Horvat: HRK 5.1 bn won’t be enough to cover full reconstruction

NEWS 28.01.202117:00 0 komentara
potres, zagreb, škola, obrazovanje, učenici, obnova
Sanjin Strukic/PIXSELL/ilustracija

Minister of Construction Darko Horvat said on Thursday that the tenders advertised for post-earthquake reconstruction in the past few days were worth HRK 383 million, warning that HRK 5.1 billion would not be enough to cover the costs of comprehensive reconstruction.

After the European Commission’s decision to grant €683 million (HRK 5.1 billion), today we will issue another two calls for applications, Horvat told a press conference.

He recalled that the Ministry of Culture and Media had advertised two calls for applications, worth €116 million, on 26 January,  adding that today the Health Ministry and Ministry of Science and Education would advertise calls for applications worth €126 million and €141 million respectively.

Additional application for several billion kuna

He announced that another six calls for applications related to post-earthquake reconstruction in Zagreb would be advertised this week.

However, the €683 million (HRK 5.1 billion) approved by the EC will certainly not be enough for the full reconstruction of the damaged cultural heritage, science-education and health institutions in the City of Zagreb and Krapina-Zagorje and Zagreb Counties, Horvat said.

Hence our national recovery and resilience plan is being prepared and the government will try to ensure several billion kuna from another source for reconstruction, and a proposal for the multiannual financial framework is also being prepared.

He noted that a $200 million loan had been negotiated with the World Bank for the science, education and healthcare sectors, which will help whatever is not completed within the 18 months from the EU Solidarity Fund to be completed with this loan. He said he is certain that some financing will also be required from the state budget.

Horvat said he is certain that a second application to the Solidarity Fund will be completed before the 23 March deadline.

Asked about deadlines for applications and when works might commence and be completed, Horvat said that the Solidarity Fund is specific in that a grant must be used within 18 months of the date on which it was allocated, plus an additional six months for an audit report and analysis that the EC will conduct to see if the costs are eligible.

Horvat concluded that things have been done well within the first six months because a system had been established and the first three calls for applications had been prepared.

State-secretary in the Health Ministry Tomislav Dulibic recalled that in the initial phase of the coronavirus outbreak the earthquake affected the safety of health institutions and that the aim was to secure funds for essential repairs, adding that €141 million had been allocated for that purpose.

HRK 960 million for reconstruction of Zagreb University

A total of HRK 960 million has been secured for the reconstruction of buildings and infrastructure in the higher education sector, Science and Education Minister Radovan Fuchs said.

This primarily refers to the University of Zagreb buildings while reconstruction of school buildings in earthquake-hit areas will be covered by a separate call for applications for which HRK 1.2 billion is envisaged.

“That is more than about 500 schools. As far as buildings in higher education and science are concerned, we are counting on about one hundred projects and 50 applicants,” said Fuchs.

HRK 800 million for cultural heritage

A total of HRK 800 million has been allocated for reconstruction of cultural heritage. The Ministry of Culture and Media advertised a call for applications on 26 January for the preparation of documentation to implement protective measures and for the implementation itself where it can financed from the Solidarity Fund, Minister Nina Obuljen-Korzinek said.

“This primarily refers to repairs to the structure of buildings to prevent further collapsing,” said Obuljen-Korzinek.

Our key objective during the 18 months is to ensure essential structural reinforcements and repairs, after which we will focus on reconstruction through various other sources of financing, she said.

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