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RACAN: LOANS FOR ROAD CONSTRUCTION TO BRING PROFIT IN FUTURE

RIJEKA, Sept 2 (Hina) - Prime Minister Ivica Racan said on Tuesday that loans for the construction of highways would bring profit in the future because they were intended for development projects rather than for day-to-day spending.
RIJEKA, Sept 2 (Hina) - Prime Minister Ivica Racan said on Tuesday that loans for the construction of highways would bring profit in the future because they were intended for development projects rather than for day-to-day spending. #L# Speaking at a session of the government's Roads Commission in Rijeka, Racan stressed the strategic importance of the Rijeka- Zagreb highway, saying that it connected Western Europe and the south of Croatia. "At a time when terrorism has become the threat of the century in an unsafe world, countries that can be easily accessed by land rather than by air will be more attractive," the prime minister said. "Without a road infrastructure there is no development of the economy and tourism, and this government has made a historic step forward" in this context, he added. Racan went on to say that the construction of one kilometre of the ring road around Rijeka cost US$16.5 million, while one kilometre of the Rijeka-Zagreb highway cost US$6.5 million. He attributed such a large discrepancy in the costs to the complexity of works and the configuration of terrain. Zoran Klaric, manager of the Rijeka-Zagreb Highway project, said that EUR288 million was secured in long-term loans from development banks with government guarantees for the construction of the highway. He said that the project would be profitable in the long run. Racan said that the Roads Commission took on responsibility to complete the Rijeka ring road before the end of 2007, which would resolve transport and economic problems of Rijeka, Primorje County and the entire country. (hina) vm sb

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