Highway concessions contract rejected

The National Council for Infrastructure rejected the concessions contract for the building of the Horgos-Pozega highway. The Council decided that there were no grounds for the concessions contract with the Alpina-PORR consortium to enter into force, as the additional conditions the consortium was seeking were not in state interests. Highway concessions contract rejected In a statement released following the Council’s constitutive session headed by President Boris Tadic, it is stated that the additional conditions significantly alter the basis of the contract, whereby a considerable amount of the financial burden would be transferred from the concessionaire to the Serbian tax payer, and that these demands are not in the interests of Serbia or its citizens, and therefore there are no grounds for the contract to enter into force. Among other things, the concessionaire wanted added guarantees from the state concerning traffic circulation of a value in excess of EUR 200mn, a four-year extension of the deadline for the highway’s construction, as well as an extension of the concession from 25 to 30 years, the president’s cabinet announced after the Council’s session. It was announced that the National Council for Infrastructure had been created for the coordination and management of infrastructure projects, in order to accelerate primarily economic development, but also overall development in Serbia. The Council will endeavor to launch and coordinate a program for European road construction in Serbia to the tune of some EUR 5mn, as well as a program to enhance rail, air, and river traffic. The Council will also address all important issues in the purview of local self-government, autonomous provinces, the City of Belgrade, towns and municipalities that are significant for the development of infrastructure, with a view to Serbia’s overall and balanced development.

Highway concessions contract rejected

In a statement released following the Council’s constitutive session headed by President Boris Tadić, it is stated that the additional conditions significantly alter the basis of the contract, whereby a considerable amount of the financial burden would be transferred from the concessionaire to the Serbian tax payer, and that these demands are not in the interests of Serbia or its citizens, and therefore there are no grounds for the contract to enter into force.

Among other things, the concessionaire wanted added guarantees from the state concerning traffic circulation of a value in excess of EUR 200mn, a four-year extension of the deadline for the highway’s construction, as well as an extension of the concession from 25 to 30 years, the president’s cabinet announced after the Council’s session.

It was announced that the National Council for Infrastructure had been created for the coordination and management of infrastructure projects, in order to accelerate primarily economic development, but also overall development in Serbia.

The Council will endeavor to launch and coordinate a program for European road construction in Serbia to the tune of some EUR 5mn, as well as a program to enhance rail, air, and river traffic.

The Council will also address all important issues in the purview of local self-government, autonomous provinces, the City of Belgrade, towns and municipalities that are significant for the development of infrastructure, with a view to Serbia’s overall and balanced development.