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PM Marković at PMQs: We will not pay single euro more than contracted amount for motorway construction

PM Marković at PMQs: We will not pay single euro more than contracted amount for motorway construction
Published date: 20.03.2019 16:00 | Author: PR Service

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PR ServicePR Service

Montenegro will not pay a single euro more than the contracted amount for the construction of the motorway, nor will the state be damaged by a single cent, and it is incorrect that the additional cost will be EUR 134 million, Prime Minister Duško Marković said responding to the question of MP Ervin Ibrahimović within the Prime Minister's questions.

"The contract stipulates an amount of 10% for subsequent and unforeseen works amounting to EUR 81 million, and it represents the funds from which the construction of the first phase of works on Smokovac will be paid off; the construction of a water supply system for the local population; and the construction of a power supply system. Therefore, everything," PM Marković explained.

Pointing out that the construction of the motorway is the most demanding and complex project that is currently being implemented in Montenegro, Prime Minister Marković said that a part of the media and the public have been challenging this project by placing inaccurate information and affirming unreliable analysts or unreliable sources of such information.

He stressed that numerous undeniable facts deny the frequent allegations that the state would be damaged by EUR 134 million because of alleged omissions that occurred during the motorway construction preparation process.

The agreement on the design and construction of the priority section Smokovac-Mateševo was concluded, the Prime Minister explained, on the basis of the Preliminary Project, not on the basis of the Preliminary Design, as it has recently been noted in some Montenegrin media.

"The contract clearly defines the Contractor's obligation to draft the Main Project, build, procure and install the equipment and installations for the 41 km long Smokovac-Mateševo section," PM Marković said.

All stated for the price of EUR 809.5 million.

The Prime Minister added that the Contract has determined that the agreed price can be corrected up to 10% for the execution of subsequent and unforeseen works, if needed.

"During the preparation of the Project Task for the Main Project of this section of the motorway, which is an integral part of the contract documentation, the works that need to be done within the planned investment have been recognised. So, I cannot talk about (I quote) - "forgotten works," he added.

For additional clarification - Smokovac loop has not been forgotten, but it is, according to the detailed spatial plan of the Bar - Boljare motorway, an integral part of one of the following sections of the motorway, namely Smokovac - Farmaci.

Providing conditions for water supply to the local population

Prime Minister Marković said that it was assessed as rational and extremely important to use motorway construction to provide conditions for water supply to the local population, as well as for the future development needs of the neighbouring areas, which exceeds the needs of the motorway as an infrastructure object.

He also commented on the comments that the project does not provide for electricity supply. He said that the Contract clearly defined the obligation of the Investor to secure electricity connections, while the subsequent provision of funds for the management of the electrical energy infrastructure, pursuant to the Law on Energy, will be taken over by the Montenegrin Electric Transmission System (CGES) and the Montenegrin Electricity Distribution System (CEDIS).

Funds provided for financing of the first section of the motorway

Funds for financing the first section of the motorway, that is, for annuity repayment of the loan, have been provided, Prime Minister Marković emphasised.

"Thanks to the high-quality financial consolidation, we can pay one loan installment from the better tax collection in the previous year, which was higher by EUR 180 million compared to 2017," he added.