Guarantee agreement okayed for €55m loan deal for Corridor Vc motorway through Croatia

(Photo: Divna Jaksic/Public Domain)

ZAGREB, Dec 7 (Hina) – The government sent to parliament on Monday a state guarantee agreement between Croatia and the European Bank for Reconstruction and Development (EBRD) for financing a portion of the project for the completion of the Corridor Vc motorway with €55 million.

The total estimated value of the project is €107 million, and the EBRD is willing to provide €55 million. For this purpose, the state-owned motorway operator HAC and the EBRD have concluded a loan agreement, which is accompanied by the state guarantee agreement.

HAC will use the loan money to complete two sections of the Corridor Vc motorway – a 17.5-km-long section between Halasica Bridge and Beli Manastir and a 5-km-long stretch between Beli Manastir and the Hungarian border, as well as to buy and install the necessary equipment for the motorway.

“This loan completes the financing package for the construction of the Corridor Vc motorway through Croatia. Its total length through Croatia is 96.1 kilometres and it includes Svilaj Bridge, which is basically finished,” the Minister of Sea, Transport and Infrastructure, Oleg Butkovic, said.

The EBRD loan will become operational after the state guarantee agreement has been approved by parliament. 

The €55m loan agreement is repayable over 15 years, including a 3-year grace period, at a variable interest rate of six-month Euribor plus a spread of 1%.

Butkovic said that the work on the Halasica Bridge – Beli Manastir section was going well and would be completed by mid-2022.