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240 million kuna in state support for Croatian shipowners’ vessels

Based on the Shipbuilding Program, which was established by the Government today, the state will support the construction of ships for Croatian shipowners with a total of 240 million kuna until 2011, with the aim of renewing the fleet of Croatian shipowners, enhancing navigation safety, and increasing the level of marine and environmental protection.

The program includes the construction of nine double-hulled ships for the transport of oil, oil derivatives, and similar products, as well as two bulk carriers, with a total value of nearly 559 million US dollars. Minister of the Sea, Transport and Infrastructure Božidar Kalmeta emphasized that state support from the state budgets will cover up to 30 percent of the justified costs of additional investments by shipowners in ship construction, amounting to approximately 240 million kuna at today’s dollar exchange rate. Additionally, the conditions for granting support will include that the newly built ships are registered in the Croatian Register of Ships and that the crew consists of Croatian sailors, as well as the inclusion of domestic manufacturers. The Competition Protection Agency agrees with these conditions, and they are also in line with EU regulations.

In addition to accelerating the process of replacing old ships with new, more modern ones, this program, Kalmeta noted, “will improve the position of the Croatian flag in the Paris Memorandum.” The government also confirmed the decision of the Ministry of Economy to terminate the state of emergency in natural gas supply, considering that the circumstances that led to the declaration of the state of emergency on January 7 ceased on January 20, due to the interruption of gas delivery as a result of the dispute between Russia and Ukraine. Prime Minister Ivo Sanader emphasized that Croatia, despite the end of this gas crisis, will continue all activities to achieve a greater degree of energy independence in every sense.

At the same time, he called on members of the consortium for the construction of the LNG terminal on the island of Krk to expedite the agreement, and for Plinacro to continue negotiations related to the so-called Transadriatic Pipeline, which would connect the Croatian gas system, through Dalmatia, with Montenegro, Bosnia and Herzegovina, and Albania. The government also accepted the Strategy for the Development of Electronic Administration until 2012, and a proposal for the ratification of the agreement with Montenegro on the surrender and acceptance of persons whose entry or stay is illegal was submitted to the Parliament. Additionally, the government transferred properties worth nearly 41 million kuna without compensation to Belišće, Virovitica, Hum na Sutli, and Labin for the construction of economic and other infrastructure. (H)