Presentation of 2021 Procurement Plan

On 9 March 2021 the Procurement Plan for the year 2021 was presented in the Ministry of Defence of the Republic of Croatia, and representatives of Croatian defence industry were assigned with contracts for the procurement of equipment and assets for the needs of the Croatian Armed Forces

The presentation was attended by the Defence Minister Mario Banožić and by the Chief of the General Staff of the Croatian Armed Forces Admiral Robert Hranj, as well as by the representatives of the Croatian defence industry.

Minister Banožić stressed that the funds for the defence system were allocated in the 2021 state budget, and that the Procurement Plan was essential for the normal operation of the defence system and further development of the Croatian Armed Forces.

The funds allocated in the 2021 budget totalled HRK 4.801.780,350 HRK, of which 2.275.478,960 were allocated for the material purposes. “Our objective is to maintain the level of equipping at a level which will ensure normal operation of the defence system even in the challenging times we are going through”, said the Minister with regard to the pandemic and earthquake.

“This year 2021 is a period of consolidation and preparation for the upcoming period. I believe that we will be able to restore the economic growth we had in 2019”, said the Defence Minister.

Minister Banožić pointed out that the Procurement Plan for 2021 is essential for normal operation of the defence system and further development of the Croatian Armed Forces.

Top-quality products

Addressing the 2021 Procurement Plan, which includes 865 procurement items worth ca 1.2 billion HRK, including multi-year contracts worth about 1.8 billion HRK, the Minister said that the funds would contribute to further development and strengthening the Croatian Armed Forces

“The 2021 budget and the current procurement project target the continued strengthening of the Croatian Armed Forces. Investing in the Croatian Army is investing in the security and future of all citizens. ” He added that Croatian soldiers are equipped with weapons and equipment from Croatian manufacturers which were of top-quality products.  The Minister expressed trust in continued co-operation in the coming years, in view of the new perspectives opened with the absorption of funds from the European Defence Fund. The Minister also said that the good practice of the Ministry of Defence with declassification of procedures continued into 2021, so all procedure met the criteria of the Public Procurement Act.  Reviewing the course of the procurement process in the Ministry of Defence, the Minister said that the process engaged a number of stakeholders in various segments of the procedure according to the competencies, thereby preventing conflict of interest and exertion undue influence.

Contributing to the economy

Željko Pavlin, the Chairman of the Board of Directors of the Company “HS PRODUKT” delivered address on behalf of the manufacturers and signatories of the contracts with the Ministry of Defence,  praising the excellent long-term co-operation and expressing appreciation to the Minister Banožić and the Ministry of Defence for extending the long tradition and practice of signing contracts with Croatian military equipment manufacturers early each year  despite the challenging time of the pandemic and reduced budget. Pavlin stressed that the funds invested into acquisition of products made in Croatia would ensure that the Croatian Armed Forces were equipped with quality products and kept pace with the world’s best militaries and would also ensure normal operation and development of new projects and products to retain their competitiveness in the world market and also fund the salaries for the employees.  

The Director of “Šestan Bush” from Prelog, Alojz Šestan praised the years-long cooperation with the Ministry of Defence: “This year we are marking 25 years of co-operation with our armed forces – 25 years of manufacturing protective helmets. Thanks to the co-operation we have become a respectable exporter and one of the world’s best manufacturers. The continuity and cooperation are very important for us as a reference for co-operation with other countries”.

The significant procurements in 2021 comprise the equipping and modernisation projects, among which the procurement of machine guns and of the ZLIN aircraft. The supply procurement projects include the procurement of combat camouflage and water repellent uniforms and furbishing of the facilities in the Pleso Air Base , the construction and adaptation of the hangar at Lučko and the completion of the construction of the barracks were highlighted ”204. Brigade HV” in Vukovar.

The Ministry of Defence of the Republic of Croatia signed 38 contracts and framework agreements on the procurement of military equipment for the needs of the Croatian Armed Forces with Croatian manufacturers of military equipment worth cca 284 mil HRK. The contracts are signed for the purpose of procuring the clothing, footwear, weapons, equipment, overhaul services, food and insurance for members of the Croatian Armed Forces, as a direct contribution to the Croatian economy and the Croatian defence industry.