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Home > What we need to know? > Expropriation

Expropriation

The procedure of expropriation is carried out in accordance with the Law on Expropriation and Determination of Compensation (Official Gazette, No. 74/14, 69/17) and begins with the procedure of securing evidence on the condition and value of the property subject to expropriation, which is evaluated by independent judicial property evaluation court experts, from each professional area for which the evaluation is performed. Upon completion of the evaluation of the condition and value of the property, they produce an evaluation study for each property, whether it is subject to complete or partial expropriation. 

LNG Croatia LLC has initiated the process of securing evidence during 2018 and, based on evaluation studies, which were completed at the end of 2018, the value of the cadastral parcels subject to complete and partial expropriation is estimated to be approximately EUR 14 million.

Since expropriation is carried out in accordance with a valid location permit, estimates have been made in accordance with a valid location permit for the onshore terminal from 2015, commencing with partial expropriation i.e. servitude for the gas pipeline and water supply system, since the cadastral parcels required for the gas pipeline and water supply system are the same (the same gas pipeline route and water supply system for the floating and onshore terminal). As for cadastral parcels subject to complete expropriation when it comes to onshore terminal, 9 cadastral parcels need to be completely expropriated, while one cadastral parcel is required for a floating terminal. 

In the meantime, amendments to the location permit were obtained, where the first phase of the construction of the floating terminal was introduced. However, the amendments did not become final, since the appeal to the Administrative Court for amendments to the location permit were filed by the Municipality of Omišalj and Ćuf d.o.o. in bankruptcy. Further to the above, and in order to further reduce the initially planned expropriation cost, the expropriation of the parcels subject to complete expropriation was put on hold until the litigations were finalized i.e. until the validation of location permit amendment. Litigations were closed on 5 July 2019 by a decision of the High Administrative Court and the amendments to the location permit became final and complete expropriation was initiated exclusively for one cadastral parcel necessary for the floating terminal (in relation to 9 cadastral parcels required for the onshore terminal). This resulted in additional savings of up to EUR 12 million for expropriation purposes and reduced the cost of expropriation to EUR 2 million instead of the initially planned EUR 14 million.

LNG Croatia LLC has entered into possession of all land parcels required for the implementation of the first phase of the project, a floating LNG terminal on the Island of Krk, as of 1 August 2019. For this purpose, 222 cadastral parcels were partially expropriated for the construction of the connecting high-pressure gas pipeline and water pipeline system, while for the construction of jetty, facilities and buildings on land one cadastral parcel was completely expropriated. This cadastral parcel is, together with the maritime domain defined by the Concession on Maritime domain Agreement, necessary for the construction of a floating LNG terminal as the first phase of project development, and a plateau, auxiliary facilities and a management building will be placed there.