Total of 10m EUR paid for guarantee for concession construction of Horgoš-Požega highway

The Minister of Infrastructure of Serbia, Milutin Mrkonjić, confirmed that 10m EUR had been paid for the guarantee for the concession construction of Horgoš-Požega highway, which had to be paid by Austrian consortium "Alpine - Porr" after the Supreme Court in Vienna adjudicated in favor of Serbia.

The Government of Sebia submitted request for payment of the guarantee on January 30th, 2009, immediately after it expired, but the Austrian consortium prevented that by placing the ban on disposal of money at the court in Vienna.

The court, however, accepted the explanation of Serbian side that the contract was put in effect, regardless of the fact that the concessionaire for construction had denied that and that there were pre-contractual obligations (planning, expropriation and completion of financial structure) that had not been fulfilled by the concessionaire prior to March 30th, that is, December 31st, 2008.

The Government of Serbia announced on February 2nd, 2009, that it had issued the order to the bank to collect the guarantee of 10m EUR for construction of Horgoš-Požega highway because the concessionaire had failed to close the financial structure prior to end of 2008, which was necessary for the Concession Contract to be put in effect.

"Alpine" and "Porr" announced in May 2008 that they had submitted request for arbitration of that cancelation of the contract. The contract on concession for Horgoš-Požega highway was signed by the Government of Serbia in March 2007, at the time when the Prime Minister was Vojislav Koštunica.