Poor payment is the weak link Construction companies are important customers together with forestry authorities and agricultural companies.
Croatian EU accession negotiations close to termination Barroso: the common goal of fulfilment of the conditions for the accession is an imperative
The financial activity of European Investment Bank in Croatia €511 million invested in Croatia by EIB during 2010 mainly credit financing
INDUSTRY
EU ACCESSION
E.I.B.
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Croatian Business & Finance Weekly Established in 1953 Monday / 11th April / 2011 Year IV / No 0148 www.privredni.hr
S U P P O R T E D
::: news Co-operation with CEFTA expands Recently the government accepted the amendments in the agreement of co-operation with CEFTA countries. The volume of concessions in the already-free trade of agricultural and food products with Serbia will be expanded. Croatia will thereby be able to expand its trade with these countries, which totalled €2.5 billion in 2010, increasing by 4%, and where Croatian exports significantly exceeded imports. Around 42% of Croatian agricultural and food products are exported to the CEFTA countries, almost the same amount as to the EU, said the government vice-president Petar Čobanković. (I.V.) Gas connection between Croatia and B&H Plinacro and BH-Gas signed a Letter of Intent, which obligates them to continue with joint preparatory activities of connecting
B Y
T H E
pvinternational pv international C R O A T I A N
O F
E C O N O M Y
THE RON BROWN FORUM, DUBROVNIK
Regional economy can hit much harder The discussion of some 200 representatives of American and Croatian companies was open and transparent according to Ambassador Foley. Entrepreneurs suggested the analysis of investment potential and solutions to overcome obstacles preventing faster business Igor Vukić
gas transport systems on three corridors between Croatia and Bosnia and Hercegovina. Since Plinacro has recently commissioned, in co-operation with the Hungarian operator, the interconnection of a gas pipeline between Hungary and Croatia, the realisation of the project Slobodnica– Bosanski Brod–Zenica north connection would link the B&H gas transport system to all big future gas pipeline projects, such as Nabucco or South Stream.
C H A M B E R
roatia has great potential for attracting investment, but in boxing terminology, its punches are below its weight, noted the US Ambassador to Croatia, James Foley, concluding the Ron Brown Forum held in Dubrovnik last week. The forum was dedicated to the 15th anniversary of the death of the America trade minister and pioneer of promoting business co-operation between USA and Croatia. It was used as an opportunity to analyse investment potential and propose solutions for overcoming obstacles of towards faster busi-
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ness. Interest, as a precondition for business deals, was satisfied in this case. Two hundred small and large-sized American and
many mutual characteristics, advantages and weak points. When their total population is summed up, a more serious market results for big American players.
Positive investment period approaching
Faster, even if negative Participants were welcomed by Croatian President, Ivo Josipović and Prime Minister, Jadranka Kosor. They were introduced with the measures of the Croatian government for economic recovery and invited to join investment projects, which the government is initiating through state-owned companies.
Croatian companies gathered, interested in finding partners and analysing the demand for goods and services. The organiser achieved the aim of presenting the potential of the entire region. Spokespeople from South Eastern and Central Europe participated in all panels, presenting
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Privredni vjesnik Year IV No 0148
JENS MOLLER MADSEN, MANAGING DIRECTOR, KING STURGE CROATIA
Future positive but slow
he past 18 months have been a challenging time for the Croatian property market. We have witnessed a significant drop in consumer spending, primarily a result of austerity measures taken by the government, employment uncertainty and a lack of debt financing. In 2009 we saw very limited construction activity, as several local developers left the market due to deteriorating economic conditions. The residential sector was hit particularly hard – the expectations of developers and potential buyers are still wide apart, which keeps the residential market locked in low liquidity. Furthermore, we experienced a substantial fall in occupier activity across all sectors due to uncertainty over the economy and the risk of business activity falling consistently below break-even levels. Having said that, the economic recovery witnessed in a number of major western economies during the first half of 2010 may have a positive impact on investor confidence in Croatia. Whilst the emergence and strength of economic recovery is uncertain, we are currently witnessing the development market picking up somewhat with several retail projects under construction – both in Zagreb and in secondary cities. We are also seeing further
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
