Meeting on Partnership of Croatian Companies with Chinese Coming Soon

Lauren Simmonds

The documentation suggests that the Chinese can provide up to 40 percent of subcontractors, equal to just over 100 million euro.

As Poslovni Dnevnik/Suzana Varosanec writes on the 24th of April, 2018, all domestic companies interested in co-operating with the Chinese consortium China Road and Bridge Corporation (CRBC) as the builder of the Peljesac Bridge, will be given the opportunity to talk to and further negotiate with their representatives.

This message was sent from the Chinese side after they signed a construction contract worth 2.08 billion kuna without VAT with Croatian Roads (Hrvatske Ceste) on Monday. The now firm Chinese position in this business is acting as a trigger for negotiations on the involvement of Croatian subcontractors. According to HGK’s Deputy Construction Minister, Mirjana Čagalj, construction workers, as well as those involved with shipbuilding and the metal industry, those involved in research and preliminary work, as well as carriers, accommodation and hospitality services, will have work.

HGK is already lobbying for the inclusion in the work of domestic companies, with the recommendation of joint action, and thus Čagalj has confirmed that a meeting with the CRBC has been arranged at the Chinese Embassy in Zagreb, which, over the next two to three weeks, will gather domestic companies with the desire to partner up with the Chinese in this long-awaited project. The initiative for the meeting with the representatives of the Chinese consortium continues showcasing the possibilities of domestic production and services and to recognise Croatian companies as top quality co-operatives.

“The Chamber will do everything to open the door for our companies, and after that meeting we’ll be smarter. All companies must be aware that the work must end within the deadline and there’s no escaping that, because CRBC is well known for not being late with work,” noted Čagalj, before adding that guarantees for the timely and orderly execution of work, as well as advance payments present the greatest challenges to the potential subcontractors.

A call to resume negotiations is now being expected by Brodosplit, whose crucial question is related to the terms for contracting their part of the deal which seems to be expected in the consolidation of steel pilots and steel construction.

The steel share in the total offer stands at about 50 percent, the bridge weighs approximately 57 tons, and in Debeljak’s shipyard, they consider that for their part of the job, they have a competitive offer that meets the capacities, deadlines, and, most importantly, the people’s needs.

As it stands, it remains to be seen what the upcoming negotiations will bring to the table, as according to the tender dossier, it’s expected that the Chinese are more than able to provide up to 40 percent of the subcontractors, reaching a total of just over 100 million euro, which would mean within the terms of the contract of three years – about 35 million euro per year.


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