Croatia invested 1.7 billion kuna in the development of islands in 2016, which is 200 million more than the average annual investment over the last twenty years, according to a report on the effects of the implementation of the Islands Act sent by the Government to the Croatian Parliament.
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Since the Islands Act was adopted in 1999, the state and public sector have invested an average of about 1.5 billion kuna annually in the islands and the Pelješac Peninsula. Through investments in infrastructure and services, they aimed to improve the quality of life for about 133,000 islanders, according to the last census, who lived on 50 inhabited islands and the Pelješac Peninsula.
Despite the increase in the number of islanders, depopulation on small and remote islands
Although the total number of islanders increased between the last two censuses, that is, between 2001 and 2011, depopulation is clearly visible on small and remote islands. Almost half of the islands recorded an increase in the total population, but only Vir and Čiovo, both connected to the mainland by bridges, have a positive natural increase, the report states.
In the development of Croatian islands in 2016, 50 entities from the state and public sector invested, including 12 ministries. The most was invested by the Ministry of the Sea (almost 390 million kuna) and the Ministry of Regional Development and EU Funds (122 million), while the least was invested by the Ministry of the Interior (238,000 kuna), the Ministry of Health (302,000 kuna), and the Ministry of Croatian Veterans (340,000 kuna).
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Significant investments in the islands were made by HEP (84 million kuna), Hrvatske ceste (192 million), the Environmental Protection Fund (48 million), and Jadrolinija (37 million).
The majority of funds are non-repayable
The majority of the funds, 1.3 billion kuna, were received by the islands as non-repayable, while 432 million was through loans from HBOR (420 million) and the Croatian Agency for Small Business, Investments, and Innovations (12 million kuna).
The Ministry of the Sea, Transport, and Infrastructure paid out the most funds from its position, 304 million kuna, for better connectivity of the islands with the mainland and among the islands themselves, that is, to encourage regular passenger and fast ferry lines. Out of 53 state lines, 51 were maintained, connecting 45 out of 50 permanently or occasionally inhabited islands.
Compared to the previous year, in 2016, more passengers and vehicles were transported on these lines (13 million passengers and 3.1 million vehicles compared to 12.5 million passengers and three million vehicles).
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For co-financing the toll for the Krk Bridge, the Ministry paid out 24.1 million kuna – 6.8 million for legal entities and 17.3 million for individuals. These funds were disbursed for the period from December 1, 2015, to November 30, 2016.
The Ministry of Regional Development took care of the islands through the Islands Sector, financing a range of projects, from road and promenade improvements to supporting various events that promote island products and specificities.
Public road transport for students, students, and retirees on 17 islands was subsidized with almost 28 million kuna, and the price of water for households with an additional 9.7 million.
In education and culture, that is, in the construction and extension of schools, sports halls, and cultural centers, 24 million kuna was invested, and in the improvement of the island economy, 8.5 million kuna, resulting in 220 island employers obtaining the right to support of small value for about 3,200 employees.
