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:
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.
"There are lessons to be learnt about the Slovenian system of contracting from yesterday's negotiations on the selection of the contractor for the second tube of the Karavanke tunnel.
The biggest surprise was not how much the winning bidder offered, but by how much one of its rivals was willing to reduce the price. "
https://english.sta.si/2704587/dnevnik-sees-lessons-in-karavanke-tunnel-contracting
Dnevnik thinks there are lessons to be learnt about the Slovenian system of contracting from yesterday's negotiations on the selection of the contractor for the second tube of the Karavanke tunnel. The biggest surprise was not how much the...
This news from The Slovenia Times:
Turkish builder Cengiz has announced it has won the contract to build the Slovenian section of the second tube of the Karavanke motorway tunnel, as the motorway company concluded talks with three bidders.
http://www.sloveniatimes.com/turkish-bidder-on-track-to-win-karavanke-contract
This is from Total Slovenia news
STA, 3 December 2019 - Turkish builder Cengiz has announced it has won the contract to build the Slovenian section of the second tube of the Karavanke...
Cengiz is famous in Turkey. They are part of a few AKP (Erdoğan) friendly companies (Cengiz, Bayburt, Kalyon..) that get almost every construction contract in Turkey. Many people think they are part of AKP corruption ring.
I think they bid too low for Karavanke tunnel. Maybe below cost? What is there behind it?
The European Investment Bank (EIB) said on Thursday it is lending 90 million euro ($98.1 million) to Slovenian motorway company DARS to finance the construction of a second tube of the Karavanke motorway tunnel.
https://highways.today/2020/02/13/eib-karavanke-tunnel-slovenia/
EIB invests €90 million for expansion of the Karavanke Tunnel in Slovenia Millions of passengers on the Trans-European Transport Network (TEN-T) will benefit from a safer, faster and more convenient r
cover tunnel photo by: Matt Brown from London, England / CC BY
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Slovenian government finish with number of excuses not giving contract to Cengiz, They can find no additional excuses.
I don't think that is entirely the reason. I think the real impediment to the whole process was appeals to the first tender by loosing parties Kolektor CPG, Euro-Asfalt and Cestno Podjetje Ptujm which caused the cancellation of the first tender.
It has cost the taxpayer 9,2m euros only in winning bid cost. And who knows how much more for all the bureaucracy for the appeals, cancellation and re-tender.
And these 3 companies decided not to enter the second tender. It is a bad, very bad joke really. And do not forget the at least one extra year for all that process.
Tax payers millions and valuable one year has been wasted.
You may have a point after all!
Contrary to my previous reply on you comment, indeed there are claims that "Slovenian construction mafia, Deep State and DARS" favoured some contractors and they tried to prevent Cengiz from gettig the contract.
I found this claim in "Demokracija" and they claim those forces mentioned found all the excuses and did everything they could, to stop Cengiz.
Some time ago, an economist and former minister Joze P. Damijan argues in an op-ed that macroeconomics is much more favorable for a local company to build the Karavanke tunnel and said "In publicly funded construction operations, we must look at the overall macroeconomic effects - not just the final price,".
"Demokracija" says that there are no independent Slovenian contractors who can do the construction and even the subcontractors are foreign. Besides it says none of them have the extensive tunnel experience of Cengiz."Demokracija" says that the second cheapest offer is a whopping € 20 million more expensive than that of Cengiz.
Publication adds some claims about "Deep State" trying to provide work for Kolektor and Rick would carry out together with the Gorenjska construction company and Sarajevo-based Euro-Asphalt.
http://demokracija.si/fokus/spet-smo-pravilno-napovedali-sosledje-dogodkov-vlada-marjana-sarca-menja-upravo-darsa-z-namenom-da-projekt-gradnje-druge-cevi-skozi-karavanke-dobi-kucanov-izbranec-petric.html
Spet smo pravilno napovedali sosledje dogodkov; Vlada Marjana Šarca menja upravo Darsa z namenom, da projekt gradnje druge cevi skozi Karavanke dobi Kučanov izbranec Petrič
demokracija.siGradnja druge cevi karavanškega predora v Avstriji se je že zdavnaj začela, na naši strani pa se nad projekt zaradi zadušljive birokracije vedno bolj...