Darko Horvat: We have a scheme under which we could borrow an additional 28.6 billion kuna for reconstruction

There is significant liquidity in business banks that they are willing to put on the market, but with some guarantees that we are preparing. There is also a real perspective that these loans could be raised in international and European financial institutions, but we do not want to contract them yet.

Although we had been arranging the interview with the Minister of Spatial Planning, Construction, and State Property, Darko Horvat, for some time, it so happened that it took place just after he had been touring the devastated area of Banovina with Prime Minister Plenković, where he had to face a series of accusations that the reconstruction after the earthquake is not proceeding at a satisfactory pace, as is the case every day.

Citizens who want to return to their homes, the accusations from Damir Vanđelić, along with standard Croatian ailments such as unresolved property rights and illegal constructions, are just part of the problems Horvat is currently facing. In the conversation, we tried to find out how he plans to resolve them, as well as seek answers to many other questions – from the fate of the Orljava factory to a new round of legalization.

You toured Banovina with Prime Minister Plenković this week. What are your impressions from the visit?

– We have been present in the Banovina area since the first day of the disaster that struck the entire region; I can almost say that we have had our second office there for the last eight months. There is a lot of work, the issues are much more complex than what can be read in the media, and everything is even more sensitive because we are dealing with people’s destinies. That is why I am more than surprised by the moves of some representatives of other political options who have now started appearing there to gather points by camping in front of mobile homes and containers where people have been relocated for their safety. Such moves, as well as the regular dissemination of inaccurate data and false claims, such as that only about 30 million kuna has been spent on reconstruction so far, certainly do not contribute to the situation. Our current focus in the Banovina area is organizing non-structural reconstruction of around 7,200 family houses so that we can return people to them as soon as possible.

However, the general impression is that the reconstruction is proceeding slowly, and the blame for this is mostly placed on your ministry.

– It is always easiest to shift or assign blame. From the beginning, we have taken on a great responsibility, from creating the legislative framework, establishing the Fund and finding its director, securing the necessary sources of financing, to the concrete collection of data and processing citizens’ requests. In doing so, we have made every effort to simplify the procedure while organizing our people to be in the field, both in mobile teams and in relocated offices. Because of this, we now have many aggravating circumstances because Ministry employees who obtain building rights documents, residency data, and verify property rights instead of citizens cannot simply untangle such situations, some of which have been unresolved for years. Therefore, I can agree that some things are moving slowly. However, to say that absolutely nothing has been done is simply not true. If we sum up just a few key data points, we easily arrive at an amount greater than 500 million kuna that has been spent so far for various purposes. Reconstruction includes a lot, from basic infrastructure, electricity, water supply networks, roads, base stations, ensuring temporary accommodation, to legislative processes. In Zagreb, we had 2,183 requests for reimbursement of emergency intervention costs. So far, 1,719 positive decisions have been made, for which nearly 60 million kuna has been paid out.

Critics say that these are just emergency interventions, not structural ones. And the constant question arises whether we will even utilize the 5.1 billion kuna from the Solidarity Fund.

– I cannot agree with the claim that these are ‘just’ emergency interventions. These are someone’s roofs, chimneys, gable walls, staircases, elevators, many so-called non-structural parts that ensure normal living conditions. On the other hand, critics who talk about the issue of utilizing funds from the Solidarity Fund either do not know, do not follow, or simply do not want to admit that something is ‘actually’ being done. In order to attract these funds, it was necessary to create the administrative architecture required by European rules related to spending money from the Solidarity Fund. Our ministry is the coordinating body, and we have another 11 implementing bodies, which is why there are 12 public calls. The four sectors with the greatest financial weight are: health, education, culture, and state property, but also emergency interventions, which include the cost of temporary accommodation for people who have lost their roofs over their heads. So far, we have received more than 370 applications ‘worth’ 10 billion kuna and signed 211 contracts worth nearly six billion kuna. Project documentation with accompanying cost estimates is currently being prepared for them, and everything in that segment of the public is going at the desired pace.

Does this mean that we will indeed manage to utilize that money?

– Not only will we utilize all available funds, but we will also be short of them for the needs of these reconstruction projects. That is why we are already looking for new, fresh money. The total damage in Zagreb is estimated at around 86 billion kuna. For the segment of structural reconstruction, we will need just under half of that amount. There is significant liquidity in business banks that they are willing to put on the market, but with some guarantees that we are preparing. We have a scheme under which we could borrow 28.6 billion kuna. There is also a real perspective that these loans could be raised in international and European financial institutions, but we do not want to contract them until we generate costs because banks release funds at a predefined pace. If you do not adhere to it, you pay penalties.

Read the full interview with the Minister of Spatial Planning, Construction, and State Property in the digital or printed edition of the business weekly Lider.

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