BELGRADE -- The government Thursday rejected by a majority of votes a proposal to start the construction of the Horgoš-Požega highway.
Source: B92, Tanjug
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Infrastructure Minister Velimir Ilić, who tabled the proposal, said "there was no real reason to postpone the start of implementation of the concession deal", and that the postponement was irresponsible.
He told a news conference after the government session that the concession and the works were halted through "outvoting in the government" and that the project that took three years to prepare will now not be realized.
The coalition of the Democratic Party (DS) and G17 Plus have the majority in the caretaker government. Prime Minister Vojislav Koštunica's Democratic Party of Serbia (DSS) and Ilić's New Serbia (NS) are also part of the coalition which collapsed recently. New elections are scheduled for May 11.
At the session today, the ministries of finance and economy took the stand that works cannot start as there is a danger that the risks of financing the project might be transferred to the budget and the citizens, Ilić said.
The two ministries, led by the DS and G17 Plus, proposed a 30-day postponement of the deadline for the concessionaires to secure banking guarantees, but Koštunica did not put that proposal up for the vote.
Earlier, the prime minister said that a decision to suspend work on the Horgoš-Požega highway would be fatal for the economy.
Koštunica said the "statements that Democratic Party (DS) ministers, who make up the majority of the government, will call for a suspension of the planned work on the construction of the Horgoš-Požega highway, represent a veritable destruction of the country's development."
In a statement to the press, Koštunica said that "just a few days ago, the deputy prime minister said that work could begin immediately if the concessionaires wanted to finance the work themselves this year."
"Now we see someone has ordered the construction of the highway to be suspended, and such a decision by DS ministers brings direct and unscrupulous harm to Serbia and its inhabitants," the prime minister fumed.
"Because of this unreasonable decision, it is the DS ministers that will be held responsible for all the possible far-reaching consequences this may have on the development of our country," he declared ahead of today’s cabinet meeting, the topic of which will be the Horgoš-Požega highway concession.
Luigi,
ok ok you're right, but i didn't linked ANAS with highways just construction in general.
PS. I really like the italian highways.
(adrian/bucharest, 27 March 2008 20:12)
Dear Adrian:
ANAS doesn't run any highway in Italy..Atlantia-Autostrade Mi-to-Serenissima etc etc this are the operators and the owners of the network but it's always interesting to read your topics..
Anyway the problem is always the same till now Eu has put a lot of money in Serbia probably without results.. Russia has won the heart of Serbs with a little investment in the gas sector so they can put some of their petrorubl in a 350 km highway for them must not be a great problem...
(luigi, 27 March 2008 18:31)
Highway deal is not just postponed, it is cancelled, so according to Kostunica, the Serbian economy is now in terminal state. Fact is that Deutsche bank will not support this project and since Velimir Ilic and his gang helped bring down government, DS decided they won't get their "commissions". Boo hoo.
(Mark, 27 March 2008 17:24)
As one that works as a lawyer in this exact field, I can only say that both are right.
usually when we talk about a concession the contract is awarded for design&build&finance which means that everything is the constructor's job, but the constructor will perceive tolls for a period of time in order to cover all the expenses and some profit.
But, if you do like this, the overall costs are quite higher, because the state has to play how the financing bank wants which is quite defavourable than bringing the finance by yourself from a bank you choose or directly from the state budget (in which case it's not quite the case for a concession).
In any case, both solutions can be viable, cause in the end, in construction, only the cold contractual numbers matter.
I can only imagine the horrible interest rates Serbia has to pay for this.
Kostunica is right on the fact that the construction is very necessary cause in all cases infrastructure brings investments.
Unfortunatelly in this kind of situations you can actually see the price a country has to pay (high interest rates) for the so called higher political risk (you know, no SAA, sending the west to hell strategy, burned embassies).
@Luigi Also ANAS is borrowing money and not only from italian banks, it is a common practice and it's normal to go to the bank which offers the best rates, but partially i get your point. Gazprom bank would be a solution.
(adrian/bucharest, 27 March 2008 17:00)
A question to ALL Serbs:
Why don't you ask to Dima & Valia to finance the Highway ?..
If you don't have money why don't you ask to your rich friend ?
(Luigi, 27 March 2008 16:06)
Dear Markus,
I would not take his response as seriously as you do - this is election times and just like Carl Bildt he is a poltical turmoil.
(Nenad, 27 March 2008 15:55)
When Mr Kostunica is pressed for arguments he resorts to fiery talk and dramatic assertions. In this he is more like Milosevic than the modern leader that Serbia would need to tackle her problems. The controversy surrounding the Horgoš-Požega highway is justified. Instead of addressing the criticisms, Kostunica ducks under a cloud of bombastic rhetoric like so many times before.
(Markus Göransson, 27 March 2008 15:18)
Highway deal is not just postponed, it is cancelled, so according to Kostunica, the Serbian economy is now in terminal state. Fact is that Deutsche bank will not support this project and since Velimir Ilic and his gang helped bring down government, DS decided they won't get their "commissions". Boo hoo.
