* Croatian docks heavily subsidised
* EU entry requires docks restructuring
ZAGREB, Feb 2 (Reuters) - Croatia said it has received just one bid from a local company for a major shipyard it is trying to sell to satisfy a key condition for wrapping up its European Union entry talks by July.
Restructuring of the docks, which are heavily subsidised contrary to the EU competition rules, is needed if Zagreb to complete its entry talks with the trading block.
The head of the state privatisation fund, Vedran Duvnjak, said the bidder had already expressed interest in acquiring some other docks.
"Our expert teams will now assess the quality of the offer," Duvnjak said
After a failed tender due to a withdrawal of a German-based investor, the May 3 dock, located in the northern Adriatic port of Rijeka, was again offered for a token price of 1 kuna. The bidder had to submit a restructuring plan which includes a strong capital injection for modernisation.
The plan must also be approved by the European Commission which is now reviewing the viability of the privatisation programmes for four other ailing Croatian shipyards. The decision from Brussels is expected this month.
Should it be positive, Croatia will make a major step towards completing the talks in one of the most demanding policy areas of the EU common law -- the competition policy. If not, a conclusion of the entry talks by July becomes increasingly unlikely.
The shipbuilding overhaul is a sensitive issue as the docks employ some 11,000 people and many small businesses are also involved as contractors. The government wants to keep the industry afloat and avoid major job losses.
The docks have been making losses for years and the government, struggling with fragile public finances, may have to take over up to 12 billion kuna ($2.24 billion) of loans to the docks which it guaranteed in the past.
Zagreb has yet to wrap up EU talks in six out of altogether 33 chapters. If it completes the talks by mid-2011, Croatia is likely to become a member in 2013.
Another major task for successful completion will be to convince the EU members in the coming months that the ongoing fight against corruption and efforts to reform judiciary and make it quicker, reliable and independent of politics are serious and sustainable. (Reporting by David Spaic Kovacic, writing by Igor Ilic, edited by Matthew Jones)