The Turkish company Cengiz has informed the management of the Public Company Highway of the Federation of BiH that it is suspending all works on the construction of the highway on Corridor Vc, the Medakovo-Poprikusa section, the Medakovo-Ozimice subdivision, Istraga.ba announced.
“Despite the Contractor’s cooperation and two postponements, the Investor has not made the due payments to date. Without making the aforementioned payments, the Contractor is unable to continue the Works. Consequently, the Contractor hereby informs that the suspension will take effect on March 21, 2026. The Contractor will insure, protect and provide for the Works. The Contractor invites the Engineer to submit any special instructions regarding insurance, protection or temporary measures. All rights and The Contractor’s claims under the Contract and the Law are strictly reserved, including: default interest according to Sub-Clause 14.8; compensation for costs and consequences arising from the suspension, and all other contractual and legal rights”, it is stated in the letter sent by the representative of the contractor Cengiz to the General Director of FBiH Highways, Asmir Dževlan and the representative of the company Alem Kovačević.
In the letter from Cengiz, it was pointed out that the first announcement of the suspension of works on the mentioned section of Corridor Vc was sent to Autoceste back in January.
Since then, Cengiz has already accepted suspension suspensions twice in the hope that Autoceste will pay the debt, but this has not been done to date.
Because of this, the Turkish contractor made a decision to suspend the works, reports Istraga.ba.
The portal reminds that the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) have clearly told the Government of the Federation that they will not pay out new loan tranches until the current management of Autocest is replaced.
