WATERWAY PAG – KOŠLJUN Project Framework and Facts

1. WATERWAY PAG – KOŠLJUN Project Framework and Facts

2. The four basic pillars of the project • The town of Pag is set as a maritime and nautical center and reposition it on the world tourism market in an attractive year-round destination • The town of Pag is acquired unmatched competitive advantage in relation to all other destinations - for a navigable channel and also the distribution channel that leads directly to new visitors to the city • The innovative design approach - which allows coverage of the costs ofinvestments from the very beginning of its implementation, which ensures the success of the project already under construction • Preserving the environment during construction - a strategic prerequisite of success of the project, whereas  use the channel has no negative environmental impacts

3. Waterway canal Pag – Košljun - yesterday... • Waterway channel of Pag - Kosljun drawn back in 1987. and again in 2003., theRegional Plan of the City of Pag • The idea originally comes from the architect Dinko Milas, former director of the Urbanistic Institute of Croatia • Milas once said: "It is a natural extension of functional and natural slope that gently lies on south bay of Pag, which literally requires connection to open sea." Moreuz d.o.o.

4. Pag’s canal as it once was It was built in the 1950s and has been in operation sometime untill 1965. The oldchannel was used to transport salt which was produced on the fields of salt untill the magaines for salt storage on the sothern part od city of Pag . visible .. access part of the old navigable canal bordered by small concrete damsuntil storage magazines_ _.

5. .... Waterway canal Pag – Košljun – nowdays • In the landscape of Pag it is evident that the channel in most of it’s parts does not exists, that is out of function and that it lacks an exit to the open sea • A large area of the bay of Pag, which are connected to a water area of the existingcanals and abandoned salt fields cluster (usually owned by the town of Pag) form -completely isolated space, inaccessible and unused zone • Channel in its present form is mainly used for uncontrolled disposal of waste, smaller or larger Moreuz d.o.o.

6. '' It is functional and natural extension of slightly deposited bay of Pag that literallyrequires connection to open sea. "

7. The channel already exists - just missing the passage of 2.1 km to the open sea!

8. The development of professional background of the project • Untill nowdays the Traffic and funcional studies nad Enviromental impact studies has been finished • Compleation of field research and analisys of soil materials • There are project solutions in a form of conceptual solution, techincal solution, invstment studies, and studies of evalutaion of economic aspects of project

9. Preparation of professional material were led by the eminent Croatian scientificinstitutions: • Trafic -Functional study were made ​​by the Faculty of Traffic Engineering, University ofZagreb under the guidance of Prof. LjubkoŠimunovic and Dr. Jerko Nuić _Geology and Petroleum Engineering, University of Zagreb • Preparation of Environmental Impact Studies is coordinated by the Croatian HydrographicInstitute, Split. It is developed by a multidisciplinary team of 48 experts from11 companies and institutions • Some tests for the purposes of this study made by Croatian Hydrographic Institute, lastedlonger than three years Moreuz d.o.o.

10. The basic features of the navigation channel Pag-Kosljun • The total length of new channel 6,6 km • Existing channel 4,5 km • To be built 2,1 km • Depth of future channel 4,0 m • Width of future channel 45,0 m • Radius of the curve 420,0 m

11. The basic features of the navigation channel Pag-Kosljun • One boat-stop width 155 m and lenght 220 m • Other boat-stop width 25 m and lenght 100 m • Sailing during the day and night • Two-way navigation of small vessels • The speed limit in the channel of 5 knots • Seaworthiness of vessels up to 3 m draft • Allowed passage for boats 50m in lenght and 10mwide Moreuz d.o.o.

12. Touristic, receptive and transport infrastructure • Three marinas: The city of Pag and Košljun bay • 200 berths designed exclusivly for mega yachts,boats longer than20 meters • Traffic Infrastructure • Waterway • New roads and bridges • New walkways and bicycle trails (cycling'' Lungo mare'') • Nautical center  Pag - a system of channels and islands in the lagoon of the island with 200 berths, commercial, lodging, and recreational facilities Moreuz d.o.o.

13. Nautical Center Pag • An elite harbour for boaters, visually aligned with the traditional architecture andcultural heritage of the old town of Pag • Business, swimming, sports and recreational facilities  • Water amusement park, plaza, parking, ethno village ... • Uređenje novih i oplemenjivanje postojećih plaža One possible conceptual solutions for"Nautical Center Pag":

14. Corporate social responsibility and environmental protection • At a distance of 200 meters of the existing channel will clean underwater worldthat is now polluted by the local landfill • construction of the wall will obscure visibility of the current dump, which impairsthe appearance only 500 meters from the Old town of Pag • Pulling out of mud and debris will  repaired holes in the area of Vodice formed by drawing sand. It is particularly important to reform the area  as before the return tooriginal shape regarding the  soil erosion that threatens the area of ​​road Bošana Moreuz d.o.o.

