CROATIA’s rail network will benefit from a €400m loan from the European Investment Bank (EIB). The loan agreement signed by the EIB and the Croatian Ministry of Finance on February 2 is the first part of a €900m framework loan dedicated to revitalising Croatia’s rail infrastructure.
It will fund a major upgrade of the country’s railway network and rolling stock fleet and is expected to encourage modal shift to rail, improve passenger safety and bring environmental benefits, including reduced emissions and traffic congestion.
The EIB funding will support investment of about €2.6bn aimed at revamping Croatia’s railways.
Under the agreement, Croatia’s infrastructure manager HŽI will upgrade the railway network, while national passenger operator HŽPP will acquire new rolling stock. Both organisations will work under the supervision of the Ministry of the Sea, Transport and Infrastructure.
The loan will fund the renewal of approximately 500 route-km, including lines around Slavonia, Podravina, Knin and Karlovac. It will also support the refurbishment of 30 stations, including in Pula, Buzet, Vodnjan, Sesvete, Virovitica and Pleternica.
HŽPP will purchase 14 new trains, six of which will be for long-distance services between Zagreb and Split, while eight trains will be powered by alternative traction, likely to be batteries.
The framework loan is EIB’s largest-ever to Croatia.
“Funds from this loan will enable us to make further investments in railway infrastructure, for the renovation and construction of local and regional railways, those parts of the network that we cannot finance with EU grants,” says Mr Oleg Butković, Croatia’s deputy prime minister and minister of the sea, transport and infrastructure.
“Railways are one of the safest, low-emission means of transport and we are proud to support Croatia in its ambitious plan to develop a modern railway system for the benefit of the people, businesses and the environment, in line with our common EU goals to ensure a greener and more secure future,” says EIB vice-president, Ms Teresa Czerwińska.
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