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Kraljevo to Get First Public Garage: 39-Year Concession Valued at 580 Million Dinars
๐Ÿ‡ท๐Ÿ‡ธ Serbia /Energy & Infrastructure

Kraljevo to Get First Public Garage: 39-Year Concession Valued at 580 Million Dinars

From N1 Serbia · () Serbian

Translated from Serbian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Kraljevo's city assembly approved a concession for a public garage, planned for 39 years, exceeding the legal 30-year limit.
  • Opposition critics argue the project cost is too high and the concession period is excessively long, potentially neglecting public interest.
  • The ruling coalition defends the concession, stating the city cannot afford to finance the 580 million dinar project independently.

Kraljevo's city assembly has approved a concession agreement for the construction and management of a public garage, a project slated to operate for 39 years, significantly exceeding the legal maximum of 30 years.

Opposition councilors have voiced strong criticism, labeling the project's duration as excessively long and questioning the estimated cost of 580 million dinars. They argue that the concession period should not surpass the 30-year limit stipulated by the Law on Concessions. Verica Milanoviฤ‡ from the Srbija centar party highlighted concerns about transparency, the selection of the expert team, and alleged that the concession act favors the private partner over public interest.

Everything about this public garage is problematic: from transparency, to the selection of a competent expert team. I doubt the team's expertise... to the fact that half of the expert team resigned. There are certainly reasons for that, including the concession act being drafted in the interest of the private partner, while public interest has been neglected.

โ€” Verica Milanoviฤ‡Verica Milanoviฤ‡, an opposition councilor from the Srbija centar party, detailed her concerns regarding the concession agreement.

Supporters from the ruling SNS coalition contend that the city budget cannot independently finance the garage's construction. They argue that a 39-year concession allows the private company, DUNEX d.o.o. Beograd, to recoup its investment and generate revenue over the extended period. Councilors like Jelena Milojeviฤ‡ ฤunoviฤ‡ stated that financing such a project from the city budget would be financially risky and could jeopardize the local government's overall functioning.

Further questions have been raised regarding the project's financial details, including the daily operating hours, the number of parking spaces (230), and the projected revenue from parking fees. The opposition also pointed to a lack of transparency in the selection process and noted that a significant portion of the expert commission had resigned. The city's limited experience with concessions, primarily with public transport, was also cited as a concern.

The construction is necessary. Financing such a project from the City budget is practically impossible. Whatever they tell you, know that it is unfeasible. It would jeopardize the functioning of local self-government, which is a financial risk.

โ€” Jelena Milojeviฤ‡ ฤunoviฤ‡Jelena Milojeviฤ‡ ฤunoviฤ‡, an SNS councilor, defended the necessity of the concession for financing the project.
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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