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Highways to be constructed according to fixed prices

ALL the highways built over the next 30 months will have fixed prices determined in advance.

The Transportation, Telecommunications and Post Ministry decided to abolish various contract price appendixes and in this way lower the cost of highway construction, the daily Hospodárske noviny reported.

"Raising the prices will be possible after the 31st month of the construction. They will be calculated according to new and stricter rules and after thorough control," Tomáš Šarluška, the Transportation Ministry's advisor, told the daily.

However, he admitted that there were possible risks with the new model: "Suppliers can submit a proposal with an estimation of price increase higher than expected in reality, but in the tender the lowest bid will be chosen anyway," Šarluška said.

The new rules should apply from January 2006.

Compiled by Marta Ďurianová from press reports
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