Government Gives Go Ahead for Financing Upgrade of Railways’ Rolling Stock

Total Croatia News

ZAGREB, March 26, 2020 – The Croatian government on Thursday adopted a decision on the financing of a project to upgrade the rolling stock of the railways transport company HŽ Putnički Prijevoz, the estimated value of the four-year project being HRK 1.29 billion, including VAT.

Transport Minister Oleg Butković said that HŽ Putnički Prijevoz would expand its rolling stock by buying 21 new electric trains, which would improve public transport services.

The eligible cost of the project has been estimated at HRK 1.03 billion, and the non-eligible cost refers to VAT in the amount of HRK 258.17 million.

Under the government’s decision, the transport ministry has been entrusted with securing funding for eligible costs until the completion of the process of allocation of EU grants. Those eligible costs refer exclusively to preparations for the project that precede the purchase of trains, for which budgetary funds have been secured.

HŽ Putnički Prijevoz is obliged to secure funds for non-eligible project costs.

The project is expected to be completed by December 2023, said Butković.

Last week the ministry said that the European Commission had granted €119.3 million to co-finance the upgrade of HŽ Putnički Prijevoz’s rolling stock.

More news about railways can be found in the Travel section.


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