AIRPORT EXPANSION ZAGREB

The project comprises the financing, design and construction of phase 1 of a new passenger terminal building at Zagreb Airport in Croatia. The existing terminal is already operating in excess of its design capacity. The intention is to use the existing one for other purposes and replace it with a new one, which will provide sufficient handling capacity for projected demand into the mid to longer term. The project is to be awarded under a 30-year concession, which will also include the obligation to operate, develop and maintain the rest of the airport over the concession period too.

Zagreb Airport provides an important gateway to Croatia for travellers from other parts of Croatia, the EU and beyond. It facilitates business contacts and tourism and is therefore one of the prerequisites for the economic development of this accession country. Zagreb is at the crossroads of the two important Pan-European Corridors V and X. The project is expected to bring benefits in terms of improved safety, reduced congestion and time savings for travellers.

The project is classified under Annex II of the Environmental Impact Assessment (EIA) Directive 85/337/EC as amended by Directives 97/11/EC and 2003/35/EC. The EIA Directives and the SEA Directive have been fully transposed into Croatian legislation. An EIA has been commissioned by Zagreb Airport Ltd. in July 2011 upon instruction of the Grantor and completed in June 2012. Mandatory public consultation was conducted in July 2012. The EIA has been passed to the successful concessionaire for use in applying for the Location Permit, which has been obtained in December 2012, and ultimately for the Construction Permit. It will be a condition of the Bank’s financing that all necessary permits are in place and that all relevant declarations are received from the Competent Authority.

In accordance with the Public Procurement Act of January 2008 (which transposed the EU Procurement Directives into national law), the Notice of Intention to Grant a Concession was published in the Croatian National Gazette. In parallel, the same Notice was published in the Financial Times. As a result, wide international interest was generated and a number of consortia were shortlisted through a prequalification process. As part of the Bank’s appraisal process, the prequalification process will be reviewed, together with the procedures adopted for the award of the concession to check for compliance with the Bank’s Guide to Procurement.