ZAGREB, Feb 11 (Hina) - The Croatian government on Thursday determined conditions for the second round of bidding for the privatisation of the state-owned shipyards and agreed with the texts of agreements regulating property-related issues between the state and the shipyards, which were expected to reduce the costs of shipyard restructuring.

Bids for the privatisation of the six shipyards will be invited by February 15, and bidders will have 60 days to submit their bids.

"The tender terms are basically the same as in the first round, it's just that certain details have been additionally explained," Economy Minister Djuro Popijac said.

Popijac said that restructuring costs would be reduced through compensation agreements between the state and the shipyards concerning outstanding property-related issues.

The estimated property value of Rijeka's "3. Maj" shipyard is HRK 3.2 billion, that of Brodogradjevna Industrija Split is HRK 2.69 billion, the value of Pula's Uljanik is estimated at HRK 1.04 billion, Brodotrogir is estimated at HRK 634.3 million, Brodogradiliste Kraljevica at HRK 368.6 million, and Brodosplit - Brodogradiliste Specijalnih Objekata at HRK 83.4 million.

"We wanted to legally settle the issue of ownership of property on the maritime domain so that would-be buyers would get a real insight into the ownership situation," Popijac said.

He said that relevant European Commission and Croatian services had accepted the legal documents and that it was agreed that reconstruction costs would be reduced by the amount of compensation.

The tender terms provide that prospective buyers have to participate in shipyard restructuring with at least 40 per cent of their own funds.

"We have done everything possible to make this round of privatisation attractive and we can expect great interest from serious investors," Popijac said.

Popijac said that potential buyers would have access to data on the shipyards with the situation as at December 31, 2009, adding that the shipyards' managements would provide the latest monthly data at the end of February and March.

Speaking of how much the shipbuilding sector would cost the taxpayers, Finance Minister Ivan Suker said that a HRK 4.5 billion loan covered by government guarantees falls due this year and that HRK 12.5-13 billion of such credit falls due over the next few years. He added that the amount would have been HRK 2 billion higher had the shipyards gone into receivership.