RAILWAY DEVELOPMENT FRAMEWORK LOAN CROATIA

Promoter – Financial Intermediary

MINISTRY OF MARITIME AFFAIRS, TRANSPORT AND INFRASTRUCTURE

Location

• Croatia

Description

The framework loan will finance railway transport infrastructure projects developed by Croatia's Ministry of Sea, Transport and Infrastructure. The related projects will support sustainable development in Croatia in line with national transport and regional development plans.

Additionality and Impact

The proposed operation will support strategic transport projects in the railway sector in Croatia, developed under the responsibility of the Ministry of Sea, Transport and Infrastructure (MSTI). Through the EIB framework loan, the Bank will continue to contribute to Croatia's socio-economic development, enhancing railway development and therefore creating better connectivity.

The project pipeline includes a number of important projects including the introduction of locally emission free trains replacing diesel powered trains. Further projects include the introduction of a new nationwide railway communications system enabling significantly improved operations and the rehabilitation of presently almost unusable infrastructure back into usable state in otherwise insufficiently connected regions. The entire pipeline aligns strongly with the strategic planning and long term transport objectives of Croatia. 

The Bank's support to the first sectoral framework loan in Croatia would also bring significant benefits in terms of (i) the Bank's favourable financing terms (long tenor of up to 30 years, aligned with the economic life of the financed railway assets, grace, bullet repayment option, flexible disbursement tranches); (ii) the Bank's participation would enhance Croatia's absorption capacity and rate of EU funds under the Operational Program Cohesion and Competitiveness 2021-2027 and Recovery and Resilience Facility. The EIB FL is expected to have a signalling effect on the market and enabling the realisation of a number of investment schemes/ projects, that otherwise may not have materialised. Finally, the EIB framework loan is the most suitable financing modality to support projects at different degree of maturity (under implementation and new investments) in a consistent and well-coordinated manner, hence generating replicability of similar investment strategies in future.  

Objectives

The aim is to improve strategic railway infrastructure and rolling stock across the country. The related transport investments will have to be in line with the EIB"s Transport Lending Policy.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 900 million

Total cost (Approximate amount)

EUR 2600 million

Environmental aspects

The projects may fall under Annex I or II of the Environmental Impact Assessment (EIA) Directive (2014/52/EU amending the EIA Directive 2011/92/EU). Compliance with the EIA Directive in addition to the SEA Directive (2001/42/EC) and Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively) is to be assessed during appraisal.

Procurement

The promoter has to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/24/EU and Directive 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 22/01/2024