05. 07. 10. - 16:45

Strabag expects road order to be cancelled

Strabag SE, Austria’s biggest builder, expects a 3 billion-euro highway project in Bosnia-Herzegovina to be cancelled in the next three weeks because of an administrative blunder, according to company spokeswoman Diana Klein.

Republika Srpska allocated the order without a tender, which made the project ineligible for loans from international financing institutions, Klein told Bloomberg agency in a telephone interview from Vienna.

This made it very difficult for Strabag to get financing for the highway, she confirmed.

Strabag expects Republika Srpska, the Serbian-dominated entity carved out of the war-torn country in 1995 as part of the Dayton peace agreement, to now re-tender the project and Strabag will apply for it again, Klein said.

As Strabag didn’t have the Bosnia project in its order book, the order book won’t be affected, she said.