April 3, 1998
Bechtel signed a contract with the Republic of Croatia to build a 120-kilometer (74-mile) motorway as part of an ambitious government plan to link Croatia to the pan-European transportation corridors.
Bechtel Signs Contract For Croatian Motorway
The initial phase of the four-lane motorway will run northwest from Zagreb to the Slovenian border, and then south from Zagreb through Sisak to the Croatian border with Bosnia.
The $600 million, fixed-price contract is one of the largest ever awarded by the government of Croatia. The project is being financed through a mixture of export credits, including $200 million from the United States Export--Import Bank--the first such credits extended by the U.S. to Croatia--and commercial loans guaranteed by the Croatian government.
"The governments of Croatia and the United States deserve great credit for their determination to move this project forward," said Charles Redman, the Bechtel senior vice president who participated in the signing ceremony. "We're proud to be part of a collaborative effort that will create a strategic economic asset for the people of Croatia and the entire region."
Bechtel will build the motorway in concert with Enka, a leading Turkish construction company and a frequent partner of U.S.-based Bechtel. Construction will begin this summer under an aggressive four-and-a-half-year plan that maximizes the use of Croatian workers and local resources. The project is being designed by the Civil Engineering Institute of Croatia, which is acting as the government's engineer for the job.
"This is a critical infrastructure project for the entire region, and represents a major milestone for western investment," said Zedenka Gast, Bechtel's regional consultant.