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Strabag expects Bosnia road order to be cancelled within 3 weeks

07. July 2010. | 07:38

Source: Bloomberg

Strabag SE, Austria’s biggest builder, expects a 3 billion-euro ($3.8 billion) highway project in Bosnia-Herzegovina to be cancelled in the next three weeks, according to company spokeswoman Diana Klein.

Strabag SE, Austria’s biggest builder, expects a 3 billion-euro ($3.8 billion) highway project in Bosnia-Herzegovina to be cancelled in the next three weeks, according to company spokeswoman Diana Klein.

Republika Srpska allocated the order without a tender, which made the project ineligible for loans from international financing institutions, Klein said in a telephone interview from Vienna, making it very difficult for Strabag to get financing for the highway.

Strabag expects Republika Srpska, the Serbian-dominated entity carved out of the war-torn country in 1995 as part of the Dayton peace agreement, to now tender the project and Strabag will apply for it again, Klein said.

As Strabag didn’t have the Bosnia project in its order book, the order book won’t be affected, she said.

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