European Union Solidarity Fund

Remediation of consequences of the March 2020 earthquake

On 12 November 2020, the Government adopted a decision establishing the manner of allocating EUR 683.7 m in grants from the EU Solidarity Fund, approved for financing the restoration of earthquake damages. Thereby a legal framework was established for coordination, implementation and monitoring of the system of use of these funds.

The funds of the European Union Solidarity Fund are intended for urgent rehabilitation measures, providing for the affected population, reconstruction of infrastructure and public buildings, and cannot be used for the reconstruction and construction of family houses and residential buildings.

The Government Decision contains annexes that specify the types of operations to be implemented, the respective funds allocated for them, the bodies in charge of individual operations and their scope (Annex 1 and Annex 2).

Implementing bodies shall announce public calls for different categories of costs, under which beneficiaries submit their applications. The national coordinating body for implementation is the Ministry of Physical Planning, Construction and State Assets and the bodies responsible for the implementation of the financial contribution according to their responsibilities are: Ministry of Economy and Sustainable Development, Ministry of Health, Ministry of Physical Planning, Construction and State Assets, Ministry of the Interior, Ministry of Culture and Media, Ministry of Defence, City of Zagreb, Zagreb County, Krapina-Zagorje County and Fund for Reconstruction of the City of Zagreb, Krapina-Zagorje County and Zagreb County. The Central Finance and Contracting Agency for European Union programmes and projects (CFCA) is the independent audit body.

The procedures are governed by common national rules for the EU Solidarity Fund and according to them, individual calls regulate more closely the issues of eligible applicants and costs. All costs that are eligible in terms of the provisions of the Regulation establishing the EU Solidarity Fund and were incurred from the date of the earthquake, i.e. from 22 March 2020 on, may be reimbursed on the basis of accepted project proposals and concluded contracts.

In accordance with the Government's conclusion of 10 June 2020, the Republic of Croatia requested a grant from the European Union Solidarity Fund to remedy the consequences caused by the earthquake in March 2020.

At the plenary session held on 23 November 2020, Members of the European Parliament approved granting of assistance to Croatia from the European Solidarity Fund for the remediation of the consequences of the devastating earthquake in Zagreb on 22 March 2020 in the amount of EUR 683.7 million.

The first calls for project proposals were announced already in January 2021. The line ministries and implementing bodies have so far announced 14 calls for the reconstruction of infrastructure for water supply and drainage, energy, transport, education, health care, prevention infrastructure and cultural heritage protection, costs of rescue services and provision of temporary accommodation and prevention of soil erosion, and the grant funds are used for reimbursement of public expenditures in the areas of the City of Zagreb, Zagreb County and Krapina-Zagorje County.

Under these calls, by 25 January 2022 a total of 560 project proposals were received, worth a total of HRK 12.1 billion, and 348 contracts worth HRK 8.43 billion were concluded, including funding from the EUSF as well as other sources. Out of the contracted project proposals amounting to a total value of HRK 12.1 billion, out of which a share of HRK 5.1 billion is financed from the European Union Solidarity Fund, 162.7 million were disbursed based on the submitted applications for reimbursement of funds.