Secrecy Surrounding Chinese Tram Contract in Sarajevo Raises Alarm

Overview

• Contract Details:
  • A 20 million-euro contract was awarded for tram line construction in Sarajevo to Chinese firms.
  • Consortium: China Shandong International Economic & Technical Cooperation Group and China Railway No.10 Engineering Group Co, CREC 10.
• Transparency Issues:
  • Contract details are classified; authorities refused to provide full access or answer queries.
  • Raises concerns about monitoring legality and transparency.

Concerns About CREC 10

• Accident History:
  • Associated with controversial accidents:
    • 2017 bridge collapse in Kenya (27 injured).
    • 2017 gas leak and crane accident in China (11 deaths).
  • Fined for environmental violations and unapproved work in China.

Issues with COVEC

• World Bank Sanctions:
  • CREC 1 banned for two years over tender violations.
  • CREC 5 punished for document falsification in Africa.
• Poland Highway Project:
  • COVEC pulled out due to financial issues, causing "COVEC trauma."
  • Allegations of bribery and market disruption by Chinese managers.

Legal and Procedural Concerns

• Tender Transparency:
  • Contract and winning bid content withheld, citing EBRD procedural requirements.
  • Public procurement experts dispute the confidentiality justification.

Financial Aspects

• Lowest Bidder:
  • Shandong and CREC 10 offered the lowest bid, 6.3 million euros less than next bidder.
  • Concerns over quality and work assurance not prioritized.

Worker Conditions

• Subcontractor Secrecy:
  • Details on subcontractor engagement remain undisclosed.
  • Monitoring of worker payments and conditions suggested as important.

Company Visibility

• Lack of Information:
  • Difficulties in contacting companies like Shandong.
  • Little information available publicly about registered companies involved.

Official Responses

• Government Stance:
  • Minister Adnan Steta claims transparency and adherence to EBRD procedures.
• Project Timeline:
  • Completion expected by August 2023, with undefined penalties for delays.

Conclusion

• Need for Transparency:
  • Emphasis on the importance of contract transparency and proper documentation to ensure public confidence and project accountability.

Contributor: Claudia Ciobanu, BIRN correspondent from Poland.