Croatia Plans Infrastructure Investment Exceeding $2 Billion
Croatia plans infrastructure and energy investments of 1.6 billion euros ($2.13 billion) in 2012 to revive its economy and create jobs, Deputy Prime Minister Radimir Cacic said.
Available funds from the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank, totaling about 1 billion euros, would be injected into projects by national grid Hrvatska Elektroprivreda d.d., the national waterways Hrvatske Vode d.d., and the national railways Hrvatske Zeljeznice d.d., Cacic told the Cabinet today.
In addition, non governmental groups would contribute to investment with estimated 400 million euros, while European Union funds would provide 200 million euros, he said.
“Croatia’s success in the next 18 months depends on how much investment we will be able to attract,” Prime Minister Zoran Milanovic told the Cabinet.
Croatia, which is set to become the EU’s 28th member in 2013, is facing a review of its credit rating as it needs revive its faltering economy and service growing external debt. Milanovic last month said the economy will grow 0.8 percent this year, while central bank Governor Zeljko Rohatinski said in December the country may slide into recession again this year after a modest recovery in 2011.
The government last month submitted its budget proposal to lawmakers, which included cost cuts of 4 billion kuna ($700 million). The measure is expected to narrow the budget gap to 3.8 percent of gross domestic product from 5.5 percent in 2011. Parliament vote on the budget tomorrow.
To contact the reporter responsible for this story: Jasmina Kuzmanovic at jkuzmanovic@bloomberg.net
To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net
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