Trace, Mostovik Win $46 Million Road Contract in Serbia

Trace Group Hold AD, Bulgaria’s biggest road construction company, won a 3.83 billion dinar ($46 million) contract to build a road section in southeastern Serbia in a joint venture with Russian builder NPO Mostovik OOO.

The 5-kilometer (3.1-mile) link involves construction of eight bridges, two overpasses, a cross section and tunnels in two years, the Sofia-based company said on its website today. The project is part of a highway linking the Serbian city of Nis with Macedonia and will be funded by the European Investment Bank, the World Bank and the Serbian government.

Koridori Srbije d.o.o., Serbia’s state-run road company, has invited the Bulgarian-Russian joint venture to sign the contract, according to the statement.

Trace seeks to expand abroad and is taking part in construction tenders in the Balkans, Russia, the Middle East and North Africa, it said. Trace International EOOD, a unit of the company, is now building roads in Germany, the Balkans, Saudi Arabia and Azerbaijan, it said.

The company had a 2 million lev ($1.36 million) loss in the third quarter on declining domestic orders. Trace Hold shares rose 1.4 percent to 3.6 lev at 12:56 p.m. in Sofia.

(Updates with details, share price from second paragraph.)
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