Trans-European Corridor X Railway Rehabilitation

Location:

Croatia

Project number:

46290

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Status:

Cancelled

PSD disclosed:

04 Jul 2014

Translated version of this PSD: Croatian

Project Description

The EBRD is considering the provision of a sovereign guaranteed loan of up to €120 million to Hrvatske Željeznice Infrastruktura d.o.o. (“HZ Infrastructure”, the “company” or the “borrower") for the renewal and rehabilitation of railway tracks along two sections of Trans-European Corridor X: Savski Marof to Zagreb, which includes 22 km double rail track, and Greda-Sisak-Sunja-Novska, which includes approximately 74 km single rail track.

Transition Impact

The project is expected to support regional development and connectivity as this European corridor connects the Western Balkan countries and its upgrading will facilitate significantly improved transport links within the country. 

In addition, the transition impact of the proposed transaction is expected to be achieved through the following:

  • The development and implementation of a real estate commercialisation plan and the divesture of other non-core assets/subsidiaries; 
  • Potential inclusion impact by developing training opportunities for young people in the country which is characterised by large inclusion gaps in relation to youth unemployment, education and training;
  • Improvement of the company’s procurement procedures with a view to achieve the certification by an internationally recognised procurement certification body;
  • Implementing of energy efficiency measures identified by the energy efficiency audit. 

The Client

Hrvatske Željeznice Infrastruktura d.o.o. is the national railway infrastructure company. It is a limited liability company incorporated in the Republic of Croatia and wholly owned by the state. The company is an integral part of the national railway system responsible for the administration, operation and maintenance of the railway infrastructure in Croatia.

EBRD Finance

Sovereign guaranteed loan of up to €120 million to Hrvatske Željeznice Infrastruktura d.o.o. 

Project Cost

€150 million.

Environmental Impact

Categorised B. This project will improve operating safety for the rehabilitated sections of track and will provide additional rail capacity for passengers and freight.

The environmental and social due diligence for the project, which is ongoing, includes an environmental and social audit of the environmental, health & safety and social management systems and an appraisal of the potential impacts of the proposed upgrades.

The PSD will be updated when the results of due diligence are known.

Technical Cooperation

The project is expected to benefit from the following TC assignments: 

  • Strategic review and analysis of potential options for commercialisation of real estate assets owned by HZ Infrastructure, with an estimated cost of €200,000; 
  • Assistance to Project Implementation Unit, with an estimated cost of €240,000; 
  • Lender’s Monitor Advisor to monitor the implementation of the Project on behalf of the Bank, with an estimated value of €50,000; and
  • Procurement Benchmarking and certification with an estimated cost of €60,000.
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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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