Are entrepreneurs right to be angry that too much NPOO funding is allocated to the public sector, or is there a real opportunity for them as well?

Are entrepreneurs right to be angry that too much funding from the National Recovery and Resilience Plan is allocated for projects in the public sector? This was one of the topics of the round table discussing where exporters see themselves in the NPOO at the conference “Smart know what export is for.” The entrepreneurs’ side was represented by Ana Fresl, director of the consulting company Projekt jednako razvoj and president of the HUP Association of Professionals for EU Funds, while a different viewpoint was presented by Nataša Mikuš Žigman, state secretary in the Ministry of Economy and Sustainable Development.

– More funding should be allocated for the economy because they are the biggest victims of the pandemic; in our opinion, the total amount allocated for the economy is not sufficient. We are also dissatisfied with the share of financial instruments in the total amount remaining from that Plan for the economy. It is not the best moment in history to reduce grants. We conducted a large survey among two thousand employers in Croatia, which showed that only 30 percent plan further borrowing regardless of additional benefits – said Fresl.

However, Mikuš Žigman emphasized that the funds allocated for the public sector are also an opportunity for the private sector.

– There is a lot of emphasis on the thesis that funds go to the public sector and that companies must compete through public procurement, and that this is not as good support as grants. We produce annual reports on how represented our entrepreneurs are in public procurement worth more than 40 billion kuna. More than 90 percent of those tenders go to domestic companies, and the percentage coming from foreign countries is relatively low. Why should we be afraid of public procurement? You exporters know that it is possible to succeed in this, and I believe that our companies can do it – said the state secretary at the round table moderated by Lider’s journalist Goran Litvan.

The advisor to the management of HBOR, Hrvoje Galičić, emphasized that it is expected that the cream of the Croatian economy, which exporters certainly are, will be the most active users of recovery and resilience measures through financial instruments and grants. An additional advantage is that cheaper loans along with the SME segment will be available to both micro and large enterprises, and HBOR has 1.925 billion kuna available for stimulating the economy through the NPOO. – Domestic entrepreneurs need to be provided with funds that will be at the level of their partners in the EU. There is money, but it is not entering the private sector enough. At the EU level, Croatia received the largest share of funds within the NPOO for the private sector. We are expecting a tsunami of green transition in the economy, and everyone must be aware of that – Galičić emphasized.

Board member and director of Odašiljača i veza, Mate Botica, pointed out on the panel that he sees an opportunity in obtaining funds for investment in infrastructure in areas where there is no commercial interest, especially in rural areas.

The executive director of the Corporate Business Sector and Public Sector of Hrvatska poštanska banka, Boris Bekavac, was candid, stating that the development of the NPOO was closely monitored and that they recognize numerous opportunities that they are eagerly waiting for. – The pandemic has caused a lot of damage in terms of financial capacities; I think we have a capital drought in the sector regarding investments in new projects and investments, and we are trying to understand how to cope – said Bekavac, adding that the crisis has also eroded the main drivers of the economy in the EU and has drained capital from their pockets.

Board member of the DIV group, Darko Pappo, commented on the headlines about Brodosplit, stating that all accounts are now unblocked, but he complained about the problem they face in finding financial resources since their needs are large, and the financial capacity of Croatian banks is limited.

– Decisions on loans up to 20 million euros are made locally, while for larger amounts, decisions are made with principals abroad. The DIV group is a competitor to their clients, and this leads to collateral issues – explained Pappo, expressing hope that the available funds will be invested by the state in the modernization of the infrastructure used by Brodosplit on the maritime property in Split.

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