Over €450 million for Belgrade concession


Over 450 million euros have been offered as an up-front payment by one or more of the four bidding parties vying for the 25-year concession of Belgrade Nikola Tesla Airport, local media reported. The winning offer is expected to be made public tomorrow. "The Public Body overseeing the process is due to make a conclusion on the best bid today, after which the government has to green-light their decision. This will be followed by a meeting of the airport's Supervisory Board. Since all of the offers are of a high quality, and there is little setting them apart, the Public Body could recommend more than one bid, which would then require additional information and documentation", an official from the Serbian government said.

The state has downplayed the recent delays in awarding the concession contract. The Public Body was to make its initial decision on December 25, but delayed it until December 29, and then again until January 5. Commenting on the Body's failure to come to a decision last week, the Prime Minister's office said in a statement, "Three expert teams are working day and night in order for a final decision to be made on January 5. This is an extremely important project for Serbia, which is why nothing can be left to chance. This has been one of the most professionally-run tenders ever undertaken in Serbia and is in line with global standards".

The Public Body reserves the right to extend deadlines in order to facilitate the submission of additional information and documents by the bidders, as outlined in the original public invitation for the granting of the concession. However, some analysts have warned that such practice casts doubt on the process and could give reason to question the transparency of the tender procedure. Nevertheless, the Serbian Minister for Construction, Transport and Infrastructure noted in December of last year that a decision on the future airport operator would be made either by the end of that month or in early 2018. The Public Body has previously said that it delayed its pronouncement on December 25 due to the Christmas holidays, while on December 29 it said the extension was "necessary for the purpose of comprehensive analysis of additional information and documentation received from bidders at the request of the Public Body".

Four binding offers have been submitted for the 25-year concession, after the fifth bidder, a consortium headed by China's HNA group, pulled out. The decision came after the indebted conglomerate no longer fulfilled one of the financial requirements in the second phase of the concession process, despite attempts to overcome these issues by adding another company, registered in Cyprus, to its consortium in December. Over the past month, the HNA group has turned to using some of its most liquid and valuable assets to borrow more cash. It is seeking to sell six billion dollars in overseas property as it faces mounting debt and regulatory investigations in Europe. HNA’s financing woes became apparent last month, with reports that airlines owned by the Chinese conglomerate have missed some payments due on leased aircraft.

Comments

  1. And people were saying how HNA should buy Air Serbia. Reading the last paragraph thank god they didn't and thank god they are out of the BEG tender as well.

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    Replies
    1. thank god.

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    2. Buying so much crap around the world at record high prices usually turns out this way. Ask Etihad.

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    3. The two can't really be compared but I am glad they are not competing for the airport anymore. Imagine they awarded them before these problems were known. Would have been a disaster.

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    4. The timing is very lucky for BEG.

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  2. My money is on them delaying it again. This time because Christmas is near in the jualian calendar :D

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  3. Rumour is Vinci was selected last Friday and that today they will announce it. But let's wait and see.

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    1. If that's true then I think it's great news. It is the biggest airport operator from the four that are bidding and they also own their own construction company as well, meaning they would do all the work.

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    2. Do they operate airports in Europe?

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    3. Yes. Across France and Portugal.

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    4. Gotta love those rumors.

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    5. Ja sam napisao da je Vinci izabran i tako ce i biti. Definisu se sitni detalji oko papirologije, a njihova ponuda je za klasu iznad ostalih. Doduse zavisi kako se uzme jer mislim da je trebalo biti i boljih ponuda

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    6. Kakav Vinci, Korejanci su jedini ispravan izbor, sa njima se odmah dobija i nova linija.

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  4. Might I suggest to the future concessionaire that the first thing they do is redevelop the horrible looking website beg.aero. It will be the smallest thing they invest in.

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    1. Yes! What's worse they use to have a great looking website and then 3-4 years ago when the new management came they ruined it.

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    2. Agreed, that is the absolute first thing they should do.

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    3. @anon 9.10 well some "friend" or "kum" probably needed a job so they got to redevelop the site.

