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Gov't on relocation of Ivanja Reka toll booths, pensioners' compensation

ZAGREB, Sept 15 (Hina) - The Croatian government on Thursday gave its consent to the state-owned motorway operator HAC for the transfer of the Ivanja Reka toll booths on the A3 Bregana-Zagreb-Lipovac motorway four kilometres eastward, and for the construction of a new junction at Ivanja Reka, with the Swedish Ikea furniture producer co-financing a part of work on the latter project.

Transport and Infrastructure Minister Bozidar Kalmeta said that it was necessary to relocate the toll booths at Ivanja Reka four kilometres eastward and that the investment would cost HRK 110 million. This project will be entirely financed by HAC.

The related project is the construction of a new junction facilitating access to the A3 motorway, which is in the interest of Ikea which will build a shopping centre in the nearby town of Rugvica.

The construction of the HRK 125 million junction has been agreed by HAC and Ikea, with the Swedish group providing 80% of the funds. The rest will be secured by the national motorway operator, according to the minister.

Kalmeta said this project was approved by all relevant state agencies. Ikea's investment in Rugvica is estimated at EUR 300 million.

The government today also proposed to the Croatian Pension Insurance Institute (HZMO) to make a decision on the payment of a one-off bonus to pensioners this year and decided on the transfer of 29% of shares of the Croatia Osiguranje insurance company and 10.66% of shares of the Janaf oil pipeline operator to the Pensioners' Fund in order to secure the payment of the remaining installments of the government's debt to pensioners who should be compensated for the non-indexation of their pensions in the past.

As for the HZMO decision on the bonus to be paid to pensioners from the accrued profit of companies set up by the said institute, Labour and Economy Minister Djuro Popijac expressed hope that the decision would be prepared for the next meeting of the government.

Popijac said that the accrued profit of those companies was approximately HRK 125 million.

The government did not determine the amount of the one-off bonus to be paid by the end of this year, but the media speculate that the extra payment added to the pension may be HRK 100. The media have also reported that the amount could vary according to the amount of an individual monthly pension.

The government also decided to transfer 91,741 shares of the Croatia Osiguranje insurer, the market value of which is HRK 458.7 million, and 107,427 shares of Janaf, the market value of which is HRK 271.9 million, to the Pensioners' Fund.

The transfer of those interests, estimated at HRK 730 million, from the two companies to the fund is related to the payment of this year's installment of the government's debt to pensioners, which was caused by the non-indexation of pensions.

According to Popijac, the Pensioners' Fund will strengthen its financial potential in this way.

Prime Minister Jadranka Kosor said that the installment would be paid to 141,000 pensioners in Croatia.

Kosor said that the total amount of the compensation had been HRK 10.2 billion, and so far HRK 8.4 billion had been paid to pensioners.

In 2012, the amount for compensation installments is estimated at HRK 820 million, and an additional HRK 120 million in 2013.

After the transfer of the 29% stake from Croatia Osiguranje, the government will retain 51.28% of shares in that company, and after the transfer of 10.66% of shares in Janaf, the government will hold a 67.85% stake in the oil pipeline operator.

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