Podgorica, (MINA-BUSINESS) – According to Social Justice Action (ASP), the Shandong consortium, a Chinese contractor that was awarded the reconstruction of the key coastal road Tivat–Jaz, was paid €2.3 million in the first three months of this year.

 

ASP stated in a press release that the total amount paid so far from the state treasury for this project, whose completion is significantly delayed, has reached over €23.6 million out of the contracted €54 million, excluding VAT.

 

Of the contracted amount, €9 million is financed by the Regional Waterworks of the Montenegrin Coast for pipeline installation, while the rest is covered by the Traffic Administration for the roadworks segment.

 

According to part of the documentation held by ASP, earlier projections for the payment schedule extended until late autumn this year, although it is unclear whether this timeline has been revised in the meantime.

 

The Government has announced that the highway must be asphalted by the beginning of the tourist season, a requirement emphasized particularly in the context of an announced international event in early June, when many European heads of state or government are expected to arrive in Montenegro and Tivat.

 

“However, it is clear that related works and the full completion of the project will take considerably longer. Nearly all works are being carried out by the domestic company Bemax as the main subcontractor, engaged by the Chinese consortium,” the press release reads.

 

 ASP reported last month that there were very few workers on site, no more than 10 to 15, but their number has increased in the meantime.

 

“It is expected that the investment will be significantly more expensive than the contracted €54 million due to a series of issues in its implementation, starting from a flawed 2019 design on which the project was based, delays in the commencement of works, subsequent problems on-site in a densely populated area, disputes over the procurement of more expensive pipes than those specified in the contract, additional sewerage works, and power supply issues,” ASP said.

 

In 2020, the estimated cost of constructing the boulevard from Tivat to Jaz was €25 million, with completion expected by March 2023. However, the contract was only signed in March 2023, at a price of €54 million, excluding VAT.

 

“The draft budget for this year mentions a new estimated total investment value of €84 million,” the press release concludes.