PM Plenkovic: HRK 5.5 billion worth of contracts pertaining to Slavonia signed since October 2016

Prime Minister Andrej Plenkovic said on Saturday progress had been made in the contracting and realisation of projects as part of the Slavonia, Baranja and Srijem Project, adding that it was necessary to strengthen the fiscal capacities of local government and combine the use of the state budget and European Union funds to create a framework for keeping young people in the Slavonia region.

Speaking at the fourth session of the Slavonia, Baranja and Srijem Council in Virovitica, Plenkovic said HRK 5.5 billion worth of contracts pertaining to Slavonia had been signed since October 2016.

He said it was necessary to even out project contracting by county as some counties were more efficient and active than others. He said the Regional Development Ministry would continue to work on a development agreement for the Slavonia Project so as to have a financial and legal framework for fund allocation. Cooperation with the World Bank will be intensified and the stimulation of competitiveness and enterprise will continue.

The Agriculture Ministry will work on solutions for damage caused by natural disasters, special attention will be paid to the timber industry, freshwater fisheries and wine making, all important for Slavonia, Plenkovic said.

Croatia is yet to feel the full benefits of the redistribution of the European budget and to improve European fund absorption, the cohesion and agricultural policies being the foundations of regional development, he added.

Economy Minister Martina Dalic said HRK 2.67 billion worth of EU grants were directed into the economy last year and that the bulk of the contracts were signed over the past 12 months, activating enterprise projects worth about HRK 5 billion.

She said HRK 445 million worth of grants were allocated to enterprises in five Slavonia counties and that HRK 870 million worth of projects were launched.

Dalic said a tender worth HRK 200 million was announced last week for small and medium enterprises to invest in equipment and business development, adding that a tender was being prepared in cooperation with the Tourism Ministry to finance continental tourism.

Regional Development and EU Funds Minister Gabrijela Zalac said that three months ago, when the Slavonia, Baranja and Srijem Council last met, 14% of the projects had been contracted, as against 30% now.

She said eight tenders worth EUR 190 million from the European Regional Development Fund would be announced soon, and that short, medium and long term measures would be defined in cooperation with World Bank experts to stimulate the economy, including strategic investments.

Agriculture Minister Tomislav Tolusic said direct aid for farmers in five Slavonia counties last year totalled HRK 1.3 billion, with HRK 810 million allocated from the rural development programme, and that HRK 3.7 billion in aid was planned for this year.

Tolusic also announced the possibility of Croatian Bank for Reconstruction and Development loans for farmers.

The Slavonia, Baranja and Srijem Council was established in March 2017 to coordinate the absorption of European structural and investment funds as well as national sources as part of the Slavonia, Baranja and Srijem Project, launched to secure EUR 2.5 billion for investing in enterprise, agriculture, education, health care, research and development, water supply and drainage, culture, nature, transport and energy in five Slavonia counties.

During their stay in Virovitica, Plenkovic and cabinet ministers visited the 23rd edition of the Viroexpo business and agriculture fair.

Text: Hina

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