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GOVT SENDS PACKAGE OF POWER BILLS INTO PARLIAMENTARY PROCEDURE

ZAGREB, July 9 (Hina) - The Croatian government on Tuesday forwarded into parliamentary procedure a package of power bills, a new privatisation bill and amendments to the Telecommunications Law, requesting the parliament to hold an extraordinary session starting on July 18. At today's extraordinary session the government also adopted a decision enabling Croatian and Bosnian citizens to pass the Croatian-Bosnian state border with identification cards starting on July 10 until September 30. The government also formulated the final drafts of five bills regulating conduct on the power market, including bills on power, power sectors, and electricity, gas and oil markets. The most important law in the package, the law on power, defines power activities as market-based, not including those defined as public utilities (e.g. the transfer and distribution of electric power, the transfer of gas and the distribution o
ZAGREB, July 9 (Hina) - The Croatian government on Tuesday forwarded into parliamentary procedure a package of power bills, a new privatisation bill and amendments to the Telecommunications Law, requesting the parliament to hold an extraordinary session starting on July 18. At today's extraordinary session the government also adopted a decision enabling Croatian and Bosnian citizens to pass the Croatian-Bosnian state border with identification cards starting on July 10 until September 30. The government also formulated the final drafts of five bills regulating conduct on the power market, including bills on power, power sectors, and electricity, gas and oil markets. The most important law in the package, the law on power, defines power activities as market-based, not including those defined as public utilities (e.g. the transfer and distribution of electric power, the transfer of gas and the distribution of thermal energy). This law also states that the pricing of power services can be liberal or regulated with tariff systems adopted by the government, under the supervision of a parliamentary council for the regulation of power activities. This package is a prerequisite for the reconstruction and privatisation of two leading power companies - the oil company INA and the power industry HEP. Finance Minister Mato Crkvenac said the state budget expects this year's privatisation revenues to amount to 6.5 billion kuna. He added that, on the other hand, 8.7 billion kuna of budgetary funds would have to be invested into the economy. The government formulated a final privatisation draft which will help carry out the privatisation of the largest part of the state portfolio in a short period of time. The Croatian Privatisation Fund has already prepared privatisation models and needs this law to implement them. Vice Premier Slavko Linic stressed the new law would enable privatisation according to the employee stock ownership plan (the so-called ESOP model). (hina) np rml

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