EU Money for Zadar Business Zone and Intelligent Transport System
In addition to EU cash for the Zadar business zone and an intelligent transport system, the University of Zadar also received a grant for the project of renovating the old Technical School.
As Poslovni Dnevnik writes on the 25th of May, 2020 on Monday, Prime Minister Andrej Plenković presented the mayor of Zadar, Branko Dukić, with four contracts for European Union projects worth a massive 135 million kuna in total, and pointed out that the City of Zadar has proven to be one of the most efficient in terms of using EU funds.
This is a grant for the project of building the infrastructure of the Zadar business zone (to be called Black/Crno) in its first phase, and for the projection, development and implementation of an intelligent transport system and reconstruction of the road in the city. As touched on above, the University of Zadar also received a grant.
Plenković mentioned that during the mandate of this Government, 2.6 billion kuna in EU projects have been agreed for Zadar and the wider Zadar County. He added that ITU mechanisms have provided as much as 345 million euros at the Croatian level, and pointed out that the City of Zadar has shown the highest degree of efficiency in its subsequent use of European Union funds.
"With these four projects we've signed, we have covered all of the most important areas, transport, which raises the quality of life of residents, education, because the City of Zadar, in addition to being an important trade and tourism giant, is also an important university and education centre," said the Prime Minister.
He added that the agreements also cover the field of culture, which is especially important, since Zadar is one of Croatia's most important historical cities, and entrepreneurship with the Zadar business zone has also been covered by the funds.
"Through all of these four aspects, these contracts worth 135 million kuna, of which 106 million are non-refundable, will contribute to the development of the city and the county," he said.
For more, follow our business section.
Pivac Group Opens Largest, Most Modern Prosciutto Factory in Croatia
As Novac writes on the 26th of May, 2020, Prime Minister Andrej Plenkovic, Minister of Agriculture Marija Vuckovic, MP Branko Bacic, Split-Dalmatia County Prefect Blazenko Boban and Vrgorac Mayor Ante Pranic recently visited the newly built meat production factory belonging to the Pivac Group in the Ravca business zone, which is located close to Vrgorac.
After visiting the Pivac Group's new factory, a meeting was held with Ivica Pivac, President of the management board of Braca Pivac, as well as Neven Pivac and Miljenko Pivac, who serve as members of the management board of the same company.
"I'd like to thank Mr. Ivica Pivac who presented this new factory, the largest prosciutto factory in this part of Europe. This marks a great investment near Vrgorac and one of the ways in which the Pivac Group, which operates in both Karlovac and Cakovec is securing jobs here in the Dalmatian hinterland. It employs almost 4,500 people and this also includes the latest investment in Kras in Zagreb. I'm glad that this production was done in a way that reflects the technology of prosciutto production in this part of Croatia and in the way it's very well recognised and appreciated by many consumers.
I'd like to congratulate them on this and I'm glad that they have excellent cooperation with the Ministry of Agriculture, and we heard today their plans for additional plants that will be built here. I'm sure that we'll find a way for such projects to receive support both at the national level and through European Union funds,'' said Andrej Plenkovic.
For years, the Pivac Group has firmly held onto its enviable position as the leader in the production of prosciutto on the Croatian market. A huge investment worth more than 120 million kuna in the construction of this newly opened modern prosciutto factory covering a 10,500 square metre area with a total capacity of 4,500 tonnes will push it even further forward, expanding Dalmatia's prosciutto production capacity along with it.
"The capacity of the new prosciutto factory, the largest not only in Croatia but also in the whole of Southeast Europe, is over 300,000 pieces of prosciutto and 2,500 tons of pancetta. In addition to increasing our production capacities, the new prosciutto factory will enable the Pivac Group to better position itself on the market, and in the long run, it will see it take a more significant step towards the European market,'' said Ivica Pivac.
"Since Dalmatian prosciutto is protected by a geographical indication (GI), it was crucial to preserve the traditional production conditions that are its most important characteristic. This means that all of the key elements of its production remain unchanged - salting it with sea salt obtained from Croatian salt pans, drying it in the Dalmatian bura wind and so on. It is precisely the traditional production conditions that guarantee the retention of the maximum taste and the aromatic properties of Dalmatian prosciutto ", explained the production director, Darko Markotic.
The production process will be carried out according to the highest standards, according to the specification of the protection of geographical indications and also in full accordance with the international standards of food quality and safety.
With the construction of the new prosciutto factory, the Pivac Group has completed the investment cycle that began with the project of expanding cooperation with Croatian pig breeders and investing in primary slaughterhouse processing, ie the expansion and modernisation of the slaughterhouse in Cakovec.
