PRIVATISATION: Croatian Motorways Concession Analysis Disclosed

In 2012, the Croatian government commissioned a €8.9 million study from the consultant firms Erste Group, Deloitte and Wolf Theiss Rechtsanwalte concerning the possibility of a concession/privatisation model of the Croatian Motorways (HAC) and Zagreb-Rijeka Motorway (AZR). According to the study, which was completed this week, the Croatian motorway network should be offered over a 50-year concession model, as opposed to the initial plan to offer a 30-year concession. The 50-year concession is forecast to be valued at up to €3 billion.

The proposed concession also states that all financial risks related to a possible traffic decrease should be borne by the concessionaire. Reports state that potential investors, including insurance companies, infrastructure funds, banks and pension funds, have expressed their interest in participating in the concession. The government is expected to review the proposal in the coming weeks…

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