ZAGREB, April 11 (Hina) - The Croatian Power Industry (HEP) and the U.S. Agency for International Development (USAID) on Wednesday signed a Memorandum of Understanding on a USD 7.1 million-worth programme of reconstruction of the
electric power grid in about 130 settlements in Sisak-Moslavina and Karlovac counties, which are currently without electricity.
ZAGREB, April 11 (Hina) - The Croatian Power Industry (HEP) and the
U.S. Agency for International Development (USAID) on Wednesday
signed a Memorandum of Understanding on a USD 7.1 million-worth
programme of reconstruction of the electric power grid in about 130
settlements in Sisak-Moslavina and Karlovac counties, which are
currently without electricity. #L#
The programme will be financed in the ratio 70:30, with five million
dollars being donated by the USAID and the remaining 2.1 million
dollars to be secured by the HEP. The programme should be completed
in two years and its implementation begins in 15 days.
The memorandum was signed by HEP director Ivo Covic and the head of
the USAID Mission in Croatia, Pamela Baldwin. The signing was
witnessed by Croatia's Public Works Minister Radimir Cacic and US
Ambassador Lawrence Rossin.
The US donation will help re-establish regular power supply to the
areas of special state concern after a decade, Covic said.
USAID's Pamela Baldwin said electricity was an exceptionally
important precondition for the return of people to those areas,
local economy and employment. The USAID and the HEP have been
cooperating for years and USD one million have been invested in 11
projects, she said.
At a session in Knin some two weeks ago the Croatian government
decided that the HEP had to reconstruct the power grid in the areas
of special state concern, Minister Cacic said, adding this task
would cost some 45 million dollars and the USAID donation of five
million dollars was an important contribution.
US Ambassador Rossin said his government believed the stand Croatia
had taken last year regarding the return of all refugees and
displaced persons was positive. We want to support this and as a
result the USA has been increasing its financial assistance to
Croatia, including the power supply sector, he added.
Direct war damage to HEP facilities amounted to more than USD 500
million. The company has managed to repair most of the facilities
with its own funds but it needs another 400 million kuna to complete
the reconstruction process.
The company has estimated that 203 settlements with 20,000
residents are still without electricity. Many settlements and
villages in the areas of special state concern are without
electricity, the situation being the worst in Sisak-Moslavina
County.
(hina) rml