MINISTER SIGNS CONTRACTS ON RECONSTRUCTION EXECUTION, SUPERVISION

ZAGREB, July 14 (Hina) - Croatia's Public Works, Reconstruction, and Construction Minister Radimir Cacic on Friday signed with 178 contractors and 60 design companies contracts on the execution and supervision of reconstruction work on 2,640 family houses envisaged by the 2000/2001 reconstruction programme. Cacic said today the contracts, worth 720 million kuna (US$90 million), refuted media allegations that reconstruction in Croatia was at a standstill. The first two stages of the reconstruction will be completed by December 15, and the second two by 30 June 2001. Currently, reconstruction is nearing completion on 1,500 buildings in eastern Croatia and 500 elsewhere in the country. The work worth 300 million kuna (US$37.5 million) should be completed in August, said the minister, adding the reconstruction ministry could initiate contracts for another 500 buildings over the next two months, if a loan programme with the Council of Europe Bank came through. Cacic told representatives of design companies the reconstruction ministry would no longer be late in payments. According to the minister, problems in construction should be alleviated with a new model of special share quotation from the reconstruction ministry's portfolio and the issuing of special securities, as well as thanks to parliament's decision of Thursday to introduce zero Value Added Tax on tourist services representing direct export. (hina) ha