Report: Highway deal underwent changes

The Horgos-Pozega highway contract has undergone changes between January and March when it was signed, B92 has learned. TV B92’s investigative program Insider came across the document that had been ready for the signing on January 18. Report: Highway deal underwent changes According to that version, if the concessionaire fell short of meeting all contractual obligations, the state would have received ten percent of the overall value of projected investments into the highway construction. If the investment amounted to EUR 1.5bn, the state could thus get as much as EUR 150mn. Nonetheless, the contract signed with the Spanish-Austrian consortium FCC-Alpina on March 30, that the journalists were able to see Monday at the government headquarters, says that the state agreed to receive only EUR 10mn in damages. FCC-Alpina has undertaken to build the entire left lane of the highway from Horgos to Novi Sad in three years—some 107 kilometers—and to maintain the part of the highway from Belgrade to Novi Sad, as well as to build the 148 kilometer stretch from Belgrade to Pozega. As compensation for the work, the consortium will receive road tolls from the highways for 25 years. The concession contract is somewhat peculiar since the concessionaire is given a partially constructed highways stretch from Belgrade to Subotica via Novi Sad from which it can start collecting road tolls right away. Every year the state pulls in between EUR 20mn and 25mn alone from tolls at this stretch, which means the concessionaire could earn at least EUR 100mn by the end of 2012, a deadline set for the completion of the construction. The concessionaire is obliged to make a one-off payment of EUR 10mn after it submits confirmation of having secured funds needed for the highway construction. Upon starting construction, the concessionaire should make monthly payments to the government in the amount which is not revealed in the basic contract. The overall value of the entire deal remains unclear. Infrastructure Minister Velimir Ilic said after the contract was signed the concessionaire would invest EUR 1.5mn, while Branko Jocic, head of the Public Enterprise Roads of Serbia, said the value of the deal was EUR 1.3bn. What is more, the FCC Alpina has recently published on its website the deal will amount to EUR 1.1bn. Milan Obradovic, editor of the B92 business portal and the first journalist to take a look at the contract, said Monday that only the basic version of the document spanning 50 pages has been put on display, while the annexes, believed to contain answers to the more dubious segments of the deal, were withheld. However, Minister Ilic stated Monday the government would decide in its Thursday session whether to make the annexes public as well. Journalists read the basic contract at the Government's building (FoNet)

Report: Highway deal underwent changes

According to that version, if the concessionaire fell short of meeting all contractual obligations, the state would have received ten percent of the overall value of projected investments into the highway construction.

If the investment amounted to EUR 1.5bn, the state could thus get as much as EUR 150mn.

Nonetheless, the contract signed with the Spanish-Austrian consortium FCC-Alpina on March 30, that the journalists were able to see Monday at the government headquarters, says that the state agreed to receive only EUR 10mn in damages.

FCC-Alpina has undertaken to build the entire left lane of the highway from Horgoš to Novi Sad in three years—some 107 kilometers—and to maintain the part of the highway from Belgrade to Novi Sad, as well as to build the 148 kilometer stretch from Belgrade to Požega.

As compensation for the work, the consortium will receive road tolls from the highways for 25 years.

The concession contract is somewhat peculiar since the concessionaire is given a partially constructed highways stretch from Belgrade to Subotica via Novi Sad from which it can start collecting road tolls right away.

Every year the state pulls in between EUR 20mn and 25mn alone from tolls at this stretch, which means the concessionaire could earn at least EUR 100mn by the end of 2012, a deadline set for the completion of the construction.

The concessionaire is obliged to make a one-off payment of EUR 10mn after it submits confirmation of having secured funds needed for the highway construction.

Upon starting construction, the concessionaire should make monthly payments to the government in the amount which is not revealed in the basic contract.

The overall value of the entire deal remains unclear. Infrastructure Minister Velimir Ilić said after the contract was signed the concessionaire would invest EUR 1.5mn, while Branko Jocić, head of the Public Enterprise Roads of Serbia, said the value of the deal was EUR 1.3bn.

What is more, the FCC Alpina has recently published on its website the deal will amount to EUR 1.1bn.

Milan Obradović, editor of the B92 business portal and the first journalist to take a look at the contract, said Monday that only the basic version of the document spanning 50 pages has been put on display, while the annexes, believed to contain answers to the more dubious segments of the deal, were withheld.

However, Minister Ilić stated Monday the government would decide in its Thursday session whether to make the annexes public as well.