Turkey's Cengiz wins €120m Slovenian tunnel contract

Slovenia's state-owned motorway operator DARS is to sign a €120-million agreement with Turkey's Cengiz for the construction of a second 3.5 km (2.2 mile) pipe of the Karavanke motorway tunnel across the Alps between Slovenia and the border with Austria.

DARS said in a statement that the contract, which would cover the part of the tunnel on Slovenian territory only, should be backed up by a bank guarantee outlining the proper execution of the contractor's obligations which should be submitted by February 27.

In December, DARS named Cengiz as the winner of the tender for the construction project after it lowered its offer from €99.6-million to €98.5-million, before VAT.

There were two other bidders for the contract which both reportedly lowered their offers but still failed to outbid Cengiz. A consortium comprising Slovenia's Kolektor CGP, Riko and Turkey's Yapi Merkenzi slashed its offer to €104-million from €121-million, while a consortium of Austria's Implenia Osterreich, Implenia Switzerland and Slovenian firm CGP Novo Mesto lowered its offer to €115-million from €121.4-million, according to media reports.

The selection of the contractor for the second Karavanke tunnel has been going on for more than two years since DARS first opened the tender in December 2017. The process was slowed down following complaints by previous interested bidders that challenged DARS' decisions.

The second tunnel at Karavanke is scheduled for completion in 2024, after which the first tunnel, which was built between 1986 and 1991, will be renovated. It is estimated that both tubes will be open at the start of 2026.

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