Successful increase in allocation of funds from the European Regional Development Fund – funds provided for 1000 building sites over the next 18-month period

By decision of minister of construction and physical planning Lovro Kuščević, under cooperation of minister of regional development and EU funds Gabrijela Žalac, the allocation of funds for two calls has been successfully increased, i.e., the Call for submission of project proposals for 'Energy renovation of buildings and use of renewable energy sources in public educational institutions' and the Call for submission of project proposals for 'Energy renovation of multi-residential buildings', that were announced by the Ministry of Construction and Physical Planning, and are co-financed from the European Regional Development Fund.

On this occasion, today a press conference was held at the Ministry of Construction and Physical Planning, at which minister Kuščević presented news related to energy efficiency in the buildings sector. He pointed out that the Government of the Republic of Croatia at its session held last week passed the Decision on extension of financing the implementation of the Programme of energy renovation of public sector buildings for the period 2014-2015, as proposed by the Ministry of Construction and Physical Planning.

„This refers to the use of national funds for projects that have already been contracted, that is, the University Hospital Centre KBC Firule – Split, Penitentiary Institution Lepoglava, University North-Varaždin, Prison hospital in Zagreb, building of the State Office for Metrology, University Hospital for Infectious Diseases Dr. Fran Mihaljević in Zagreb, General Hospital Varaždin, Sports Centre Swimming Pools Poljud, University Hospital KB Merkur, Police Academy Zagreb, General Hospital of Šibenik-Knin County“, specified minister Kuščević, adding that „by completion of their renovation annual savings of a total of 30,654,413.81 kuna and annual energy savings of a total 51,565,669.78 kWh would be achieved“.

Minister Kuščević informed also about the increase in the allocation of funds under the call for 'Energy renovation of multi-residential buildings', where the initial allocation has been increased from 152 million kuna to 560,960,409.50 kuna of grant funds. „A total of 649 applications were received, out of which 596 applications meet the eligibility criteria, leading to a total investment value of 939,928,834.48 kn“, minister Kuščević explained.

The Call is aimed at implementation of energy renovation measures and use of renewable energy sources in multi-residential buildings, which is to result, through an integrated approach, in reduced energy consumption for heating/cooling.

Furthermore, minister Kuščević said that under the Call for submission of project proposals for 'Energy renovation of buildings and use of renewable energy sources in public educational institutions' the amount of 152,000,000.00 kuna was provided from the ERDF, however due to the high number of applications that fulfilled the eligibility criteria, an allocation increase was requested and approved by the Managing Authority to a total of 348,785,282.78 kuna of grant funds.

„234 applications were submitted, out of which 223 applications meet the eligibility criteria, leading to a total investment value of 781,344,126.51 kuna, out of which 348,785,282,78 kn are grant funds“, Kuščević empahsised.

As minister Kuščević said, all projects submitted for energy renovation of multi-residential buildings and of public educational institutions that fulfil the eligibility criteria shall be co-financed from EU funds.

„Due to these Calls, in the coming months there will be more than a thousand construction sites in Croatia, corresponding to about 1.7 billion kuna of total investments that will mobilise the construction sector over the next 18 months, during which period the said projects have to be completed“, the minister of construction added.

In the field of public educational institutions, i.e., nursery, primary and secondary schools, pupils' homes of residence and faculties, 223 projects shall be co-financed, more specifically, 61 nursery schools, 4 faculties, 138 primary schools, 17 secondary schools, one school sports hall, and two pupils’ halls of residence.

„In view of a major response from our fellow citizens, we have increased allocations and granted a double amount of funds as compared to the planned one. Out of the 100 million euro of grants that were designated for reducing energy consumption in residential buildings, already through these two calls we have allocated almost 75 million euro, which is an indicator of the allocation capacity and of what we have to do,“ minister Žalac said.

She particularly pointed out her satisfaction about the increase in allocation for our schools and nursery schools, as in this way all the submitted projects shall be granted funds from EU funds. „We have provided additional assistance to our regional and local self-government units through our own fund, in order to enable all projects relating to schools and nursery schools, that is, public educational institutions to apply to us, upon signing the contract with the Ministry of Construction and Physical Planning, for being granted additional funds, depending on the degree of development of the respective local self-government unit, for the part that shall be financed as their own contribution“, explained minister Žalac and added that currently energy renovation is the only way for our schools and nursery schools to be renovated.