WRITTEN QUESTION E-3052/02

by Bart Staes (Verts/ALE) to the Commission

(24 October 2002)

Subject: Implementation of water purification plant contract in Sanski Most (Bosnia)

On 23 November 2000, work on a water purification plant in Sanski Most (Bosnia) was stopped. The project was being carried out with the assistance of the European Commission, represented through its Sarajevo Office. The other contractor was Purac AB Company of Sweden, represented in Sarajevo by WTE Company Sarajevo. The works sub-contractor was Elektrometal Cazin.

The work was closed down by Purac AB/WTE. Elektrometal was then approached by a Mr Magowan from the offices of Carlo Lotti & Associati, asking it to continue to carry out the work. Elektrometal was initially required to assume responsible for maintenance work on the building site. The undertaking remained responsible for this at least until 2 August 2001.

Work was not resumed, even although Elektrometal had always indicated that it was prepared for that to happen. In a number of letters to different individuals and organisations not least to Purac AB itself Elektrometal also pointed out that it had payments to itself outstanding of some EUR 147 000, not including interest payments on the delay and compensation for breach of contract. There are good reasons to assume that the amount outstanding has still not been paid to its rightful recipient.

Can the Commission give an account of the above matter and state what action it has taken or will take to ensure that the all contracting parties to this project will secure their rights and/or comply with their obligations?

Answer given by Mr Patten on behalf of the Commission

(3 December 2002)

In accordance with the principles of fair competition and transparency, the remaining works for the Sanski Most Water Treatment Plant were subject to a tendering procedure. Therefore, the Commission could not accept the offer submitted by Elektrometal to resume the works.

The company Elektrometal, which was a sub-contractor to PURAC/WTE, has informed the Commission's Delegation several times about their outstanding claims vis-a-vis PURAC/WTE. As this concerns a contractual relationship between Elektrometal and Purac, the European Commission cannot intervene in this dispute between two private companies.