May the 26th, 2022 - Is the Croatian construction industry simply doomed to have to import foreign (non-EEA) labour as an attempted long-term strategy to keep things afloat?

As Poslovni Dnevnik/Darko Bicak writes, there are fewer and fewer ''homegrown'' workers in the Croatian construction industry, and an increasing number of foreign workers on construction sites pose a number of challenges to the companies that hire them, according to the panel discussion "Challenges of the workforce" which was held in Zagreb recently.

Dragutin Kamenski, the director of the very well known company Kamgrad, pointed out that if the country successfully removed all other challenges that the Croatian construction industry is currently facing, and only the lack of manpower remaind, we'd still be in trouble.

A very complex process

"Now, the state has begun to take steps to facilitate labour migration, but it remains to be a very complex process because it requires additional efforts in bringing and introducing a new workforce to a particular company, as well as additional organisation and costs. As there is no additional base for recruiting labour here in Croatia, it's clear that in the long run we're doomed to importing foreign construction workers under any conditions,'' said Kamenski, adding that so far, they have had all kinds of situations with agencies that bring in foreign workers arise.

"Recently, a large number of agencies have appeared that bring in foreign labour, and time will show which ones are good and bring in high quality workers, and which aren't. If you end up with inadequate workers, it raises your costs and you're less competitive overall,'' Kamenski pointed out.

Based on his own many years of experience, he stated that in fact the best workers were those who did their training within large construction systems, and then eventually moved to smaller companies such as Kamgrad.

However, he is aware that is now rapidly becoming a thing of the past and that such workers no longer exist, and that now the focus should be on developing the Croatian construction industry's workers here in the country, and even more on selecting and introducing a foreign worker and then educating and introducing them to the whole process.

“Technical staff without knowledge of the Croatian language can only do a small range of work. We employ 10-15 trainees a year, of which only one or two remain,'' concluded Kamenski. Danijel Risek, the director of Hidroing, pointed out that they're a relatively small company that didn't have any major needs for the import of foreign labour, and what they did experience had a focus on nearby Kosovo.

“We're too small a company to go into the process of finding a workforce on our own, so we're referred to agencies. It's important to have a correct relationship with such agencies so that they know exactly what we need,'' said Risek. Stjepan Jagodin, the director of Pinoy385, a company specialising in the employment of Filipino workers, said that there are currently more than 300 agencies across the Republic of Croatia registered for employment mediation.

"An unregulated market leads to a situation where everyone comes to us, without any selections and conditions, and then the problem is that companies that hire such workers. In tourism, there are precise conditions that you must have and know in order to open an agency, and employment mediation can be done by anyone. That must be regulated urgently,'' Jagodin said.

Knowledge of the market

Ana Jadresin from the Manpower Group pointed out that it takes time for the market for mediation in the employment of foreign workers to be profiled. "Agencies that deal with employment mediation, be they domestic or foreign, must have a good knowledge of the market and the needs of their clients - what exactly companies need, what qualifications are necessary, what level of digital literacy there is, etc.

The problem is often that the client himself doesn't know what kind of workers he needs and what qualifications will be necessary, so it becomes difficult to meet their expectations. On the other hand, it's pointless to give unrealistic promises to foreign workers about a country with rivers full of milk and honey, because that only leads to frustration,'' stated Jadresin.

The issue faced by the Croatian construction industry isn't something new. The demographic crisis the country has been in for a very long time now has been a gradual drain on labour across all fields, even with the tourism sector, otherwise the country's strongest economic branch, also suffering tremendously. The Ministry of the Interior's infamously drawn out and draconian procedures often result in employers not getting work permits approved for their foreign staff in time, resulting in the dire need for a rethink.

For more, make sure to check out our dedicated business section.

May the 26th, 2022 - The new Croatian ZagrebMed platform, set to launch as part of the country's blossoming health and wellness tourism offer later this year, has already gathered some impressive names.

As Poslovni Dnevnik/Marija Crnjak writes, in October this year, a new digital platform for health tourism in the City of Zagreb called ZagrebMed will be launched, which will bring together about 20 leading health institutions from various fields of medicine, which are ready to take a significant step forward on the demanding global market.

The team headed by Ivan Rendulic, founder and director of RexRea, which has been actively working on the development of Croatian medical tourism for the last eight years, has made an effort to connect patients with Croatian institutions and doctors.

Rendulic explained that they have the strong support of the Zagreb Tourist Board in the formation of the Croatian ZagrebMed platform, and revealed the details of the ambitious project.

Among the institutions that have already joined the future Croatian ZagrebMed platform are Klinika Svjetlost, Agram, Akromion, Magdalena, Aksis, Naftalan and the polyclinics Bagatin, Sinteza, IVF Zagreb, LF Medical, Poliderma and Avitum, and some other well-known institutions are currently preparing to join the expanding list.

