Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

01 Dec 1998



PSD disclosed:

26 May 1998

Project Description

Priority investments to improve the competitiveness of Croatian Railways supported by railway restructuring and commercialisation measures to improve the financial and operational performance of the railways.
The main objectives of the project are to:
  • support the modernisation and restructuring of the railways in Croatia in response to the changing market demands;
  • assist in formulating and implementing the modernisation and restructuring strategy of HZ; and
  • assist in financing the most urgent investment needs.

Transition Impact

The project will have a positive impact on the transition in the following ways:
  • Market expansion: By setting up a market strategy for HZ and introducing adequate contractual arrangements with its main clients, including the Government, the project will stimulate competitive behaviour in HZ's interactions with suppliers and clients;
  • Frameworks for markets: The project will support the implementation of the Railway Law, which provides the basis for the commercialisation of HZ's operations; the Railway Law demonstrates the Government's commitment to the formulation of commercial railway policy, promoting competition and business transparency;
  • Transfer of skills: The modernisation and restructuring programme will result in significant upgrading of the technical skills of the HZ management;
  • Demonstration effect: HZ's restructuring will demonstrate ways of successfully modernising railway enterprises.

The Client

The client is the national railway, Hrvatske Zeljeznice (HZ).

EBRD Finance

US$ 35 million (Euro 30 million) sovereign-guaranteed loan.

Project Cost

US$ 219 million (Euro 188 million).

Environmental Impact

The project was screened B/0, requiring an Environmental Analysis. This was carried out by international consultants and dealt primarily with the environmental issues associated with the improvements to be made to the rail infrastructure. It proposed to develop an in-house capacity for environmental management and developed an Environmental Action Plan related to the investment components. There are no significant environmental issues associated with this project. The environmental impact of reconstruction of the existing railway track, signalling, telecommunications and power supply systems and procurement of new rolling stock was identified, and appropriate mitigation measures were adopted. The environmental impact of the project is limited and will be mitigated through specific measures included in an Environmental Action Plan. These measures include waste management, use of hazardous chemicals, noise abatement and environmental monitoring. The Board of HZ has approved the implementation of the proposed Environmental Action Plan.

Technical Cooperation


Business opportunities

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