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  5. Is there any date by which they must decide or they can keep delaying it until whenever they want?

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    1. They can delay how much they like but bidders would start dropping if they do.

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    2. They won't delay it for much longer. The money they plan to get from the concession is already factored into the 2018 budget.

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    3. These dilettantes make up the rules as they go.

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    4. Dilettantes.

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  6. Fair to be annonce name, by 3 PM today. After that we can start to celebrate Chtistmus.
    D day is today.
    Rod

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  7. Well at least today unlike last time a lot of the media are writing that the concession winner will be announced today.

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  8. When they finally pick the winner and sign the concession agreement with them, I hope they publish it so we can know under which terms the airport was given.

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    1. They said they would.

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    2. They also said they would pick a winner on 29 December.

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    3. *25 December even!

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    4. You mean, true dat.

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  9. I think many of you are being overly dramatic. Unlike most concession tenders in the region, here you knew exactly on which date each announcement would be made. Also they have pushed back the announcement by a total of 10 (ten) days from 25 December to 5 January. What's the big deal? You only choose a concessionaire once. Better to be safe then sorry.

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    1. So you have confidence in this government to make a good decision, do you?

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    2. I have confidence that the majority of the bids are of high quality. I'm not trying to make this political, I'm just saying that delaying the decision by 10 days is hardly the end of the world like many here present it to be.

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    3. It took a year for the Croatian government to pick Zagreb Airport's concession winner. There were three bids for Plovdiv and since July there has been no progress or information when a winner will be chosen.

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    4. I agree with the above anon that it is better to be safe then sorry. Just look at how terrible the Tirana Airport concession turned out.

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    5. @Anonymous January 5, 2018 at 9:41 AM
      The case with Plovdiv is quite different. One of the bidders that was dropped have taken the decision of the ministry to the court and there are cases that have to finish before they resume the procedure.

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    6. Concerning Tirana, that's a story for itself. I don't know who on earth thought it was a smart idea to sign an exclusivity clause with the concessionaire and forbid any other airport in your country to have commercial flights.

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    7. Also I wouldn't use the way the ZAG concession was conducted as an example other airports should look to.

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    8. Of course not, Anon 10:05! Knowing the way how Serbian government/president do everything transparently, it would be ridiculous to expect a scenario as fishy as the one in ZAG!

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  10. Teška lakrdija. Čega god se ova vlast uhvati napravi sprdnju. Ovo su isuviše ozbiljne stvari za ovakve neznalice!

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    1. Amen brotha.

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    2. Ajde više vi tobož Japanci i Švajcarci oladite sa tim pretvaranjem desetodnevnog odlaganja jednog zvaničnog saopštenja u nekakvu vrhunsku zaveru i dramu. Smorili ste taman isto koliko i oni foliranti koji tobož brinu za srpske poreske obveznike. Imaćete dovoljno vremena da lučite pljuvačne žlezde kada se budu diskutovali detalji ugovora o koncesiji. Ako ćete da pljujete tek radi pljuvanja onda makar priznajte sebi da to ne radite zbog toga što zahtevate švajcarsko-japanske standarde već samo i isključivo zbog toga što ste tipični srpski pljuvači svega i po svaku cenu. Jedino sebe lažete da ste nekakvi ljubitelji japanskih standarda transparentnosti.

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    3. Admin: the above comment should be removed on the basis of 'vređanje' & to much digression into politics.
      thank you.

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  11. Well as we wait for a concession decision to be made *hopefully today* Air Serbia's flight from New York which is supposed to arrive today at BEG has obviously been cancelled because of the super storm over in New York. On their way from BEG the plane diverted to Toronto. Here are some photos from YYZ.

    https://pbs.twimg.com/media/DSvEsLWVoAA5Tcf.jpg:large

    https://pbs.twimg.com/media/DSumUiOX0AAio6V.jpg:large
    https://s18.postimg.org/p957t2uqh/FB_IMG_1515115456909.jpg

    Anyway here's hoping we find out who will manage BEG today.

