Concessions contract to expire at end of year

Should the Alpina-PORR consortium fail to secure the necessary bank guarantees and begin work, the concessions contract will cease to be valid, writes Politika. The daily understands the government will not insist on termination of the contract prior to the expiry of the agreement, according to which the concessionaire is bound to begin work on the Horgos-Pozega highway before the year's end. Concessions contract to expire at end of year The position of Serbian state organs is that the contract is valid and that the signatories should adhere to it and meet the commitments and time frames specified therein. As a result, the government will not terminate the agreement before December 31, though in talks with the consortium it has suggested that Alpina-PORR should withdraw from the agreement gracefully if it is not in a position to meet its obligations. This proposal covers Serbia’s offer to take over the construction project from the concessionaire, together with reimbursing Alpina’s costs thus far. The Serbian negotiating team insists that these costs should only cover jobs directly linked to the concession, such as, for instance, land expropriation for construction of the highway or drafting of project documentation. If the consortium rejects the Serbian offer, then everything is on hold until December 31, when the contract expires (according to the provisions therein) should the concessionaire have failed by then to secure the necessary financing and begin construction. Business circles believe that if Serbia keeps its offer open, it would be in the concessionaire’s interests to take a decision quickly as to whether to accept the offer, writes Politika.

Concessions contract to expire at end of year

The position of Serbian state organs is that the contract is valid and that the signatories should adhere to it and meet the commitments and time frames specified therein.

As a result, the government will not terminate the agreement before December 31, though in talks with the consortium it has suggested that Alpina-PORR should withdraw from the agreement gracefully if it is not in a position to meet its obligations.

This proposal covers Serbia’s offer to take over the construction project from the concessionaire, together with reimbursing Alpina’s costs thus far.

The Serbian negotiating team insists that these costs should only cover jobs directly linked to the concession, such as, for instance, land expropriation for construction of the highway or drafting of project documentation.

If the consortium rejects the Serbian offer, then everything is on hold until December 31, when the contract expires (according to the provisions therein) should the concessionaire have failed by then to secure the necessary financing and begin construction.

Business circles believe that if Serbia keeps its offer open, it would be in the concessionaire’s interests to take a decision quickly as to whether to accept the offer, writes Politika.