The "Blic" daily: City declined Delta’s offer for "Sava centar"

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    The “Blic” daily: City declined Delta’s offer for “Sava centar”

    City of Belgrade has declined an offer of the company Delta for partnership in management of “Sava centar”, today’s issue of the “Blic” daily reports.

    According to this newspaper, mayor’s decision to suspend the procedure for election of a partner, for the purpose of founding a join company for reconstruction and management of “Sava centar”, adopted on February 5th, will be revealed to aldermen at the session of the City Assembly on Monday.

    The article reminds that the City of Belgrade announced a tender three years ago and offered a 49-percent stake in “Sava centar” to a private partner, as well as possibility to set up personal management and manage “Sava centar” in the next decade.

    Delta offered a stake of EUR12.5 million from its own funds, and it planned investment of the same amount via loan that it would take in behalf of a join company.

    “The financial offer has met minimum requirements specified in the public call. However, the commission has determined that business plan is incomplete in regards to the number of existing employees that would continue to work in newly established joint company,” it is stipulated in the report that will be presented to aldermen, and added that such offer cannot be considered as correct, thus commission has recommended that mayor should decline it.

    As a reminder, Delta Holding was prepared, if it became the co-owner of “Sava centar”, to take on every eventual loss in business activities of that centre, and to share profit with the City of Belgrade, it such profit was generated.

    The “Blic” daily reports that this will prolong difficult position of the congress centre, as its business program foresees a loss of EUR2.5 million in 2019.

    A debt of several million euros to various city enterprises was waived off to “Sava centar”, while financial operations are declining and losses are growing.

    According to the business program for 2019, that enterprise operated last year with a loss that exceeded EUR1.2 million.

    Izvor: Blic, Beta, BIZLIfe

    Foto: Sava centar

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