The Development Group, an international consortium of American, Canadian, and European companies interested in financing and constructing the LNG project on Krk, has requested protection from the EU and reported the company LNG Croatia, led by Mladen Antunović, to the European Anti-Fraud Office (OLAF) and the Innovation and Networks Executive Agency (INEA).
It has complained, as can be unofficially learned from Brussels, about the Call for Investors in the LNG project as it is inconsistent with EU rules and obstructs the principles of market competition, as well as the lack of transparency related to the land on Krk where the project is planned to be built.
This land, let us remind, is part of the bankruptcy estate of the Dioki Group and is owned by its creditor Hypo Bank, which has transferred its claims to the Austrian state company Heta. The group of private investors gathered in the consortium The Development Group has secured the right of first refusal on the land, but for three years they have unsuccessfully attempted to purchase the assets of Dioki, which include the land, and to develop their terminal with a capacity of 12 billion cubic meters of gas per year, twice as large as that planned by LNG Croatia.
The land is also the main reason why the consortium is complaining to European institutions and the greatest risk for the realization of the project, regardless of its capacity or who is executing it. As can be read in the complaint, at no public tender has it been officially stated what is happening with the land, LNG Croatia received EU funds amounting to 4.9 million euros based on a request that did not disclose the fact that it does not own and cannot expropriate the private property intended for the construction of the terminal, and the consortium is intentionally obstructed in the process of purchasing the land. All of this is already delaying the project, which, according to some new political mood, could ultimately be developed as a floating rather than a land terminal.
Antunović states that all procedures related to the realization of the construction of the LNG terminal, which concern funds from EU funds, have been carried out in accordance with the EC and the agreed timeline. He emphasizes that
all interested investors had the opportunity to respond to the tenders and that a ‘data room’ was opened where investors had insight into the entire documentation, including that for the land on Krk, regarding which, he says, they are intensively negotiating.
− All companies that had an interest in investing or leasing capacity at the terminal had the opportunity to submit their offers through public calls for both procedures and to transparently realize their right to participate. Any form of intention for a non-transparent attempt to participate will not be considered by LNG Croatia − emphasizes Antunović.
