Public companies invested HRK 1.4 bln in Q1

Public companies invested HRK 1.41 billion in this year's first quarter, up 11 per cent on the year, and the investment plan for this year comprises concrete projects behind which the government firmly stands, Deputy Prime Minister and Regional Development and EU Funds Minister Branko Grcic said on Monday.

He was presenting to the press a report on the work of the government's coordinating body for the economy, investments and European Union funds.

Grcic said the investments planned for this year totalled HRK 69.5 billion, or HRK 6.5 billion more than in 2012.

The state plans to invest HRK 5 billion (HRK 1.2 billion more than in 2012), the public sector HRK 14.3 billion (HRK 3.6 billion more), and the private sector HRK 50.2 billion (HRK 1.7 billion more).

Grcic said the state would do its part for the public sector investments as well as create conditions for private investments, adding that he hoped for at least some economic growth.

The press were informed about measures to remove obstacles to investments and that 572 types of non-tax revenue have been ascertained, as against 245 in 2009. Economy Minister Ivan Vrdoljak said precise data on how much money went on them would be released when all such revenues had been determined.

He went on to say that letters inviting binding offers for the construction of the Plomin C thermal power plant had been sent and that the bids were expected in October.

Asked if that project, against which a complaint has been filed, and the Ombla hydroelectric power plant, which is meeting with opposition in the environment ministry, had been blocked, Vrdoljak said Plomin C was not blocked and that environmental protection would be respected and the ministry consulted regarding Ombla.

Infrastructure Minister Sinisa Hajdas-Doncic said there was no blockade and that the wish was to set high ecological standards for Ombla, which was why deadlines could not be guaranteed.

He highlighted the 15 most important strategic public sector investments, while Vrdoljak highlighted 14 private sector investments totalling EUR 925.5 million which would create around 2,000 jobs.

Ten private sector projects worth EUR 772.7 million which will create 1,230 jobs are being developed and four projects worth EUR 153 million which will create 770 jobs have been finished, Vrdoljak said, citing Saint-Jean Turbo II and E-Two Energy.

Grcic said another plan for this year was to raise the absorption of EU pre-accession funds to 75 per cent.

Reporters were told the most frequent obstacles to investment are property rights relations, slow adoption of physical plans, unequal law implementation, poor project planning and management, and long public procurement procedures.

(EUR 1 = HRK 7.6)

(Hina)



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