The European Bank for Reconstruction and Development (EBRD) has approved a EUR 11.2 million loan for the completion of construction of a new bulk cargo terminal in the southern Croatian Adriatic port of Ploce, the bank said in a statement on Monday.
The loan will enable the port to eliminate existing operational bottlenecks in handling bulk cargo and to increase its capacity to meet current and future market demands. With annual traffic volume expected to increase from 2 million tonnes in 2004 to 7.2 million tonnes in 2010, it has become vital to upgrade the infrastructure and operational capabilities, the statement said.
The construction of the terminal is part of the Ploce Port expansion programme undertaken by the Croatian government, which the EBRD is co-financing jointly with the World Bank. The loan will be guaranteed by the Republic of Croatia, while additional technical cooperation funding of EUR 50,000 has been provided by the Dutch donor fund for project preparation and assistance with preparation of the new concession agreement with the port operator.
By financing the Ploce Port expansion project, the EBRD and the World Bank will support the further development of trade along the Corridor Vc, one of the three major transport corridors linking Croatia to EU markets.
The purpose of the project is to help improve the capacity, efficiency and quality of services at the southern end of the corridor, with a particular focus on the Port of Ploce and on improving coordination among all corridor participants in Croatia and Bosnia and Herzegovina.
"This project is an excellent example of cooperation between the Croatian government, the Port of Ploce Authority, the World Bank and the EBRD. It will stimulate the trade potential and development opportunities of one of the main Croatian ports as well as the neighbouring region," Charlotte Ruhe, EBRD Director for Croatia, said.
The EBRD has so far invested over EUR 1.8 billion in Croatia in 82 projects across all sectors of the economy, mainly concentrating on the financial sector and infrastructure. The bank also helped mobilise an additional EUR 3 billion from other sources. (Hina)