Brodotrogir d.d.

Sales department (shipyard)
ph. + 385 21 883 - 201
fax. + 385 21 883 - 417
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Sales department (shiprepair)
ph. + 385 21 883 - 303
fax. + 385 21 883 - 406
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Agency for the protection of market competition

On the basis of the Law on State Subsidies and the Law on General Administrative Procedures, the Agency for the Protection of Market Competition (AZTN) has reached the following decision on halting the procedure for approving state subsidies for the restructuring of shipyard Trogir.


In accordance with the obligations from this decision on 21 September 2006, the Ministry of Economy, Labor and Entrepreneurship (MGRP) delivered to AZTN in February 2007 the Program for the Restructuring of the Company Brodotrogir d.d. because of the approval of the state guarantee for the restructuring procedure. 
At its session held in February 2008, and as part of the procedure for evaluating the program for the restructuring of Croatian shipyards, the Council for the Protection of Market Competition (Council) established that the Program for Restructuring could not be approved because it does not contain sufficient elements and arguments on which to base an evaluation. 

It was emphasized that it is necessary to carry out a real and deep restructuring that demands decisive measures and action, and a better quality plan for restructuring than the one proposed.

In addition, AZTN requested from MGRP an opinion on whether they think program delivered from the Ministry and the Government is sustainable.

As part of the request, the Agency pointed to the possibility of privatization of Croatian shipyards.

On 2 June 2008, the Agency received a letter from MGRP, an attachment to which included a revised Program for Restructuring. 

At the same time, MGRP sent the Decision of the Government on intended privatization and the principles of the privatization of companies of 21 May 2008, which included Brodotrogir d.d. 

The Decision states that the Croatian government intends to privatize Brodotrogir d.d based on the Law on Privatization, and that the Ministry and the Croatian Fund for Privatization are obligated to ensure implementation of a restructuring that the Croatian government will accept at the proposal of the Ministry, and to plan a model, preparations and implementation of its privatization.

Since the procedure for approving subsidies for restructuring Brodotrogir d.d., is underway, the Agency accepted the Decision of the government on its intention and its principles for the privatization of Croatian shipyards.  The council decided to halt the approval procedure for subsidies for its restructuring, which the Agency made on the basis of requests from the MGRP received on 27 February 2007 and 2 June 2008. 

Therefore, the privatization procedure appears to be a precedent question in the procedure that the Agency is carrying out according to the articles of the Law on State Subsidies because without a resolution of that question the Agency cannot finalize the procedure regarding the company Brodotrogir according to the regulations on state subsidies.

The Agency will continue the procedure of approval of state subsidies for restructuring Brodotrogir d.d. halted by this conclusion after body responsible for the privatization procedure delivers a report, plans, and documents necessary for reaching a decision on the main issue, or if it evaluates that the circumstances that halted the procedure have ceased.  

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