Fate of Sava Centar still uncertain – No interest in PPP in third tender round

The reconstruction and modernization of Sava Centar has been halted again, since, as Blic learns, no company was interested in a public-private partnership in the third round of the tender.

Unexpectedly, no binding investor bid was sent to the tender, which has already been extended three times, even though the potential competitors were Delta Holding and the consortium of state companies consisting of the Nikola Tesla Airport, the Belgrade Fair and Energoprojekt Holding.

Both parties had great plans which envisioned total overhaul of the congress center, which has recently celebrated its 40th anniversary, but is rather dilapidated, has great debts and is, along with GSP Belgrade, the only public enterprise in the city to only incur losses for years now.

The company of Miroslav Miskovic offered to invest EUR 12.5 million in the reconstruction, with an additional EUR 12.5 million to be provided by Sava Centar itself through a loan. The facility would be closed for reconstruction and equipping for only a year, and the first profit could be expected after four years. Still, they also proposed for the division of ownership of Sava Centar to be defined at a later date.

The Nikola Tesla Airport and its partners had even bigger plans for this part of Belgrade. It was prepared to invest EUR 30 million, under the condition that the city settle all its debts and give up the profit over the first 12 years of operations, until the invested amounts were returned. Following that, 35% of the profit would be paid to the city budget. In addition to the existing 69,300 square meters, another 50,000 m2 would be built – a 25-30-story tower, containing a shopping mall, office space and a hotel, whereas the final three stories would be open to visitors.

Let us remind that the City of Belgrade placed a non-binding public invitation in February 2016. Three plans were submitted at the time. In addition to Delta Holding and the said consortium, the Slovenian company GGE ESCO also submitted its bid, which was, however, deemed incomplete.

In late 2016, two bidders passed the second tender round, but no one responded to the final, third one. In mid-January, Zivorad Vasic, vice president of Delta Holding, said that the company was deliberating whether to continue taking part in the tender.

– According to the business plan of the experts we've hired, EUR 25-30 million is needed to reconstruct Sava Centar, not around EUR 12 million, as expected – Vasic pointed out at the time.

As Blic learns, the City of Belgrade should reach the decision on the further strategy regarding Sava Centar in the coming days.