The European Bank of Reconstruction and Development (EBRD) has approved a loan of 9.6 million euros for the development a new liquid cargo terminal at Ploce port, EBRD reported on Wednesday.
The total investment to construct the terminal is valued at 16.7 million euros and it is expected that works will be completed by the end of June 2016.
The new terminal will expand storage capacities from the current 35,000 square metres to a total of 85,000 square metres in order to meet growing demand, primarily by oil companies, a press release says.
The press release further notes that Ploce port has an extreme strategic significance for southern Croatia, but also Bosnia and Herzegovina, by contributing to the integration of the regional economy. "The link with Corridor Vc ensures a connection with Croatia’s A1 motorway, forming part of the European route E65 and connecting Zagreb, Budapest and Vienna.
The railway connects to Mostar, Sarajevo, Osijek and further north towards Budapest," the press release said.
The contract between the EBRD and Ploce Port company was signed in Tbilisi, Georgia during the EBRD's annual meeting.
Phil Bennett, EBRD First Vice President, said: "This is an important investment to strengthen the port of Ploče. New cargo facilities will allow for increased trade which will boost not only the port, but also the hinterland. For the EBRD the development of Croatia’s infrastructure is one of our priorities and we are proud to extend our support to a private company with outstanding prospects."
This "project will significantly enhance the competitiveness of the local economy and... will also boost the regional economy, especially in Bosnia and Herzegovina," the company's CEO Ivan Pavlovic said.