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EBRD assists the reconstruction of Croatia's rail network
Providing passengers and freight companies a more reliable transport service, the European Bank for Reconstruction and Development is extending a loan of US$ 35 million (ECU 30 million) to Croatia’s national railway company, Hrvatske Zeljeznice (HZ). The project will help HZ to improve its fleet of locomotives by enhancing energy efficiency, increasing equipment reliability and lowering maintenance costs. Guaranteed by the Croatian government, the loan is part of a programme to modernise and restructure Croatia’s railways.
"The project will help HZ to offer competitive domestic and international transport services by improving service and reducing operating costs," said Roy Knighton, Director of the EBRD’s Transport Team. "The EBRD’s investment is part of the first phase of the modernisation and restructuring programme being undertaken by Croatian Railways with the support of the Croatian government. This project was developed together with the World Bank, which is considering co-financing the first phase of the programme with a US$ 100 million loan to the Republic of Croatia."
Borislav Skegro, Minister of Finance, said: "The government of Croatia and the management of HZ are committed to implementing a comprehensive modernisation strategy for the railways. The EBRD and the World Bank have worked with Croatian Railways to define a comprehensive programme for its commercialisation."
The Croatian Railways modernisation and restructuring programme consists of several initiatives that address the main priorities of the railway sector in Croatia: investment needs, staff retrenchment programmes, regulatory reform, organisational changes and financial and economic restructuring. The implementation of the programme will allow Croatian Railways to operate efficiently in a market-oriented economy.
The EBRD has signed 11 projects in the rail sector, totalling approximately ECU 470 million. These include projects in Bulgaria, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Russia and Slovenia.
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