"State in no-win situation over concessions"

The Anti-Corruption Council says the state will suffer financially regardless of the outcome of the dispute over the highway concessions contract. Deutsche Bank’s decision to set new conditions over the Horgos-Pozega highway concessions contract could lead to the contract being terminated, Economy Minister Mladjan Dinkic has warned. "State in no-win situation over concessions" Milic Milovanovic told B92 that this could lead to international arbitration, which, he believes, the state would lose. He said that the contract was poor, and that the Council had written to the government about the possible negative repercussions before it was signed, but that the government had turned a deaf ear to their warnings. “Right now, it’s hard to say what would be more damaging—terminating or ploughing on. It’s going to be expensive either way. I can’t say whether one way is better than the other,” said Milovanovic. It is nonetheless still unclear why the state promotes the construction of the highway, when it is not even a primary national project. According to the Anti-Corruption Council member, what is a priority is Corridor 10, as even the EU has set this as an important strategic aim. He said that construction of the corridor would have a multiple impact on development of the economy and EU investment. He also pointed to several other contestable privatizations and sales such as the Port of Belgrade, adding that the city authorities had already launched a project to move the port to a different location. Milovanovic also touched on the sale of the Serbian Oil Industry (NIS), pointing out that certain companies such as RTB Bor had negative capital and were hard to sell, while NIS was profitable. He said that the contract for the sale of NIS was detrimental to the state, and that it should not be ratified in parliament.

"State in no-win situation over concessions"

Milić Milovanović told B92 that this could lead to international arbitration, which, he believes, the state would lose.

He said that the contract was poor, and that the Council had written to the government about the possible negative repercussions before it was signed, but that the government had turned a deaf ear to their warnings.

“Right now, it’s hard to say what would be more damaging—terminating or ploughing on. It’s going to be expensive either way. I can’t say whether one way is better than the other,” said Milovanović.

It is nonetheless still unclear why the state promotes the construction of the highway, when it is not even a primary national project.

According to the Anti-Corruption Council member, what is a priority is Corridor 10, as even the EU has set this as an important strategic aim. He said that construction of the corridor would have a multiple impact on development of the economy and EU investment.

He also pointed to several other contestable privatizations and sales such as the Port of Belgrade, adding that the city authorities had already launched a project to move the port to a different location.

Milovanović also touched on the sale of the Serbian Oil Industry (NIS), pointing out that certain companies such as RTB Bor had negative capital and were hard to sell, while NIS was profitable. He said that the contract for the sale of NIS was detrimental to the state, and that it should not be ratified in parliament.