"These projects have enabled the maximum use of domestic raw materials in the Pivac Group as a whole, which, in addition to the entire range, also refers to the production of Dalmatian prosciutto and other durable cured meat products. By continuing to invest in production capacities and maximise the use of Croatian raw materials, we'll continue to strive to work for the benefit of the domestic economy and for rural development,'' said Ivica Pivac.
For more, follow Made in Croatia.
Croatian Nautical Tourism: ACI Marinas Providing Free Berths, Discounts
As Novac/Privredni/Jozo Vrdoljak writes on the 26th of May, 2020, following the easing of the formerly stringent anti-coronavirus measures and with the aim of improving the general offer and the successful start of Croatian nautical tourism this summer season, ACI is introducing more favourable conditions in its marinas from the 1st to the 30th of June, 2020.
Owing to the implementation of these measures designed to give the Croatian nautical tourism industry a much needed boost for 2020's season, during June, all sailors whose vessels are on an annual berth will receive free daily berths in all ACI marinas, and all other sailors will receive a very welcome 30 percent discount.
Free berths are limited to two free daily berths per individual ACI marina for private vessel owners, who can, as such, spend the whole month of June free of charge outside of their ''home marinas'' in other ACI marinas, from as far north as Umag all the way down to Croatia's southernmost city of Dubrovnik. Sailors in a charter who rent vessels in one of the ACI marinas can also gain access to one free berth in each ACI marina they enter during their charter.
In normalising everyday life and business, bearing the importance of Croatian nautical tourism and the interest of sailors for sailing on the Adriatic sea in mind, ACI has decided to attempt to further meet the needs of annual guests and those in transit.
"The new benefits we have prepared are a kind of thank you for the understanding and support that our guests, both domestic and foreign, have shown in the past and throughout all the years so far. We're glad that together, we've managed to successfully overcome all of the challenges that have been put before us in recent months, and we're looking forward to the arrival of our sailors. Every day, we're further developing our services to provide our guests with added value and better experiences,'' stated Kristijan Pavic, President of the Management Board of ACI.
Given the fact that the Republic of Croatia is home to 40 percent of the world's charter fleet, ACI continues to position the country on the nautical tourism map of the world, which is something that comes with an array of additional benefits. On top of all of that, one of the largest charter fleets in the world is located in the marinas dotted along the Croatian coast, meaning that the time is now to provide the Croatian nautical tourism sector a spring in its step.
Make sure to follow our travel page for more on Croatian nautical tourism.
INA, JANAF Comment On Memorandum Of Understanding
ZAGREB, May 26, 2020 - The INA oil company and the JANAF oil pipeline operator on Tuesday commented on an article in Nacional weekly which claims it obtained a secret memorandum between the two companies whereby the prime minister allows the export of Croatian oil to Hungary and that the document undermines national interests.
The INA-JANAF memorandum of understanding is a non-binding document signed on 21 August 2018 with the goal of creating prerequisites for the adoption of business decisions which ensure greater profitability and the viability of INA's refining and thereby the whole company, INA said in a press release in response to the Nacional article.
JANAF responded too, saying in a press release that its management was planning and undertaking business activities aimed at increasing the company's revenue and profit as well as reducing and consolidating expenses.
INA explained the memorandum also in the context of its INA R&M New Direction 2023 program, which was launched in 2018 and which envisages concentrating oil processing in the Rijeka refinery and transforming the Sisak location into an industrial hub.
INA said the memorandum envisaged a better optimization of oil transport between JANAF's Sisak terminal and INA's Sisak refinery to enable selling oil at market prices and generating greater economic value. Oil from Croatian fields is processed at the Rijeka refinery and part of it is sold at market prices, INA said, adding that the Rijeka refinery processed more effectively 20% more oil than before and that the quantities covered Croatia's requirements.
Plenkovic: No Way Anyone Monitors Journalists' Correspondence
ZAGREB, May 26, 2020 - Prime Minister Andrej Plenkovic on Tuesday rejected claims that reporters' correspondence was being monitored, underscoring that there is no way that that could even be thought of.
"I deny that in the strongest terms," Plenkovic said in Vrgorac when asked to comment on a statement by Environment Minister Tomislav Coric at a press conference earlier in the day related to a memorandum between INA and JANAF, when Coric called out N1 TV reporter Hrvoje Kresic for his writing in a reporters' social network group.
Coric said that from Kresic's work and messages in the group, it was evident that he was not happy with the appointment of INA's management board.
