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Negotiations on termination of Horgos-Pozega concession contract near conclusion
Belgrade,
28 October 2008
Serbian Minister of Environmental Protection and Spatial Planning Oliver Dulic said today that he expects negotiations on the termination of the Horgos-Pozega motorway concession contract to conclude soon.
In a statement to the news agency Beta following talks with representatives of the Alpina-Porr consortium, Dulic said that it is clear that the concessionaire will not be able to fulfill their obligations by December 31, when the contract was to start.
He confirmed it was agreed that the best solution is to terminate the contract, in order to avoid international arbitration, adding that Serbia refused offers made by the concessionaire to sign the contract for motorway construction without a tender.
Dulic said that Serbian government experts will examine construction documentation prepared by the concessionaire.
The issue of purchasing construction documentation, while claiming payment of the bank guarantee submitted by the concessionaire will be discussed in further talks, explained Dulic, adding that the final decision about the concession contract will be made by the government.
He said that even if an agreement is not reached concerning the termination of the contract by December 31, the bank guarantee of €10 million submitted by the concessionaire will be returned.
If the contract is not terminated through negotiations it will not be possible to avoid international arbitration, said Dulic, adding that the best solution for both sides would be a negotiated termination.
The contract was signed at the end of March last year and the concessionaire, in order to fulfill its obligations should have begun construction by the end of this year.
He confirmed it was agreed that the best solution is to terminate the contract, in order to avoid international arbitration, adding that Serbia refused offers made by the concessionaire to sign the contract for motorway construction without a tender.
Dulic said that Serbian government experts will examine construction documentation prepared by the concessionaire.
The issue of purchasing construction documentation, while claiming payment of the bank guarantee submitted by the concessionaire will be discussed in further talks, explained Dulic, adding that the final decision about the concession contract will be made by the government.
He said that even if an agreement is not reached concerning the termination of the contract by December 31, the bank guarantee of €10 million submitted by the concessionaire will be returned.
If the contract is not terminated through negotiations it will not be possible to avoid international arbitration, said Dulic, adding that the best solution for both sides would be a negotiated termination.
The contract was signed at the end of March last year and the concessionaire, in order to fulfill its obligations should have begun construction by the end of this year.
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