activity within the logistics sector, where new developments are meeting the underlying demand for new modern warehouse space. Whilst no new major office developments started in 2009, a number of speculative office developments were started in 2010 and are currently under construction, which will hopefully be an ongoing trend for the future. The residential property market, which saw prices drop in 2008 due to an oversupply of units, continues to be under severe pressure. This is mainly due to a large number of unsold apartments with limited to no real purchasers. In 2009 no significant investment transactions were recorded in Croatia due to the lack of international interest, an overpriced market compared with other countries in Eastern Europe and partly due to a lack of debt financing. However, this trend seems to have reversed sharply in summer 2010 as liquidity came back and investors (re) entered the market. In 2010 we saw the highest volume ever of foreign investment transactions in Croatia and although this may not be repeated in 2011 due to a lack of institutional product, it is at least a sign that foreign investors have not lost confidence in Croatia, as long as institutional quality investment assets are fairly priced. Based on the activity that is emerging in the local commercial property market, we hope the bottom of the market is now behind us, and look forward to a steady recovery – albeit probably slow. We do not expect growth rates over the coming quarters to hit levels experienced in the years preceding the recent downturn.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
CONTINUED FROM PAGE > 1 In addition to changes that future Croatian EU accession will bring, additional efforts were announced for the enhancement of the investment climate. “We will speed up the process of giving answers to investor questions, even if the answer is no,” pointed out Domagoj Milošević, Deputy PM for Investment, who celebrated the first three months of his mandate, in Dubrovnik. According to Milošević, movement of people between the private to state sector and vice versa is a crucial step towards mutual understanding of the
Participants were invited to join investment projects, which the government is initiating through state-owned companies two sectors, often contradictory worlds in Croatia. According to Foley’s assessment, the discussion was open and transparent. Robert Benmosche, Head of AIG, came to know of the Croatian bureaucracy from his own experience. He bought a villa in Dubrovnik 14 years ago and it took him six years to ren-
ovate it due to various licences and inspections. Even though he also bought a vineyard a long time ago, he did not manage to build a wine cellar because of different legal issues. He says that in one year, what it takes an “important” administrative officer in Croatia to affix a sign, the Chinese build a hotel and a tourist complex covering one million square metres. He does, however believe Croatia has great tourist potential, but it seems it refuses to use this, judging by all hat happens. Potential concessionaires Borislav Škegro, former Minister of Finance and currently director of the Quaestus investment fund, believes it is much easier to overcome obstacles by working mutually with a local partner. He illustrated this using the example of his fund which partnered the Swedish Tele 2 in the tender for the mobile phone concession. “With us, Tele 2 definitely saved a lot of time trying to comprehend our market. We were able to give them reliable information and explain what technical solutions were required for an appropriate tender. As a consortium, we had EU ambassadors on our side, which was a big bonus when we were lobbying ministers and regulators prior to the tender,” said Škegro. Representatives of Hou-
www.privredni.hr Business & Finance Weekly
3 ston airport, potential bidders for the concession of Zagreb airport, also visited Dubrovnik. With other foreign participants, they were also interested in information on micro-economic stability, the state of banking and trends in the real-estate market. Marko Remenar, board president of Zagrebačka banka, reminded that banking system stability had been preserved by the restrictive policy of the Croatian National Bank, bank avoidance of ventur-
In boxing terminology, Croatia’s punches are below its weight ing into dubious investment and with the help of central banks abroad. “This year and next might speed up the recovery trend. The market has bloomed; we are witnessing big consolidations and mergers in the food
and trade industry, and most probably the banking system. A positive investment period is approaching and opportunities must be found immediately,” concluded Remenar. Trained workers attract investment According to Margareta Drzeniek Hanouz from the World Economic Forum, the region offers a relatively well trained work force. With EU accession approaching, this represents a solid foundation for direct investment. Geographical position is a further advantage, especially concerning the sectors of traffic, tourism and logistics. Notwithstanding, companies need to expand exports, compete at an international level and limit state influence on the economy as much as possible. I hope these kinds of meetings will not be needed any time soon. Business should be free and follow its own rules, concluded Ambassador Foley.
WHAT ARE AMERICAN TOURISTS LIKE?