"We have excellent doctors and institutions in Zagreb with excellent services, but when we have a look around outside of Croatia and go to various world fairs and gatherings dedicated to medical and health tourism, we realise that few people know about this country's rich offer. With the arrival of a large number of patients from Italy, we've developed our dental tourism offer, and we're slowly losing our grip on that market, because we have growing competitors in Albania, Hungary, Serbia, and more and more Italian patients end up going there instead of coming here,'' warned Rendulic, who therefore wants to bring together leading institutions within the scope of the Croatian ZagrebMed platform.

So far, ZagrebMed has 12 private healthcare facilities under its belt, and the plan is to have about 20 leading institutions by the time it launches properly this October.

For more, check out Made in Croatia.

May the 26th, 2022 - A large number of brand new supercameras and an entirely new and modern system are set to be installed along Croatian roads as part of an EU project.

As Poslovni Dnevnik writes, as part of the modernisation of the entire system, a new video surveillance and video detection system will be introduced on Croatian, which will involve 1,727 brand new digital supercameras.

“Like any new system before it's commissioned, this one must pass a test phase and the validation process in order to make sure that it will react in a timely manner in real conditions. Given that the system is in a phase when it isn't possible to postpone implementation and testing, this is the only possible time period before the main tourist season when it can be implemented, and so that everything is ready by the end of 2022,'' a Croatian roads (HAC) statement said.

The closure of individual sections of motorways

During the implementation and testing of this new equipment, in order to preserve traffic safety and road users, there will be frequent closures of certain sections of the A1 motorway for all traffic. That traffic will be diverted to bypass routes during the closure, HAC said.

Crocodile 2 Croatia (Cro 2 Cro)

The new traffic control and management system Crocodile 2 Croatia (Cro 2 Cro) is part of the Crocodile project launched at the European Union (EU) level, writes HAC.

“The introduction of this system on Croatian roads will ensure coordinated traffic management and control, making the country become part of the integrated ITS (Intelligent Transport Systems) on European roads. The new system will make it much easier for users to plan their travel and get information. The project is being co-financed by the European Union,'' they added.

What will the new cameras on Croatian roads be able to do?

“Along with the implementation of the new traffic information system, a new video surveillance and video detection system will be installed, which will significantly raise the level of road safety.

Analog cameras will be replaced by new digital and more technologically advanced ones. The new cameras will be able to detect potentially dangerous situations faster and more safely (such as when people are driving in the opposite direction, when there's a stopped vehicle, when there's a pedestrian on the road, etc.), and will as such provide a faster reaction in order to inform users about the event,'' concluded HAC.

For more, check out our lifestyle section.

May the 26th, 2022 - Is LNG Terminal Zadar on the cards as Croatia, much like the rest of Europe, continues to reduce its reliance on Russian gas imports? It certainly looks that way.

As Poslovni Dnevnik writes, the Ministry of the Economy and Sustainable Development has issued a Decision for the ecological network, which means that Zadar could soon be the next Croatian location drawn onto the gas map of the Adriatic. The decision is now going to remain valid for four years, and the holder of the project is LNG Hrvatska d.o.o. which, through three phases, plans to build a place for gas supply in Zadar's Gazenica, according to Pomorac.

In the first phase of the construction of the would-be LNG Terminal Zadar, as stated in the text of the project, a dock for vessels and a mooring for vessels will be built. One liquefied natural gas tank with a capacity of 3,000 cubic metres, a condensing plant, filling stations for tank wagons with one transshipment point, filling stations for LNG tanks and ISO containers with two transshipment points and filling stations for vehicles powered by liquefied natural gas and compressed natural gas will also all be constructed.

In the second phase of construction, the storage capacity will be raised to 10,500 cubic metres of gas by upgrading the 7,500 cubic metre tank, and then another transshipment point will be made for the tank car and two more for LNG tanks and ISO containers.

In the third and so far final phase of the LNG Terminal Zadar project, the capacity of the tank is planned to be raised to 30,000 cubic metres of gas, and the plant will comply with the highest international standards. A new substation, a control building for the Zadar gas terminal, as well as new areas for traffic and cargo operations are also planned, along with a new drainage and wastewater treatment/management system.

The port is planned to be located at berth 1 of the Gazenica cargo port, and the planned project is located outside of the ecological network, or more precisely, it is a little less than 6 kilometres away from it. This is an area of ​​conservation which is deemed very important for birds in Ravni kotari, which belongs to the area which was placed under ​​special protection back in 2013, in accordance with the Regulation on the Ecological Network (Official Gazette, No. 124/13).

