The contract for the privatisation of the Brodosplit shipyard has been formulated with the European Commission and is expected to be signed in late February, Croatian Economy Minister Ivan Vrdoljak said in Brussels on Monday after meeting the European Commissioner for Competition, Joaquin Almunia.
"The text of the contract for Brodosplit has been finalised and we expect it to be signed by the end of next month," Vrdoljak told the press.
The contract is expected to be signed on February 28.
The final version of the contract provides that the government's payments to the shipyard will be prolonged from three to five years, and the government's total cost will increase from HRK 1.263 billion and HRK 1.5 billion.
The cost originally planned for this year was HRK 600 million and according to the final version it will be HRK 480 million. "Finance Minister Slavko Linic will certainly welcome this," Vrdoljak said.
The compensation measures had to be increased in order to cover the losses incurred during the privatisation process, which was not the responsibility of the buyer but of the government because it did not privatise the shipyard fast enough, the minister explained.
Vrdoljak also informed Almunia about the situation regarding the privatisation of the Brodotrogir and 3. Maj shipyards.
The contract for Brodotrogir has been initialled and could be ready for signing very soon, while in the case of the 3. Maj shipyard a new restructuring plan has been submitted and it will take several months to agree the wording of the privatisation contract, Vrdoljak said, adding that he expected the European Commission's opinion on the restructuring plan very soon.
Rijeka's 3. Maj shipyard is to be sold to the Pula-based Uljanik shipyard.
"We are expecting a binding offer very soon, but the most important thing is that the Commission accepts the restructuring plan, which has been amended. We will have several more rounds of talks and I am optimistic," Vrdoljak concluded.
