Prisons and hospices will be privatized in Croatia

Prisons and hospices will be privatized in Croatia

Croatia intends to engage private capital in modernization of the state social infrastructure. Currently the country's budget lacks enough finances for opening of such new state institutions as hospices, nursing homes, educational centers and even prisons. In order to solve this problem Croatian authorities are going to involve third-party investors into the building and managing processes.

Partnership between Croatia and business community for improving the state’s social program will be organized on following principles. Croatian authorities will ensure allocation of land for construction, provide for necessary building documents and give access to the public networks, while investors will have to calculate and offer prices for the services in accordance with the Croatian standards. It is expected that prices offered by the investors will be lower than the market ones.

Agency of public-private partnership established in 2009 will be responsible for cooperation between the state and private business.

Opening of the private social facilities in Croatia has a long positive experience. However, it involved primarily hospitals, but not prisons. Thus, in early 2012 Croatia presented the nation's largest clinic, which is thought to be the third largest in Europe. Analiza Hospital constructed for €26 million was opened at a small resort of Dugopolje near Split- one of the most famous recreation centers on the Adriatic. It is expected that the new clinic with the total area of about 12 thousand square meters will be an additional stimulus to the south part of Croatia to develop a popular medical tourism trend. The new clinic will gather experts from all around the world. Among the invited doctors are specialists from the U.S., Germany, France and Italy.

Ilya Kalachev

Date: 12/01/2012