ZAGREB, Feb 28 (Hina) - Members of a World Bank mission supported a proposal by the Croatian Railways (HZ) management that a World Bank loan to support restructuring programmes and upgrading in HZ be extended for another year.
ZAGREB, Feb 28 (Hina) - Members of a World Bank mission supported a
proposal by the Croatian Railways (HZ) management that a World Bank
loan to support restructuring programmes and upgrading in HZ be
extended for another year. #L#
The loan contract concluded in 1999 for a total value of euro 85
million provided that the loan be utilised by 30 June 2003.
HZ is supposed before the end of March, as was agreed during talks
between World Bank representatives and the HZ, to explain to the
World Bank administration in Washington, just why the loan has not
been realised for the projects proposed or rather, just how it is
planning to realise the use of the loan in the requested
prolongation and just what the loan means to HZ.
A three-member World Bank mission visited Croatia between February
24 to 28 with the aim of evaluating the situation and results of the
loans application.
As reported by HZ, a final meeting was held on Friday with the
mission and the HZ company's management to discuss analyses that
resulted from the mission's visit to Zagreb.
The HZ management hopes that the World Bank will accept the reason
for the extension of the loan.
However, regardless of the decision, HZ will continue its
restructuring and upgrading plans because that is the only way to
create an efficient railway company that will be able to operate
according to market principles, the president of the HZ managing
boar's HZ's Board Marijan Drempetic said at the end of the meeting.
To date, modernisation has been applied to the railway
infrastructure, reconstruction of locomotives and wagons,
redundancy payments and other minor projects costing a total of
euro 50 million.
The World Bank mission, HZ reported, assessed that the results they
saw were very good and that the aims of HZ's restructuring and
modernisation programmes were being realised. Some components of
the programmes have been surpassed.
In the period between 1999 and 2002 the scope of freight transport
increased by 31 per cent. Passenger travel increased by 5 per cent
while the number of employees was cut by 30 per cent.
(hina) sp ms