Austrians want more money, Serbia could scrap highway deal

BELGRADE Koridori Srbije (Corridors of Serbia) Director Dmitar Djurovic says Alpine is asking for another EUR 74mn for construction of a Corridor 10 section. The Austrian company is building this highway stretch from Pirot to Dimitrovgrad. Austrians want more money, Serbia could scrap highway deal "The contract with that company will be cancelled, unless it continues with construction works on a ring road around Dimitrovgrad by mid-March at the latest," said Djurovic. He told reporters that Alpine got the job for around EUR 60 million, and is now requesting much more due to "unforeseen works". He noted that there is a major delay in works, even when compared to the justified postponement of construction of that part of the Corridor 10 east section. Alpine is building the highway section from Pirot to Dimitrovgrad, and nearly 20km-long ring road around Dimitrovgrad, apart from the tunnels Przojno Padina and Progon that are being constructed by the Greek company Terna. Alpine had earlier sued Serbia for terminating the concession for construction of the Horgos-Pozega highway, and the cost of a new bridge over the Danube near Beska is being determined by arbitration, given that Alpine requires more money for the realized works. Djurovic said that Koridori Srbije is preparing the documentation for possible cancellation of the contract with Alpine for the ring road around Dimitrovgrad, and that a new call for offers will be published then. The existing bank guarantee of EUR 6 million will also be used for further works. Djurovic underscored that all firms that do not fulfill their obligations will be penalized. Djurovic had said previously that Alpine should put forward a plan for further works on the ring road around Dimitrovgrad to Koridori Srbije by February 10. He said that the World Bank announced that a loan for that section could be revoked, because of the failure to meet the set deadlines. Alpine finished about 75 percent of works on the ring road around Dimitrovgrad, Koridori Srbije estimated. The deadline for these works expired one year and a half ago. Alpine representatives claim that the postponement of works on that part of Corridor 10 is a result of protests of citizens who were disgruntled over the conditions for land expropriation, and a major landslide they did not know about when the works commenced. Alpine announced that it will resume the works at the start of construction season, noting that there is no reason for contract cancellation. (scx.hu, stock) Tanjug

Austrians want more money, Serbia could scrap highway deal

"The contract with that company will be cancelled, unless it continues with construction works on a ring road around Dimitrovgrad by mid-March at the latest," said Đurović.

He told reporters that Alpine got the job for around EUR 60 million, and is now requesting much more due to "unforeseen works".

He noted that there is a major delay in works, even when compared to the justified postponement of construction of that part of the Corridor 10 east section.

Alpine is building the highway section from Pirot to Dimitrovgrad, and nearly 20km-long ring road around Dimitrovgrad, apart from the tunnels Pržojno Padina and Progon that are being constructed by the Greek company Terna.

Alpine had earlier sued Serbia for terminating the concession for construction of the Horgoš-Požega highway, and the cost of a new bridge over the Danube near Beška is being determined by arbitration, given that Alpine requires more money for the realized works.

Đurović said that Koridori Srbije is preparing the documentation for possible cancellation of the contract with Alpine for the ring road around Dimitrovgrad, and that a new call for offers will be published then.

The existing bank guarantee of EUR 6 million will also be used for further works.

Đurović underscored that all firms that do not fulfill their obligations will be penalized.

Đurović had said previously that Alpine should put forward a plan for further works on the ring road around Dimitrovgrad to Koridori Srbije by February 10.

He said that the World Bank announced that a loan for that section could be revoked, because of the failure to meet the set deadlines.

Alpine finished about 75 percent of works on the ring road around Dimitrovgrad, Koridori Srbije estimated. The deadline for these works expired one year and a half ago.

Alpine representatives claim that the postponement of works on that part of Corridor 10 is a result of protests of citizens who were disgruntled over the conditions for land expropriation, and a major landslide they did not know about when the works commenced.

Alpine announced that it will resume the works at the start of construction season, noting that there is no reason for contract cancellation.