Chinese and Turkish companies have almost no competition among foreign companies that get construction jobs in Bosnia and Herzegovina (BiH) worth hundreds of millions of BAM, data and documents show. Companies from other countries do not even apply for 90 percent of these tenders.
The “Republika Srpska (RS) Motorways” traffic control center in Laktasi is a modern and well-organized building. One entire wall is covered with screens showing the current traffic situation. When it is completed, the section of the road between Doboj and Brcko will be shown on it. The construction of the part of the future highway towards Bijeljina and on to Belgrade started last year when the authorities of the entity proudly announced the cooperation with the Chinese company.
The idea of connecting BiH and Serbia was supported a few years ago by Turkish President Tayyip Erdogan, which was followed by meetings with local authorities.
But behind the glamorous meetings at the highest level celebrating the future road that will strengthen economic cooperation and connect the two countries, the lack of transparency and the lack of competition fuel doubts as to whether the deal was made in the best interest of the citizens.
Awarded contracts without competition
Chinese and Turkish firms won more than half of all construction projects worth more than 50 million BAM in the last six years, according to the tenders that were analyzed. Out of 23 projects, companies from these countries received 14 of them, worth more than six billion BAM, which is more than 80 percent of the value of all large infrastructure projects.
In a market without competition from European bidders, the details of the contracts signed by these companies and the final value of the works to be performed remain unknown.
In the last six years, 15 contracts were signed for the construction of highways in BiH. Half of them were signed with Chinese and Turkish companies and the other half with domestic construction companies. European companies either signed up for a consortium with a domestic company, or they didn’t at all.
None of the companies from Western Europe applied for the tender worth about 800 million BAM for the construction of the building which will be the ninth longest road tunnel in Europe.
Business enabled without setting conditions
There is a difference in doing business with Western European and Chinese companies, explains Mirko Sarovic, former minister of foreign trade and economic relations, but also a national coordinator for cooperation with China. The European Union (EU) is BiH’s main trading partner and has a large share in investments, he explains.
“When they give us money, BiH needs to harmonize its legislation with the legislation of the EU”, says Sarovic, and adds that the Chinese invest without setting conditions.
“We, on the other hand, had to set conditions, namely that they meet the standards,” Sarovic adds, stating that Chinese investors had to meet the standards of BiH and the EU.
The former minister states that his role is to open space for cooperation, but that it is immediate, and that the conclusion of contracts has always been left to other entities in BiH, Detektor reports.
E.Dz.
