- Published: 16.03.2017.
Adopted Decision on Acceptance of Business and Financial Restructuring of the Road Sector
The Government of the Republic of Croatia has adopted a Decision on the Acceptance of Business and Financial Restructuring of the Road Sector.
This sector is characterized by an extremely large debt of about 39 billion HRK, of which this year should be paid 7.56 billion HRK.
In order to avoid the concession / privatization of the motorway and the uncontrolled increase in toll prices by private concessionaires, the Government of the Republic of Croatia has accessed to the business and financial restructuring of the road sector. The said reform is also intended to support the World Bank by issuing guarantees that the Republic of Croatia will use when refinancing or reprogramming of said debt.
We should point out that the business and financial restructuring of the road sector is divided into three areas, then planning, then planning, financing and implementation of sector investment, contol and business management operation.
Sector management implies increasing the efficiency of the maintenance system, reducing operating costs by implementing business and organizational mergers of the HAC, HAC-ONC and ARZ.
Planning financing and implementation of investment in the sector includes the seasonal increase in toll revenue, the limitation and control of new debt in the sector, and the definition and introduction of a new toll collection system.
In the area of control and business management, the transparency of business operations of companies in the road sector will increase, with emphasis on guidance of social dialogue.
Not conducting business and financial restructuring, the sector is exposed to a complete loss of liquidity and repayment of credit obligations which would have significant negative economic effects in the Republic of Croatia.
Otherwise, the said restructuring is preceded by a tac price adjustment of the HAC from 3 April 2017 by 5% with the toll prices of the concessionaire Autoceste Rijeka - Zagreb. Thus, the price of national road companies will still be reduced by approximately 15% of the toll prices of private concessionaires in the Republic of Croatia.
Point out in the end of today's adoption of the Decision, the Government of the Republic of Croatia accepts the text of the business and financial restructuring of the road sector and authorizes the Minister of Sea, Transport and Infrastructure to submit it to the World Bank.
ATTACHMENT
This sector is characterized by an extremely large debt of about 39 billion HRK, of which this year should be paid 7.56 billion HRK.
In order to avoid the concession / privatization of the motorway and the uncontrolled increase in toll prices by private concessionaires, the Government of the Republic of Croatia has accessed to the business and financial restructuring of the road sector. The said reform is also intended to support the World Bank by issuing guarantees that the Republic of Croatia will use when refinancing or reprogramming of said debt.
We should point out that the business and financial restructuring of the road sector is divided into three areas, then planning, then planning, financing and implementation of sector investment, contol and business management operation.
Sector management implies increasing the efficiency of the maintenance system, reducing operating costs by implementing business and organizational mergers of the HAC, HAC-ONC and ARZ.
Planning financing and implementation of investment in the sector includes the seasonal increase in toll revenue, the limitation and control of new debt in the sector, and the definition and introduction of a new toll collection system.
In the area of control and business management, the transparency of business operations of companies in the road sector will increase, with emphasis on guidance of social dialogue.
Not conducting business and financial restructuring, the sector is exposed to a complete loss of liquidity and repayment of credit obligations which would have significant negative economic effects in the Republic of Croatia.
Otherwise, the said restructuring is preceded by a tac price adjustment of the HAC from 3 April 2017 by 5% with the toll prices of the concessionaire Autoceste Rijeka - Zagreb. Thus, the price of national road companies will still be reduced by approximately 15% of the toll prices of private concessionaires in the Republic of Croatia.
Point out in the end of today's adoption of the Decision, the Government of the Republic of Croatia accepts the text of the business and financial restructuring of the road sector and authorizes the Minister of Sea, Transport and Infrastructure to submit it to the World Bank.
ATTACHMENT