They are interested in culture and gastronomy When American tourists visit Croatia, they leave the impression of being laid back, open and informal. Privredni vjesnik asked the director of the Croatian Tourist Board representative office in America, Andreja Cvitković, what they are like and what they are interested in. Currently the American market is greatly interested in Croatia. Many young and older Americans are interested in adventure programmes, cultural events, wine and gastronomy, where continental Croatia especially stands out since it offers such packages, pointed out Andreja Cvitković, adding that Americans
are becoming more interested in cultural tourism. With the exception of Dubrovnik, which is already a brand on its own, Americans are becoming more interested in Istria, national parks, Šibenik, Trogir, Opatija and Zagreb. Those tourists stay in Croatia for around seven days, but this group does not include tourists who come on cruise ships. Individual visitors come for a seven day tour around Croatia, but they stay another seven days cruising around our sea. They
are good consumers, and price is not a question when they find something they really like. Even though their numbers in Croatia are still below what we would like, they spend far beyond the average of other tourists, says Andreja Cvitković. Last year, Croatia promoted tourism in America and the promotion was visited by a large number of American and Canadian tour-operators and journalists. Croatia was presented as a boutique and life-style destination
with many cultural and historical destinations, natural beauties, national parks and an abundant offer of wine and food. At the beginning of this year, the American tourism company Universal Travel System listed in their offer a luxurious two-week tour around Croatia, which includes all Croatian sights under UNESCO protection. The tour also includes Pula and its Arena, even though it is not on the list. In order to bring Croatia closer to the American market, an open-sky contract was recently signed, concerning direct flights from America to Croatia. However, the Americans still prefer direct flights to Venice from where they can continue to Croatia with Delta Airlines. (S.P.)
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( 1953
Lanac established in Zagreb
( €2.74 million annual income
THE ONLY CHAIN FACTORY IN THE COUNTRY
Poor payment is the weakest link Construction companies are important customers together with forestry authorities, agricultural and nautical companies. However, they find it difficult to enter foreign owned stores
wire used in the construction of binding sheathes and reinforcement. The production of chains demands quality work and carefully selected raw materials, according to Lanac. They use steel with appropriate chemical and mechanical properties, and they especially point out their nautical range where they apply the highest standards so that products are able to maintain quality and durability under difficult conditions of sea water exposure. The production of chains is automated, with electro-resistant welding, and they perform constant
testing on the final strength of the end products. Lanac is ISO 9001 certified and they have also been granted other certificates covering product quality. As a result, they are able to meet all the demands of their customers. Vrbetić explains that they sell chains through a trade network and are extremely satisfied that the company Pevec managed to survive, since they are their most important buyer. However, they find it difficult to enter foreign owned stores. Construction companies are also one of their important customers, as well as forestry authorities, as well as
agricultural and nautical companies amongst others. In addition to quality production, their positive strengths include an organised network of commercial travellers, direct delivery of ordered chains, maintenance servicing and other benefits. Company annual income stands at approximately €2.74 million. In 2009 it dropped slightly due to the general economic crisis, which especially hit the construction industry. Despite these aggravating circumstances, they manage to pay salaries regularly and settle all claims. Vrbetić ventures their production is competitive and they are relatively able to cope with imports. However, their biggest problem is the increasing trend toward non-payment. “The protection of creditors remains too weak in Croatia. The state demands from us as producers to settle our claims in a timely fashion, and if we are late, they immediately proceed with compulsory settlement. Notwithstanding, no-one seems to be worried about the fact that our buyers do not pay on time. It is difficult to obtain timely court protection against buyers who do not pay for delivered goods”, points out Vrbetić.
No agreement over HG Spot debt The company HG Spot failed to reach any agreement with a single bank as holders of their commercial paper, regarding the write-off of interest rates on due financial liabilities. The holders of commercial papers should respond to the proposal during the next few weeks, according to the statement of HG Spot’s Board given to the Croatian Agency for Supervision of Financial Services. The Board of HG Spot held a meeting with banks and holders
of commercial paper where they presented their former business activities as well as concepts for the future.
ska plovidba was the majority stakeholder of Dubrovnik Airline (70%). The buyer of the shares remains anonymous.
