The Port of Ploče Authority and the World Bank signed on Monday a EUR 58.8 million loan agreement for the Trade and Transport Integration Project, which is expected to support the government's efforts to develop Croatia's second largest port. The Finance Ministry signed an agreement on collateral with the World Bank on that occasion.
The entire project is worth EUR 91 million. Along with the World Bank loan, the project will be financed with a EUR 11.2 million loan from the European Bank for Reconstruction and Development (EBRD), while the Croatian government is participating with EUR 21 million.
“It is extremely important to improve the port infrastructure, and the construction of the container and bulk cargo terminals will improve the competitiveness of port services, as well as the further development of that part of Croatia”, said Croatia's Minister of the Sea, Tourism, Transport and Development Božidar Kalmeta.
Construction works are expected to start in the spring of 2008 and are to be completed by the end of 2010. The project also includes the construction of a multipurpose container terminal, to start in the spring of 2007 and end in mid-2009.
The investment is expected to increase the port's annual traffic volume from 2 million tons in 2004 to about 7.2 million tons in 2010. During the same time the Port will increase its bulk capacity from 3 to 8.9 million tons, the Port’s direct container handling capacity will increase to 66,000 TEU, rail commercial speed will be go up by 35% and private sector participation in port operations will also be intensified by 40% to 85%. The container cargo is expected to grow from 17,000 in 2005 to 40,000 TEU in 2006.
The project's objective is to develop trade along Corridor Vc by improving the capacity, efficiency and quality of services on the southern end of the corridor, with a particular focus on the Port of Ploče and on coordination aspects among all corridor participants in Croatia and Bosnia and Herzegovina, said the World Bank said in a recent statement.
The project was prepared by the Ministry of the Sea, Tourism, Transport and Development, the Port of Ploče, the World Bank and the EBRD.
“The Trade and Transport Integration Project, built on a partnership between the Croatian government, the Port of Ploče, the World Bank and the EBRD, is expected to be a major driving force in achieving a direct increase in economic growth for the southern region of Croatia as well as for neighboring countries such as Hungary and Bosnia and Herzegovina”, said Anand K. Seth, the World Bank Regional Director for Croatia, Bulgaria and Romania.