How did Kosovo give 53m euros to Bechtel Enkaïs, and government sells as a success

The government has approved the request for compensation of the consortium “Bechtel Enka” for extension of the contract.

Infrastructure Minister Paul Lekaj has said the previous government had failed to pay the bills in order.

The government has signed contracts for the construction of this vehicle worth 600m euros and then this price has increased by 608m euros due to VAT change. It was meant to end on January 1, 2018. The former government from 2014 to 2017 had not paid the bills correctly had to set the deadline for completion of the works. In this situation we have been forced to continue the duration of the contract so that the work that would have painful consequences for the country” would not be interrupted, he said.

It has since shown that Bechtel Enka has applied for spending in much for 63m euros for indirect expenditures, but that amount has been reduced to 45m euros, with VAT being 53m and 100,000 euros.

And Prime Minister Ramush Haradinaj has said that in terms of that action, the demand is therefore approved.

“This is the real conclusion that the Government assumes responsibility in this situation not to allow the country to run into legal disputes that had ended in the International Court”, Haradinaj said.

What's the story of this debt that Kosovo had with Bechtel Enkaʹs?

The company Bechtel Enka claimed that Kosovo has failed to meet financial obligations in the set deadline for work on the Zhaferiı highway, writes Periscope.

The reasons why these financial obligations were not carried out have often been points of confrontation between the current minister of Infrastructure, Pal Lekaj and the preliminary one, Lutfi Zharku.

Minister Paul Lekaj, stated that the former Ministry of Infrastructure, had called for extensions of the work schedule on the highway.

Since contracts for additional deadlines had been signed between the company and the Government of Kosovo, Bechtel Enka had stated there were expenses during the period totaling 63m euros.

During a session of the Kosovo Assembly, the former minister, now LDK deputy Lutfi Zharku, had said the company Bechtel Enka could not ask for a cent, since according to him, it has not lost a minute more on the work of the Arbe Xhafera highway.

The next few days, Minister Lekaj claims that the government will pay 60m euros in half for my mismanagement. Such statements are nonconistent and non-intelligence management. As I have clarified, the contract for the Pristina- Hani-Elez highway was signed before the government became Mustafa. With full responsibility, I say Bechetel Enka has lost no minutes in the workshop, and I can't ask for a cent for this”, Zaku had declared.

How did the current government argue the 63m euros required by Bechtel Enka?

Minister Pal Lekaj, said that the 63m euros demanded by the company, are a consequence of past governance.

In 2014, contracts were signed between the government and the winning company for the construction of the Zhapron Xhaferiway highway with a 40-month deadline of completion of the work - up to 20.1. 2018. After delaying the government's payment, for jobs conducted by the contractor, the Government of Kosovo has been forced to demand extending the work schedule. Former Minister Lutfi Zharku had requested approval of the contract's annex by 31.12.2018. Since the time of the signing of the work extension agreement, no action was undertaken”, Lekay explained before the Commission, writes Periscopi.

“Since the time when the deal to prolong the work was signed, no action was taken. The contract extension agreement has been signed without definition of financial cost”, Lekaj said.

He says Bechtel Enkas' claims are that the debt Kosovo owes to it amounts to 63m euros.

What was Bechtel Enkaʹ's argument for the 63m euros it requires from Kosovo?

The company Bechtel Enka asked for this amount of money to Kosovo, with a series of reasonings, but three are the main points:

-The payment project.

- Keeping the manager staff

- The equipment that should be used during this period

Pal Lekaj, says his ministry has met with contractor (Bechtel Enka, v.j) and, according to him, the ministry has sought to show the excuses for the required sum.

The contractor's “representatives have agreed to discuss in detail each claim, in order to present an exact mirror”, Lekaj said, writes Periscope.

Lekay repeatedly blamed former minister Zharku

The government of the Republic of Kosovo has not made the payments necessary for contractor spending according to the payment plan. 70m euros have had to be paid in the early terms and paid just over 50m euros”, Lekaj had declared Periscopi.

Lekaj has said his ministry is in extremely difficult situation to protect.

“in such a situation the Ministry of Infrastructure is in a difficult position to protect against contractor”, Lekaj has said.

“Often, confusion has been created that they thought that with the coming of this government, it had to and has been demanded. This required amount or contractor claims is for 2014-2016 and not for the period we have 100 days. But we inherited”, he said, writes Periscopi.

What did Kosovo demonstrate if he failed to perform the financial duty to Bechtel Enkaʹs?

Since Minister Lekaj had said that his ministry is feeling vulnerable in front of the company, since according to him, all of Bechtel Enka's reasoning lies”, he had warned that the issue could reach other institutions.

The government risks ending this issue in arbitration, in the International Oda, which is responsible for deciding to resolve conflicts of any nature”, had declared Lekaj.

Loss of 53m euros, current government sells as a success

After an agreement reached between Bechtel Enkaʹs and the Ministry of Infrastructure, it was decided that Kosovo would pay <x0m euros to the company.

Prime Minister Haradinaj and his Minister of Infrastructure Paul Lekaj sell this as a victory for Kosovo.

Kosovo's “government today saved Kosovo from an arbitration as well. We fully understand the interest in the current decision made by the Government of the Republic of Kosovo for the additional cost of extending the contract to complete the highway project. It's the best possible choice than what we found when we came to the top of duty”, Pal Lekaj said.

“Today, I have solved a problem and avoided a larger one so that Kosovo will not end up in an arbitration process that would have high costs for Kosovo's state budget. We will be in charge of the task of pushing forward projects in good terms of economic development and linking Kosovo to countries in the region and Europe”, the minister of Infrastructure's response said./Periscopi/