Igor Vukić hen the journalist on strike approached the entrance of their company, the doors were locked and chained. This metal product thereby yet again proved its worth in everyday life. Even though the technology is moving forwards rapidly, the chain remains a practical and irreplaceable component in many industrial branches. The Lanac factory is the only one in Croatia producing chains. Their 38 workers manufacture a vast product line: chains with small links for dogs, cattle and similar, chains for snow and the wheels of large construction machinery, plus large-linked chains up to 35 centimetres long and four centimetres thick used for anchoring ships. ACI marina is a regular customer, explained Ivan Vrbetić, majority owner and director of Lanac on a tour of the production plant.
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Raw materials vital The process is circular; final products are produced from railway lines by melting and shaping. In addition to chains, they also produce nails and bailing
::: news S&P gives special attention to Agrokor’s credit rating Credit Rating Agency Standard&Poor’s announced it would reflect the long-term B rating of Agrokor, and that it is on watch due to a potentially negative effect of the acquisition of an interest in Mercator. At the beginning of March Agrokor submitted the offer to purchase 23.34% of normal shares of the Mercator Business System owned by Pivovarna Laško Group. The seller’s final decision on the received offer is due in mid-April.
Atlantska plovidba sells interest in Dubrovnik Airline Atlantska plovidba has sold its interest in Dubrovnik Airline. The decision was agreed at the session of the Supervisory Board of Atlantska plovidba, when the Board’s proposal was accepted since it no longer had any business or economic interest in air transport. Until now, Atlant-
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Croatian EU accession negotiations close to termination
Barroso: Additional effort needed to join the EU Notwithstanding a pre-election atmosphere, the common goal of fulfilment of the conditions for the accession is an imperative as pointed out by the President of the European Commission on charges of corruption last year and listed all legal proceedings against senior officials fr om politics, business, the health sector and other senior positions. The Prime Minister anticipated that Croatia could close three of the seven negotiation chapters in April.
Igor Vukić he termination of negotiations is at hand. The progress of Croatia over the last few years has been impressive and historical as assessed by Jose Manuel Barroso, the President of the European Commission, in Zagreb recently. He stated that the termination of negotiations in June is a very
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Prime Minister anticipated closure of three of the seven remaining chapters this month ambitious objective and added that the Croatian government had already achieved similar tasks in the past. “Nevertheless, additional effort towards the fulfilment of all the tasks is an imperative. We have always emphasised importance of quality and content outweigh speed”, stressed Barroso accompanied by Štefan Fule, European Commissioner for Enlargement and European Neighbourhood Policy. The two politicians recently visited Belgrade and Sarajevo to encourage European reform.
“I was not speaking of a specific date in June, but of June being our target date”, stated Prime Minister, Jadranka Kosor. She pointed out that she believes that with the committed work of the government Croatia is on the right the path towards meeting the set targets. The government report on the fulfilment of
measures for chapter 23 was also discussed. The report stated the specific steps taken by the government, its bodies and other institutions: from reducing the judicial backlog, to the fight against corruption and organised crime, protection of minority rights and war crimes trials. It also stated that 1,101 people were reported
Commencement of the campaign Barroso gave a speech to the Croatian Parliament and also met the President, Ivo Josipović, and a group of the general public. In Parliament he emphasised that notwithstanding the pre-election atmosphere, the common goal of fulfilment of conditions for accession is an imperative as it is an issue beyond individual politicians or parties. President Josipović concluded after their talk that Croatia has almost achieved an historical goal, yet will put considerable additional effort into it. The chances of passing the referendum for EU membership were analysed in the talks with the general public. Foreign Affairs Minister, Gordan Jandroković, announced the commencement of an informative campaign to encourage people to support fully-fledged membership.
Direct investment in Croatia
Foreigners invested only €439 million in 2010 According to preliminary data provided by the Croatian National Bank, foreign direct investment in Croatia totalled €439 million, whilst it was five times higher in 2009 (€2.09 billion). Statistics based on activities show the largest inflow (€249.3 million) into the category Other Business Activities, followed by financial intermediation with €186.6 million (excluding insur-
ance and pension funds) and proprietary investment in property with €166.6 million. Some investment activities register negative values, mostly concerning the pro-
duction of chemicals and chemical products, with an outflow of €485 million, postal services and telecommunications (inflow of €132.2 million). According to countries, the highest investment (€116.3 million) was registered by investors from Belgium. Italy followed with €112.8 million, Luxemburg with €111.6 million and Slovenia with €86.6 million. Furthermore, foreign direct investment into
Croatia from 1993 to 2010 totalled €24.47 billion. According to the amount of investment, over the past 18 years Austrians have invested most (€6.22 billion), followed by the Dutch (€3.7 billion), Germans (€2.9 billion) and Hungarians with €2.3 billion. The highest amount (€8.6 billion) was invested into banks, followed by wholesale and trade intermediation (€2.8 billion). (J.F.)
