GOVERNMENT: Approves Settlement with Motorway Zagreb-Macelj Concessionaire
The government gave approval to the State Attorney’s Office to accept a settlement with Motorway Zagreb-Macelj (AZM) concessionaire, ending their arbitration dispute with the state; the Austrian construction company is an AZM concessionaire partner and is also currently bidding for the concession of Croatia’s motorways network.
The Ministry of Finance will pay €9.1 million to AZM from the state budgetary stock, instead of the €11.4 million that AZM was seeking and upon which the Tax Administration handed down an enforcement decision in 2008, which was considered to be contrary to the concession agreement. According to the concession agreement, the state are committed to offset the decline in revenue due to decreased traffic. On the other hand, AZM was bound to pay tax liabilities to the state in the amount of €7.2 million. The costs of the arbitrary tribunal will be equally shared by both parties.
Proposed by: Ministry of Maritime Affairs, Transport and Infrastructure…