Gov't adopts decision on contract for second tube of Ucka tunnel

The Croatian government on Thursday adopted a decision to enable the signing of a contract on the construction of a second carriageway on the Istrian Y motorway from the Vranja junction to the Ucka tunnel, including the construction of the second tube of the Ucka tunnel.

Under the decision, Croatia, as the party granting the concession, and the Bina Istra company, as the concession holder, will sign a contract for the construction of a second carriageway running from the Vranja junction to the Ucka tunnel, an 8-kilometre section on the northeastern side of the motorway, including the construction of a 5.63-kilometre tube of the Ucka tunnel and the construction of a new rest area on the Kvarner side of the tunnel, said Transport Minister Oleg Butkovic.

The work will include, among other things, the construction of the new Vranja junction, a new underpass, two new overpasses, three new road toll points and a new building for a firefighting unit on the existing platform on the Istrian side of the Ucka tunnel.

The decision also envisages the extension of the existing concession agreement, i.e. the concession that expires 18 months after the planned deadline for the payment of the debt at the latest, namely on 15 June 2039, said Butkovic.

He added that the five-year extension was the same as the previous one, which the government approved in 2018.

The estimated value of the investment is HRK 1.5 billion. Work is expected to last three and a half years during which an average 500 workers will be hired. Upon the expiry of the concession, Croatia will keep the ownership of the investment, which is expected to help increase GDP growth by 0.5%.

The related budget revenue from taxes is expected to increase by HRK 680.6 million.

Upon the expiry of the concession, what fully remains to the state are the sections of the Istria Y motorway built so far, in which the concession holder invested HRK 5.7 billion, as well as the new HRK 1.5 billion section, which together equals the amount of the concession holder's cost of building the Istrian Y motorway, totalling HRK 7.2 billion, said Butkovic.

(Hina)

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