STA, 30 January 2020 - Slovenia's national motorway company DARS and Turkish builder Cengiz signed on Thursday the master agreement on the construction of the second tube of the Karavanke motorway tunnel, a step that comes more than two years after the original tender was published. Works could start in March, weather permitting.

 "We're glad that after five rounds of appeals to the National Review Commission, we have finally signed the contract," DARS chairman Tomaž Vidic said.

Under the contract, Cengiz has 20 business days to submit a EUR 12 million bank guarantee, whereupon it will be able to start work.

Preliminary activities on the border tunnel - Austria has already made significant progress on its portion of the second tube - are to be initiated next week as DARS and Austrian motorway operator Asfinag meet to discuss the timeline.

Vidic said this was a five-year endeavour and problems may appear on either side of the border, which is why he would not venture to speculate whether Cengiz could catch up with the builder working on the Austrian section, which started works in September 2018.

"We think the problems are manageable. We have a skilled builder with a wealth of experience, which is key," he said.

Cengiz board member Asim Cengiz said Slovenian companies would be involved in the construction works. Talks with potential partners are already under way.

The contract is worth EUR 98.6 million VAT excluded and covers construction of 3,546 metres of tunnel on the Slovenian side of the border. The Austrian section is almost a kilometre longer.

Once the second tube is completed, the original tunnel, which entered service in 1991, will be closed for approximately two years for significant renovation and upgrade works.

Karavanke tunnel is one of the main transport routes between Slovenia and Austria. It is a key artery for cargo and one of the main entry points for millions of north European tourists en route to the Adriatic Sea.

STA, 27 January 2020 - Representatives of Slovenian builders are protesting against what they perceive as the state opening doors wide to builders from third countries. This brings disloyal competition to Slovenian companies and results in fewer jobs and lower wages for Slovenian workers, they believe.

"Foreign bidders from third countries are disloyal competition to domestic contractors," Sonja Šmuc, the director general of the Chamber of Commerce and Industry (GZS), said in a press release on Monday.

According to Šmuc, the exclusive criteria for picking contractors in public construction tenders is the lowest price, which means that bidders who are not bound with the collective bargaining agreement for the construction sector are strongly favoured.

She noted that the Slovenian construction sector had expanded by 3% last year, while its further development mostly depended on the state, as contracts awarded by the state represented 60% of the construction market.

"The contracting authority is opening doors for the construction of major infrastructural projects to companies from outside the EU much wider than other European countries do," Šmuc noted.

She added that these countries "have different welfare and worker standards" and wondered whether Slovenians would sit and watch if the state said it did not need Slovenian farmers as bread and milk could be imported from countries where people work for a few euros a day.

Jože Renar, director of the GZS's chamber of construction and building materials industry, said that what is hard to understand was the very fact that Slovenia was opening the door of its market to bidders from third countries so generously.

"What is even harder to understand is that they are allowed to pay their employees less than Slovenian companies have to pay their employees. Foreigners ignoring the achievements of Slovenian social dialogue in public tenders to get deals financed with taxpayer money defies the fundamental economic and welfare logic."

The chamber's president Kristjan Mugerli said that this way, contracting authorities undermine the efforts of social dialogue to secure higher wages and welfare standard for employees.

"By doing so, we also want to increase the extremely low interest of young people in Slovenia for construction professions, which is among the lowest in the EU," he added.

According to Oskar Komac of the Trade Union of Construction Workers, by making such decisions the state is sending a clear message to construction workers that "their wages, which are already low, are too high".

"This is social dumping in its most elementary form and consequences will be severe and lasting for the Slovenian construction sector, which has more than 60,000 workers and is one of the largest employers," he added.

Renar also stressed that thorough changes in public procurement procedures in this field were needed. "Slovenia should rethink its international economic guidelines and follow the EU guidelines on the participation of third-country bidders and goods on the EU public contract market."

