Slovenian activists to force referendum on €1.4bn Koper-Divaca railway expansion

Slovenian activists to force referendum on €1.4bn Koper-Divaca railway expansion
Slovenia's Koper port is the main gateway for cargo trans-shipments to Hungary.
By bne IntelliNews June 22, 2017

Slovenian activists have collected enough signatures to force a referendum on the government’s plans for a €1.4bn expansion of the rail link between the port of Koper and the inland hub of Divaca. 

The Koper-Divaca railway connects the capital Ljubljana with the country’s sole Adriatic port, Koper. This is also the main maritime gateway for Hungary, handling over three-quarters of its container trans-shipments. However, the project faces significant opposition, which may intensify in the run-up to the 2018 general election. 

Civil initiative the Taxpayers Standing Our Ground says it has collected 41,600 verified signatures, above the 40,000 needed for a referendum to be called, although the government still has the power to ask the constitutional court to ban a referendum. 

The initiative has been speaking out against the bill on Koper-Divaca for months, claiming that it would cost too much for Slovenian tax payers and only benefit Prime Minister Miro Cerar’s Modern Centre Party (SMC). While the cost of the project is currently estimated at €1.4bn, according a 2016 report from Geodata Engineering it could be reduced by €115mn-€210mn.

The head of Taxpayers Standing Our Ground, Vili Kovacic, said on June 20 that the campaign to collect signatures would continue until the June 22 deadline even though the 40,000 mark had already been passed.

"We need a strong backing, because the authorities, which announced that this referendum must not take place, are deceptive and clearly undemocratic " Kovacic told the press in Ljubljana, STA reported.

However, the most recent poll conducted by Slovenian daily Dnevnik found that 63.8% of Slovenians do not want a referendum on the country’s biggest forthcoming infrastructure project.

The poll, published on June 21, showed that only 26.9% of respondents would chose ‘no’ as an answer to potential referendum question: “Do you support the law on the second track between Koper and Divaca construction and management?”.

Preparations for the project are already underway; a new special purpose firm, 2TDK, was set up in April 2016 to manage the construction, and government officials argue that holding a referendum would slow down its attempts to obtain EU funds for the railway expansion.

Cerar told STA in an interview in May that the proposed referendum could hamper Slovenia's development and undermine its credibility. The project is seen as the most important achievement of his cabinet, and he is likely to stress the benefits in terms of developing Koper’s potential as the election approaches. 

Koper is already seen as the standout success among ports on the eastern Adriatic, having steadily increased the volume of cargo it handles in recent years. In 2015, the port’s management announced plans to invest €800mn into its infrastructure by 2020, with a focus on container freight. The port operator reported record net profit of €44mn in 2016, up 37% compared to the previous year.

Like the population, Slovenia’s politicians are divided on the project to expand the line to the port. The upper chamber of parliament vetoed the railway expansion, but its veto was later overturned by the National Assembly, which confirmed the act on the second track between Koper and Divaca on April 20. 

Meanwhile, Koper city council initially backed the calls for a referendum, but made a u-turn in mid-June to endorse the expansion plans instead. 

Cerar has said believes the opposition to the expansion of the line to the port is politically motivated, while his opponents claim that there is no political influence on their actions.

 
 

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