"No one in the government or anyone else can or must have any insight into anyone's correspondence, especially between journalists," said Plenkovic.
Plenkovic described the memorandum of understanding between INA and JANAF as protecting the government's national interests in INA.
"INA is one of our largest companies. It is also very important for energy independence and generally for the economy. It is key that consultants will present their preliminary estimates and evaluation around 10 June and after that we can decide further," he said.
Commenting on a statement by Social Democratic Party leader Davor Bernardic that the memorandum was a "betrayal of national interests," Plenkovic said that Bernardic is an immature politician who, with his conduct, disqualifies himself for any serious position in state institutions.
Plenkovic added that the government was aware that Janaf and INA had signed the memorandum and that Minister Coric informed the public in detail about that today.
The President who may not go to the polls is degrading yet another important institution - the State Prosecutor's Office
Asked by reporters about the newly appointed chief state prosecutor, Prime Minister Plenkovic said that she (Zlata Hrvoj Sipek) was appointed today in the parliament following a public call for applications that was advertised by the State Prosecutorial Council.
"We interviewed all six candidates. Based on the programme she presented and her experience, she has worked in the State Prosecutor's Office for more than 25 years, has enormous professional experience, knows the system well, she knows what needs to be done in accordance with the Constitution and the law, and I expect that, in line with that, she will continue the work of that important institution," he said and added that he considers her to be the right choice considering the other candidates.
Plenkovic reacted to claims by President Milanovic that she was the prime minister's choice for the chief state prosecutor.
"She was the choice of the government' and the parliamentary majority," Plenkovic underlined.
"Seeing that this is not someone who has come from outside the state prosecution system, I think that it is bad that the president, who said that he might not vote in the parliamentary election, is now degrading yet another important institution, and that is the State Prosecutor's Office," Plenkovic concluded.
HRK 70m Deal For Reconstruction Of Dubrovnik Waterfront Inked
ZAGREB, May 26, 2020 - A grant agreement was signed in Dubrovnik on Tuesday for the reconstruction and extension of the Lapad waterfront in Dubrovnik worth HRK 70 million, for the second, third and fourth phases of construction.
Attending the signing ceremony, Prime Minister Andrej Plenkovic underscored that the project is essential for Dubrovnik's development and that it fits into the government's policy and partnership with local authorities.
"During the meeting on the occasion of the Feast Day of St. Blaise in 2019, we adopted a set of important items for development projects in the city with a total value of HRK 4.5 billion. Of the HRK 5.8 billion in funds agreed to from EU fund, HRK 5.6 billion was agreed to during our term in government," he recalled.
He noted that measures to curb the COVID-19 pandemic, the Employment Agency received more than 4,119 applications for wage subsidies and so far HRK 90 million has been paid in the Dubrovnik-Neretva county.
"Thus, we secured jobs to be kept in Croatia's south. In addition, through fiscal decentralization, revenues generated by municipalities in this county increased by 33.28%, revenues for cities increased by 48.79% and the county's income increased by 30.17%," said Plenkovic.
Transport and Infrastructure Minister Oleg Butkovic underscored that in the past four years the government had invested HRK 6.7 billion for transport projects in Croatia's south, from the Peljesac Bridge and Dubrovnik airport to the Ploce port and other important port projects.
Dubrovnik Mayor Mato Frankovic said that this is the largest infrastructure project in the city center in the past 42 years. A two-lane modern road will divert congestion for Lapad and Babin Kuk and we will get a new promenade and additional content for citizens and visitors," underlined Frankovic.
Croatia Can Maintain Sugar Production Levels If It Overhauls Sector
ZAGREB, May 26, 2020 - Croatia can maintain keep sugar production provided that it strongly restructures the sector and enables close cooperation between sugar beet growers, sugar mills, and state authorities, the Smarter consulting company says in an analysis it released on Tuesday.
The analysis highlighted the merger of the Sladorana, Viro, and Tvornica Secera Osijek sugar mills into one company -- the Croatian Sugar Industry ( Hrvatska industrija secera) -- as a precondition for the survival of sugar production in Croatia.
The merger, which was praised as a move that consolidated the sugar market, is seen in the analysis as a measure conducive to efforts to boost the competitiveness of this sector and to reduce costs.
The above-mentioned domestic sugar factories - Tvornica Secera Osijek, Viro and Sladorana - signed an agreement on joining their production capacities on 28 December 2018 and completed the process of the merger in late October 2019. The consolidation was conducted by joining their production capacities and combining know-how and they are now doing business under the name "Hrvatska Industrija Secera".