STA, 9 January 2020 - Luka Koper, the operator of Slovenia's only seaport, generated EUR 224.5 million in net sales revenue last year, a 1% uptick compared to the previous year, preliminary data show. Meanwhile, ship-to-ship transshipment dropped by 5% over 2018 to 22.8 million tonnes, the group announced on the website of the Ljubljana Stock Exchange on Thursday.

Container transshipment stayed level over 2018, while liquid cargo transshipment increased by 12%. On the other hand, bulk cargo transshipment decreased by 17%, vehicle transshipment by 4% and general cargo transshipment by 16%.

Related - Invest in Slovenia: Meet the Companies in the Benchmark Investment Index, the SBI TOP

 Luka Koper said that liquid cargo transshipment was record-high in 2019, mainly due to favourable trends in fuel transport and sufficient terminal capacities.

The second half of 2019 was marked by economic cooling, which affected Luka Koper's operations as well, most notably in goods transshipment. Apart from manufacturing slowdown, the situation was made more precarious by trade wars and political conflicts overseas.

All our stories about Luka Koper are here

STA, 16 December 2019 - The government appears prepared to making construction of a new nuclear reactor a cornerstone of Slovenia's plans to achieve carbon neutrality by 2050 in line with EU goals. Prime Minister Marjan Šarec told parliament on Monday that without unit two at the Krško nuclear power station, the goal would not be achieved.

"The fact is ... that if we don't build a second reactor at the nuclear power station and close coal-fired power stations, we will not achieve environmental goals," Šarec said during questions time. "Things are very simple or very complicated, depending how you look at it."

In summer, Šarec re-ignited a long-simmering debate about the replacement of the existing reactor at Krško, which is currently slated for closure in 2043 but whose useful life could yet be extended.

At the recent EU summit he reiterated the commitment to carbon neutrality and said achieving it would require preserving nuclear and abandoning coal; Slovenia has only one coal-fired power station, in Šoštanj, and a backup gas-fired power station in Brestanica.

The dilemma whether or not Slovenia should go for nuclear is expected to be resolved in the long-term climate strategy until 2050 and the national energy concept, key documents laying out Slovenia's energy future, which have both been delayed for years.

Šarec defended the delay today saying that it was "impossible to change in a year what had not even been under consideration for twenty years before."

All our stories on nuclear power in Slovenia are here

STA, 5 December 2019 - The government adopted on Thursday a 2020-2025 plan of investments in transport and transport infrastructure. Investments totalling EUR 5.6 billion are planned in the next six years.

Under the plan, the funds will be spent on air and maritime transport, investments in and reconstruction of state roads and toll roads, modernisation of railways, sustainable measures and traffic control.

EUR 653 million will be earmarked next year, EUR 718 million in 2021 and EUR 1.1 billion in the following year.

The funding will drop somewhat, to EUR 992.5 million in 2023, and will be almost level in 2024 (EUR 997.5 million), while reaching the highest annual value in 2025, EUR 1.15 billion.

Between EUR 431.9 million and EUR 453 million will be available annually for regular maintenance of roads and railways, and public transportation subsidies.

While the funding of railways and sustainable mobility is increasing, the amount of planned funds for state roads and toll roads is lower than that planned in the resolution on the national transport development programme.

The biggest departure is observed in roads, where investments in construction and reconstruction are being delayed for the coming years.

While the Infrastructure Agency received EUR 260 million and EUR 280 million in 2018 and 2019, respectively, as planned in the resolution, the funds are being reduced to EUR 212 million and EUR 213 million in 2020 and 2021.

The government said it would start revising next year the resolution to take into account the national energy and climate plan and studies of regional railway lines, including the Ljubljana railway hub.

STA, 3 December 2019 - Turkish builder Cengiz has announced it has won the contract to build the Slovenian section of the second tube of the Karavanke motorway tunnel, as the motorway company concluded talks with three bidders.

