The City Assembly of Belgrade has reached the decision to have Sava Centar put up for concession, stated Deputy Mayor Goran Vesic.
As Beoinfo reports, he said that, according to estimates, the reconstruction of Sava Centar requires 25 to 30 million euros and that the company that would enter the process would be given an opportunity to exploit the renovated facility for a number of years, while paying a concession fee.
– After the concession deadline expires, Sava Centar would be returned to the authority of the City of Belgrade. I believe that this is the right model, as the city doesn’t want to sell, but to keep Sava Centar, which is the largest congress capacity of Belgrade – Vesic pointed out and added that there was no need for the city to invest taxpayer money in the reconstruction of Sava Centar if there were companies interested in it.
Talking about the previous procedure of the selection of a partner for the founding of a joint company for the reconstruction and management of the PE Sava Centar facility, which the previous City Assembly initiated, Vesic said that it had been done in line with the law.
– Only one company, Delta Holding, submitted a bid at the time, but that bid was deemed unacceptable, as there was a flaw in it, after which a negotiation procedure was started, which the City of Belgrade can do under law, in order to make the bid more acceptable to the city. The negotiations lasted for several months, but we didn’t manage to reach an agreement that would protect the city’s interests the way we see it. The decision by which we terminated this procedure was not directed against Delta Holding, which I invite to take part in the next process we will initiate – Vesic said, as reported by Beoinfo.
He pointed out that a concession differs from a public-private partnership in that the property remains in the city’s ownership.