• Wednesday, 26 June 2024

Second tranche of EUR 53 million paid for construction of Corridors VIII and X-d

Second tranche of EUR 53 million paid for construction of Corridors VIII and X-d

Skopje, 4 July 2023 (MIA) – The funds from the second tranche of EUR 53 million were paid to the American-Turkish consortium Bechtel and Enka for the construction of road infrastructure for the Corridors VIII and X-d, Public Enterprise for State Roads said on Tuesday.

The payment is in line with the Program for financing road infrastructure for the Corridor VIII and X-d projects for 2023, for which EUR 243 million are planned for this year. The first tranche amounted EUR 117 million.

“Based on the obligations of the contract for the construction of Corridors VIII and X-d, in line with the Program for financing road infrastructure for the Corridor VIII and X-d projects for 2023, adopted by the government and published in the Official Gazette, Denar 3.280.000.000 were paid. The funds are intended for advance payment in line with Article 14.2 of the Contract for the construction of Corridors VIII and X-d, i.e. mobilization, procurement of equipment, bases and materials for the contractor and to support access to funds, mechanization, establishing camps and other activities by the contractors,” the Public Enterprise for State Roads said in a press release.

Corridors VIII and X-d are a strategic priority and the largest infrastructural project which involves construction of 110 kilometers of highways by 2027, for which the state will allocate around EUR 1.3 billion, reads the press release.

The government adopted the Program based on Article 5, paragraph 2 from the Law on Determining Public Interest and nominating a strategic partner for the Corridor VIII infrastructure construction project (on highway sections Tetovo – Gostivar – Bukojchani and Trebenishta – Struga – Kjafasan) and Corridor Xd (on highway section Prilep – Bitola) and Article 30, paragraph 8 from the Law on execution of budget for 2023.

The Program determines the purpose of the EUR 243 million for the financing of road infrastructure, allocated from the 2023 state budget.

“The funds from paragraph 1 of this Program will be used for the construction and design of Corridor VIII and Corridor X-d in line with the Contract signed between the Public Enterprise for State Roads, the Ministry of Transport and Communications and Bechtel-Enka for the construction of Corridor VIII and Corridor X-d,” says the text published in the Official Gazette.

According to the text, EUR 117 million will be paid out in two tranches aimed at mobilization, mechanization, establishing camps and other activities by the contractors.

The funds from the first tranche of EUR 87 million and the second tranche of EUR 30 million will be paid out in line with Article 14.7 of the Contract for the construction of Corridors VIII and X-d.

Additionally, EUR 50 million will be paid out as advance payment for mobilization, procurement of equipment, bases and materials for the contractor and to support access to funds.

EUR 25.5 million will be provided for capital indirect expenses aimed at supporting construction activities, including the assistance of specialists from a technical, commercial and managing capacity to supervise the project and oversee activities by personnel from the main office of the contractor.

Funds of EUR 49.5 million will be used for the drafting of project documentation, dislocation of underground and above-ground objects, construction activities and other supervision needs.

The payment of the funds from this program is made based on previously performed supervision and a submitted request with a specified payment amount and a copy of the situation with complete payment documentation, which the Public Enterprise for State Roads submits to the Ministry of Transport and Communications. Based on the submitted request and the documentation from this program, the Ministry of Transport and Communications pays the funds to the Public Enterprise for State Roads.

Photo: MIA archive