Uncertain destiny of Sava Centre

The reconstruction and modernization of Sava Centre has been halted again, since, as the Blic daily learns, no company was interested in a public-private partnership in the third round of the tender.

Unexpectedly, no bids were submitted following the launch of the tender, which has already been extended three times, even though the potential bidders included Delta Holding and the consortium of state companies consisting of Nikola Tesla Airport, the Belgrade Fair and Energoprojekt Holding.

The original plan was to totally overhaul of this huge conference centre which has recently celebrated its 40th anniversary. However, Sava Centre has amassed huge debts, and along with the Belgrade city bus company (GSP), is the only public enterprise in Belgrade to have been generating loss for four years now.

Delta Holding offered to invest EUR 12.5 million in the reconstruction, with an additional EUR 12.5 million to be provided by Sava Centre itself through a loan. The facility would be closed for reconstruction for only a year, and the first profit could be expected after four years. Delta Holding also proposed for the division of ownership of Sava Centre to be defined at a later date.

Nikola Tesla Airport and its partners had even bigger plans for the centre. They were prepared to invest EUR 30 million, under the condition that the city settle all of Sava Centre’s debts and give up the profit over the first 12 years of operations, until the investment was returned. Following that, 35% of the profit would be paid to the city budget. In addition to the existing 69,300 square meters, another 50,000 square metres would be built in a shape of a 25-30-storey tower, containing a shopping mall, office space and a hotel, whereas the final three stories would be open to visitors.

The City of Belgrade launched the first non-binding public call in February 2016. Three bids were submitted at the time. In addition to Delta Holding and the Nikola Tesla Airport consortium, the Slovenian company GGE ESCO also submitted its bid, which was, however, deemed incomplete.

In late 2016, two bidders passed the second tender round, but no one responded to the final, third one. In mid-January, Zivorad Vasic, vice president of Delta Holding, said that the company was deliberating whether to continue taking part in the tender.

As Blic learns, the City of Belgrade should reach the decision on the further strategy regarding Sava Centre in the coming days.

(eKapija, 30.05.2017)

http://www.ekapija.com/website/en/page/1773523/Fate-of-Sava-Centar-still-uncertain-No-interest-in-PPP-in-third-tender-round

 

This post is also available in: Italiano

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