RADIC:ZAGREB-SPLIT HIGHWAY TO BE COMPLETED BY DECEMBER 2004

ZADAR, July 7 (Hina) - "The Zagreb highway to Split via the Sv. Rok tunnel will be completed by December 2004. This deadline has already been set with the US Bechtel company for the section from Zagreb to the Sv. Rok tunnel through Mt. Velebit and we are about to set the same deadline for the section from the tunnel to Split which is to be constructed by a joint Austrian/Croatian conglomeration", said Reconstruction, Development and Immigration Minister Jure Radic on Wednesday. Radic was attending a meeting in Zadar with Mayor Bozidar Kalmet and Zadar MP's. "It is significant that we have determined the direction of this road", Minister Radic said, adding that the Zagreb-Split highway through the Sv. Rok tunnel would be Croatia's main highway. We have already signed a contract with Bechtel for their section of the highway including a tunnel through Kapela as part of the road from Zagreb to the Sv. Rok tunnel. In keeping with this agreement, Croatia has already received the funds to cover the costs of this project for the section of road to pass through Lika, stressed Radic. The contract with Bechtel is worth US$990 million and the company is obliged to employ at least 70% local employees for the construction the highway. Radic reported that an international call for tenders had recently closed for the construction of the highway between Sv. Rok and Split. the contract was given to two companies, an Austrian-Italian conglomerate and a Croatian company. "We are working on the fine text of the agreement and expect its signing soon. The two companies will more than likely ensure a loan from Austria to cover the costs of the construction. Negotiations will include the supply of necessary equipment for the Sv. Rok tunnel.", Radic said. (hina) sp