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WE PRESENT
TURISTIČKA AGENCIJA ZDENAC ŽIVOTA, ZAGREB
Privredni vjesnik Year IV No 0148
AGROTURIZAM KONAVLE, KONAVLE
Back to Zagreb’s past A different cultural perspective
Becoming a leading rural destination Leadership through experience new tourist agency programme is based on a specific experience which emerges from individualised tourist services, in the shape of adventure, rest and relaxation, mystique or some kind of discovery. The “Well of Life” uses destination management oriented towards Zagreb and cultural tourism, yet their employees also deal with tailor-made programmes – adapted to tourist needs. “The business objective of our agency is promoting the specific experience of every tourist destination, enhancing tourism through new products, the creation of the new network of tourism service providers, the improvement of cooperation with the public sector and stronger know-how within tourism”, stated Hrvoje Kordić, Project Manager with the agency. The management and the staff of Well of Life place particular importance on the quality of each individual aspect in the creation of experiences, such as organisation and communication at all levels, venues and accommodation, as well as on services oriented towards pleasing visitors. This particularly applies to gastronomic aspects and additional services and activities such as workshops, wellness, relaxation activities and theme events.
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Theme tours “We strive towards providing local and foreign tourists a complete experience of Croatia as a country abounding in tourist at-
tractions, ranging from natural and cultural beauties, characteristic cultural and entertainment events to attractions beyond national boundaries such as national parks”, pointed out Kordić. Nevertheless, employees at Well of Life are primarily oriented towards the organisation of themed and other types of tours and events. The most appealing programmes are The Witch’s wheel dance, a specific story revealing a different face of Zagreb and its history which allows visitors to revisit Zagreb’s past by a walk through the Croatian capital and
A complete experience of Croatia available to local and foreign tourists into the times of witch hunt, and A walk through Zagreb by the book, a themed walk which introduces tourists to the lives of writers who used to live in the city. Cultural tours are generally considered to be boring, nevertheless the tour A walk through Zagreb by the book is an extremely entertaining themed walk, stated Kordić. He also stressed that the guides are original and spontaneous tourist guides, whose task is to retell in a witty way anecdotes about Zagreb writers who made an impact on Croatian literary history, for example stories about the life and work of Marija Jurić Zagorka, Miroslav Krleža and Tin Ujević. (S.P.)
onavle is a municipality with a population of 8,000, covering 32 precincts, a plethora of cultural monuments and 18 rural tourism facilities, located in the South of Croatia near Dubrovnik. Agrotourism Konavle, is an association of craftspeople and family farmers with 96 members, mainly local entrepreneurs and was founded last year to develop and promote rural tourism. Their main objective is for Konavle, hand-in-hand with Istria, to become a leading rural destination in Croatia. Members include 14 owners of private accommodation, 11 rural households, including picnic areas and wine tasting rooms, 9 producers of traditional Konavle souvenirs, 4 artists, one honey producer and one cheese producer.
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A leader in agro-tourism “One of the most important local cultural and tourist attractions is the event The scents of Christmas in Konavle introduced by our as-
The scents of Christmas in Konavle is one of the more significant cultural and tourist events in the region sociation. The scents of Christmas in Konavle lasted for five days last year and the cultural and historical value as well as the traditional value of the event was
given special emphasis. Pušić emphasised the importance of this event and pointed out its integrating rôle in the tourist programme of Konavle. Last year The scents of Christmas in Konavle featured 80 participants and was visited by over 3,000 people. According to Pušić, the Association of Croatian Travel Agencies (Uhpa) was the most commendable for the increased number of tourist arrivals to Konavle and received special praise. Several tourist agencies showed an interest in Konavle and the event and they offered tourist arrangements which included a visit to Konavle. A further strengthening of the market position of this event is anticipated as well as an increase in sales of tourist arrangements, including four-day and sevenday tourist packages. A meeting on the proposal for the standardisation of excellence in agro-tourism in compliance with marketing classification and the standards recognisable in EU markets was held in Konavle, under the project COAST the UN Development Programme (UNDP) and the Regional Development Agency Dunea in order to further promote the rural programme. It was pointed out that with the abundance and experience of its members, the Association Agro-tourism Konavle has become a leader in agro-tourism in Dalmatia and is a logical partner in any future activities aimed at the further development of Croatian agro-tourism. (S.P.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
Kuna exchange mid-rate
EUR
7.372
5,383407 5,354058 5,999982 5,608023 8,383312 5,116406 7,365578 WEEK APRIL 9, 2011
USD
5.20
5.4.
