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EBRD TO GIVE LOAN FOR RIJEKA-ZAGREB HIGHWAY

ZAGREB HIGHWAY ZAGREB, Sep 17 (Hina) - The financial structure for the construction of the remaining sixty kilometres of the Rijeka-Zagreb Highway should be completed by the start of the following building season, in March or April 2000. The European Bank for Reconstruction and Development (EBRD) is to participate with an offer of EURO 150 million while the remainder required would be ensures with the assistance of the German development bank Kreditanstalt fur Wiederaufbau (kfW) and other commercial banks. This was reported by the director of Autocesta Rijeka-Zagreb Ivan Prgomet at a press conference Friday. He emphasised that the long term loan could be paid with road tolls and re-financing with short term loans as well as state guarantees. In searching for resources to complete the financial structure, Prgomet said, it was necessary to implement the privatisation of the Autocesta Rijeka-Zagreb company as directed by the EBRD as a con
ZAGREB, Sep 17 (Hina) - The financial structure for the construction of the remaining sixty kilometres of the Rijeka- Zagreb Highway should be completed by the start of the following building season, in March or April 2000. The European Bank for Reconstruction and Development (EBRD) is to participate with an offer of EURO 150 million while the remainder required would be ensures with the assistance of the German development bank Kreditanstalt fur Wiederaufbau (kfW) and other commercial banks. This was reported by the director of Autocesta Rijeka-Zagreb Ivan Prgomet at a press conference Friday. He emphasised that the long term loan could be paid with road tolls and re-financing with short term loans as well as state guarantees. In searching for resources to complete the financial structure, Prgomet said, it was necessary to implement the privatisation of the Autocesta Rijeka-Zagreb company as directed by the EBRD as a condition to participate in the project. The constructor of the remaining section of the highway will be chosen in keeping with strict guidelines set by the EBRD within an international call for tenders which has already been published, Prgomet added. This is the largest support received by the EBRD to a future private company, a high official from the EBRD, Andrew Bride told journalists adding that he believed this to be a good financial and social projects. It is the EBRD's task to assist in building the infrastructure of South east Europe he added. According to Bride, construction works still required could cost up to EUR 450 million. Asked about the amount or road tolls for private vehicles to self- finacne the Rijeka-Zagreb highway, Prgomet said that it should amount to between 35 and 45 kunas. Speaking about the lack of infrastructure complexes along the highway, Prgomet announced that this autumn works were to commence on the construction of an INA petrol pump near Jastrebarsko including a motel. These should be completed by autumn next year. (hina) sp

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