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Cost of Waste Remediation at Former PPK Velebit Rises to €4.72 Million

The cost of removing waste from the site in Gospić has more than doubled compared to the initial estimate. The disposal of buried waste remains an open issue, and residents are demanding answers.

Foto: Wikipedia (Velebit)
Summary
  • The cost of the first phase of remediation at the former PPK Velebit site has risen from €2.1 million to €4.72 million excluding VAT.
  • The deadline for removing and disposing of loose waste has been extended from six to 24 months.
  • A permanent solution for buried waste is still being sought, and the citizens' initiative demands that the model be presented before any new tender.
  • Due to delays by responsible authorities, drastic changes at the site went unnoticed between 2020 and 2024.

The estimated cost of the first phase of remediation of illegally dumped waste at the former PPK Velebit site in Gospić has risen to €4.72 million excluding VAT, the Ministry of Environment and Green Transition announced. This represents more than a twofold increase compared to the original estimate of €2.1 million, which the Environmental Protection and Energy Efficiency Fund cited when announcing the first tender in February 2026.

No bids were submitted for that initial call, prompting the Fund to hold additional talks with potential contractors in July 2026. Following these consultations, the value of the works was drastically revised upward. Along with the financial picture, the timeline has also changed: the future contractor will have 12 months to remove the loose waste from the site and another 12 months for its final recovery and disposal. It is worth recalling that the original plan envisaged the entire phase being completed in just six months.

Additional Tender for 650 Tonnes of Bagged Waste

In parallel with the main procedure, the Fund has launched a separate procurement aimed at removing around 650 tonnes of non-hazardous waste stored in big bags. The estimated value of this job is €400,000 excluding VAT. Bids for both tenders will be accepted until the end of August 2026.

The final cost of disposal, the Ministry explains, largely depends on the chemical composition of the waste, with the chlorine content playing a key role. It is precisely this parameter that determines the feasibility and cost of thermal treatment at foreign facilities. The higher the chlorine concentration, the more demanding and financially burdensome the process becomes.

Buried Waste: Still Searching for a Disposal Model

A far greater challenge is posed by the portion of waste that ended up underground. For this, the final remediation model has yet to be selected. In search of a solution, the Fund first contacted 15 foreign operators, after which the inquiry was extended to approximately 60 companies managing hazardous waste landfills or waste-to-energy plants across the European Union. Additionally, inquiries were sent to four addresses regarding the possibility of permanent disposal in abandoned salt mines.

Several preferred options are currently under consideration: disposal at hazardous waste landfills, energy recovery, or a combined approach. The citizens' initiative "Gospić Is Our Home" is expected to receive insight into the proposed remediation models by September 20, 2026. The Ministry emphasizes that this date does not mark the moment of decision-making, but rather the fulfillment of a promise that a proposal will be presented before any public procurement is announced.

Water Is Safe, but Concerns Over Oversight Grow

In the context of safety, the Ministry also addressed the issue of drinking water quality, particularly regarding the potential presence of PFAS compounds. The Croatian Institute of Public Health has confirmed its safety, and an expansion of the groundwater monitoring network has been agreed upon.

The Ministry and the Fund stress that they were never responsible for issuing permits or conducting inspections at that site. This raises the question of why the authorities that had the power to act on the ground failed to notice significant changes in the area between 2020 and 2024. State-led remediation was only initiated when it became clear that the polluter could not bear the costs and that the local level had not responded. The government included the site in the Waste Management Plan in May 2025, giving the Fund the legal basis to act. Preparatory works on the ground began in mid-October 2025, as soon as access to the site was granted after being previously blocked due to criminal proceedings.

FAQ
How much does the first phase of waste remediation in Gospić now cost? +
The estimated value of the first phase of remediation has increased to €4.72 million excluding VAT, which is more than double the initial estimate of €2.1 million.
Why did the costs increase and deadlines extend? +
No bids were submitted for the first tender. After additional consultations with contractors, the estimated value was revised, and the deadline for waste removal was extended from six to a total of 24 months.
What about the waste that is buried at the site? +
A final disposal model for the buried waste has not yet been selected. Options under consideration include disposal at hazardous waste landfills, energy recovery, or permanent storage in former salt mines.
Is the drinking water in the area safe? +
The Croatian Institute of Public Health has confirmed that the drinking water is safe for human consumption. Additionally, the groundwater monitoring network will be expanded.

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