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Serbia–Hungary oil pipeline procurement challenged over supervision contract

A legal challenge filed within Serbia’s public procurement process has introduced uncertainty for the planned Serbia–Hungary oil pipeline. The request for legal protection was submitted shortly after state-owned operator Transnafta announced selected companies for construction works and technical supervision services. The most recent objection targets the contract for expert supervision of the project. Until a ruling is issued by the Commission for Protection of Rights in Public Procurement Procedures, details of the complaint and the applicant’s identity remain officially undisclosed.

Challenge filed after Transnafta selects supervision providers

Earlier this month, Transnafta selected a consortium to carry out supervision duties under a contract worth approximately €4.7 million, including VAT. The consortium comprises Project Biro Utiber, SGS, Petrol Projekt, and Preventiva 012. These firms are listed as responsible for technical oversight of pipeline implementation. The Public Procurement Portal indicates that the latest objection is linked specifically to expert supervision.

Procurement records dated 12 May show that two bids were submitted for the supervision contract. The competing bid came from a consortium led by Bureau Veritas Serbia, part of the French engineering and certification group Bureau Veritas. It is not stated in the records who initiated the appeal, though it is widely assumed that the unsuccessful bidder may have done so. Official confirmation is expected only after the regulatory authority publishes its decision.

Main construction contract already awarded

Alongside the supervision procurement, Transnafta has already awarded the main construction contract for the Serbia–Hungary oil pipeline. The contract was granted to a consortium led by MVM Juzna Bačka with a total value of €123.5 million, excluding VAT. Under the agreement, MVM Juzna Bačka is responsible for about 43% of the project scope. This includes procurement of materials and equipment, engineering works, electrical installations, automation systems, and telecommunications infrastructure.

The scope assigned to MVM Juzna Bačka also covers selected civil and mechanical construction activities. With the legal dispute now in place, further progress on the project timeline may depend on outcomes from the procurement review process and any subsequent administrative decisions.

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