LAWS TO WATCH: Croatian Motorways IPO Act and Roads Act

Sinisa  Hajdas DoncicLPJ Issue 135, 1 June 2015

The legislation allows for the privatisation of the state-owned Croatian Motorways (HAC) and the Rijeka-Zagreb Motorway (ARZ) through an initial public offering (IPO). The Roads Act and Croatian  Motorways IPO Act legislative changes allows for the offer of 60% of shares to interested investors, while the state will retain a 40% stake. In the first round of tendering, the right of pre-emption would be given to Croatian citizens and HAC employees, whereas 3% of the shares would be given to Homeland War veterans free of charge. Institutional investors are expected to participate in the second round.

Under this peculiar “privatisation” model, the government will sign a contract with the new majority owner for the maintenance and management of the motorways network up to a maximum of 50 years. The government plans to raise €1.5 billion through the IPO, which will be used to finance a portion of the HAC/ARZ debts, currently amounting to €4.1 billion.

Proposed by: Ministry of Maritime Affairs, Transport and Infrastructure; State Property Management Administration (DUUDI)

Proposed by: Public debate is open until 24 June

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