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    1. Looks nice. Hope it becomes a regular sight in 2018 ;)

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    2. awesome! thanks for the photos. looks so good and hoping that she is a regular this year

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    3. YU-ARA just tok off from Toronto and appears to be heading to JFK now.

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  12. Its between Vinci and the Koreans.

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    1. What about the Swiss?

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    2. Personally I would prefer to see the Swiss getting it.

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    3. What on Earth is the point of an anonymous poster saying which option he/she prefers without any further argumentation?

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  13. Will white smoke emanate from the airport building when they reach a decision?

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    Replies
    1. True they chose the pope quicker then these guys chose a concessionaire.

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  14. I would love to know who is on this public body commission?

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    1. They can't tell you who is on the publiuc body because people could then influence

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    2. Like who needs to "influence" them, don't know who they are lol

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  15. According to some Serbian media the decision will be delayed again. Surprise, surprise.
    I'm going back to sleep.

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    1. Odluka o izboru koncesionara za beogradski Aerodrom "Nikola Tesla" neće biti doneta ni danas, poslednjeg dana raoka, nezvanično saznaje B92.

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  16. I'm 100% sure that they will delay the decision again!

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    Replies
    1. Can't wait to see what excuse they make now.

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    2. Why not just extend it for 20 days and save them self the embarrassment instead of it extending it every 5 days?

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  17. They are delaying it so they can negotiate some nice packages for the members of the public body ;)

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  18. They can downplay it all they want. The fact remains that it looks unprofessional and fishy.

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  19. The new excuse will be that the public body commission members because of some late Christmass shopping need another week to reach a decision...

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  20. Since Vucic is nowhere to be seen today ... that is a sign they will delay it again.

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    1. Vucic and Brnabic are holding a press conference tomorrow at 11am. But I don't think it's airport related.

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    2. Njih dvoje sutra u 11 obilaze radove na rekonstrukciji beogradskog Narodnog muzeja, koji se otvara 28.6.2018. i koji će sa svojom bogatom zbirkom i delima najvećih svetskih majstora biti od ogromnog značaja za beogradski turizam.

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  21. Looks like the offers are more than 20% less the amount government expected. I believe the delays are due to two main reasons: 1- How to make up these offers look good in media and public, 2- Negotiations (entreating) with the highest bidder to increase its offer before public announcement.

    Everything could be easier if government officers didn't set ambitious (and unrealistic) targets.

    In the best case scenario, the concession is awarded for a lower than expected fee. Worst case scenario, winner retracts in one month.

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    1. This is just a theory ... I mean based on what do you say offers are more than 20% less than the Government predicted?

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    2. @Anonymous January 5, 2018 at 11:09 AM
      Based on what the Prime Minister have said last week.

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    3. What did he say?

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    4. Anon 11:09 - Of course it's a theory. At the end I am neither in Serbian government, nor in the committee to review the proposals. But it is a theory based on announcements, published projections, ongoing postponements etc.

      But please note that this is the best case scenario. If the gap between the proposals and expectations are higher than the government may decide to cancel the tender as well.

      But considering the Serbian government's success in concluding privileged deals, I'm sure an agreement will be reached with one of the consortia.

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    5. Best case scenario would be no concession! Hope to god!

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    6. So instead of 450 million € an offer 20% lower.
      That would be 360 million. Huge money difference.

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    7. And you take what an anonymous on a forum says as a matter of fact? Even if he says it's his theory.

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    8. 90 million Euros is a very big amount of money.
      That is a fact!

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    9. You are basing your "facts" on hearsay, theories and conspiracies.

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    10. The value of 90 million Euros is not theoritical, it is factual.

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    11. You have based that reduction on a theory and are presenting it as if someone actually offered 360 million instead of 450.

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    12. There is absolutely no need for to disqus only final events.
      You are not in a court, you are in an airline forum!
      If it upsets you get help.

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    13. If the announcement is delayed again to 16 January, than the problem seems to be more than we imagined. 20% difference could be covered by bringing some other aspects in the foreground, I assume the bidders are offering almost half the amount spoken in the media and government is trying to find an escape route.