6.4.
7.4.
5.18
5,64
7.368
5.16
5,63
7.366
5.14
5,62
7.364
5.12
5,61
8.4.
5.10 4.4.
5.4.
6.4.
THE FINANCIAL ACTIVITY OF EUROPEAN INVESTMENT BANK IN CROATIA
€511 million invested in Croatia by EIB in 2010 Majority of funding (€888 million) has been used for credit financing with €831 million allocated to traffic sector projects Igor Vukić he financing activity of European Investment Bank in Croatia reached a peak with €511 million granted loans, noted Matthias Kollatz Ahnen, President of EIB. At a recent conference he anticipated the level of total financial involvement for this and next year to range between €400 and €500 million. The EIB has invested over €2.4 billion into Croatia since 2001. The financial encouragement for the EIB, with interest rates more favourable than classic commercial loans, has had a significant impact particularly in the financing of small and medium sized companies. Last year, EIB granted a €250 million loan, which HBOR took over for small and medium sized companies and local government units. The EIB funds were used for settlement of the Croatian share in the projects co-financed through the pre-accession funds Ipa and
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Ispa. €200 million was set aside for this purpose. No funds for Pelješac Bridge A considerable amount of the support granted by EIB will in the near future be directed towards the strengthening of the Croatian capacity for being granted money from the European funds, pointed out Ahnen. The EIB is interested in investment into the traffic sector, energy production, environmental protection and other infrastructure projects. It will participate in the development of the traffic route Vc, from Budapest across to Sarajevo and on to Ploče. Nevertheless, the Pelješac bridge construction will not be financed as in the foreseeable future both Bosnia and Herzegovina and Croatia will become members of the European Union and therefore they need to agree on a more affordable border crossing. The EIB will also support new sections of the Zagreb
5,65
7.370
7.362 4.4.
CHF
detour, at the south-east entry to Zagreb, with the value of €185 million. The EIB share of this
Over €2.4 billion invested in Croatia by EIB since 2001 project will be about €60 million. Some €75 million was invested into water protection projects carried out by the Ministry of Agriculture, Forestry and Water Management. The majority of the funding (€888 million) since 2001, has been used for credit financing, whilst €831 million has been allocated to traffic sector projects. €334 million has been invested into the city and utility infrastructure. The value of loans for energy production stands at €281 million. Over €60 million has been provided by EIB for Croatian industry and services sector from 2001 to 2010.
7.4.
8.4.
5,60 4.4.
5.4.
6.4.
7.4.
8.4.
::: news €1.14 million profit for CDCC The Central Depository and Clearing Company (CDCC) ended last year with a nett profit of €1.14 million. This is the result of the latest report of the depository company published on their website. Although CDCC operated at a profit which some companies from the real sector might envy, the negative influence of the crisis is noticeable. Profit from 2010 is almost half that achieved in 2009, when profits stood at €2.16 million. Varteks loss of €13.29 million In 2010, Varteks from Varaždin operated with a loss of €13.29 million, which is slightly less compared with 2009, when losses totalled €13.55 million. In order to help entrepreneurs in difficulty, the Board believes it is necessary to apply the ‘C’ Model in order to stabilise business and realise company development projects. Varteks was one of the first to file a request to the Ministry of Economy for the application of the ‘C’ model, and the integrated plan of business and financial restructuring, which received full support of the banks. Bank savings grow Term deposits of the general public stood at €16.68 billion in February, which is €0.21 billion more compared with the end of 2010, according to the aggregated report of the Croatian National Bank. Last year term deposits increased by €1.30 billion or over 8%. Deposit growth did not prevent a fall in interest rates on term savings.
