Slovenia -finally- chooses Turkey's Cengiz as the winner of the tender for the second tube of the Karavanke tunnel

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DARS (Slovenian Road Company) had been trying to choose, for the last two (2) years, the construction contractor to build the second tube of the Karavanke tunnel.

After 2 tenders, appeals, cancellations, re-negotiations and all that lost time, it is news in Slovenian press that the DARS has decided to give the contract to Turkish construction company Cengiz. This is not an official announcement from DARS. It still needs to be approved by DARS supervisory board.

First tender in 2018 was cancelled after appeals

In the first tender in 2018, also Cengiz was the lowest bidder (Euro 89,3m) but it was cancelled after appeals by two of the loosing parties (Slovenian builder Kolektor CPG,  Bosnia's Euro-Asfalt and its Slovenian partner Cestno Podjetje Ptujm). Strange enough these parties chose not to bid in the second tender...

While Slovenia has been wasting time with tender process, Austria already started  construction progress in their part of the tunnel.

Prices have gone up more than 10% in the second tender

In the second tender (re-tender), Cengiz was also the lowest bidder but this time with Euro 99.6 m (substantially higher than the first tender). It was not only the time lost, but also the costs of the tunnel to the Slovenian tax-payers went up.

After the second tender, DARS had shortlisted three bidders, eliminating the Greek JP Avax and the Slovenian Gorenjska with Czech Metrostav.

Slovenian press reports that in post-tender negotiations with the 3 shortlisted companies, their offers were further lowered:

  • Turkish Cengiz came down to Euro 98,5m from Euro 99,8m,
  • Consortium of Slovenia's Kolektor CGP, Riko & Turkey's Yapi Merkezi came down to Euro 104m from Euro 121m.
  • Implenia Österreich in consortium with Implenia Switzerland and Slovenian CGP Novo mesto came down to Euro 115m from Euro121m.

The decision of choosing Cengiz still needs to be approved by DARS' supervisory board. For final decision it is best to wait for the official announcement of DARS. Otherwise, the ball is still rolling really.

 

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