Utilization rate of CARDS 2004 funds 94.6 percent

A State Secretary at the Finance Ministry, Ante Žigman, has said that 94.6 percent of funds from the CARDS 2004 program have been used so far, which proves progress and competence of Croatian institutions in implementing tenders in line with EU standards on public procurement.

The signing of contracts for the EUR 46.57 million CARDS 2004 program ended last week and Croatia agreed on projects worth EUR 44.06 million, Žigman told a news conference.

The announcement of tenders and the signing of contracts for projects from the CARDS 2004 program was carried out independently by the Finance Ministry and the 90% rate of utilization of the funds is a very good result, because the procurement procedure was carried out in line with EU regulations, Žigman said.

Along with those projects, the EC Delegation to Croatia carried out, within the CARDS 2004 program, procedures for projects worth EUR 30.42 million, of which 30.41 million or 99.96 percent was used, Žigman said.

The overall utilization rate of the CARDS 2004 program is 96.71 percent, Žigman said, dismissing objections Opposition deputies made in a parliamentary debate in April on whether the government should be called to account over the low utilization rate of EU funds.

Žigman said that the first data on the utilization of funds could be released only after the expiry of the deadline for the signing of contracts, while complete data would be released only after the contracts were implemented.

The deadline for the drawing of funds from the CARDS 2004 program is the end of 2009, Žigman said.

Most of the funds for the agreed projects from the CARDS 2004 program refer to the procurement of commodities (EUR12.26 million) and twinning projects (EUR 10.38 million), and most funds were granted to the Ministry of the Sea, Tourism, Transport and Development (EUR12.15 million) and the Ministry of the Interior (EUR10.36 million).

A new pre-accession fund, IPA, has been available in Croatia since the start of this year and it will replace the CARDS program, as well as the PHARE, ISPA and SAPARD programs.

A total of EUR 589.9 million is intended for Croatia within the IPA program in the period 2007-2010.

The first operational programs within IPA have already been sent to Brussels and they are expected to be approved in September and October, while the first contracts and the drawing of funds are expected next year, the Finance Ministry said. (Hina)

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