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CRO GOVT FORWARDS DRAFT REFORMS ON POWER SUPPLY AND HEALTH TO PARLIAMENT

ZAGREB, June 30 (Hina) - The Croatian Government on Friday forwarded to the parliamentary procedure a draft strategy and a plan of a reform of the health system and health insurance, a draft reform of the power supply sector, and a series of bills which should be discussed during extraordinary sessions of the Croatian National Sabor's Upper and Lower Houses in mid July. Also listed on the agenda of bills are bills on the removal of some disproportion in pensions, amendments to the law on labour, the bankruptcy law, and the law on privatisation. The health reform aims at the limitation of the increase of the health expenses and the establishment of the system's stability, the strengthening of the preventive and primary health care and the re-organisation of the system of the financing and paying of health services. The entire reform of the health system will cost US$200 million. US$3.5 millio
ZAGREB, June 30 (Hina) - The Croatian Government on Friday forwarded to the parliamentary procedure a draft strategy and a plan of a reform of the health system and health insurance, a draft reform of the power supply sector, and a series of bills which should be discussed during extraordinary sessions of the Croatian National Sabor's Upper and Lower Houses in mid July. Also listed on the agenda of bills are bills on the removal of some disproportion in pensions, amendments to the law on labour, the bankruptcy law, and the law on privatisation. The health reform aims at the limitation of the increase of the health expenses and the establishment of the system's stability, the strengthening of the preventive and primary health care and the re-organisation of the system of the financing and paying of health services. The entire reform of the health system will cost US$200 million. US$3.5 million from the state budget, as well a loan of the World Bank worth US$40 million will be earmarked for the first phase which will last until late 2001. Croatia must commit to the power supply open market model, the reconstruction and privatisation of the market, worth between five and six billion dollars. This job will be conducted over the next two years, and the first step toward this is a draft reform of the power supply sector, said Economy Minister Goranko Fizulic. The reform includes clear deadlines for the reconstruction as well as the beginning of the privatisation process of Croatia's oil company Ina and the Croatian Power Supply Company (HEP). By late this year, the HEP should be divided into three companies - for the power supply production, transmission and distribution. After all legislative conditions have been fulfilled (the privatisation of state companies is to be conducted in line with special laws), a partial privatisation in the power supply industry is to start in late 2001. The first step in the opening of INA toward the market will be its organisation into companies with two fundamental activities - oil and gas. Croatian First deputy Prime Minister Goran Granic said the proposed reform was not a strategy of the power supply development. It's a condition for the reform of the power supply market in Croatia in accordance with European Union standards, Granic stressed. The HEP trade union on Thursday forwarded a request to the Government not to discuss the strategy of Croatia's power supply development during today's session, because a public debate had not yet been conducted on the issues. Prime Minister Ivica Racan said that those satisfied with the existing situation will strongly oppose the reforms and forward problems to the state, asking that the state assists, issues grants, takes from one to give the other. (hina) it jn

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