(Mark, 27 March 2008 17:24)
When Mr Kostunica is pressed for arguments he resorts to fiery talk and dramatic assertions. In this he is more like Milosevic than the modern leader that Serbia would need to tackle her problems. The controversy surrounding the Horgoš-Požega highway is justified. Instead of addressing the criticisms, Kostunica ducks under a cloud of bombastic rhetoric like so many times before.
(Markus Göransson, 27 March 2008 15:18)
A question to ALL Serbs:
Why don't you ask to Dima & Valia to finance the Highway ?..
If you don't have money why don't you ask to your rich friend ?
(Luigi, 27 March 2008 16:06)
Dear Markus,
I would not take his response as seriously as you do - this is election times and just like Carl Bildt he is a poltical turmoil.
(Nenad, 27 March 2008 15:55)
As one that works as a lawyer in this exact field, I can only say that both are right.
usually when we talk about a concession the contract is awarded for design&build&finance which means that everything is the constructor's job, but the constructor will perceive tolls for a period of time in order to cover all the expenses and some profit.
But, if you do like this, the overall costs are quite higher, because the state has to play how the financing bank wants which is quite defavourable than bringing the finance by yourself from a bank you choose or directly from the state budget (in which case it's not quite the case for a concession).
In any case, both solutions can be viable, cause in the end, in construction, only the cold contractual numbers matter.
I can only imagine the horrible interest rates Serbia has to pay for this.
Kostunica is right on the fact that the construction is very necessary cause in all cases infrastructure brings investments.
Unfortunatelly in this kind of situations you can actually see the price a country has to pay (high interest rates) for the so called higher political risk (you know, no SAA, sending the west to hell strategy, burned embassies).
@Luigi Also ANAS is borrowing money and not only from italian banks, it is a common practice and it's normal to go to the bank which offers the best rates, but partially i get your point. Gazprom bank would be a solution.
(adrian/bucharest, 27 March 2008 17:00)
Dear Adrian:
ANAS doesn't run any highway in Italy..Atlantia-Autostrade Mi-to-Serenissima etc etc this are the operators and the owners of the network but it's always interesting to read your topics..
Anyway the problem is always the same till now Eu has put a lot of money in Serbia probably without results.. Russia has won the heart of Serbs with a little investment in the gas sector so they can put some of their petrorubl in a 350 km highway for them must not be a great problem...
(luigi, 27 March 2008 18:31)
Luigi,
ok ok you're right, but i didn't linked ANAS with highways just construction in general.
PS. I really like the italian highways.
(adrian/bucharest, 27 March 2008 20:12)
Highway deal is not just postponed, it is cancelled, so according to Kostunica, the Serbian economy is now in terminal state. Fact is that Deutsche bank will not support this project and since Velimir Ilic and his gang helped bring down government, DS decided they won't get their "commissions". Boo hoo.
(Mark, 27 March 2008 17:24)
Dear Adrian:
ANAS doesn't run any highway in Italy..Atlantia-Autostrade Mi-to-Serenissima etc etc this are the operators and the owners of the network but it's always interesting to read your topics..
Anyway the problem is always the same till now Eu has put a lot of money in Serbia probably without results.. Russia has won the heart of Serbs with a little investment in the gas sector so they can put some of their petrorubl in a 350 km highway for them must not be a great problem...
(luigi, 27 March 2008 18:31)
A question to ALL Serbs:
Why don't you ask to Dima & Valia to finance the Highway ?..
If you don't have money why don't you ask to your rich friend ?
(Luigi, 27 March 2008 16:06)
When Mr Kostunica is pressed for arguments he resorts to fiery talk and dramatic assertions. In this he is more like Milosevic than the modern leader that Serbia would need to tackle her problems. The controversy surrounding the Horgoš-Požega highway is justified. Instead of addressing the criticisms, Kostunica ducks under a cloud of bombastic rhetoric like so many times before.
(Markus Göransson, 27 March 2008 15:18)
Luigi,
ok ok you're right, but i didn't linked ANAS with highways just construction in general.
PS. I really like the italian highways.
(adrian/bucharest, 27 March 2008 20:12)
Dear Markus,
I would not take his response as seriously as you do - this is election times and just like Carl Bildt he is a poltical turmoil.
(Nenad, 27 March 2008 15:55)
As one that works as a lawyer in this exact field, I can only say that both are right.
usually when we talk about a concession the contract is awarded for design&build&finance which means that everything is the constructor's job, but the constructor will perceive tolls for a period of time in order to cover all the expenses and some profit.
But, if you do like this, the overall costs are quite higher, because the state has to play how the financing bank wants which is quite defavourable than bringing the finance by yourself from a bank you choose or directly from the state budget (in which case it's not quite the case for a concession).
In any case, both solutions can be viable, cause in the end, in construction, only the cold contractual numbers matter.
I can only imagine the horrible interest rates Serbia has to pay for this.
Kostunica is right on the fact that the construction is very necessary cause in all cases infrastructure brings investments.
Unfortunatelly in this kind of situations you can actually see the price a country has to pay (high interest rates) for the so called higher political risk (you know, no SAA, sending the west to hell strategy, burned embassies).
@Luigi Also ANAS is borrowing money and not only from italian banks, it is a common practice and it's normal to go to the bank which offers the best rates, but partially i get your point. Gazprom bank would be a solution.
(adrian/bucharest, 27 March 2008 17:00)