Tuesday, 22 May 2018
New bridge still on hold New bridge still on hold

Peljesac Bridge on hold again as Chinese construction company investigated

By  Mark Thomas Jan 28, 2018

The construction of the Peljesac Bridge is once again on the waiting list, for at least another month, as a number of complaints have been issued by the companies that were unsuccessful with their tenders.

China Road and Bridge Corporation, the Chinese company that was chosen by the government to carry out the first phase of construction works for the future Peljesac Bridge, one of the largest infrastructure projects ever undertaken in Croatia, spent eight years on the World Bank black list, according to reports in the Croatia media. CRBC was punished with this ban for participating in construction projects, co-financed by the World Bank, in the Philippines in 2012 due to “suspicious business operations.”

According to a study by the World Bank the Chinese company had agreed with two Philippine and one Korean company on dumping prices to win the public tender for a job worth $33 million.

The World Bank investigation showed that CRBC dealt with "fraudulent business practices" in its public bidding applications, which, however, did not prevent some states in Asia and Africa from doing business with this Chinese construction pyramid but in projects in which the World Bank was not included. The Chinese company denied all claims but failed to prove that the World Bank decision was wrong.

The Italian, Turkish and Austrian construction companies that had placed bids for the Peljesac Bridge have all lodged official complaints and the project is on hold whilst this case is fully investigated.

 

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The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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