15. Corporate social responsibility and environmental protection • It will also rehabilitate a former quarry of Gorica, which distorts the appearance of Gorica and directly affects the entrance to the town of Pag • Opens the waterway of the Old town of Pag which will now allow ships as it used to be a canal for them. It fits into the reconstruction site of the Old town of Pag, because in the lower part of the site (where the canal passes) to reconstruct theold harbor and the original street "Vela street" Moreuz d.o.o.

16. The canal connects the island • Under Velabit canal as well as the other settlements in Pag’s bay area: Caska with Zrće, Vidalići, Kustići, Zubovići, Metajna and city of Pag acquire an exit to the open sea • Significantly shortens the voyage towards the port Šimuni, Košljun, Novalja, and Zadar. It opens with a direct the waterway to the southern islands of the Zadararchipelago, Silba, Ist, Molat and Ugljan, and further to the island, Kornati andTelašćica • From Zadar to Pag yachts will arrive in an hour, speedboats and catamarans for less than half an hour, and the Pag and Zadar area provides first class nauticalattraction and contributes to the valorisation of the marine region Moreuzd.o.o.

17. Ecological factors in the construction and use of the channel • Comparative trials have clearly demonstrated that the use of the navigablechannel is not affected by the regime and the quality of surface and groundwaterland the soil along the channel • What has to be concerned with the application of safeguards in the period of using the channel is expected to reduce the possibility of contamination ofgroundwater infiltration and surface water in the project area and even a moderate improvement on the present state • During construction of the canal will be used special equipment and specific approach  in order to reduce total impact on the salt plants and the city Moreuz d.o.o.

18. The immediate benefit to the public and local community • For every citizen the City of Pag will be provided one berth • For every citizen who lives in the old part the City of Pag will be provided a parking place • Will regulate size of city parking lots, both in the summer not to cause traffic jams because of insufficient parking spaces • It will be built and a small mole on the part of the channel to the site of the Old town of Pag Moreuz d.o.o.

19. The immediate benefit to the public and local community • At the entrance of the channel Pag - Kosljun will be built while reloading for themaritime transport of salt for Solana Pag • Shiltnig of beaches and bays with small sand (previously washed in sea) • Will prepare a project ”one citizen-one stock” for all citizens the City of Pag in the project of waterway Pag - Kosljun • The realization of the project generates significant number of  jobs in the construction of canals and in associated facilities during construction and after it Moreuz d.o.o.

20. Key Business Indicators of Project • The total value of investment in the project 1,6 billions kuna • construction of canals and other facilities • Total number of employees • - in primary industries 200 employee - with the supporting activities 600 employee • The value of social benefit 635 millions kuna Project acquires: • large direct fiscal benefits at the national, regional and local level • economic impacts of this project are long-term and long lasting and will increase as the waterway increasingly is being used

21. The expected effects of increased touristic spending The construction of the waterway channel will be positively and significantly affect thedevelopment of tourism in the island of Pagand Kosljun by increasing: • 60% of the total number of tourist arrivals and 65% of the total number of tourist stays • single extra consumption for 2.3 up to 2.7 times • Expected average extension of the tourist season by an average of  30additional days, and increase in services related to tourism by 80%

22. Developing of the Economy • In the case of the optimal use of  sea south of the pedestrian bridge in the town ofPag and in Košljun bay, and construction of nautical necessary infrastructure, thenewly - added value only from nautical tourism, can be measured with the currentmultiple-effect of neraby marina ACI Simuni • The channel is an infrastructural facility, which makes the backbone for the further flourishing economy of the island and the construction of canal to createlong-term foundations for economic development for the next period longer than 20 years Moreuz d.o.o.

23. Developing of the Economy • Channel with its operation immediately becomes center for new business investmentsin a variety of activities, but also a business incubator that will encourage small andmedium business and run clusters of activities and investments  to awaken anddevelop the tourist and fishing fleet • Waterway becomes a strong sales channel that brings new customers for existingand future Pag tourismproductsand merchandise brands Moreuz d.o.o.

24. Access to the project implementation • The uniqueness of the project and the fact that there is never anything like that in Croatia has been built, has created a need for a variety of new approvals and permits • 14 ministeries are involved in project more than 100 experties of all areas of science, engineering, and economic expertees • To obtain all the legal requirements for the project in its entirety, is a necessarypartnership between the state, counties, city and developers

25. We look forward to our cooperation!