ZAGREB-GORICAN HIGHWAY ZAGREB, July 28 (Hina) - After the World Bank refused to give collateral, the continuation of the construction of Zagreb-Gorican motorway (toward the border with Hungary) will be financed by a loan, worth 350
million German marks, and given by two well-known world banks - the U.S. Goldman Sach and German Deutsche Bank.
ZAGREB, July 28 (Hina) - After the World Bank refused to give
collateral, the continuation of the construction of Zagreb-Gorican
motorway (toward the border with Hungary) will be financed by a
loan, worth 350 million German marks, and given by two well-known
world banks - the U.S. Goldman Sach and German Deutsche Bank. #L#
This amount will cover a previous DM 225-million short-term loan,
whereas 125 million will be used for continuing works on some
sections of the motorway, said Croatian Transport Minister Zeljko
Luzavec at Wednesday's news conference.
Commenting on reasons which the World Bank cited for its refusal to
give collateral, the Croatian Minister said it was true that
Croatia was spending more than it was the European average for
traffic.
This must be so in the coming years as such are needs of Croatia as a
tourist and traffic-busy country and it is so because of the shape
of Croatia, Luzavec explained.
He refused theses about unprofitability of the Zagreb-Gorican
motorway and told reporters about the assessment made by an
independent expert, at the recommendation of the World Bank, that a
rate of the return on investment would be between 10.2 to 13.7
percent, while World Bank officials claimed that the rate would
total just about eight percent.
A remark of the World Bank that Croatia earmarks little money for
maintaining roads, while it spends too much for building new ones is
not correct for Luzavec. This year 80 percent more than last year
will be used for the maintenance of roads. In addition, out of two
percent from the Gross Domestic Product (GDP) which is to be
allocated for roads, 69 percent of it should be taken for
maintaining and reconstructing roads while 39 percent for the
construction of new ones, under a strategy for the transportation
development, which is to be soon forwarded to the Sabor, the
Minister added.
Luzavec again pointed to the importance of the Rijeka-Zagreb-
Gorican highway which should connect Croatia with countries in
transition, lead toward the biggest Croatian seaport and connect
the area where up to 70 percent of the country's tourism is
concentrated.
(hina) ms