The Croatian government on Thursday decided to take part, through the Finance Ministry, in an auction to bid for a vessel that is being built by the Rijeka-based 3. Maj shipyard, and its initial offer will amount to HRK 142.1 million.

The vessel No. 514, which is being sold at an electronic auction conducted by the Financial Agency in the period from August 12 to November 3, is part of the Uljanik d.d. company’s bankruptcy estate. The ministry can possibly submit a bid in the maximum amount of its claims, totalling HRK 174.2 million.

Once purchased, the vessel would be transferred to the Physical Planning, Construction and State Assets Ministry for management.

The State Secretary at the Economy and Sustainable Development Ministry, Mile Horvat, said that the Economy and Sustainable Development Ministry, together with the Physical Planning, Construction and State Assets Ministry and the Finance Ministry, would propose measures, activities and procedures for the completion of construction work on the vessel after it assumes full ownership of it.

The Economy and Sustainable Development Ministry will in turn, together with a selected shipyard, take part in negotiations with the potential ship owner on a contract for the completion and sale of the vessel.

The government previously approved HRK 150 million collateral for a loan to 3. Maj to launch production and complete work on vessels under construction with the aim of reducing existing losses for the state.

The money was intended, among other things, for the completion of the vessel No. 733 worth €26 million. The handover of that vessel was completed on September 29 whereby the government collateral was returned to the state budget and the total loan granted by the Croatian Bank for Reconstruction and Development (HBOR) was repaid.

Negotiations with the original buyer of the vessel No. 514 are entering their final stage and a letter of intent has been received. HRK 100 million would be returned to HBOR from the sale of the vessel No. 514.

There were no interested bidders for that ship at the first electronic auction.

The government today also adopted changes to the Conclusion on the expression of interest on the part of the government in creating preconditions for launching shipbuilding in Pula through the Uljanik Brodogradnja 1856 d.o.o. company.

(€1 = HRK 7.5)