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Croatia Infrastructure Report 2008

Published by: Business Monitor International

Published: Aug. 25, 2008 - 53 Pages


Table of Contents


Executive Summary
Market Overview
SWOT Analysis
Infrastructure SWOT
Croatia Political SWOT
Croatia Economic SWOT
Croatia Business Environment SWOT
Major Infrastructure Developments And Key Projects
Transport Infrastructure Overview
Road
Air
Sea And River
Airports - Developments In 2007
Ports - Developments In 2007
Roads - Developments In 2007
Railways - Developments In 2007
Energy And Utilities Infrastructure Overview
Power Infrastructure
New And Ongoing Projects
Power plants - Developments In 2007
Pipelines
Pipelines - Developments In 2007
Water
Table: Water
Construction Overview
New And Ongoing Projects
Table: Residential Construction
Table: Commercial Construction
Table: Tourism Construction
Table: Croatia Major Infrastructure Projects - Airports
Table: Croatia Major Infrastructure Projects - Roads
Table: Croatia Major Infrastructure Projects - Railways
Table: Croatia Major Infrastructure Projects - Ports
Table: Croatia Major Infrastructure Projects - Pipelines
Table: Croatia Major Infrastructure Projects - Power Plants
Table: Croatia Major Infrastructure Projects - Commercial And Residential Construction
Table: Croatia Major Infrastructure Projects - Hotel And Resort Construction
Industry Forecast Scenario
Table: Industry Forecast Data
Risks
Business Environment
Regional Overview - Europe
Europe: Business Environment Rating
Table: Regional Infrastructure Business Environment Rat 35
Limits Of Potential Returns
Risk To Realisation Of Potential Returns
Foreign Direct Investment
Labour Force
Legal Framework
Tax Regime
Macroeconomic Outlook
Table: Croatia - Economic Activity
Political Outlook
Company Monitor
Table: Key Players
Konstruktor inženjering
Pomgrad Engineering Ltd
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Construction Industry
Sources
Business Environment
Ratings Overview
Table: Infrastructure Business Environment Indicators

Abstract

Roads, Rail & Bridges

Croatia's Prime Minister Ivo Sanader said in November 2007 that the construction of the Peljesac bridge -the 18th longest bridge in Europe - will not be stopped. Connecting the southern Croatian peninsula withthe mainland, construction had got underway the previous month. Sanader's comments came after ZeljkoKomsic, part of Bosnia's three-man presidency, said that Bosnia would sue Croatia if construction wentahead. Some Bosnian politicians fear that the bridge will obstruct ships from reaching part of its coast.In September 2007, the Ministry of Construction had announced that Konstruktor inzenjering, Viaduktand Hidroelektra were the successful bidders for the construction of the bridge, which will cost anestimated EUR260mn.

Power Generation

Croatia's commitment to reducing greenhouse gas emissions and its rising consumption of electricity -driven by real economic growth rates of around 5% per annum - mean that there are significant voices infavour of building new nuclear facilities. These include Deputy Prime Minister and Minister for theEconomy Damir Polancec and President Stjepan Mesic, according to a report by Croatian newspaperVjesnik in late May 2008. President Mesic is reported to have said that a debate about a nuclear powerplant is inevitable, because such plants are safe and clean. Unsurprisingly, the Croatian NuclearAssociation (HND) lobbies in favour of setting up new nuclear facilities, preferably, it says, at locationsby the Sava River (near Prevlaka) and the Danube River (near Dalj). Professor Nikola Cavlina, from theZagreb Faculty of Electrical Engineering, estimates that Croatia will have a deficiency of 12.5 terawatthours (twh) of electric power by 2020, adding that the country will need to build plants with overallpower of 2,200 megawatts (MW). However, potentially complicating the debate, the existing nuclearplant at Krsko suffered a water leak in early June 2008, requiring it to temporarily shut down (for a periodof a few days) and obliging the European Commission's emergency response personnel to pass aprecautionary alert to EU countries.

Pipelines

In April 2008, the Iranian ambassador to Zagreb, Muhammad-Hassan Fadaiefard, said Iran will exportgas to Croatia and then on to the EU. BMI views this move, which is unlikely to please the US, as part ofthe EU's strategy of gas supply diversification in order to enhance energy security by reducingdependency on Russian gas. Fadaiefard said that Iran has proposed setting up a terminal in Croatia andlaying pipelines to forward the gas on to Austria and Switzerland. Under the agreement outlined, Iran willexport gas worth US$25bn to Austria, while the Swiss have agreed to buy 5.5bn cubic meters (bcm) ofgas annually from 2011. Bern's deal with Tehran was sealed at a ceremony where Micheline Calmy-Rey,the Swiss foreign minister, met Mahmoud Ahmadinejad, Iran's president.

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