CROATIA ROLLING STOCK

This is an allocation under the EIB's signed project "Railway Development Framework Loan Croatia (2022-0660). The present operation will finance investments into new passenger rolling stock to be used under a public service contract. In detail, it supports the purchase of: (i) six bi-mode (diesel-electric) multiple units to operate regional and intercity services on the route from Zagreb to Split (ii) four battery only powered multiple units to operate in the Split and Istrian region (iii) four battery-electrically powered multiple units on the routes Zagreb-Krapina and Zagreb-Bjelovar. The acquisition of the new rolling stock will be implemented by HZ Putnicki prijevoz (HZPP).

The aim of the new rolling stock is to replace the current outdated and technologically obsolete units.

The Project entails the acquisition of new electric, battery powered and bi mode (diesel-electric) rolling stock, replacing age expired diesel-powered vehicles. The Project increases competitiveness of rail and prevents shift of traffic from rail to road, enhancing sustainable transport in line with EU objectives and reducing negative transport externalities, thus addressing important market failures.

These externalities include pollution reduction from the road diesel/petrol engines as well as those from continued use of fossil fuel powered trains and related to noise and CO2 emissions. Furthermore, sustained modal share of rail as the safest mode of land transport will lead to reduction of fatalities and serious accidents and the associated human suffering. The Project supports the deployment of European Rail Traffic Management System (ERTMS), which increases the interoperability, capacity and safety or the railway system, contributing further to increasing competitiveness of rail.

The Project is located in two transition regions (Jadranska Hrvatska and Kontinentalna Hrvatska), thus improving their accessibility and the mobility of their population. Thereby the Project will support the strengthening of the EU's economic, social and territorial cohesion. The Project is a major allocation under the operation 2022-0660 - RAILWAY DEVELOPMENT FRAMEWORK LOAN CROATIA. It plays an important role in securing an affordable overall funding for the Croatian railway sector. It lowers the Borrowers' funding costs and provides a stable long term funding base available for delivering a significant number of improvements in the Croatian railway.

The project does not fall under either Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by Directive 2014/52/EU). If applicable, the promoter will be required to provide evidence of conformity of the construction of any associated facilities (e.g. maintenance workshops or depots) with the requirements of the EIA Directive, Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC), as well as to ensure that any replaced rolling stock is disposed of in conformity with the applicable environmental regulations. The rolling stock will be in conformity with the applicable Technical Specifications for Interoperability (TSI), including the Regulation 2014/1300 on the technical specifications for interoperability relating to accessibility of the Union's rail system for persons with disabilities and persons with reduced mobility (PMR).

The promoter has to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation (2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required. HZPP have already published the tender notice for the six bi-mode trains to operate on the Zagreb to Split line, under reference 162784-2024 (link: https://ted.europa.eu/hr/notice/-/detail/162784-2024). The remaining tender notices are scheduled to be published by the end of 2024.