The originally mentioned Decision concluded that the LNG Terminal Zadar will not have any harmful effects on the ecological network, despite the constant presence of man and potential noise pollution. The decision, as such, is enforceable in administrative proceedings.

For more, check out our politics section.

ZAGREB, 25 May 2022 - Two multi-purpose Black Hawk (UH-60M) helicopters, donated to Croatia by the USA, were presented at the Pleso military airbase on Wednesday, with Defence Minister Mario Banožić participating in the first test flight.

The two Black Hawk helicopters and their equipment are valued at $138 million, with $53 million provided by the US government and $85 million by the Defence Ministry.

The helicopters will primarily be used to transport people and equipment. They can transport up to 11 passengers and two technical pilots.

They can develop a speed of up to 360 kilometres per hour, their ceiling altitude is six kilometres and the maximum flying distance 511 kilometres.

US envoy, Commanding General, Special Operations Command-Europe Major General David Tabor underscored that with the US donation, Croatia has strengthened its capabilities and security as a country and as a member of NATO.

After the test flight, Minister Banožić said that the helicopters are equipped with excellent equipment.

He said that the plan is for the other Black Hawks to arrive by the end of the year.

With regard to the training of Croatian pilots, Banožić said that "enough of them have undergone training until now" but he didn't want to reveal how many.

He commented on the replacement of the Soviet-made Mi-8 and Mi-171 helicopter fleet whose resources expire in 2023, saying that talks were being held with the allies and partners regarding further steps. 

Talking about the construction of hangars for the new equipment, Banožić said that infrastructure development was launched in 2021, however, problems occurred with the public procurement procedure and it had to be cancelled.

Two hangars are currently subject to public procurement procedure. They should be built in six months' time after the procurement is signed, Banožić said, noting that two new hangars should be built by 2023.

Attending today's presentation of the US military donation was also President and Armed Forces Commander-in-Chief Zoran Milanović.

For more, check out our politics section.

ZAGREB, 25 May 2022 - President Zoran Milanović repeated on Wednesday that Serbia should watch its actions and that he was only asking for "a fair relationship" between the two countries, adding that Croatia could have indicted Serbian President Aleksandar Vučić but made a political decision not to do it.

"Look at what is happening to Sweden which wants to join NATO. Maybe it had reason to be arrogant towards Turkey over the past 30 years but now it is asking for mercy. So, watch what you say and do because what goes around comes around," Milanović said in a message to Serbia.

The Serbian War Crimes Prosecutor's Office has issued an indictment against Croatian Air Force officers Vladimir Mikac, Zdenko Radulj, Željko Jelenić and Danijel Borović for war crimes against Serb civilians because on 7 and 8 August 1995, during Operation Storm, they allegedly ordered a missile attack on a refugee convoy outside Bosanski Petrovac and in Svodna, near Novi Grad, northwestern Bosnia and Herzegovina.

According to the indictment, 13 people were killed in the attack, including six children, and 24 were wounded.

Milanović on Tuesday said that the indictment would cost Serbia, which Serbian Prime Minister Ana Brnabić today interpreted as a threat.

"Who is Serbia's prime minister? Is Brnabić still the prime minister?... I have not seen her in Krk for a long time, she is welcome," Milanović said in an allusion to the fact that Brnabić's family from her father's side hails from the northern Adriatic island.

Recalling the time when he was prime minister, Milanović said that "Vučić's speech in Glina (in 1995) was a criminal act", but a political decision was made for Croatia not to indict him.

"Vučić did not kill anyone, that's true, but his rhetoric at the time cost many people their lives and souls," he added.

Criticising Serbia for accusing Croatian pilots of crimes, Milanović said he was only asking Serbia to act in a fair manner, recalling that Croatia was a member "of the associations Serbia aspires to join."

He added that there was no need for the Serbian PM "to be nervous" because he was also speaking in Serbia's favour.

Milanović repeated that some conditions set by the Croatian Academy of Sciences and Arts (HAZU) for Serbia's EU accession are "exaggerated" and that "one should refrain from humiliating anyone" but that the neighbouring country should "be careful about what it does" considering its EU membership bid.

Stoltenberg cannot change anything

Milanović does not share the Croatian government's position on Finland and Sweden's NATO membership candidacy and wants Croatia to make support to their bid conditional on the reform of Bosnia and Herzegovina's election law.

Milanović and NATO Secretary-General Jens Stoltenbrg spoke over the telephone on Tuesday, and the reason was Milanović's letter to NATO member-countries regarding the status of BiH Croats.

"He cannot change anything in that regard, he is technical personnel. He is expected to distribute the letter, anyone who wanted to has now read the letter and that's it," Milanović said.

