Finance Ministry signs loan agreements for three waste management projects

Loan agreements for three waste management infrastructure projects, co-financed from EU pre-accession funds, were signed at the Croatian Finance Ministry on Tuesday.
 

The loans amount to 23.18 million euros. They were granted to Croatia by the European Investment Bank (EIB) under favourable conditions, with a repayment period of 20 years, a grace period of five years and an interest rate of below four percent.

The funding is intended for construction work on the waste management centre Bikarac in Sibenik, the waste management centre Kastijun in Istria, and the waste management centre Mariscina in Rijeka. By launching the three projects, Croatia is continuing with the establishment of an integrated waste management system, to be completed by the end of 2018.

Environmental Protection Minister Mirela Holy said projects to build waste management centres and projects to rehabilitate or close down land fills were co-financed by the EU for the purpose of alignment with the EU's directive on waste disposal.

The centres to be built will gradually take over the waste from the land fills and by applying appropriate technologies they will secure a gradual reduction of the share of biodegradable municipal waste to 35 percent of the total quantity of such waste generated in 1997.

The establishment of the entire system is estimated to cost 3.2 billion euros, and since Croatia is expected to secure 25 percent of the funding for EU projects on its own, in its state budget or local budgets, the Finance Ministry has signed a framework loan agreement in the amount of 200 million euros for all infrastructure projects co-financed by the EU, to cover also the projects Bikarac, Kastijun and Mariscina.

Finance Minister Slavko Linic said projects which with the EU's help improved living standards in local communities sent a good message ahead of Croatia's EU entry referendum, namely that after accession to the EU, Croatian citizens would be able to count on further assistance in improving their living standards.

Minister Holy also announced the adoption of a new law on waste, which she said should represent a major chance for Croatia in terms of development of green industries, notably primary waste selection.

(HINA)