FINANCIAL SUSTAINABILITY AND AFFORDABILITY. The financial analysis carried out by the Croatian Authorities shows that the project over its life time is financially sustainable. As regards affordability, following the completion of the project and functioning of the waste management centre, the average affordability rate for the households, depending on their location, will be between 0,83 % and 1% of the average income and from 2,05 % to 2,47 % of the minimal income. OPERATION AND MAINTENANCE Following the completion of the project by the Implementing Body, the project will be handed over to the end recipient of assistance i.e. Kaštijun Ltd. The Kaštijun Ltd is a fully publicly owned company which is founded by the City of Pula and County of Istria in order to manage the County Waste Management Centre. Following the handover of the project, the Management of the Kaštijun Ltd will be responsible for the operation and maintenance of the waste management centre. It will coordinate the overall activities of the company, provide the administrative and operational services necessary for the smooth function of the waste management centre and manage contracting and business issues with the local self-government units. It will define the pricing policy to apply which must be implemented before the operation of the management waste centre. The new organisational and managerial structure of the company with the necessary and skilled staffing should be established before the operation of the waste management centre. SUMMARY OF THE MAIN FINDINGS OF THE ENVIRONMENTAL IMPACT ASSESSEMENT The Environmental Impact Assessment (EIA) was carried out and the environmental impact study was submitted for evaluation to the Ministry of Environmental Protection, Physical Planning and Construction in July 2007. The Ministry issued the Development Consent on 12 August 2008. An amended Development Consent was issued on 14 August 2009. The decision of the Ministry to consider the proposed intervention concerning the construction of the waste management centre is accompanied by environmental mitigation measures including a monitoring programme. COST AND ASSISTANCE (IN EUR)
FINANCIAL SUSTAINABILITY AND AFFORDABILITY. The financial analysis shows that the project itself is not financially self-sustainable. It needs not only the European Union assistance prior during its start-up, but also a firm and long-term financial commitment by its founder to cover any operational losses during the BIOCentre operating time. The Ministry of Science, Education and Sports of Croatia has delivered a statement concerning the financing of the BIOCentre project for the period 2011-2015, in a letter to the European Commission dated 3 November 2010. It is assumed that for the sake of the project sustainability, this financial commitment will be renewed if necessary after this period. Should this financial commitment be born by (an)other project stakeholder(s), the European Commission would be notified accordingly. The sustainability of the project is conditioned to the continuous commitment and contributions of all project stakeholders from academic, public and private sectors, the development of marketing and networking activities as well as the adoption of an appropriate pricing strategy. Setting affordable prices is crucial to ensure early and long-standing sustainability of the project, as well as the emergence as well as development of knowledge-based SMEs in the biotechnological sector. It is also considered by the European Commission as a way to channel the IPA financing assistance to the SMEs, end-users of the project. As stated within the BIOCentre project application, the premises and services will be first offered according to the market conditions. However, the beneficiary may decide to set more convenient pricing conditions, in line with the terms of the Decision on the Publication of Rules on Low-cost aid ("Official Gazette" No. 45/07). In such case, the Ministry will provide required information to the Croatian Competition Agency.