He added that the NATO secretary-general was not the one making decisions but implementing them and that "it is his task to listen to the Americans", with the USA "being the boss", however, being Croatia's president, he was fighting "for his own."

Milanović said that Stoltenberg did not share his view that Finland and Sweden's NATO accession should be linked to the amendment of BiH's election law but that he called for taking into account Turkey's reservations to the two countries' accession.

When Turkey presents its demands, then that's not a problem, Milanović said, describing his conversation with the NATO secretary-general as friendly.

He again criticised "the apathy and misery of Croatian politics" with regard to the protection of national interests.

"Let's be clear, Bosnia and Herzegovina does not belong to Croatia... I do not want anyone to think that we act the same way as Budapest... with its constant insistence that this used to be Hungary. This used to be Austria as well, from Pula to Dubrovnik... yet you do not hear Austrians say that this was Austria's sea because they are mature," Milanović said.

For more, check out our politics section.

ZAGREB, 25 May 2022 2022 - Defence Minister Mario Banožić told a press conference on Wednesday he respected the decision of the Conflict of Interest Commission, which fined him HRK 7,000 for granting himself an official apartment, but he does not want to return the apartment to the state property management company.

During a ceremony for the handover of the Black Hawk helicopters, donated by the United States, the Croatian defence minister recalled the period when he was the state assets minister. In September 2019, Banožić signed a decision granting himself an official 92-square-metre apartment in Gundulićeva Street in Zagreb. However, the minister reiterated that he did so in accordance with legal provisions.

"I will not move out of the apartment because the Commission proved what I had said during the proceedings. However, I respect the decision and I will pay the fine," he said.

He added that as a state official he was entitled to a three-room apartment of at least 60 square metres, but he did not choose it himself, the administration of the state property management company did.

I signed the decision just because Article 49 of the State Assets Management Act explicitly states that the state assets minister makes the decisions on apartments, Banožić said.

The defence minister criticised President Zoran Milanović for the overhaul of Croatian MiG fighter jets in Ukraine during his term as prime minister. He thinks there were many irregularities in that business deal and that the aircraft had false technical documentation.

We have solid evidence that the numbers on them were overwritten, that the documents were falsified and that is why a claim for damages should be filed, in accordance with the signed contracts, he said.

However, Banožić stressed "it's insane to talk about asking Ukraine to pay damages now given the situation the country is in", adding that the blame was not on the Ukrainian state but the company that did the overhaul of the aircraft.

For more, check out our politics section.

ZAGREB, 25 May 2022 - The European Public Prosecutor's Office (EPPO) has indicted ten Croatians, including the Mayor of Nova Gradiška, Vinko Grgić, former Velika Gorica mayor Dražen Barišić and entrepreneur Krešo Petek.

The EPPO reported that the indictment was filed after an investigation of active and passive corruption and abuse of office between 2018 and 2021.

All four cases are related to construction projects with a total value of €22.6 million and the damage to the EU budget was largely prevented thanks to the efficacy of the investigators, the EPPO said in a statement.

Corruption in Nova Gradiška

Mayor Grgić is being charged with accepting two bribes amounting to €15,000 from the first accused Krešo Petek in order to secure the assignment of two construction projects.

The two projects were for a recycling centre and a solar power plant. The first project was valued at €900,000, of which the amount of €562,000 was financed by the European Union Cohesion Fund, and the value of the second project was €700,000, of which 85% was funded by the European Regional Development Fund.

Three other suspects were involved in these two corruption cases by helping Grgić and Petek in giving the bribes, abusing their office, and illegal favouritism in public procurement.

The recycling project was then awarded to companies connected to Petek who paid Grgić the agreed amount of the bribe.

This meant that the European Cohesion Fund was defrauded of €53,000 and the Town of Nova Gradiška of €32,500. 

The solar power plant project was not awarded as Petek and the others accused had already been arrested.

Abuse of office in Velika Gorica

Petek is also accused of arranging with former Velika Gorica mayor Barišić for the construction of a wastewater treatment plant and a supervisory management system as well as for the renovation of the public lighting system to be awarded to his companies.

The estimated value for the wastewater treatment plant project was €14 million, of which the European Union Cohesion Fund financed 67.34%. The value of the renovation project of the public lighting system was €7 million and it was co-financed by the European Regional Development Fund.

In these two cases, too, there were three accomplices who helped Barišić in abusing office and influence-peddling in public procurement procedures.

In both projects, although all necessary steps were taken in the public procurement process to select the companies connected to Petek, decisions to that effect were not made due to the arrest of all five accused persons, the EPPO reported.

For more, make sure to check out our dedicated business section.