Agreement signed with EIB

The ceremony of signing the Financing Agreement between the Republic of Croatia and the European Investment Bank (EIB) for the project Revitalization of the Railway System of the Republic of Croatia was held on Friday, February 2, 2024 at the premises of the Ministry of the Sea, Transport and Infrastructure in Zagreb.

In the presence of Deputy Prime Minister and Minister of the Sea, Transport and Infrastructure Oleg Butković, the Agreement was signed by Minister of Finance Marko Primorac and EIB Vice President Teresa Czerwińska. The contract will see through the realization of the first part of the loan, amounting to EUR 400 million, out of a total planned EUR 900 million framework loan intended for projects aimed at improving railway infrastructure and passenger transportation, which will go towards the revitalization of about 500 kilometres of local and regional railway tracks and 30 stations and stops. 

The funds provided by this loan will enable us to further invest in railway infrastructure, for the purpose of reconstruction and construction of local and regional railway tracks, i.e. parts of the network that cannot be financed through grants, since they are not a part of European corridors. - said Deputy Prime Minister, Minister Butković, pointing out that further investments in the railway system are expected in the next ten years.

- I call it a decade of investing in railways because Croatia could not simultaneously invest in all modes of transport at the same time. We have decided to continue investing in railway infrastructure after having realized multiple large road projects. - emphasized Butković, adding that alongside the revitalization of the railway infrastructure, part of the funds will be directed to the renewal of the rolling stock, which has already been largely revitalized and now boasts 29 new trains that have been put into operation in the last three years, primarily thanks to European funds.

EIB Vice President Czerwińska pointed out on this occasion that today's signing of the agreement marks an important milestone in a successful partnership with Croatia, since it is currently the largest EIB loan contracted since the beginning of its operation in Croatia in 1977.

- I am extremely pleased that we can help Croatia overcome the double challenge of both decarbonisation and digitalisation in the transport sector. Railways are one of the safest means of low-emission transportation, so we are proud to support Croatia in its ambitious plan to develop a modern rail system for the benefit of its citizens, businesses and the environment, and in line with the EU's common goals of ensuring a greener and safer future. - stressed the EIB Vice-President.

- The financing agreement represents the significant support that the European Investment Bank will provide as part of the implementation of the Project 'Revitalization of the Railway System of the Republic of Croatia' and is also part of the financial construction of the entire project, with a value currently estimated at EUR 2.6 billion. - said Minister Primorac, adding that other sources of funding include EU funds and, in part, the country’s own resources.

- These figures indicate our government's strong commitment to investing in railway infrastructure and the transportation system, as well as the EIB's willingness to co-finance EU projects. - stated the Minister of Finance, underlining that this financing agreement confirms a continuation of successful cooperation with the EIB.

The EIB appropriations provide beneficial long-term financing that, together with European Union grants, will encourage sustainable transport and a transition from road to rail, which will significantly improve passenger safety, while reducing traffic congestion, air pollution and greenhouse gas emissions. EIB funds will be used for the revitalization, modernization, expansion and improvement of Croatian railway infrastructure and rolling stock, and in accordance with the agreement, HŽ Infrastruktura will implement projects for the revitalization and modernization of the railway network, while HŽ Putnički prijevoz will implement projects for the procurement of new railway vehicles.

President of the Management Board of HŽ Infrastruktura, Ivan Kršić, has said that large sums have been withdrawn from EU funds for a long period time and that projects worth about EUR 1.5 billion are currently underway. He further stated that this loan would restore 500 kilometres of railway tracks towards Slavonija, Podravina, around Zadar, Knin and Karlovac, and that around 30 stations, such as those in Pula, Buzet, Vodnjan, Sesvete, Virovitica, Pleternica, etc. would be revived.  The President of the Management Board of HŽI added that the effects of the works on the aforementioned sections would be felt quickly and that as early as next year, trains could run faster than before in certain sections and that trains in the renovated sections would go at projected speeds, up to 120 kilometres per hour.

On this occasion, the President of the Management Board of HŽ Putnički prijevoz, Željko Ukić, said that the project included the procurement of new trains and that HŽ Putnički prijevoz provided funds for the procurement of 14 new trains, six of which would be used for long-distance transport, for connecting Zagreb and Split, while eight trains would be run using alternative drives - battery and electric battery trains.