The Azerbaijani-Chinese consortium is two years behind schedule with the construction of the Počitelj bridge

Truth be told, this bridge which connects a part of the Počitelj – Zvirovići subsection, measuring 11.07 kilometers was supposed to be opened on the 6 October 2022. This was announced on 20 June, 2019, when the contract was signed between the Public Company Autoceste of the Federation of Bosnia and Herzegovina and a consortium of contractors from Azerbaijan and China for LOT 2 (AzVirt L.L.C, Sinohydro Corporation Ltd., and PowerChina RoadBridge Group Co. Ltd.) as evidenced by the then Federal Ministry of Transport and Communications Denis Lasić, who is currently the director of the PC Autoceste FBiH.

The Počitelj Bridge was designed to be one of the highest bridges in the region, with a length of 945 meters and a maximum height of 100 meters.

The contractors for LOT 2 (Počitelj Bridge) were a consortium consisting of Azvirt Limited Liability Company (Azerbaijan), Sinohydro Corporation Limited (China), and Powerchina Roadbridge Group Co. Ltd. (China), and the total value of the construction works for the Počitelj Bridge was 28,114,889.53 euros excluding tax. At least that was what was written in the signed contract.

However, as is customary with Chinese companies as contractors in Bosnia and Herzegovina, and indeed in the region and worldwide, almost none of the terms stipulated in the contract were adhered to. The Azerbaijani-Chinese consortium engaged the domestic company Hering from Široki Brijeg for the construction of the bridge, which they were not authorized to do according to the contract.

Specifically, according to the signed contract, in the section concerning special conditions, it was clearly stated that the contractor was prohibited from subcontracting works on the bridge span structure; subcontractors could only carry out works up to a maximum value of 15 percent of the Contract. However, it was established and confirmed by the supervisory company that Hering, a domestic company, completely carried out the works on the bridge span structure of the Počitelj Bridge, although there was no consent or approval from the investor for this arrangement.

"We haven't seen any Chinese workers on or around the bridge, although we often pass through here," say Mustafa and Mediha, who live near Čapljina.

However, the unauthorized engagement of subcontractors is just the beginning of the disregard for the provisions of the signed contract and the failures made by the Azerbaijani-Chinese consortium on this project. In mid-July last year, a crack appeared in the bridge, which is still under construction.

"During the pre-stressing works of the second phase on field 4, a crack appeared on the lower plate of 15th segment, between the S3 and S4 pillars. Irregularities in the positioning of cable pipes during construction create radial torsional forces, which can lead to problems or the appearance of local cracks," explained the Public Company Autoceste FBiH in regards to what really happened.

At the beginning of January this year, it was announced that the PC Autoceste FBiH , together with the contractor and the works supervisor, hired the Slovenian design firm Ponting, which provided a technical solution for repairing the cracks. The repair works for the cracks will be financed by the Azerbaijani-Chinese consortium.

in January last year, the Public PC Autoceste FBiH imposed penalties on the consortium for unjustified delays for the first time. The amount of penalties collected, in accordance with the contract, was 3.3 million euros.

"Considering that there has been a new delay without justified reason, penalties will be calculated in accordance with the contract, amounting to a maximum of 10 percent of the accepted contract amount, and a deduction of nearly 3.3 million euros will be made. Contractual penalties will not exempt the contractor from completing the works or any other obligations," as stated by  PC Autoceste FBiH.

Following the activation of the penalty clause in the contract due to delays and other blatant violations of the construction contract, such as engaging subcontractors in the construction of the bridge span structure, the PC Autoceste FBiH placed all four firms involved in the construction of the Počitelj Bridge on a "blacklist" in May last year, i.e., on a list of disqualified bidders.

In the resolution of the Public Company Motorways, regarding the disqualification of firms, it is stated that disqualification represents a prohibition on participating in all tenders and any other projects where the PC Autoceste FBiH are investors, for a period of two years, excluding current construction contracts.

 

Who are the companies chosen to build one of the most demanding infrastructure projects in Bosnia and Herzegovina?

 

Azvirt Limited Liability Company from Azerbaijan is a company that builds highways, roads, and airports in its home country, Ukraine, and Kyrgyzstan, while in neighboring Serbia, it has participated in the realization of several highway construction projects. Interestingly, on the company's website, among the projects it promotes and recommends for engagement, there is no mention of the Počitelj Bridge, although Bosnia and Herzegovina is marked on the map of countries where the company operates.

Sinohydro Corporation Limited from China is well-known to the public as a company that the European Investment Bank excluded from projects in Morocco, Georgia, and Tanzania for suspected corrupt practices in construction projects, for a period of 20 months. Considering that the exclusion by EIB for Sinohydro Corporation Limited expires in the middle of this year, it raises the question of whether Bosnia and Herzegovina could also be included in the list of countries where the company engaged in corrupt practices in construction projects. Sinohydro Corporation Limited was also under American sanctions two years ago for prohibited activities in Iran, and it is on the "blacklist" of the World Bank and the African Development Bank due to suspicions of corruption, bribery, and fraud worldwide.

Powerchina Roadbridge Group Co. Ltd. is a unit of Power Construction Corp of China, better known as PowerChina. One of the largest construction firms in China, state-owned, the company has an extensive network of projects worldwide. In the region, it is present in Serbia, where it also has a regional headquarters. At the beginning of May, the company started the construction of the National Stadium in Belgrade, worth 257 million euros. According to media reports, the stadium's construction will be financed by loans, and authorities have not yet clarified whether a construction permit has been issued for its construction.

The Počitelj Bridge is one in the series of infrastructure projects in Bosnia and Herzegovina in which Chinese companies were involved, and its construction was marked by delays, scandals, contract breaches, poorly executed works, and lack of transparency. Considering that most infrastructure projects in Bosnia and Herzegovina are financed by loans that will be repaid by the citizens of Bosnia and Herzegovina, it is essential to reconsider the engagement of Chinese companies whose negligence we all pay for.