Development of railway network is government's lasting commitment

The national rail company Hrvatske Zeljeznice (HZ) remains the government's lasting commitment, the Minister of Maritime Affairs, Transport and Infrastructure, Sinisa Hajdas Doncic, said after a meeting of the Railways Commission on Friday.

The Commission approved further financing for new passenger trains.

The Croatian Bank for Reconstruction and Development (HBOR) will provide funds for the remaining 23 trains without a government guarantee because in negotiations with the European Commission HZ proved that it can pay off its loans on its own, the minister said.

All the trains will be built by a Croatian consortium led by Koncar. "This is proof that the development of the railways is the government's strategic commitment that will secure long-term business for the Croatian industry," Hajdas Doncic said.

EU funds will be used for the construction and modernisation of the railway infrastructure. EUR 168 million has been approved for a section between Dugo Selo and Krizevci, and the European Commission is expected in January to approve 40 million euros for the Sveti Ivan Zabno - Gradec section. The design and Commission approval for the continuation of construction of sections from Krzevci to Botovo on the Hungarian border and from Zagreb to Karlovac, as part of the Mediterranean corridor running from the northern Adriatic port city of Rijeka to the Hungarian border, is expected by the end of 2016.

Hajdas Doncic said that the Rijeka railway route should be fully operational for large quantities of cargo as of 2022.

Also, HRK 50 million is to be secured from development banks, with the possibility of being repaid from EU funds, to instal safety barriers at level crossings. The installation will be carried out by Croatian companies that won the tender, Hajdas Doncic said.

Responding to questions from the press, he said he was very pleased with bids submitted for a concession for the operation of the motorways, adding that the selection process would be finalised by early summer.


(Hina)