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Privredni vjesnik Year IV No 0148
::: news €3.42 million profit for Vetropack Straža Vetropack Straža, the glass factory from Hum on Sutla, achieved gross profit of €91.5 million in 2010 and nett profit of €3.42 million. The 2010 results were poorer compared with 2009, mostly effected by the price rise in gas and a considerably negative exchange rate difference. Due to weaker demand on local and regional markets, the company placed part of its capacity to distant markets in West Europe, reaching lower margins on account of higher transport costs. Končar contracts HR Rama The Consortium lead by Končar - Končar - Inženjering za energetiku i transport (Energy and Transport Engineering) signed a contract in Mostar with Elektroprivreda Hrvatske zajednice Herceg Bosne for the hydro power plant HE Rama, worth €17 million. The contract was signed in conjunction with the complete revitalisation of HR Rama, and it includes generator, turbine and on-line monitoring renovation. In 1968, Končar delivered to HR Rama two generators (2 x 90 MVA) and accompanying equipment. After renovation the generators will reach 2 x 100 MVA. Kraš invests €15 million in Karolina
Kraš, which took over the factory of biscuit and waffle-maker Karolina from Osijek, will invest around €15 million into the expansion of production capacity of the factory, which will create 60 new jobs. By the end of the year, four production lines will be transferred to Karolina, with Osijek becoming the strongest centre of waffle production. The investment will also help employ 60 new workers, and current staff will continue working, which would otherwise not be the case since Kraš did not take over their production line of salty snacks.
Management, collection and use of spatial data
GEOPORTAL
Your choice of price for a view from the sky Many countries showing extreme interest in Geoportal with differences merely in how specified requests are, in procurement and implementation Boris Odorčić he Geoportal system, which has been developed and supported for the Croatian Geodetic Board (DGU) by GDi Gisdata, is the basis of the national spatial data infrastructure of Croatia. It is defined by measures, standards, speci-
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Croatia is the first country in South Eastern Europe to have launched GeoPortal fications and services aimed at establishing the electronic management and effective collection, exchange and use of spatial data. Most European countries are equipped with similar systems. Croatia was the first in South Eastern Europe to implement its own system in May 2009. Its implementation within the Government national programme made DGU the leading provider of geodetic data services for professional users within institutes and companies. Initial access to introductory pages is free whilst further access and rights of use of GeoPortal are determined by DGU. GeoPortal users can, for example, ask for network use of a digital orthophotographic map, the basic
map of Croatia, or scanned land registry plans. Network or online use means, on the one hand, the possibility of ordering, or purchasing and online acceptance of ordered and delivered products plus, on the other, use of data by standard online services, when needed by the user and within the desired scope, without saving their copies into user computers. A variety of payment methods Ivica Skender, Sales Advisor with GDi Gisdata in the area of land management, geodetics, cartography and spatial data infrastructure, pointed out that before the appearance of GeoPortal users of DGU ordered the required data and had to take it physically. “In addition to being financially unfavourable, that procedure required repeated ordering of data every time a user needed it, which was time consuming. In order to avoid that, a large quantity of products has to be ordered, which again requires the capacity for data saving and makes promptness of taken data storage questionable. GeoPortal, on the other hand, enables the use of required products at a specific moment in time and in the needed scope. If the ordered data is also taken, there are a variety of payment methods, and the data is delivered with utmost promptness”, explained Skender who
was in charge of the project to create the system. Huge interest As opposed to other publicly available geographical services such as Bing Maps, Google Maps or Digital Globe, the DGU maps cover both urban and rural areas, as well as the whole of Croatia, at an equally high resolution. After the implementation of the system in Croatia in 2009, GDi Gisdata carried out a range of similar projects in neighbouring countries. It worked on the creation of GeoPortal for the needs of the real estate board in Montenegro where the implementation was carried out in an extremely short time. Skender added that the interest in GeoPortal is huge as most countries in the region either are EU members or are striving to be so as soon as possible and have a need to implement the directive INSPIRE (Infrastructure for Spatial Information in European Community) with respect to spatial data. “In addition, there is an increasing awareness of the importance of the creation of spatial data infrastructure at all levels and GeoPortal is the central venue for one such infrastructure. Many countries are extremely interested in Geoportal, the difference lies merely in how specified their requests are, in procurement and implementation” he concluded.