NIKŠIĆ'S SYSTEM OF FAVORITISM: Will Cengiz and Partners Get Hundreds of Millions of KM for the Prenj Project for 100 Meters of Track!?

(Patria) - The prequalification process for the construction of the Prenj tunnel, which began in 2022, has yielded a disappointing outcome. Of the three companies that met the conditions – two Turkish (Cengiz and Makyol) and a Korean-Turkish consortium (DL-Limak) – it is clear that the contract will most likely go to the Turkish company Cengiz, which already dominates projects on Corridor Vc.

This outcome is further confirmed by their donation for the rehabilitation of the railway line, which the Government of the Federation of Bosnia and Herzegovina accepted with open arms. That move raises the question of whether such gestures secure jobs worth billions of marks.

It is important to recall in this context that the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, received a delegation from the Turkish company Cengiz insaat Sanayi ve Ticaret A.S., led by Board Member Asim Cengiz, in mid-January at the seat of the Government of the Federation of BiH in Sarajevo. On this occasion, expressing gratitude for the contribution to the reconstruction of the railway line in Donja Jablanica, Nikšić noted that it was during his first term as prime minister that the door was opened for the company Cengiz to build a section of the highway through the Federation of BiH, due to the credibility and experience of this firm.

Asim Cengiz and Nermin Nikšić

The meeting expressed a joint commitment to strengthening cooperation, with the aim of further developing and improving infrastructure in our country.

Favoritism of Cengiz and Suspicious References of Makyol

Incidentally, the Motorways of the FBiH Public Company has been accommodating the company Cengiz for years on projects where it is engaged, and additional works and fictitious billings have become common practice. On the Medakovo – Ozimice section, similar irregularities were reported to the EIB, OLAF, and competent institutions, and the issue of the illegal landfill and landslide in Maglaj has still not been resolved.

A particular problem is the connection between the companies Cengiz and Makyol, which have people with the same surname in their management structures, raising suspicion of family or ownership ties. There are indications that Makyol used false references to meet the prequalification conditions, with Cengiz, through political structures in Turkey, enabling their validation. A similar situation already occurred with the company Ozaltin, which later ended up on the EBRD's blacklist.

While the Turkish companies continued with their established practice, the Korean-Turkish consortium DL-Limak showed serious interest in building the Prenj tunnel. Over the past year, they made significant contacts with local companies and invested great effort in preparing the tender. However, after assessing that the outcome was predetermined, they decided not to submit a financial bid, concluding that further participation would be a futile waste of resources.

Financial Problems and Questionable Project Viability

The Motorways of the FBiH Public Company, already under pressure due to delays and a lack of financial resources, presented a financial structure for the project to creditors that does not reflect the actual costs.

Preliminary table from the conceptual design

The EIB has already refused to increase its share in financing, while the EBRD is demanding a guarantee from the relevant ministry and the Government of the FBiH that it will implement the project and ensure the return of funds. However, instead of a legally binding document, the Government plans to adopt only a Conclusion, which carries no real weight. Given the political instability and the upcoming 2026 elections, there is a serious risk that the project's financial structure will not be sustainable.

The Motorways of the FBiH Public Company has been failing for years to complete projects within agreed deadlines, with delays particularly notable on sections where the contractor is Cengiz (Medakovo – Ozimice, Poprikuše – Nemila). In a recent letter to the Parliamentary Assembly of BiH, the Director of the Motorways Public Company, Denis Lasić, blamed the EBRD for these problems, claiming they are responsible for the project delays. Such a move further undermines the credibility of institutions and raises questions about the real reasons for the failures.

Despite everything, the decision on the construction of the Prenj tunnel is now in the hands of the creditors. Will the EIB and EBRD ignore all the suspicious aspects of the tender and financing, or will they seek additional clarifications?

If the Motorways of the FBiH Public Company does not secure a stable financial plan, there is a real danger that the project will be extended to ten years, instead of the planned five. In the end, the key question arises: will BiH once again witness an infrastructure project that turns into a symbol of corruption and irresponsibility?

The final decision lies with the creditors - are they ready, despite all these findings, to continue with the procurement and be part of this textbook example of corruption with long-term consequences for all involved.

(A.Č.Z.)