Project "Floods on the Territory of Slovakia in the years 1997-1999, removal of consequences and preventive measures" - granting of a state guarantee by the Government of the Slovak Republic for a loan in the amount of EURO 30 mio. provided by the Development Bank of the Council of Europe to the Slovak Water Management Enterprise, s.p. Banská Stiavnica, and approval of the proposal to draw the first tranche of the loan in the amount of EURO 6,144,000 in the year 2000.
The floods which in the years 1997-1999 affected most part of the territory of Slovakia, incurred damage amounting to approximately SKK 7.9 billion.
Removal of post-flood damage, and particularly realisation of technical measures in order to avoid floods are the basic task of the State, and the authorised manager of water streams, i.e. the Slovak Water Management Enterprise, s.p. Banská Stiavnica (SWME, s.p.).
However, fulfilment of the basic tasks in water management operation does not allow SWME, s.p. to ensure coverage of such costs by its own funds. Likewise, it is impossible to cover them from the funds of the state Budget and state funds. Therefore, upon recommendation of the representatives of the Social Fund of the Council of Europe (currently the Development Bank of the Council of Europe), during their mission in the Slovak Republic, a draft application of the Government of the Slovak Republic was prepared for a loan from the Social Development Fund Europe (currently the Development Bank of the Council of Europe), in the aggregate amount of SKK 1,307,000,000. Such proposal was approved by the Government of the Slovak Republic by its Resolution No 846 of September 29, 1999.
The basic material for preparing the application of the Government of the Slovak Republic for providing a loan was the project Project "Floods on the Territory of Slovakia in the years 1997-1999, removal of consequences and preventive measures" (the "Project"), preôpared by SWME, s.p. Banská Stiavnica, in co-operation with the Ministry of Land Management of the Slovak Republic and the Ministry of Finance of the Slovak Republic. Due to its large scope and distribution of locations on the whole territory of the Slovak Republic, the Project is divided into three basic sub-projects, which are further divided into smaller sections, parts and locations.
For realisation of the actions set out in the Project, it is assumed that during the years 1999 - 2004 , in aggregate SKK 2,178,653,000 will be incurred, including the following:
- funds from the Development Bank of the Council of Europe, totalling SKK 1,307,000,000
- funds from the State Budget, totalling SKK 622,000,000, and
- funds of the enterprise and other funds, totalling SKK 249,653,000.
The Administrative Board of the Development Bank of the Council of Europe approved the application of the Government of the Slovak Republic for provision of the loan.
The Government of the Slovak Republic, fulfilling the basic conditions for providing the loan by the Development Bank of the Council of Europe, approved on June 21, 2000, the proposal for granting a state guarantee for the loan, and also approved the proposal for drawing the first tranche of the loan in the amount of EURO 6 ,144,000 in the year 2000.
Approval of the proposal for granting the state guarantee for the loan to be provided by the Development Bank of the Council of Europe, for raising effective funds for realisation of the project, shall also have a positive effect on employment, especially in the building industry. It may be assumed that for realisation of individual actions of the Project during the period of the years 2000 - 2004, 110 employees will be needed in average on annual basis.
Information & Conact:
Ministerstvo pôdohospodárstva SR,
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812 66 Bratislava
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