Bojan Hlača, the Director of the Port of Rijeka Authority and Andras Horvai, World Bank Country Manager, signed today the Loan Agreement in the amount of EUR84 million (USD$122.5 million equivalent) for the Rijeka Gateway II Project., The Croatian Minister of Finance, H.E. Ivan Šuker also signed a Guarantee Agreement with the Bank, for the loan.
The Rijeka Gateway II Project is a continuation of the Rijeka Gateway Program aimed at improving the competitiveness of Rijeka as a port city, situated strategically as the gateway for transport Corridor Vb, one of the more important Pan-European transport routes. The program will modernize strategic port facilities, increase private sector involvement in the port, improve the Port of Rijeka Authority financial performance, and improve the port city environment, while better integrating Rijeka into international transport corridors.
More specifically, the Project will further develop the capacity of the port by expanding the existing Brajdica container terminal and constructing a new Zagreb container terminal to accommodate large, modern container vessels. The project will also further improve financial performance and quality of services in the port of Rijeka. In addition, the project will enable urban renewal in the City of Rijeka by relocating port activities from the Delta and port of Baroš area, which will be developed into urban areas.
"By signing the Guarantee Agreement with the World Bank, the government of Croatia continues to offer its support to the economic development of Rijeka and its port which is of strategic importance for the Republic of Croatia," said Ivan Šuker, Minister of Finance of the Republic of Croatia
"The reasons for the new loan and priority investments include the growth of cargo traffic in Rijeka's port and its financial stability. This is why the construction of Brajdica and Zagreb terminals in the port are the project's priority components. The container handling facilities, primarily container terminal Brajdica and the construction of the full section of Zagreb Pier are considered a priority because of their operating characteristics; this is why the largest portion of the loan (EUR 70 million) is earmarked for the construction of these terminals. The other component of the project is improvement of the level of the provision of port services such as expert services, integration of information flows, environmental protection and implementation of the Master Plan. When all this is done, the Port of Rijeka will be modernized to the utmost extent and in accordance with the latest trends in the market. Together with its strategic position and its functional operationality, this will additionally improve the Port of Rijeka's position on the world sea charts," said Bojan Hlača, Director of the Port of Rijeka Authority.
‘The Rijeka Gateway Program is not only about construction and modernization of the port. It is about helping Croatia's economy become more dynamic and more competitive. It is also about enhancing the attractiveness of the port city of Rijeka by balancing urban development, corridor connections and port development," said Andras Horvai, World Bank Country Manager for Croatia. "Rijeka is strategically located as the gateway for one of the more important European transport corridors, corridor Vb, both as a port and as a destination for tourism and business. It is the largest international seaport in Croatia, has the only container terminal in Croatia, and offers the shortest land transport distance to cities like Budapest and Belgrade."
The Loan type is an IBRD Flexible Euro-denominated EUR84 million Loan at six month LIBOR for Euro plus variable spread, with a maturity of 23 years, including a 10-year grace period.
Since joining the World Bank in 1993, Croatia has received support from the global development institution in the form of financial and technical assistance, policy advice and analytical services. To date, the Bank has offered support for 42 operations with a total value of US$2.6 billion, and it has approved 52 grants with a total value of US$70 million.
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