31.10.2021.

EU Funds Provide Cash for Croatian Projects Worth 515 Million Kuna

October the 24th, 2021 - There can be no doubt that European Union (EU) funds have done wonders for Croatia, and now another very generous EU fund cash injection has provided the means for yet more Croatian projects.

As Jutarnji/Novac/Gordana Grgas writes, the first 36 small enterprises from the manufacturing industry recently received grants according to an EU tender entitled "Strengthening the competitiveness of companies by investing in the digital and green transition" which was announced last spring. This cash amounts to 155 million kuna in support, and the Croatian projects it will work to bring to life total as much as 515 million kuna.

In the top ten from this list are the following domestic companies: Sisarka, Agro Simpa, Turkovic, Zlatko-Commerce, Rotoplast, Spiroflex, Limrol, Molaris, Pivovara Daruvar and Akord, and they will use the subsidies to strengthen their production capacities. Sisarka from Zupanja will, in particular, invest in technologically advanced and energy efficient production, which is a project worth 9.9 million kuna, and this company received 3.5 million kuna in non-refundable funds.

Agro Simpa from Sisak will receive support totalling 1.1 million kuna for their project worth 3.2 million kuna, and Zlatko-Commerce will receive a grant totalling 3.7 million kuna for a project to increase their production capacities, a move otherwise amounting to 10.3 million kuna.

There were as many as 842 proposals...

As announced by the Ministry of Economy and Sustainable Development, as many as 842 proposals for Croatian projects were received back in May, and 70 percent of those Croatian projects, or 596 of them, were positively evaluated in the award procedure. It hasn't yet been announced when the remaining decisions will be made, and it is expected that it is set to occur "in the next short period".

It's worth mentioning that when the results of this project evaluation was published back in August, it was explained that the money would primarily go to those who have satisfied their project applications to the greatest extent, ie achieved the best results and points. That said, 245 entrepreneurial proposals for Croatian projects were evaluated negatively.

This tender aroused great interest because it was the first major tender from ESI funds this year for small and medium-sized enterprises, and was launched with the intention of strengthening recovery from the crisis caused by the global coronavirus pandemic and in preparing a more green, digital and resilient economic recovery.

In total, this tender regards about 1.14 billion kuna intended exclusively for the processing industry, which the Minister of Economy Tomislav Coric assessed recently at the awarding of the first contracts as "the best placed money of the Ministry of Economy and Sustainable Development over the past four years". He also noted that the manufacturing industry is and will be in focus in the coming years, too.

Enterprises who receive grants from this tender must use them up quickly, more precisely by the end of 2023.

All of the Croatian projects that will be co-financed by EU funds from this tender and in this way are expected to launch an investment cycle worth more than 3.6 billion kuna, and as HAMAG-BICRO's CEO Vjeran Vrbanec said recently, calls for the transformation of entrepreneurship into green and digital will be available in the coming period within the National Recovery and Resilience Plan.

In 2022 and 2023, support for the transition to an energy-efficient economy of 1.9 billion kuna, 960 million kuna for innovation and digitalisation and 1.1 billion kuna for encouraging investments that are a prerequisite for a circular economy are expected, as was announced back during this summer.

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