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EBRD extends first loan to Croatia; air navigation system will be rehabilitated
Croatia's civilian radar and other air navigation equipment, destroyed or damaged during the recent war, will be replaced with financing provided by a US$ 22.0 million (ECU 19 million equivalent) loan signed today between the European Bank for Reconstruction and Development (EBRD) and the Republic of Croatia.
"The project will constitute an urgent first step in re-establishing normal air transport services in Croatia", Jacques de Larosière, President of the EBRD, said. "The EBRD's priorities for Croatia emphasise the need for reconstruction of its main infrastructure to enable renewed economic activity."
The air navigation and telecommunications facilities to be replaced will be located in sites which are accessible and under full control of the Croatian authorities. The project will have a broad regional impact by reducing air traffic congestion in the region and improving safety
The loan will be used to finance: a regional radar facility near Split to provide coverage along the Adriatic Coast; various navigation beacons and en-route navigation aids; instrument landing systems for Zagreb, Pula and Dubrovnik Airports; telecommunications, air-ground radio and radar data processing systems; airport control tower equipment; and training for air traffic controllers. The project has been prepared in close co-ordination with a US$ 128 million World Bank Emergency Reconstruction Project for replacement of power transmission lines, transport equipment and water distribution systems.
The total cost of the project is US$ 26.20 million. The EBRD will finance the foreign exchange costs of US$ 22 million and the Croatian Government will provide US$ 4.2 million.
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