      That should be a priceless lesson for politicians, don't count your chicken before they are hatched!

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    14. So much for that conspiricy...

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    15. Well, anon 11:01, I guess you're wrong. It's healthier for you to stop being so jealous.

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  22. Is it true that Vucic is planning snap elections in 2018?

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  23. Suspense is killing me :-)

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  24. When will the metro be connected to the city? Is a second runway considered? I hope the future concessionaire considers it.

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    1. The concessionaire would be intrested to make as much profit is possible.
      The GoS needs to force them in the new contract to make those much needed investments.

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    2. About what metro you are talking about? lol

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    3. There is a commuter train line that can be extended to the airport quite easily and this has been suggested on numerous occasions.

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    4. What happened in the end? I am not from BEG but would simply like to know. Thanks.

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  25. Vucic and Brnabic are holding a press conference tomorrow at 11am. But I don't think it's airport related.

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  26. Odlaze se opet za 16.01.

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    1. SMFH!
      Why not say from the start that this committee needs a month's time to decide if for e.g. 400 million€ offer is more or less than 410 million€ offer?

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    2. I hope they are just incompetent idiots and not crooks trying to get the most bakshish from the consortiums...

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  27. Advice for the Admin; next time wait for the official announcement then announce it as a news flash or breaking news. These guys can't be trusted with their dates.

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    Replies
    1. Thanks for your advice. The article is related to comments made by officials on previous delays, what others have to say about the delays and why one of the bidding parties withdrew. It's not directly related to wheather there will be a decision or not today. The article has had a good number of hits so far and I see no issue with it.

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    2. Good anwser, thank you for replying.

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  28. Ne razumem sto zakazujes kad postoji mogucnost da ces odloziti? Lepo reci bice kad ce biti ... nemoj davati datume ...

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    1. Sorry but I intend to report on the dates provided. I have no reason to hide them. There are over 4.000 articles available if this one is not of interest to you.

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    2. I referred to Serbian Government not the board :D

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  29. If its the Public Body then names of people involved must be public. Publish their names and roles.

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  30. https://www.blic.rs/vesti/ekonomija/saznajemo-vlada-srbije-veceras-odlucuje-o-koncesionaru-za-aerodrom-nikola-tesla/k5v689s

    Decision has been made! We will find out tomorrow nevertheless by AV! hah Circus must go on

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    Replies
    1. Hahahaha, everything has to be done by "big leader" himself! Can't wait for the pathetic circus tomorrow!

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    2. "...Since all of the offers are of a high quality, and there is little setting them apart, the Public Body could recommend more than one bid, which would then require additional information and documentation."

      The decision in a few hours? Sorry, but it doesn't make sense and someone is obviously lying here!

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    3. @8:26 You assume everything that appears in our media is truth... they post so much bs every day.

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    4. No one is lying. There is an extraordinary meeting of the government at 8PM and the Supervosory body after that and the winning bid is approved. Obviously one was chosen so there is no need for extra time.

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    5. Vinci was chosen, read the article!

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  31. https://www.blic.rs/vesti/ekonomija/saznajemo-francuzima-koncesija-za-aerodrom-nikola-tesla-na-25-godina/k5v689s

    Hmmm

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    Replies
    1. Opala!

      Ako nije patka imaš muštuluk!

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    2. 501million upfront, 16million each year plus 730 million worth of investments... i think this is too good to be true?

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    3. That is how much vs. the Zagreb concession?

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  32. Vinci je pobednik,sad je objavio Informer-Vučićevo glasilo. Cena je 501 milion evra.

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  33. Vinci je pobedio.

    http://www.beg.aero/admin_images/meni_doc/5-odluka-o-izboru-najpovoljnije-ponude_digest_bilingual_bez-iznosa_05012018-za-objavljivanje_c7c40b49de6529f.pdf

    Nadam se da je bilo fer.

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  34. Vinci is giving 501million euro upfront and 730million thru investments!

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  35. Air Serbia danas umjesto u JFK zavrsila u YYZ

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