Highway builders exempted from paying 11,4 million fuel excise and customs duties

The Chinese company China Road and Bridge Corporation (CRBC), which is the main contractor on the first section of the highway from Smokovci to Mateševo, has been exempted from customs duties in the amount of 2,35 million euros from the beginning of construction until the end of April this year.

At the same time, the refund of excise duty on fuel for CRBC and subcontractors reached the amount of around nine million euros, based on the data at the end of March this year.

This is shown by data that "Vijesti" had access to, and which was obtained by the non-governmental organization Action for Social Justice from the Customs Administration of Montenegro, based on the Law on Free Access to Information.

"According to the special law on highway construction, the contractor is exempted from paying customs duties on the import of construction materials, equipment and facilities intended for the priority section"

Observed individually by year - in relation to amnesty at customs, in 2015 CRBC was exempted from the sum of 658 thousand euros, a year later 66 thousand, in 2017 661 thousand, and in 2018 it amounted to 476 thousand euros.

Last year, the releases reached 165 euros, and from January to April this year, 325 euros.

According to the special Law on the construction of the Bar-Boljara highway, the contractor is exempt from paying customs duties on the import of construction materials, equipment and plants intended for the construction of the priority section.

According to information from the Customs Administration, Action for Social Justice received confirmation that the subcontractors hired by CRBC for the construction of part of the highway are not exempt from paying customs duties for the import of construction materials, equipment and plants.

When it comes to fuel excise duty refunds, the total amount for the main contractor CRBC and subcontractors reached the amount of nine million euros.

The main contractor and subcontractors engaged in the project are entitled to a refund of part of the excise tax on fuel.

In the initial year of construction, the state returned 109 thousand euros on the basis of fuel excise, in 2016 the amount was 724 thousand, a year later 2,5 million, and in 2018 2,86 million euros.

Last year, approximately two million euros were returned to the contractor and subcontractors, and in the first quarter of this year, that amount is 850 thousand euros.

According to the contract, the first part of the highway of about 40 kilometers was supposed to be completed on May 11 last year, but then the deadline was extended to September 30 of this year by an annex to the contract, without establishing anyone's fault.

Now the work has been extended until the middle of next year, which was confirmed by the Supervisory Authority.

CRBC filed a request requesting an extension of the deadline and additional payments "due to certain events or circumstances affecting the project, which fall under the investor's risks".

If the request for additional payments is rejected, the Government's partner can seek protection before the Dispute Resolution Commission (the DAB institute established by FIDIC rules) or in the final instance before the Arbitration Court of the Chamber of Commerce in Zurich.

In the government document, it is stated that they plan to build the second section Mateševo ​​- Andrijevica, which would cost 273 million euros, and they themselves state that due to the size of Montenegro's current indebtedness, it is assumed that it will be entered into through a private-public partnership in order to reduced additional borrowing.

The public debt of the state, according to the estimate of the Ministry of Finance, is 82,5 percent of the gross domestic product.