"Alpine-Porr" submitted new draft agreement to Government of Serbia - 35m EUR for breaking of contract

Consortium "Alpine-Porr" does not give up construction of, at least, part of the highway, of which construction was anticipated by the concession contract Horgoš - Požega. According to the new proposal they submitted to the Government of Serbia, they offer to build the section 115.52 km long, between Ostružnica and Čačak.

As daily newspaper "Novosti" finds out, the concessionaire will accept breaking of the contract or a change in the concession contract, which will create conditions for Serbia to build the highway section between Horgoš and Novi Sad by itself. But, it is also stated in the proposal that the concessionaire should be paid 35m EUR for breaking of the contract on concession or for the exclusion of the most profitable highway section between Horgoš and Belgrade from the concession. According to the concessionaire, that fee would be close in amount to the money they have spent on this project over the past three years.

It is also stated in the proposal that the existing concession should be changed or that the new contract should be made on the basis of the direct agreement between the concessionaire and the state. Therefore, "Alpine" and "Porr" are willing to build full profile of highway between Ostružnica and Lajkovac, 52.2 km long, prior to year 2012, as well as semi-highway between Lajkovac and Preljine, 63.32 km long. After that, as they suggest, they would build the second lane of the highway between Lajkovac and Preljine.

According to the promise of the concessionaire, if the Government accepts these proposals, their financial advisor and creditor Deutsche bank will, in that case, suggest the most favorable model. There are various types of concessions by BOT system - the concessionaire can collect the toll by itself, the state can collect the toll and pay the fixed monthly fee to the concessionaire, or, for example, the state can participate in the business through its public company "Putevi Srbije".

ALPINE Bau GmbH Wals bei Salzburg

Alpine d.o.o. Beograd

PORR DOO BEOGRAD

Deutsche Bank AG - Repräsentanz Belgrad

JP Putevi Srbije Beograd

Vlada Republike Srbije

Alpine

Porr

Horgoš Požega highway

Ostružnica Čačak highway

Deutsche bank

Putevi Srbije

Preljina

Government of Republic of Serbia