CROATIA TRACK MAINTENANCE MACHINERY

Promoter – Financial Intermediary

MINISTRY OF MARITIME AFFAIRS, TRANSPORT AND INFRASTRUCTURE

Location

• Croatia

Description

This is an allocation under the EIB's signed project "Railway Development Framework Loan Croatia (2022-0660). The current operation will support the purchase of new modern and strategic track maintenance machinery to be implemented by HZ Infrastruktura (HZI).

Additionality and Impact

The Project is a major allocation (Scheme) under the operation 2022-0660 - RAILWAY DEVELOPMENT FRAMEWORK LOAN CROATIA which supports mature strategic transport projects in the railway sector in Croatia, developed under the responsibility of the Ministry of Sea, Transport, and Infrastructure.

This Project is meant to support the purchase of modern track maintenance machinery, through the railway infrastructure operator HZ Infrastruktura (HZI). The Project contributes to efficiency and safety improvements of the national railway system, as the investments into new modern and strategic track maintenance machinery will enable better and more cost-effective maintenance operations, improving the network's overall availability and reliability for Croatian residents.

The provision of reliable track maintenance machinery contributes towards a safe, available, and cost-effective railway infrastructure. This will further contribute to more available railway infrastructure for use by passenger and freight train operators. The use of railway services over other modes with higher externalities and costs to society contributes to traffic and environmental objectives. Furthermore, sustained modal share of rail as the safest mode of land transport will lead to reduction of fatalities and serious accidents and the associated human suffering.

The assets necessary for track maintenance have long life and the benefits from these assets materialise over long time. The (national) financial markets often do not offer loan tenors that match the life of the assets. EIB is well positioned to offer the relevant lending terms for a Project with long asset life and several years of construction period.

The Project is consistent with the Bank's Transport Lending Policy and contributes 38% to meeting the Bank's commitment to Climate Action and Environmental Sustainability. The Project will support the strengthening of the EU's economic, social and territorial cohesion.

Objectives

Investments will make maintenance operations better and more cost-effective as well as improve the network's availability and reliability.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 54 million

Total cost (Approximate amount)

EUR 87 million

Environmental aspects

The project does not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive (EIA) 2011/92/EU (amended by Directive 2014/52/EU). If applicable, the promoter will be required to provide evidence of conformity of the construction of any associated facilities (e.g., maintenance workshops or depots) with the requirements of the EIA Directive, Habitats Directive (92/43/EEC) and/or Birds Directive (2009/147/EC), as well as to ensure that any replaced machinery is disposed of in conformity with the applicable environmental regulations.

Procurement

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

Status

Approved - 5/09/2024