Dugo Selo-Krizevci Railway Project Postponed Indefinitely

Renata Susa, CEO, HZ InfrastructureLPJ Issue 167, 8 February 2016

The State Commission for Supervision of Public Procurement (DKOM) annulled the decision made by the state-owned Croatian Railways (HZ) Infrastructure in October 2015, selecting the contractors for the Dugo Selo-Krizevci railway section construction project, valued at €198 million; 85% of the project was to be funded by the European Regional Development Fund (ERDF).

The project includes the reconstruction of the existing track and the construction of a second track on the Selo-Krizevci section. HZ Infrastructure awarded the construction project to the Croatian consortium comprised of DIV, a manufacturer of fastener goods, machine parts and metal products, Dalekovod, an engineering, manufacturing and construction company, and Zagreb Montaza, a construction company. Their offer, valued at €161.6 million (VAT excluded), was chosen as the most financially favourable.

The reason behind the annulment is the appeal filed by the competing bidders, Swietelsky (Austria) and a Spanish consortium led by Comsa. The contested issue is that the Croatian consortium did not provide financial guarantees as a group (i.e. consortium). HZ Infrastructure issued the tender for the Dugo Selo-Krizevci project in July 2015, after two previous tenders had been cancelled. The company stated it would announce a new decision in mid-February.

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