NDS to Sign R2 Contracts Only After Securing Full Funding

Bratislava, 3 April (TASR) - The National Highway Company (NDS) will sign contracts with future contractors for two sections of the southern R2 expressway, Zacharovce-Batka and Batka-Figa in Banska Bystrica region only after securing financing for their construction. If full funding isn't allocated from the state budget, NDS reserves the right not to sign contracts with the successful bidders. The construction of both sections, with a total length of 14.6 kilometres, for which tenders have already been published in the Public Procurement Office bulletin, isn't currently financed from European Union funds. NDS also has the right to reject all bids and not conclude contracts if the prices submitted, excluding VAT, exceed the estimated value of the contracts. The estimated costs of the Zacharovce-Batka (8.3 kilometres) and Batka-Figa (6.3 kilometres) R2 sections, which will be built in half profile, are €241.7 million and €152.6 million excluding VAT. This corresponds to €29.1 million and €24.2 million per kilometre, respectively. The estimated total cost of both sections is €394.3 million excluding VAT, with the final prices to be determined by the tenders. Transport Minister Jozef Raz (a Smer-SD nominee) said that projects with a selected contractor and building permit have been successful in drawing European funds. "Our strategy is to bring projects to the maximum stage of preparation so that it will then depend only on whether we succeed in drawing funds or whether the government decides to seek resources elsewhere," he said. According to the minister, the absence of funds in the current budget shouldn't mean that the procurement will not proceed. "Procurement typically takes eight months and sometimes more than a year," he added. Raz said that EU funding sources would be primarily sought for the sections. "I believe that this has been prepared properly for drawing EU funds. Give us the opportunity to complete the preparation process, which means finishing the public procurement process, and before signing the contract we'll have the financing secured, otherwise we won't sign," he stated. mf/df