the new government will definitely start construction immediately,“ Bubalo vowed.

Deputy Prime Minister Božidar Đelić had a different take on the matter.

Đelić told B92 that the concessions contract would fall if the concessionaire failed to meet the established conditions by the new deadline, though he added that he hoped it would not come to this.

“It’s not done and dusted, but I find it hard to believe that the government will offer another extension after the additional 90 days . That’s enough time for financing to be fully arranged. I think that, unless all the technical and financial conditions are met, this concession will definitely collapse,“ the minister predicted.

Economic journalist Dimitrije Boarov does not believe that the government conference call ironed things out completely.

Boarov told B92’s Poligraf that the job itself was still far from certain.

“Even if the DS, G17 Plus part of the government had given in and accepted the concessionaire’s word, papers etc., if the digging had begun, that does not mean by any stretch of the imagination that the job is done. Because it all depends on the path Serbia takes. If Serbia decides to fall out with the EU over Kosovo and everything else, that road won’t come to fruition,” the journalist warned.

The highway is planned to be 244km long, and most of the section running through Vojvodina has already been built.