"We won," Mohamed Cengiz, the main negotiator for the Turkish company, told reporters after the end of the talks, adding they were waiting to start working with Slovenian subcontractors as soon as possible.

Unofficially, the talks ended after the first round on Tuesday, but DARS is yet to announce its final decision, when it will also reveal the latest offers made by the three bidders.

Apart from Cengiz, DARS also invited to talks a consortium of Slovenian companies Kolektor CGP and Riko and their Turkish partner Yapi Merkezi, and a consortium including Implenia Österreich, Implenia Schweiz and CGP Novo Mesto.

According to information after the second call for bids, Cengiz offered to build the eight-kilometre border tunnel with Austria for EUR 99.6 million, while the other two bidders made estimates of EUR 121 million and EUR 121.5 million.

Once the selection has been endorsed by the DARS's management and supervisory board, the decision will be handed to the bidders, who have eight work days to file potential complaints, the last possible in the long bidding process.

Under the best-case scenario, the decision could become final by the end of the year and DARS could sign a contract with the selected builder after the New Year's. A complaint would protract the process for about a month.

Nevertheless, Cengiz expects to be able to sign the contract as early as this year. "I think we can sign by the end of the month," said Mohamed Cengiz, son of the Cengiz owner, who is responsible for foreign markets.

Rudolf Knopf, executive director of Implenia Österreich, commented on the talks by saying that they had tried their best with the Slovenian partner. "But we didn't succeed because there is no chance you can beat the Turkish company".

Representatives of Kolektor CGP, Riko and Yapi Merkezi would not make comments after the talks.

Nor would Cengiz and Knopf reveal what their latest offers were, with Cengiz saying that this would not be right before DARS announced its decision.

Unofficial information indicates that Cengiz lowered its bid by a million euro in the talks to just above EUR 94 million. The opening price at the negotiations is said to have been lower than the last offered because it did not include certain items.

Kolektor CGP, Riko and Yapi Merkezi reduced their estimate by about EUR 17 million, and Implenia Avstrija and the partners by EUR 6 million, according to unofficial information obtained by Delo.

DARS first published a public call to pick a contractor for the project in December 2017, but the process has been delayed by continuous appeals.

STA, 3 December 2019 - Three Slovenian projects developing research infrastructure for international competitiveness of Slovenia have won a total of EUR 8.4 million in subsidies from EU funds. The projects are related to the priority areas of the research infrastructure development of the national smart specialisation strategy.

LifeWatch, a EUR 3.3 million project intended for the purchase of equipment which will enable international research projects for monitoring and projecting the effects of global changes on biodiversity to be continued, will get EUR 2.6 million from the European Regional Development Fund.

The research infrastructure will enable the collection, processing and storage of data on biodiversity, the Government Office for Development and European Cohesion Policy said in a press release on Tuesday.

A bank of tissue samples, an analytical centre and a molecular laboratory with software for analysis of genetic diversity and genomics and biotechnology instruments will also be established as part of the project.

Eatris, a EUR 2.4 million project aimed at modernising research infrastructure serving for early phases of development of pharmaceuticals and development of the latest diagnostic methods and therapeutic approaches, will get EUR 1.6 million in EU funds.

The projects includes genome and metabolome technologies which are, due to their application-oriented nature, also called translational research. This will improve Slovenia's competitiveness as part of the European Research Area and European research infrastructures.

Also receiving EUR 4.2 million from the European Regional Development Fund is Elixir, a EUR 5.3 million project intended for boosting the national research capacity in life sciences. It will provide infrastructure for a more efficient transfer of new knowledge to healthcare and industries related to biological processes.

The infrastructure enables effective integration of consortium partners with related partners in other national infrastructures in natural sciences, life sciences and advanced computer technologies, the government office said.

