WORLD BANK MISSION, CRO. RAILWAYS DEBATE DEVELOPMENT PROJECT

ZAGREB, Sept 20 (Hina) - Members of a World Bank mission and the Croatian Railways (HZ) management on Thursday debated a report on the implementation of a project intended to modernise and restructure the HZ drawn up by the mission over its ten-day stay in Croatia. Unlike previous years, the project is being implemented and the goals set in a letter on a 1999-2001 development policy will be achieved this year, the mission said. It pointed to positive indicators of financial consolidation and increased passenger and cargo transport, and welcomed announcements of international tenders for the modernisation of locomotives and cars, and an agreement on investments in computer technology. The mission accepted the solutions the HZ management has proposed for further layoffs : further separation of subsidiary activities and establishment of branch companies, investing in the modernisation of the system, resolving the status of non- profitable tracks, revising work methods and procedures, and increasing productivity. In line with these solutions, 268 HZ employees will be laid off this year. They will be referred to help centres in Zagreb, Rijeka, Split, and Vinkovci, in line with a HZ social care programme. Chairman of the board Marijan Drempetic said the management's goal was to transform the HZ into a small modern railway which did not end on Croatia's borders and had the chance to develop further. (hina) ha sb