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Strategic Investment Projects

The new Act on Strategic Investment Projects in the Republic of Croatia was enacted in April 2018.

It provides quicker implementation of strategic investment projects with fewer procedures and licenses needed. Each step of the investment process is specified with exact deadlines and an operational group is appointed to provide support to project implementation.

STRATEGIC INVESTMENT PROJECTS OF THE REPUBLIC OF CROATIA ARE:

  • private, public or public- private investment projects which include the construction of buildings:
  • in the field of:
    • economy, mining, energetics, tourism, transport, infrastructure, electronic communication, postal services, environmental protection, public utilities, agriculture, forestry, water management, fishery, health care, culture, audio-visual activities, science, defense, judiciary, technology and education;
  • which implementation:
    • creates conditions for the employment of the larger number of workers, depending on the type and location of the project,
    • significantly contributes to the development or improvement of conditions and standards for the production of goods and provision of services,
    • introduces and develops new technologies that are increasing competitiveness and efficiency in the economy or public sector and/or,
    • rises the overall level of safety and quality of life of citizens and environmental protection,
    • has a positive effect on more economic activities and the implementation of which create added value,
    • contributes to sustainable development and environment and space protection,
    • largely contributes to competitiveness of the Croatian economy;
  • which are in line with:
    • the physical planning documents with the exception of implementing physical planning documents (urban development plan and detailed arrangement plan) if the same are not already adopted,
    • strategic documents of the EU and the Republic of Croatia;
  • which have a total value of capital investment costs:
    • equal to or greater than HRK 75.000.000,00, or
    • equal to or greater than HRK 75.000.000,00, and have the ability to be co-financed from the funds and programs of the European Union, or
    • equal to or greater than HRK 10.000.000,00, and are realized in assisted areas, or in the units of local (regional) self-government of the 1st group or in the units of local self-government of the 1st and 2nd groups, in accordance with the act governing the regional development of the Republic of Croatia, or on islands, or if the investment falls within the area of agriculture and fisheries;
  • by fulfilling abovementioned criteria, a private investment project can be declared as a strategic investment project if it is related to:
    • Production and Processing Activities
    • Development and Innovation Activities
    • Business Support Activities
    • Activities of High Added Value Services
    • Activities in Energetic Sector
    • Infrastructure activities
    • Activities related to Agriculture, Forestry and Fisheries
    • Health Care activities
    • Activities related to the Science and Education

Application form

Recommended content of the investment plan

Table of identification of real estate in the scope of the project

PROCEDURE FOR THE PROJECT APPLICATION AND PROVISION OF THE GOVERNMENT’S DECISION:

  1. An interested investor (a family run farm (OPG), a domestic or a foreign legal entity registered on the territory of the Republic of Croatia, a legal entity established by the Republic of Croatia or a local and regional self-government unit) submits a project for its designation by a strategic project to the competent administrative body by submitting an application forms for strategic investments projects:

MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT
Ulica grada Vukovara 78, 10000 Zagreb
T +385 1 61 06 924, F +385 1 61 09 118, E strateski.projekti@mingo.hr

  1. Application content:

The investor must submit a study that contains:

  1. a) project description and conceptual design made by an authorized architect or an authorized civil engineer in the case of infrastructure buildings containing a description of the project within the area within the scope of the project with clearly defined structures outside the scope of the projects that are in the function of project realization (transport and other infrastructure) and a statement on the compatibility of the project with the spatial plan and a list of land registry partitions on which the project will be implemented and
  2. b) for all land registry plots where the project is planned to be implemented, it is necessary to enclose location information in accordance with a special regulation no earlier than six months from the date of submission of the application, a confirmation of whether a claim for the restitution of former owners has been filed, in accordance with the law governing the conditions and procedure for property that was deprived of previous owners by the Yugoslav communist authorities and the statement of the company Hrvatske šume Ltd. if there is a real estate within the forest management plan, not older than six months from the date of submission of the application and
  3. c) an investment plan for a period of at least five years including information on sources and ways of financing a strategic project and which necessarily contains a balance sheet, profit and loss account, cash flow statement, statistical and dynamic valuation of the investment project and risk analysis and
  4. d) financial performance evidence that necessarily includes an audited annual financial report for the year preceding the year of submission of the application if the investor is subject to the audit obligation or the annual report on the prescribed forms for non-auditable investors, quarterly business reports preceded by the submission of the project application referred to in paragraph 1 of this Article, forms BON 1 and BON 2 not older than 30 days and
  5. e) in the case where the investor for the purpose of the project has established a special purpose company operating on the territory of the Republic of Croatia, and is unable to prove its financial capacity for the realization of the project, the founder of the company is obliged to submit data on its financial capacity, from the competent authority in the country of the investor’s headquarter and in particular: the audited financial report for the last two years of operation, the solvency data certified by the competent banking / financial institution, and the basic financial indicators of the business for the last two years, and a binding letter of intention of the founder of the company;
  6. f) detailed company profile, including affiliated companies and reference list and
  7. g) confirmation that the investor fulfilled the obligation to pay due tax liabilities, pension and health insurance obligations and other public benefits, and the obligation to pay salaries and other material rights of employees contracted by collective agreement, labor contract or work regulations, not older than 30 days.

Articles 4 to 7 do not apply to public investment projects.

Application form for designation of a project by the strategic investment project of the Republic of Croatia

  1. The competent administrative body carries out the administrative verification of the received application

The central state administration bodies shall, within ten days from the receipt of the request, submit a professional opinion on the application received and the documentation in question within the scope of their competence and at the request of the central state administration body responsible for the economy, and a written positive or a negative assessment of the admissibility of the proposal for a strategic project, for the assessment of the acceptability of the strategic project and the submission of the application for consideration to the Commission.

A proper and complete application, together with the expert opinions and assessments of the admissibility of the proposal for a strategic project, shall be submitted by the competent administrative body to the Committee for Evaluation and Identification of Proposals for Strategic Projects.

  1. Commission evaluates strategic project application and proposes to the central government body responsible for the economy a decision about its inclusion on the List of Strategic Projects.

Commission makes a decision on establishing the Operational Group for the preparation and implementation of each individual project and appoints the head of the Operational Group

  1. Operational groups tasks:
    a) establishes prescribed procedures necessary for the preparation and implementation of each individual project and informs the Interested Investor thereof
  2. b) the implementation of the project, the preparation of a comprehensive review of administrative and other procedures and the actions to be taken for the implementation of the project and the drafting of the list of acts necessary for its implementation, and within one year from the date of listing on the List of Strategic Projects
    c) interdepartmental harmonization and coordination of activities in preparation and drafting of project implementation acts and deadlines for their execution
    d) determines proposed elements of the Croatian Government Decision on Proclaiming a Strategic Project that it submits to the Commission.
  3. The Commission proposes to the Government of the Republic of Croatia the adoption of the Decision on Proclaiming a Strategic Project
  4. A private or public-private investor is required to submit to the Ministry of Economy and Sustainable Development within seven days prior to the signing of the Agreement proof of the intention to realize the notified project, as follows:
    a) confirmation issued by a local bank that the investor proves that in the special account intended for the realization of the project, the company that filed the application has secured financial resources in the amount of at least 5% of the total value of the reported project and / or
    b) in the case where the investor for the purpose of the project has established a special purpose company operating on the territory of the Republic of Croatia, the confirmation issued by a local bank proving that in the special account of the company intended for the realization of the project, the funds were insured at a level of at least 5% of the total value of the project and / or
    c) proof of the amount of the pre-invested funds in the implementation of the project in the amount of at least 5% of the total value of the reported project, based on the certified auditor’s confirmation of the amount of investment made and / or
    d) binding letter of intent of the domestic bank proving the readiness of project financing
  5. The agreement on the preparation and implementation of a strategic project with a private, public or private-public investor will be concluded by the head of the central state administration body responsible for the economy, prior to the decision of the Government of the Republic of Croatia on proclaiming the strategic project of the Republic of Croatia
  6. The Government of the Republic of Croatia issues a Decision on the Proclamation of a Strategic Project of the Republic of Croatia, to be published in the “Official Gazette”
From January 1, 2019, the Ministry of Economy and Sustainable Development is in charge of investments processes in Croatia – invest@mingo.hr.