While Nikšić Refuses to Dismiss Dževlan and Lasić, Turkish Cengiz Halts Work on Corridor Vc from March 21 Due to Debts

Turkish company Cengiz has informed the management of the Public Company Autoceste of the Federation of Bosnia and Herzegovina that it is suspending all work on the construction of the highway on Corridor Vc, section Medakovo-Poprikuše, subsection Medakovo-Ozimice, Istraga.ba has learned.

“Despite the Contractor’s cooperativeness and two postponements, the Investor has not made the due payments to date. Without making the said payments, the Contractor is unable to continue performing the Works. Accordingly, the Contractor hereby informs that the suspension will take effect from March 21, 2026. The Contractor will secure, protect, and safeguard the Works. The Contractor invites the Engineer to provide any specific instructions regarding security, protection, or temporary measures. All rights and claims of the Contractor under the Contract and the Law are strictly reserved, including: late interest pursuant to Subclause 14.8; extension of time; compensation for costs and consequences arising from the suspension, and all other contractual and legal rights,” states the letter sent by the representative of the contractor Cengiz to the General Director of Autoceste FBiH Denis Lasić, Executive Director Asmir Dževlan, and company representative Alem Kovačević on March 19.

Cengiz’s letter highlighted that the first notice of suspension of works on the mentioned section of Corridor Vc was sent to Autoceste back in January. Since then, Cengiz has accepted two postponements of the suspension in the hope that Autoceste would make the payment of the debt, but this has not been done to date. Therefore, the Turkish contractor has decided to suspend the works.

Let us recall that the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) have clearly told the Government of the Federation that they will not disburse new loan tranches until the current management of Autoceste is dismissed. Financing was halted after the Office of the European Public Prosecutor (EPPO) launched an investigation against the management of Autoceste FBiH, headed by director Lasić, on suspicion of corruption in the highway construction project. However, despite the suspension of European loans intended for the construction of Corridor Vc, due to which Autoceste FBiH has been unable to pay its obligations to contractors and suppliers for more than half a year, the federal Prime Minister Nermin Nikšić and his Government categorically refuse to dismiss the management of this public company.

“The request for dismissal has not arrived, nor can they or do they have the right to request dismissals. They can ask us to review the situation, but to dismiss someone, you need evidence. Otherwise, you enter into lawsuits where people sue you. I have no intention of being held responsible for anyone because I did something that is not in accordance with the law for someone's whim, or to save someone from international financial institutions or previous managements,” Nikšić stated.

Just about ten days ago, Nikšić assured the public that the problem with the EBRD had been resolved and that there would be no work stoppage.

“Well, go and see if work is being done. It is being done. We managed to resolve the issue of 96 million euros that were blocked due to some decisions of the Council of Ministers of Bosnia and Herzegovina and the necessary approvals. That has been completed, it has even passed the accelerated procedure of the EBRD, and by the end of the week, the money should be operational, so we can pay people for what they have done. There will be no delays, we will continue to work. I hope that in the period ahead, we will build what we have planned on these sections and complete it by the end of the year,” Prime Minister Nikšić claimed.

However, it has now become apparent that there are delays after all, and that Autoceste is in big trouble. The company Cengiz is determined not to continue the works until their outstanding debts are paid, and it is very likely that numerous other companies engaged on Corridor Vc, to whom money has also been owed for months, will act similarly.

The value of the contracted works for the construction of the Medakovo – Ozimice section amounts to 361,753,355 euros excluding VAT. The construction is financed by funds secured under the loan agreement concluded with the European Investment Bank, as well as non-repayable funds from the European Union secured within the framework of the Connecting Europe Facility through the Western Balkans Investment Framework (WBIF).

There are also significant debts to contractors for the works on the Putnikovo Brdo – Medakovo section, where works are being carried out by Euro-Asfalt from Sarajevo under the supervision of IRD Engineering S.r.l. (Italy). The value of the works on this section is over 167 million euros with VAT.