Autocesta Rijeka-Zagreb Project Extension



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

11 Jul 2006



PSD disclosed:

29 Mar 2006

Project Description

The operation will enable ARZ to complete the construction upgrading to full motorway profile between Kikovica and Stara Susica which, together with other investments, will complete the motorway between Rijeka and Zagreb.

Transition Impact

The proposed project will include a Technical Assistance Programme to assist the Company in preparation of the medium term Corporate Strategy. The main transition impact will come from loan conditionalities related to the commercialisation of ARZ in the post-construction phase.

The Client

ARZ – the Client - is a Public Limited Company fully owned by Croatia. The Client holds a 28 year renewable concession (of which 20 years are left) to design, build, finance, operate and maintain all sections of the motorway linking Rijeka with Zagreb.

EBRD Finance

The EBRD finance would be in the form of a Sovereign Guaranteed loan of EUR 50 million to ARZ.

Project Cost

EUR 290 million.

Environmental Impact

The project has been screened C/0. The project is an extension to an existing Bank project, which underwent an Environmental Impact Assessment and public consultation in accordance with the Bank’s Environmental Procedures for A-category projects in 2000-2001. The Bank’s Environmental Specialist undertook a site visit along the entire length of the motorway, held meetings with the Ministry of Environment and discussed with the consultants who undertook the update of the Environmental Impact Assessment (EIA). The investigations confirmed that the upgrading to full profile motorway, by adding a second road carriageway, will not result in any deviation from the existing corridor and will not raise any significant new environmental issues to the original project. The review of the EIA's and public consultation already undertaken showed that they were carried out in full compliance with national requirements and in accordance with EU EIA Directives.

The EIA has identified all necessary environmental protection and mitigation measures and provides a detailed Environmental Management Plan (EMP) for the project. Discussions are under way to finalise the EMP, the implementation of which will be covenanted in the loan agreement. Furthermore the Sponsor has recently established a new environmental protection department within ARZ and aim to achieve full ISO 14001 accreditation in 2006. This should help to ensure that the Environmental Mitigation, Management and Monitoring Plans, which form a condition of the construction and operation permits, will be implemented in full and to a very high level.

Technical Cooperation

EUR 250,000 to be mobilised to prepare privatisation strategy of the motorway company in the medium term.


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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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