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Gov't sets up task force to oversee Kraljevica shipyard privatisation

ZAGREB, Nov 19 (Hina) - The Croatian government on Friday established a task force to monitor the privatisation of the Brodogradiliste Kraljevica shipyard, consisting of representatives of the government, the Privatisation Fund (HFP), trade unions, the shipyard's management, the Croatian Shipbuilding Corporation - Jadranbrod, and an independent legal expert.

The task force will receive an analysis from HFP experts on bids submitted for the shipyard's privatisation, after which it will inform the Economy Ministry about its opinion on the best bid.

After the expiry of the deadline for the submission of offers for the purchase of 99.54 percent of the Kraljevica shipyard's stock on Thursday, the HFP opened three bids, submitted by the Zagreb-based Adria-Mar Brodogradnja and Jadranska Ulaganja companies and Shipyard Bomex 4M from Serbia. A letter of intent was sent by the Dutch Damen Shipyard Group.

Economy Minister Djuro Popijac today expressed hope that this would be the last round of inviting bids for the sale of the Kraljevica shipyard and that the task force would complete its job as soon as possible so that a programme for the shipyard's restructuring could be sent to the Croatian Competition Agency and the European Commission for approval.

The government was today informed by Transport Minister Bozidar Kalmeta about the completion of negotiations with the European Bank for Reconstruction and Development (EBRD) on a loan for a project to complete the pan-European Vc corridor, which refers to construction work on a section running from the Croatian village of Sredanci to the northern border with Bosnia and Herzegovina, and on a section running from the southern border with Bosnia to the hub of Ploce.

Kalmeta said that the construction work was estimated at EUR 166 million. It is planned to start in 2011 and be completed in 2013.

Funds for this purpose are to be ensured, apart from the EBRD, by the European Investment Bank and the Croatian motorway operator HAC.

The government rejected 17 amendments to its 2011 draft budget, submitted by Croatian Party of Rights (HSP) leader Daniel Srb, and 13 amendments submitted by independent MP Zoran Vinkovic.

The adoption of the 2011 budget will be on the parliament's agenda on Tuesday.

The government also relieved Bianca Matkovic from the duty of Economy Ministry State Secretary, following the economy minister's proposal to that effect.

Recently Matkovic tendered her resignation and asked for the reactivation of her mandate as a member of parliament.

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