BRATISLAVA, September 2, (WEBNOVINY) — Transport Minister Jan Figel (KDH) decided to not prolong the deadline for the financial closure of the first PPP package for the construction of five D1 sections between Martin and Presov. Figel explained that the concessionaire, the firm Slovenske Dialnice, a.s., which was supposed to build and operate the 75-kilometer-long sections for a period of thirty years, was unable to ensure the project’s financial closure until August 30, whereby the deadline has been postponed several times under the rule of the previous Transport Minister Lubomir Vazny. The new minister pointed out at Thursday’s news conference that the deadline has been put off six times and the concession agreement signed in April 2009 has not come into force to date.
“I decided to no longer prolong this process, because it has been repeatedly extended and cost Slovakia much time. The ministry still does not have guarantees even after the talks with the representatives of the concessionaire that the first PPP package will be financially closed in the near future and that the construction start will be possible to the full extent,” said Figel. The fact that concession agreement lost its validity will enable to reopen the first PPP package and build the sections separately via new tenders.
The consortium that was to carry out the first PPP package expressed disappointment over Figel’s decision. “We have made compromises to please the expectations of the government to the fullest possible extent, which resulted in a reduction of the price for availability (the annual sum paid by the state to the concessionaire for the use of highways) deeply below the bid that won the tender in January 2009,“ commented Slovenske Dialnice. The isappointment is much stronger because the consortium, according to its words, was able to ensure full financial coverage of the project with or without a state guarantee. Figel stated at the news conference that the concessionaire suggested that the annual installment be reduced from EUR 289 -EUR 317 million to EUR 190- EUR 210 million.
The consortium pointed out that at the same time the evaluation of an environmental complaint filed by a non-profit organization and of the state guarantee for part of the loan that was to be provided by the European Investment Bank continued within the structures of the EU. These factors, which thwarted the financial closure, definitely do not fall under the powers and influence of the concessionaire. They could have been resolved within a short period after the summer break in the European Commission and the financial closure could have been attained this year, opines the company Slovenske Dialnice.
Former Prime Minister Robert Fico said in response to Figel’s decision that Slovakia has another reason for national mourning. This will mean the delay of D1 highway construction through PPP projects by a few years, SMER-SD leader stated. He underscored that the halt of the project will put Slovakia’s economic growth in danger.
Fico suspects that Figel did not tell the truth when he explained why the Cabinet decided to stop the D1 project. He opines that the verdict was the most unfortunate that could be made by the center-right government. The strongest opposition party plans to confront Figel with the issue on Friday.
SITA