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The project relates to the construction of a public wholesale and passive backhaul fibre network in predefined targeted areas, where the existing backbone infrastructure does not support the upgrade to Next Generation Access (NGA) networks. The rollout of approximately 5 600 km of linear fibre for the construction of a Next Generation Network (NGN) backhaul infrastructure aims to connect up to 450 prioritised settlements, each having more than 1000 inhabitants. A defined set of public users will be connected in targeted areas, which will enable the implementation of various e-government services by different public entities and public projects.
The project entails the deployment of an advanced network enabling fast and ultra-fast broadband services in Croatia. It contributes to the initiative "Digital Agenda for Europe," one of the seven pillars of the Europe 2020 strategy to foster smart and sustainable growth to improve productivity and to develop a single market. The project is fully in line with the goals of the Digital Agenda to enable ultra-fast Internet connectivity.
The project relates to the construction of a public wholesale and passive backhaul fibre network in predefined targeted areas, where the existing backbone infrastructure does not support the upgrade to Next Generation Access (NGA) networks. The roll-out of approximately 5 600 km of linear fibre for the construction of a Very High Capacity Network (VHCN) backhaul infrastructure aims to connecting up to 450 prioritized settlements and 1 650 public administration bodies, and will enable the implementation of various e-government services by different public entities and public projects. The promoter is an experienced and state-owned company with a proven record of accomplishment in the construction and operation of national fibre optic networks.
The project addresses the specific market failure leading to under investment in broadband network infrastructures in rural and lower profitable areas, mainly due to low average revenue per user levels and high unit costs. The implementation of high-speed broadband networks will generate positive externalities for other sectors of the economy and contribute to increasing regional integration between urban and rural areas of Croatia.
The project will contribute to the UN Sustainable Development Goal (SDG) 9 : Industry, Innovation and Infrastructure and SDG 10: reduced inequality.
The EIB's involvement will facilitate the absorption of EU structural funds by securing national co-financing contributions of EU funded projects in Croatia. The EIB financing provides an essential financial contribution in the form of financial advantage (long tenor), that is currently not available in the market.
Investments in fixed telecommunications projects (mainly civil works for fibre rollout) do not fall under the Annexes I & II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. The related works have limited environmental effects, apart from disturbances during civil work constructions, which can be mitigated by appropriate measures.
The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, as well as Directive 92/13/EU or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.