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CROATIA AND WORLD BANK SIGN "RIJEKA GATEWAY" LOAN AGREEMENT

RIJEKA GATEWAY" LOAN AGREEMENT RIJEKA, July 12 (Hina) - The Croatian government and the World Bank signed a guarantee agreement for a construction project known as the Rijeka Gateway Project in the northern Adriatic city on Saturday. The World Bank is participating with a US$ 155 million loan.
RIJEKA, July 12 (Hina) - The Croatian government and the World Bank signed a guarantee agreement for a construction project known as the Rijeka Gateway Project in the northern Adriatic city on Saturday. The World Bank is participating with a US$ 155 million loan. #L# The agreement was signed by Finance Minister Mato Crkvenac and the director of the bank's Regional Office for Central and Eastern Europe, Andrew N. Vorkink. The loan agreement was also signed by representatives of three companies for which the loan was intended -- the Rijeka Port Administration (which will receive $54.6 million), Croatian Highways ($17.1 million), and Croatian Roads ($83.3 million). The signing ceremony was attended by Prime Minister Ivica Racan, his deputy, Slavko Linic, Minister of Maritime Affairs, Transport and Communications Roland Zuvanic, and minister without portfolio Gordana Sobol. Racan said that the government had concentrated its efforts on improving the infrastructure because such projects would "take the country and its people to a better future." "Not only will they make it possible for Croatia to formally join the European Union, but will also enable it to reach the level of development of EU member countries," he said, adding that they also stimulated other important development projects. The prime minister said that it was Croatia's duty to respect its geopolitical position and connect parts of Europe once it is fully integrated. He appealed to all those involved in the implementation of the project to respect the law and obtain all the necessary permits for the job. Vorkink said that the World Bank would not be investing $155 million unless it was convinced that the project would be successfully implemented. He added that the port of Rijeka was expected to increase its competitiveness and the flow of cargo and passenger transport in the next decade. The loan will finance the construction of new port terminals, a passenger port, commercial, tourist and nautical facilities, and connecting roads to the container terminal. The project, worth $264 million, of which $320 million will be secured from the national budget, is expected to be completed by 2009. The World Bank has granted the loan for 15 years with a five- year grace period. (hina) vm

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