JANAF cancels tender for construction works at Omisalj terminal

The JANAF management board exercised its right to cancel the tender without any obligation to cover the costs or damages incurred by the bidders, the company said in a press release.

Tenders can be cancelled if none of the bids satisfies the necessary tender requirements, if the price of the most advantageous bid is too high, if the price of the most advantageous bidder is more than the funds planned for financing, if it is estimated that a more advantageous price or better conditions can be obtained on the market or due to a change in circumstances, JANAF explained.

At the end of August, JANAF issued a tender for construction works on modernising the automatic extinguishing and cooling system for oil and derivative receptacles at the Omisalj terminal. Janaf opened the two bids it had received on 17 September - one from Elektrocentar Petek, valued at HRK 19.3 million, and the other from INEL-Montaza, valued at HRK 21.5 million.

In the meantime the USKOK anti-corruption office launched an investigation into 14 people suspected of influence peddling, offering bribes, unlawful favouritism and abuse of position and authority as well as aiding and abetting in those crimes. JANAF's former CEO Dragan Kovacevic and the owner of Elektrocentra Petek, Kreso Petek, are the two main suspects in the case.

Media reported on Friday that a tender for a water supply system in Velika Gorica has also been cancelled due to Mayor Drazen Barisic's involvement with Petek and his associates.

The project is estimated at HRK 97.3 million without VAT and investigators suspect that the tender was rigged so that Petek would be awarded the contract.

Elektrocentar Petek submitted a bid priced at HRK 118.8 million without VAT, and the only other bid, by the Strabag company, amounted to HRK 139.9 million without VAT.