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Government Plans Business and Financial Restructuring of Roads Sector


Government Plans Business and Financial Restructuring of Roads Sector

20 March 2017, VG Intelligence Weekly Issue 46

During the last cabinet session, the Government adopted a Decision on the Business and Financial Restructuring of the Roads Sector. The network of Croatian motorways and national roads is currently managed by the three state-owned companies: Croatian Roads (HC), Croatian Motorways (HAC) and Rijeka – Zagreb Motorway (ARZ), who is also the concessionaire of the road carrying the same name. By 2016, HC, HAC and ARZ concluded a total of 72 state guaranteed loans valued at €8.1 billion. The total debt of the companies amounted to €5.2 billion in 2016, which is slightly above 13.5% of the Croatian total public debt. This decision aims to  enable the road sector reform, strengthen the supervision and planning for the sector, increase operational efficiency of the three companies, and improve the finances of the sector. Sea, Transport and Infrastructure Minister Oleg Butkovic (HDZ) announced that the Government had started to prepare the reform package and would seek World Bank assistance to repay the loans. One of the measures to be taken is a 5%-increase of tolls, starting from 3 April 2017, so that the tolls paid for other motorway sections could be aligned with the tolls paid for the Rijeka-Zagreb Highway…

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