Modernization and restructuring of the road sector (WB-P155842)

Countries
  • Croatia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 28, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Republic of Croatia, Ministry of Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 23.33 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 23.33 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,083.32 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Jan 21, 2018

Disclosed by Bank Jan 4, 2017


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
According to WB website, the development objective of the Modernization and Restructuring of the Roads Sector Project for Croatia is to strengthen the institutional effectiveness, enhance the operational efficiency, and increase the debt service capacity of Croatia’s road sector. The project comprises of three components: The first component, institutional strengthening and sector reforms objective to establish an institutional framework for the road sector, including through: financial transaction advisor; transport sector planning and road sector governance and monitoring; and implementation support. The second component, operational restructuring of road sector companies’ objective is to implement management tools and carry out the revenue enhancement and cost rationalization actions required to improve operational and financial sustainability of the road sector companies, including through: road classification and standards; road asset management system; rationalization of operations and business functions - motorways; tolling; operational and business rationalization of hrvatske ceste (HC); and road safety. The third component, debt optimization - up to EUR 4 billion of the road sector statement of expenditures (SOEs’) EUR 5.2 billion of debt may be optimized. International Bank for Reconstruction and Development (IBRD’s) direct involvement relates to a first refinancing mobilized by the government with the support of an investment project financing (IPF) guarantee objective is to mobilize commercial financing for the road sector SOEs to refinance their short term and expensive loans (guaranteed refinancing facility).
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
European Bank For Reconstruction And Development: USD 265,000,000.00 International Bank For Reconstruction And Development: USD 23,330,000.00 Foreign Private Commercial Sources (Unidentified): USD 424,300,000.00

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Team Leader:Jean-Francois Marteau Program Leader, World Bank No contact information provided at the time of disclosure. Team Leader: Richard Bernard MacGeorge Lead Infrastructure Finance Specialist, World Bank No contact information provided at the time of disclosure. Borrower/Client/Recipient: Ministry of Finance Zeljko Tufekcic, State Secretary Email Address: zeljko.tufekcic@mfin.hr Implementing Agency: Ministry of Sea, Transport and Infrastructure (MSTI) Tomislav Mihotic, State Secretary Email Address: josipa.vukasovic@mmpi.hr ACCOUNTABILITY MECHANISM OF WORLD BANK The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.

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