Luxembourg, 02/08/2007 (Agence Europe) - The European Investment Bank (EIB) is lending €190 million to Croatian gas transport company Plinacro for the expansion and modernisation of the national gas network during investment period 2007-2011. This strategic project will reinforce Croatia's national gas network's interconnections with those of neighbouring EU member states and candidate countries, strengthening security of supply and integration of the EU gas grid.
The project comprises the construction and operation of 930 km of new high-pressure gas pipelines throughout Croatia, as well as the continued rehabilitation of the existing gas transmissions system. The second loan of its kind to Plinacro, EIB involvement in the ongoing modernisation of Croatia's energy industry illustrates the EIB's confidence in the state-owned company's ability to implement complex investment projects, and its confidence in and commitment to Croatia's progress towards joining the EU.
The EIB loan fits with the EU priority objective of promoting sustainable, competitive and secure energy sources. The EIB comments that 'benefits, both economically and environmentally, will be felt from the successful completion of this project. Introducing natural gas into new regions of Croatia, lowering the costs of energy provision, driving efficiency and improving environmental performance are amongst the many foreseen advantages.'
Since 2001, EIB lending to Croatia has exceeded €970 million for projects supporting rapid integration into the EU. Construction and rehabilitation of the country's energy infrastructure has accounted for almost 10% of EIB activity during this period. In addition, the EIB is financing investment by small and medium-sized enterprises in Croatia, and supporting projects in industry and services. Future EIB activity in Croatia envisages an increate in operations in the environmental, health and education sectors, as well as a growing number of loans to the private sector and local municipalities. (ol)