Funding problems for Bosnia's highway project

The Bosnian autonomous entity Republika Srpska recently cancelled a highway contract with Austrian construction company Strabag. The problem arose from alleged “irregularities” that saw the contract being awarded directly to Strabag without the work being put out for tender. Because of this, international financial institutions such as the European Bank for Reconstruction and Development (EBRD) have said they will not fund the project.
May 14, 2012 Read time: 1 min
The Bosnian autonomous entity Republika Srpska recently cancelled a highway contract with Austrian construction company 945 Strabag.

The problem arose from alleged “irregularities” that saw the contract being awarded directly to Strabag without the work being put out for tender.

Because of this, international financial institutions such as the 1166 European Bank for Reconstruction and Development (EBRD) have said they will not fund the project.

The contract is worth €3 billion and will now be put out to a conventional tender process, with Strabag saying that it will enter the bidding process once it is opened.

The Banja Luka-Bosanska Gradiska Highway was due for completion by September 2010.

Once the Bosnian authorities have cancelled the original deal and opened the bidding process, the way will be open for Strabag to submit a tender for the work.

For more information on companies in this article

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