In 2003, the county decided on the construction of the St. Elias tunnel connecting a wider area of Imotski and the Makarska riviera.
In the spring that year, the county and the company's owner Ljubo Grepo concluded the agreement on building the 4-kilometre tunnel.
Earlier this week the Croatian national broadcaster quoted Transport Minister Bozidar Kalmeta as saying that the agreement with the concession-holder would be terminated and that it was in the interest of the state to take over the construction of the tunnel and ensure that no tunnel toll would be paid.
Besides, this tunnel will be part of a new road to be built from Imotski to Makarska, according to Kalmeta.
The construction of the tunnel is to be carried out by the state-owned Croatian Motorways, Ltd (Hrvatske autoceste d.o.o.).
The county government on Friday also decide to reimburse Grepo for concession compensation and for costs of preparing the documentation and licences for the future tunnel. Thus he should be given back over 10 million kuna for these reasons.
The HAC company will purchase the prepared documentation after the county assembly okays the cancellation of the agreement.
Grepo recently told the Croatian Television that he was withdrawing from this project for the sake of national interest.
In 2003, the value of this project was estimated at 50 million euros.