• Monday, 06 May 2024

Gov't proposes extending deadline for construction of Kichevo-Ohrid highway until end of 2026

Gov't proposes extending deadline for construction of Kichevo-Ohrid highway until end of 2026

Skopje, 26 March 2024 (MIA) - The Government at its session on Tuesday has outlined draft provisions on legal additions for a new annex to the Construction Agreement with the Chinese company "Sinohydro", which would be the sixth one in a row, and proposed extending the deadline for the completion of the Kichevo-Ohrid highway until the end of 2026. 

"The Government, at the proposal of the Ministry of Transport and Communications, reviewed a document on the need to pass a law to supplement the law on the implementation of infrastructure projects for the construction of the road section Miladinovci - Shtip and the road section Kichevo - Ohrid, for the purpose of concluding Annex No. 6 to the agreement for the construction of the highway, section Kichevo - Ohrid, and outlined draft provisions. Under the established legal additions, December 31, 2026, is seen as the deadline by which the contractor should complete the works on this highway section. The reason for the extension of the construction deadline is 13 new landslides that have appeared along the route, as a result of the initial inadequate project and premature start of construction of this section," the Government said in a press release.

The construction of the Kichevo-Ohrid highway section of Corridor 8 was launched in February 2014. The 57 kilometers long highway was initially projected at EUR 374 million, but after several annexes to the contract and deadline extensions, its price reached EUR 598 million.  

At the end of last year, the Ministry hired FIDIC expert tasked with analysing the contract for the construction of the highway section. The expert has submitted a report to the Government including three options – to extend the contract with the contractor "Sinohydro", to draw up the contract with penalty clauses or to terminate the contract.

The Government at a session held before the New Year holidays, adopted the document on the agreement for the construction of the highway, with a recommendation to continue activities for the completion of the construction, by concluding an annex to the agreement with "Sinohydro" over a deadline extension, using the already provided funds.