STA, 27 November 2019 - While the government has not decided yet whether to establish an airline in full or partial state ownership two months into the receivership of the former flag carrier Adria Airways, civil aviation analyst Alen Šćuric has assessed that it would be a strategic move by the state and that the time is running out.

While many in Slovenia are opposed to the idea, the Croatian analyst told the STA on Wednesday it was in strategic interest of the state.

It was the government who mentioned the possibility to establish a new airline, either in full state ownership or in cooperation with a strategic partner, as a way to secure connectivity between Slovenia and the rest of the world.

After the German-owned Adria Airways went bust in early October, the finance and economy ministries are still waiting for the Bank Assets Management Company (BAMC) to present calculations on the feasibility of establishing such a company.

According to unofficial information, Economy Minister Zdravko Počivalšek is practically the only one to promote the idea to establish such an airline, as the aviation circles have expressed doubt about the possibility to implement such a plan.

Asked to comment on what is going on with the plans, Prime Minister Marjan Šarec said that a decision was yet to be made, as experts were still "examining the matters". "If a company is to established in any form, it would not be possible without an external partner," he added.

Šarec also noted that the potential new airline would initially operate with a loss by default. "When final numbers are known, we will have to take a look and see whether we are prepared for going into it or not," he said, adding that airline business was very risky.

What is being questioned by experts is the ability of a Slovenian air carrier to compete with the established airlines which fly to Ljubljana's airport, with Adria's flights and connections being already almost fully replaced.

As the number is expected only to increase with the summer schedule, Šćuric is inclined to the idea to establish a national carrier, noting this is in Slovenia's strategic interest.

The needed financial investment is huge, but he believes that the matter should not be looked at from a short-term perspective, as airline transport services all the other sectors of the economy and brings benefits not only to tourism and the hospitality sector.

As an example, Šćuric pointed to business guests who could be distracted from coming to Slovenia by the expected longer times of travel and higher costs related to the use of other airports.

He is surprised that the Slovenian government had "no action plan", although it had been clear that Adria would end up in receivership, and he believes that the government should have established a "new company the day after the receivership".

All our stories on Adria are here

STA, 22 November 2019 - The national railway operator Slovenske Železnice has announced that wireless internet access will be enabled in a total of 29 of its trains by the end of November, and in another three by the end of the year.

The process of upgrading the company's services with wireless internet will be continued next year, when Slovenske Železnice are expected to introduce new passenger trains manufactured by the Swiss company Stadler Rail.

The company told the Uporabna Stran portal on Friday that wireless internet access would be introduced in its Siemens Desiro and Pendolino trains.

It added that the signals from the telcos Telekom Slovenije and A1 Slovenija would be used to ensure the best possible coverage and connection speed.

Slovenske Železnice is awaiting the delivery of passenger trains from Stadler Rail, with 26 trains commissioned last April and another 26 this May. In total, the price tag has reached EUR 320 million, VAT excluded.

According to the national railway operator, these trains will be equipped with wireless internet access technology. First Stadler trains in Slovenia are expected to hit the rails in the spring of 2020.

STA, 18 November 2019 - National grid operator ELES officially launched in Beričevo on Monday a high tech diagnostics and analytics centre that is meant to enable a systematic approach to energy infrastructure management.

The primary goals of the centre, whose costs so far have amounted to EUR 730,000, include the planning, construction, expansion, modification and maintenance of energy infrastructure, the head of the centre Uroš Kerin told the press.

By making use of the digital potential, the objective is to monitor the efficiency of the network in real time, optimise costs and also find optimal solution in crisis moments.

Kerin explained the energy sector was being affected by a number of new trends, including new energy sources, new technologies and digitalisation.

New players are emerging on the market that are no longer only using the network as a source of energy but as a means for activities while power production is no longer only passive.

"The network is getting older, which is why it will be necessary to think about modernisation and due to new players also about voltage changes," Kerin said.

The new diagnostics and analytics centre, which will bring together experts from various disciplines, will be of help as these decisions are adopted.