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The construction of Zagreb Croatia's Airport multi million euro terminal is still in doubt.

The construction of Zagreb Croatia's Airport multi million euro terminal is still in doubt since the consortium set to fund and run the brand new terminal, Zagreb International Airport Company (ZAIC), has still not secured the necessary finances or permits. Under the contract signed with the Croatian government, the consortium has until April 11 to secure all necessary finances for the 365 million euro project, otherwise it will be terminated. Several companies have recently joined the consortium in order to provide much needed cash for the project, however, ZAIC will have to take out several loans, the largest one being from the European Investment Bank. The bank wants the Croatian government to guarantee that the loan will be repaid in case the consortium goes bust during the construction process. However, the concession agreement forbids financial involvement on behalf of the government, barring it from acting as a guarantor. Without the loan from the European Investment Bank, ZAIC will be short on cash to fund Croatia's biggest infrastructure project.If the necessary funds are found for the new terminal, construction is not set to begin before September. Originally, the first cranes and shovels were expected to be seen at Pleso next month. Furthermore, ZAIC still hasn't secured necessary permits for the construction of the terminal. This is because the Croatian government still hasn't bought all necessary land where building work is set to take place. "We expect to have all necessary permits by June", ZAIC says. Despite the delays, the architectural design of the new terminal has been finalised, though it is yet to be revealed to the public. Once construction starts, it must be completed within 1.095 days (three years). Recently, it was revealed that the Croatian government has its own, scaled down, project for the new terminal if ZAIC, lead by Aeroports de Paris, opts out of their contract. Source; Ex-YU Aviation News
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Publication:Balkan Business News
Geographic Code:4EXCR
Date:Mar 13, 2013
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