The EBRD is supporting the further modernisation of transport infrastructure in Croatia with a loan of up to €60.6 million to Hrvatske Autoceste, the Croatian motorway company, guaranteed by the Republic of Croatia. The EBRD funds will finance the construction of motorway sections of the Corridor Vc, a major transportation route stretching from the Hungarian capital of Budapest to the Croatian port of Ploce, via eastern Croatia and Bosnia and Herzegovina.
The project complements the EBRD’s existing funding of the Corridor Vc in Bosnia and Herzegovina and Hungary and supports institutional strengthening of Hrvatske Autoceste through adoption and implementation of an improved procurement policy which is in line with best practice. The EBRD places a high priority on developing these transport links that bolster economic development by supporting cross-border trade. Promoting good corporate governance in terms of improving the policies and practices of its clients is also a key objective of the Bank.
The loan will be used to complete the Croatian part of the motorway by building some 13 kilometres of motorway sections that will connect the northern and southern ends of the Bosnia-Herzegovina part of the Corrridor Vc at Croatia’s border. The project is supported by technical assistance funding from the Bank’s Shareholders Special Fund. The grants will be used to support increased commercialisation of tolling and maintenance activities at Hrvatske Autoceste. In addition, grants will be used to strengthen corporate governance by supporting the development of a new procurement policy and defining a project management methodology. This is expected to lead to well defined roles, responsibilities, controls, processes and reporting rules for the implementation of Hrvatske Autoceste’s investment programme, allowing for a high level of supervision and monitoring.
The project is expected to be co-financed by a matching loan from the European Investment Bank. “The EBRD’s investment will support the expansion of the motorway network in Croatia, increasing the country’s regional integration. It will also enhance further institutional strengthening of Hrvatske Autoceste and of the Company’s management systems”, said Sue Barrett, EBRD Transport Team Director. “This is an important project for Croatia, but also for the region, linking the Corridor Vc with the country’s motorways network at the borders with Bosnia and Herzegovina. Upon completion Corridor Vc will be the fastest connection between the north eastern and southern Croatia, the most direct route from central Europe to the Adriatic and will greatly improve Croatia’s transport links with neighbouring countries”, said Zsuzsanna Hargitai, EBRD Director for Croatia. Since its first investment in the Croatian motorways in 2001, the EBRD has committed to date over €400 million for the modernisation of Croatia’s transport sector. Overall the Bank has invested more than €2.35 billion in various sectors of Croatian economy.
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