Croatia: HZ Infrastructure Modernisation



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

12 Nov 2013



PSD disclosed:

08 Aug 2013

Translated version of this PSD: Croatian

Project Description

The EBRD is considering providing financing to Croatian Railways Infrastructure (“HZI”) to fund the purchase of maintenance mechanisation equipment and to support HZI’s labour restructuring programme, as part of the on-going sector reform and commercialisation processes.

Transition Impact

Transition impact of the Project will be derived from:

  1. The demonstration of successful restructuring, as the Project supports the implementation of a labour restructuring programme, as part of on-going rail sector reform;
  2. The demonstration of energy savings through implementation of an energy efficiency programme;
  3. The improvement of corporate governance through preparation of a rolling five year Business Plan;
  4. Encouraging effective and autonomous management through the renewal of the multi-annual railway infrastructure management contract; and
  5. Promoting network access by reviewing the track access charging methodology.

The Client

HZI is the national railways infrastructure manager in Croatia, wholly owned by the Republic of Croatia.

EBRD Finance

Up to €40 million senior loan.

Project Cost

Up to €50 million.

Environmental Impact

This project has been categorised B under the EBRD’s Environmental and Social Policy. HZI is an existing EBRD’s client and has been providing information on its environmental and safety performance for several years. Environmental and social due diligence for this new investment is ongoing and includes a review of Environmental, Health and Safety (EHS) policiesand system and performance data; meetings with HZI’s environment, safety and human resource managers; and visits to operational sites, including stations, maintenance depots and vehicle overhaul facilities. The benefits of this project will include improved energy efficiency and reduced greenhouse gas emissions and increased reliability, comfort and safety for HZI’s customers.

The company appears to be operating broadly in compliance with the EBRD Policy and Performance Requirements. Where deficiencies are identified, the EBRD and HZI will agree actions to address them. All required permits and licenses are in place. The vehicles to be purchased under this investment will meet EU standards for safety and noise. Environmental management at HZI is good and includes systems for waste separation and recycling and measures to prevent pollution and control hazardous substances. Safety measures are generally appropriate and include controls for electrical safety, fire safety, and work on tracks.

The EBRD is reviewing HZI's HR policies and plans for reductions in headcount. HZI management has a good working relationship with the trade unions and Collective Agreements are in place covering pay and conditions, worker rights and grievance mechanisms. Once due diligence is complete, the EBRD will agree any additional actions with HZI that may be necessary to bring the redundancy programme in line with the Bank’s Performance Requirements.

Technical Cooperation

1. Support for Retrenchment Planning (€52,000);

2. Assistance to the Project Implementation Unit (€250,000); and

3. Assistance with the preparation of a five year Business Plan, renewal of the Railway Infrastructure Management Contract and review of the Track Access Charge methodology (€400,000).

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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