Government: Approval to contract a loan for the modernization of the port "Sibenik" infrastructure

The Croatian Government at yesterday's session gave approval for signing the Contract on the Loan between the Port of Sibenik and the European Bank for Reconstruction and Development (EBRD) for the Project of the Sibenik port infrastructure modernization.

The project provides for upgrading of the pier Vrulje for an additional 9800 square meters in the direction of the center of Sibenik, in parallel with the coast, which is why the new operational coast will have a total length of 510 meters.

Sibenik port Project implementation would also provide a high quality embroidery, and serving of the vessels up to 260 meters in length,and large ferries and ships for cruises are up to 200 meters in length, and fit for the three ships for the home-line traffic.

Estimated value of construction work amounts up to 11.88 million EUR, and design of infrastructure works price is 86 million HRK. Expected completion of the Project is until year  2014.

The EBRD has offered the necessary financial resources, with the State guarantee, the loan of 12 million EUR, with a repayment period of 15 years including a grace period on principal repayment of 4 years.

Ministry of the Sea, Transport and Infrastructure during the period of the Project implementation, between 2010th-2013th year provides approximately 27.6 million HRK for the payment of the cost of VAT and supervision of works.

Goverment declared in the year 2004 the Port of Sibenik as the port of special economic interest for the Republic of Croatia. Passenger traffic in the Port of Sibenik is in the constant increasing at a rate of 10% a year, but the existing port facilities are outdated and insufficient for a modern passenger-ships and passengers requirements.

Luka Sibenik has no quality solution for the maritime passenger traffic since the bulk of passenger traffic to the islands of the Sibenik archipelago takes over the pier "Krka", which is located in the center of Sibenik, and ferry traffic takes place over the pier Vrulje. Existing capacity in the port does not allow the docking of a larger dimensioned boats and cruise-ships.

The Government on Thursday decided to launch the procedure for concluding the Treaty of Guarantee between the Republic of Croatia and the EBRD, which will, together with the Loan Agreement signe in the spring, as planned, after which the Law on Ratification of the Treaty of a Guarantee goes to a Parliament's procedure.