Common use of Islands Clause in Contracts

Islands. In the Croatian part of the Adriatic there are 78 islands, 524 small islands and 642 islets, cliffs and reefs, or a total amount of 1,244 out of which only 59 are inhabited. Croatian islands encompass all islands in the East and Middle Adriatic and form second largest archipelago in Mediterranean. According to last Census a total of 124,955 [141] inhabitants live on the islands with population density of 37.9 inhabitants per km2. Islands Krk, Pag, Vir, Murter, Šiovo (5 islands) are the only ones connected to the mainland by bridges. Even though the total number of inhabitants on islands increased between the last two Censuses, depopulation is evident when it comes to small and remote islands. Increase in total number of population can be recorded for almost half of Croatian islands, however only two of them (Vir and Šiovo, both connected by bridges) also have positive natural growth. Long-term emigration from the islands resulted in low bio-reproductive potential. Decrease of birth rate and high mortality rate have been, in some cases, compensated by immigration during last decade, but immigrants are in most cases elderly and economically non- active. According to the last Census, population of islands connected to mainland by bridges was 42,245 (which is 10.3% increase compared to 2001), while the total population of all other islands amounted 82,710 (1.7% decrease compared to 2001). Although islands can be classified in two groups according to their development level, all inhabited islands face similar challenges related to connectivity and availability of services and infrastructure. Limited accessibility (physical, but also virtual) raises the expenses for inhabitants and business and makes the islands less attractive for living from financial, but also other (e.g. social), aspects. Therefore, the issue of island connectivity (with mainland and among islands) is one of the basic island development priorities to be supported in the following period through set of specific measures. Former investments in this field have already shown some valuable results, however continuation of efforts is needed. Remote islands are very much affected by isolation –– e.g. time travel to Island of Lastovo (the most distant among the islands with medium population density and negative demographical trends) is estimated to 5 hours. Development potential of islands is also related to broadband network coverage, which can improve quality of life on islands. Accessibility of services can be improved through set of technological solutions and designing new models of services (e.g. related to health, education etc.) Good examples of reducing the distances in providing services can be found in e.g. establishment of distance learning, which has so far been introduced on 7 islands [142]. Most of islands are less affected by ecological damages related to industrial development that can make them attractive for inhabitants if the access to basic services is available. There is also strong development potential in the field of energy, more precisely related to renewable energy sources (solar energy34, energy of wind, water etc.), which so far hasn’’t been recognized to sufficient level as an investment opportunity.