The loan repayment period is 10 years including a one year grace period at a regular fixed interest rate of 1.45% and effective interest rate of 1.48%.
Environment and Energy Minister Tomislav Coric informed that the loan would be used to finance the construction of the Zlobin-Omisalj trunk gas pipeline which will be part of the storage and transport system of Liquefied Natural Gas (LNG) and will have a capacity of 2.5 billion cubic metres a year. He described this as one of Croatia's key energy projects.
Plinacro's management adopted a decision on January 28 and its steering committee approved the procedure to take out a loan on February 5, Coric said adding that the ESB had the most favourable offer.
An agreement for the construction of the pipeline was signed on 4 December 2019 and construction started on 16 December with a completion date of 15 November this year when a test run of the FSRU ship will be conducted so commercial operations can begin on 1 January 2021.
Last week Plinacro informed that the said works were proceeding according to plan despite the coronavirus pandemic which slowed down or completely shut down some commercial activities.
The entire project, estimated at HRK 430 million, is expected to be completed by the end of the year, when the LNG terminal should be up and running and will ensure the delivery of gas from the terminal.