Smarter's analysis recalls that in recent years, sugar production in the European Union has been faced with numerous challenges, including price oscillation and the abolishment of production quotas, all of which have also adversely affected Croatia's sugar production.
Sugar beet accounts for 2% of total agricultural production
The analysis notes that the cultivation of sugar beet accounts for two percent of Croatia's total agricultural production and Croatia can cover between 80% and 88% of its demand for this culture.
Before it entered the European Union in mid-2013, Croatia had over 1,200 sugar beet farmers, and in 2018 only 653 sugar beet growers were entitled to grants.
The production of sugar beet has been cut by half since Croatia's admission to the EU.
In Croatia, the size of sugar beet farms ranges between 14,000 and 22,000 hectares, while in 2007, the largest plot or instance was 34,000 hectares.
Croatian Sunday Work Ban for Shops to be Lifted
The Croatian Sunday work ban for shops and other such facilities has been a topic that has generated a lot of discussion, with both fierce proponents and opponents and a lot of arguments on both sides. It seems however, that the restriction on the operation of shops on Sundays in Croatia will be lifted.
As Poslovni Dnevnik writes on the 26th of May, 2020, the National Civil Protection Headquarters have announced their decision to lift the Croatian Sunday work ban in a statement.
Due to the now favourable epidemiological situation in Croatia, and by amending the previously introduced decision on the working hours and the manner of operation in the trade sector during the COVID-19 epidemic, the Croatian Sunday work ban will be lifted, in full compliance with general anti-epidemic measures and special instructions and recommendations of the Croatian Institute of Public Health, stated the National Civil Protection Headquarters.
By amending the aforementioned decision on the special operation of shops and other facilities in the trade sector during the declared epidemic of the new coronavirus, COVID-19, it has now been made possible to sell flowers at markets, as well all other products that were sold before the anti-epidemic restrictions were introduced, in compliance with the general anti-epidemic measures and the special instructions and recommendations provided by the Croatian Institute. for public health.
For more on the coronavirus pandemic in relation to Croatia, follow our dedicated section.
Croatia's Foreign Debt Down In January, But Is Going To Rise In 2020
ZAGREB, May 26, 2020 - Croatia's foreign debt totaled HRK 41.1 billion in January, falling by 6.5% compared to January 2019, however RBA analysts predict a rise in the debt throughout 2020 due to the corona crisis.
Croatia's gross foreign debt of 41.1 billion at the end of January 2020 rose by 0.6% from December 2019 when it amounted HRK 40.9 billion, however, it contracted by 2.8 billion euros or by 6.5% on the year, according to the figures recently published by the Croatian National Bank (HNB).
However, considering the new circumstances in connection with the coronavirus pandemic that caused a lockdown globally as well as in the Croatian economy, RBA analysts expect the deterioration in Croatia's external vulnerability.
The analysts said that a positive streak in the current account since 2013 would be likely snapped, and the country's gross foreign debt would rise both in the real and nominal terms.
"Recovery and relaunching the economic activity, which will require high amounts of funding, will lead to a rise in the borrowing abroad by all key sectors," said the analysts of the Raiffeisenbank Austria (RBA).
The recall that the government has recently planned more borrowing both on the local and foreign markets.
As a result of growing debt and the expected sharp economic downturn, Croatia's gross foreign debt to GDP ratio is likely to increase, too.
At the end of 2019, Croatia's gross foreign debt to GDP ratio was 75.7%.
(€1 = HRK 7.579243
Brussels Airlines Flies To Four Croatian Destinations This Summer
ZAGREB, May 26, 2020 - This summer, between Belgium's national carrier, the Brussels Airlines, will gradually increase the number of destinations to which it will fly, and among them, there are four Croatian cities - Zagreb, Split, Dubrovnik, and Zadar.
The company stated that this summer, due to the coronavirus pandemic, it would realise only 30% of its originally planned summer flight schedule.
From June 15 to August 31, Brussels Airlines will gradually add destinations to their flight schedule, ultimately flying to 59 destinations in 33 European, African, and US destinations.
The list includes four Croatian destinations: Zagreb, Split, Dubrovnik, and Zadar. The schedule includes 45 European destinations in 20 countries, 13 African, and one in the USA, the JFK International Airport in New York.
The booking systems are currently being updated, and the process should be completed by the end of the week, the company stated in the press release.
The flight schedule for the period after this summer will be published at the beginning of June. The company hopes that it will be able to realise 50% of its initially planned flights until the end of the year.
