ZAGREB, Aug 4 (AFP) - The Croatian government announced Wednesday it will invite tenders for construction of part of a new highway, after backing out of a deal with the US firm Bechtel following pressure from the European Union.
Prime Minister Ivo Sanader said he would "propose calling a public tender for this section of the motorway due to the wish of the public and in order to reject all petty political suspicions," in a statement issued ahead of a cabinet meeting.
The 37-kilometer (22-mile) long section will form part of a new motorway linking Zagreb with the southern coastal town of Split.
The Croatian media and opposition had criticized the government's decision to award Bechtel a direct contract worth 1.2 billion kunas (163 million euros, 195 million dollars) without holding any public tender, accusing it of corruption.
The European Commission, the EU executive, said it was looking into the case to determine whether the deal with Bechtel -- which also won lucrative contracts in Iraq -- was in line with the law.
In 1998 Bechtel signed an earlier contract with Croatia to build 120 kilometers of motorways worth 600 million dollars (some 500 million euros).
In Romania, Bechtel started construction last August of a 415-kilometer (250-mile) long motorwary after it obtained a deal without public tender that also triggered strong criticism from the European Commission.
Croatia hopes to meet criteria for EU membership in 2007, when Bulgaria and Romania hope to join the bloc.