Minister downplays reports that Peljesac Bridge project might cost €67m more

NEWS 30.09.2021 11:56
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Source: N1

Commenting on recent media reports that Chinese CRBC and other construction companies may ask for additional 500 million kuna (€67 million) to finish the ongoing Peljesac Bridge project, Transport and Infrastructure Minister, Oleg Butkovic, said on Thursday that the government "didn't expect a significant change in the price" agreed.

Asked whether it was correct that the cost of the bridge would be 500 million kuna higher due to the surge in construction materials prices, as reported by Jutarnji List daily, Butkovic said that he had seen the article this morning, but that the Ministry and the Hrvatske Ceste national road management company had received no official information and that the price had been agreed before the hike in construction materials prices.

“That is a problem in regard to which the government would make certain decisions due to the surge in the prices of construction materials, steel… but as for the Peljesac Bridge itself, it was contracted long before the surge, so we don’t expect any large sums at the moment for the bridge or access roads,” he stressed.

Reporters asked whether the Peljesac Bridge and the access roads would be covered by the conclusion made by the government today, according to which contracts between constructors and public contracting authorities could be amended following a rise in the prices of raw materials and construction materials.

“We know exactly when the price increase occurred, when the projects were contracted, and if something is contracted and procured before the price increase, then one cannot pay for it and acknowledge it,” Butkovic said.

He explained that according to the government’s conclusion, the client and the contractor would analyze when the price increase occurred and then, in accordance with public procurement rules, decide whether the cost of some items would be higher, but not more than 10%.

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