Minister Butkovic authorised to sign agreement with 3. Maj dock to settle concession fees

Photo /Vijesti/2019/09 rujan/05 rujna/VRH_0093.jpg

The government on Thursday authorised Minister of the Sea, Transport and Infrastructure Oleg Butkovic to conclude an agreement with the 3. Maj shipyard regarding a model of repayment of unsettled concession fees which at the end of August amounted to HRK 5.86 million.

At its first meeting in August after the summer recess, the government issued a conditional guarantee to the Rijeka-based dock to take a HRK 150 million loan to create prerequisites for relaunching production, completing ships and reduce budget losses. Before that, on 1 August, the government said that it was prepared to become engaged in the process of unfreezing the shipyard's account and relaunching production.

Minister Butkovic explained that it was necessary to conclude an agreement on a different collection of overdue concession fees.

The agreement means that 15% of unsettled dues would be settled within 30 days of its signing, while a model of repaying the remaining 85% of concession fees is to be defined by 31 August 2021, Butkovic said.

Unsettled concession fees for the Rijeka-based dock as of 30 August 2019 amounted to HRK 5.86 million, HRK 5.44 million of which is the principal and HRK 419,800 refers to interest.

Earlier this week, Economy Minister Darko Horvat advised that the Croatian Bank for Reconstruction and Development (HBOR) supervisory board had issued conditional approval for a HRK 150 million loan to the dock.

More than 90% of the dock's creditors had accepted a deal whereby they agree to a delay of the payment of 85% of their claims for a period of 2 years, while the remaining 15% would be paid to creditors from the loan to the shipyard.

Government endorses plans to construct river port in Osijek 

The government endorsed a decision by Osijek River Port Authority to build a passenger ship pier in Osijek valued at HRK 12.49 million with VAT.

Considering the increased number of passenger boats announced for this year, about 80, up from 37 last year, the port authority obtained the necessary permits to construct a new passenger pier, Butkovic said.

Gov't endorses draft agreement on new border crossing bridge with Slovenia

The government on Thursday endorsed a draft agreement it is expected to sign with the Slovenian government on building a new road bridge over the Kamenica stream near the Obrez-Bozakovo border crossing.

The draft agreement was prepared after the government concluded last December to build a new bridge. The existing bridge and the border crossing were closed for all traffic on 27 April 2015 after they were damaged in floods in 2014.

The bridge will ensure better road connections and cooperation between the two countries and the population along the border.

Construction will cost HRK 5 million, with each country paying half.

The government also amended a regulation on municipal waste management under which local government units will not have to pay incentives for reducing the quantity of mixed municipal waste if they separate more than 44% this year, 52% in 2020, 56% in 2021, and 60% in 2022.

Text: Hina