EBRD approves 8 million EUR loan for extension of Dubrovnik port

The European Bank for Reconstruction and Development (EBRD) has approved a new, EUR 8 million loan to finance the extension of the Port of Dubrovnik.

The proceeds of the loan will be used to extend the berth area of Dubrovnik's Gruz Port, which will increase the port's capacity to enable it to accommodate large cruise ships.

The loan agreement was signed in Dubrovnik on Wednesday by Dubrovnik Port Authority Director Vlaho Djurkovic and EBRD Director for Transport Sue Barrett.

The state guarantee agreement was signed by Croatian Finance Minister Ivan Suker, who announced that a EUR 60 million loan agreement would be signed with the EBRD this autumn to continue the construction of a motorway towards Dubrovnik.

Barrett stressed the importance of modernisation of Dubrovnik Port for the Croatian tourist industry.

"This project will improve the port's capacity and will enable the city of Dubrovnik to build on the commercial benefits resulting from increasing cruise volumes," Barrett said.

The loan will be repaid over 13 years, with three years' grace period, at an interest rate of about two per cent.

The new loan is an extension of a 26.5 million EUR EBRD loan provided in 2005 to upgrade the infrastructure of Dubrovnik Port.

To date the EBRD has invested over 400 million EUR in transport projects in Croatia.

Since the beginning of its operations in Croatia, the EBRD has committed 2.2 billion EUR in various sectors of the country's economy, mobilising additional investments worth 3 billion EUR from other sources.


(Hina)