Croatia has cancelled a contract with Japanese company Kajima Corp, which it had selected two years ago to construct a new containership terminal in the port of Rijeka.
According to comments from Croatia's Maritime Affairs Ministry, both parties had agreed to scrap the contract on "friendly terms" owing to unforeseeable problems with the project, said a report from Thomson Financial.
The Croatian ministry said it requested the contract be terminated because of spiralling costs which had exceeded initial estimates for building the 300-metre long terminal.
Maritime Affairs Minister Bozidar Kalmeta said the price hike was the result of sea depth conditions being far worse than earlier detected by the feasibility study conducted by another Japanese company, Nippon Koei.
The ministry said the Croatian government will use the World Bank loan of US$156 million provided to the project, which would have been worth about EUR180 million in total, towards a project to enlarge another container terminal in Rijeka port by 300 metres, the report added.
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