Modernization and restructuring of the road sector

Abstract*

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:... Show More

Development Objective

The objective of the Project is to strengthen the institutional effectiveness, enhance the operational efficiency and increase the debt service capacity of Croatia's road sector.

Key Details

Project Details

Project ID
P155842
Status
Closed
Team Leader
Muhammad Zulfiqar Ahmed , Fiona Collin, Ioannis Dimitropoulos
Borrower 2
Ministry of Finance

Country
Croatia
Disclosure Date
February 3, 2017
Approval Date
(as of board presentation)
April 28, 2017
Effective Date
November 4, 2017

Total Project Cost 1
US$ 1083.32 million
Implementing Agency
Ministry of Sea, Transport and Infrastructure (MSTI)
Region
Europe and Central Asia
Fiscal Year 3
2017

Commitment Amount
US$ 288.33 million
Environmental Category
B
Last Update Date
May 16, 2023
Closing Date
December 31, 2021

Consultant Services required
Yes
Last Stage Reached
BANK APPROVED

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Finance

FY17 - Finance for Development100%
- FY17 - Infrastructure Finance100%

FY17 - Public Sector Management

FY17 - Public Administration100%
- FY17 - Transparency, Accountability and Good Governance100%
FY17 - Public Finance Management100%
- FY17 - Debt Management100%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
European Bank for Reconstruction and Development	265.00
Foreign Private Commercial Sources (unidentified)	424.30
International Bank for Reconstruction and Development	23.33

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	23.33
IDA Commitment	N/A
IBRD + IDA Commitment	23.33

Lending Instrument
Grant Amount	265.00
Total Project Cost**	1083.32

Summary Status of World Bank Financing (US$ Millions) as of March 31, 2025

No data available.

Detailed Financial Activity as of March 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Nov 15, 2023	IBRD-87490	Int Charges	223,441.97
Nov 15, 2023	IBRD-87490	Loan Repay	1,475,437.80
May 15, 2024	IBRD-87490	Loan Repay	1,469,870.50
May 15, 2024	IBRD-87490	Int Charges	209,271.75
Apr 28, 2017	IBRD-87490	Loan Commitment	23,327,000.00
May 15, 2022	IBRD-87490	Int Charges	7,445.74
May 15, 2022	IBRD-87490	Int Charges	4,959.61
May 15, 2022	IBRD-87490	Loan Repay	1,414,165.50
Jun 6, 2022	IBRD-87490	Loan Cancel	6,177,081.00
Nov 15, 2022	IBRD-87490	Int Charges	898.60
Nov 15, 2022	IBRD-87490	Int Charges	25,384.41
Nov 15, 2022	IBRD-87490	Loan Repay	1,413,791.40
May 15, 2023	IBRD-87490	Int Charges	171,821.67
May 15, 2023	IBRD-87490	Loan Repay	1,477,270.80
Nov 15, 2020	IBRD-87490	Int Charges	12.08
Nov 15, 2020	IBRD-87490	Int Charges	9,366.07
Nov 15, 2020	IBRD-87490	Int Charges	43,607.16
Nov 15, 2020	IBRD-87490	Int Charges	210.70
May 15, 2021	IBRD-87490	Int Charges	9,121.10
May 15, 2021	IBRD-87490	Int Charges	9,698.28
May 15, 2021	IBRD-87490	Loan Repay	1,606,801.00
Nov 15, 2021	IBRD-87490	Int Charges	8,770.68
Nov 15, 2021	IBRD-87490	Int Charges	6,834.17
Nov 15, 2021	IBRD-87490	Loan Repay	1,518,797.90
Jun 6, 2022	IBRD-87490	Loan Disb	-17,815.54
Jun 6, 2022	IBRD-87490	Loan Disb	-15,961.65
Dec 13, 2021	IBRD-87490	Loan Disb	394,607.50
Nov 15, 2019	IBRD-87490	Int Charges	12,024.95
Nov 15, 2019	IBRD-87490	Int Charges	27,855.98
Dec 16, 2019	IBRD-87490	Loan Disb	780,115.00
May 15, 2020	IBRD-87490	Int Charges	10,292.29
May 15, 2020	IBRD-87490	Int Charges	20,180.73
Apr 16, 2020	IBRD-87490	Loan Disb	979,110.00
Jul 14, 2020	IBRD-87490	Loan Disb	795,970.00
Nov 10, 2017	IBRD-87490	Fee Charges	64,014.50
Dec 11, 2017	IBRD-87490	Loan Disb	1,179,250.00
Dec 29, 2017	IBRD-87490	Loan Disb	676,624.20
Dec 29, 2017	IBRD-87490	Loan Disb	676,624.20
Dec 29, 2017	IBRD-87490	Loan Disb	676,624.20
Jan 4, 2018	IBRD-87490	Loan Disb	5,753,335.50
May 2, 2018	IBRD-87490	Loan Disb	1,354,998.20
Sep 20, 2018	IBRD-87490	Loan Disb	2,051,306.60
May 15, 2018	IBRD-87490	Int Charges	23,525.80
May 15, 2018	IBRD-87490	Int Charges	24,125.44
May 15, 2018	IBRD-87490	Int Charges	10,719.48
Jun 14, 2018	IBRD-87490	Loan Disb	946,000.00
Nov 13, 2018	IBRD-87490	Loan Disb	900,280.00
Nov 15, 2018	IBRD-87490	Int Charges	113.72
Nov 15, 2018	IBRD-87490	Int Charges	17,673.66
Nov 15, 2018	IBRD-87490	Int Charges	33.86
Nov 15, 2018	IBRD-87490	Int Charges	17,390.26
May 15, 2019	IBRD-87490	Int Charges	763.86
May 15, 2019	IBRD-87490	Int Charges	258.45
May 15, 2019	IBRD-87490	Int Charges	13,475.57
May 15, 2019	IBRD-87490	Int Charges	23,524.35
Feb 27, 2019	IBRD-87490	Loan Disb	934,554.00
Jul 12, 2019	IBRD-87490	Loan Disb	968,188.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Progress towards achievement of PDO	Unsatisfactory	2021-06-05
Financial Management	Satisfactory	2021-06-05
Procurement	Satisfactory	2021-06-05
Project Management	Moderately Unsatisfactory	2021-06-05
Monitoring and Evaluation	Moderately Satisfactory	2021-06-05
Overall Implementation Progress (IP)	Moderately Unsatisfactory	2021-06-05

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 06-28-2022
Outcomes	Unsatisfactory
Risk to Development Outcome
Bank Performance	Moderately Satisfactory
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW:	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Unsatisfactory	N/a
Risk To Development Outcome		N/a
Bank Performance	Moderately Unsatisfactory	N/a
Borrower Performance		N/a
Government Performance	Not Rated	N/a
Implementing Agency		N/a
Icr Quality	Substantial	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Ability of MSTI to plan road sector investments	Value	Inexistent sector-wide planning coordination	The planning department under MSTI was created in	Availability of inputs for rolling investment plan
	Date	December 31, 2016	December 31, 2021	December 31, 2020
	Comment

Operating Expense Ratio (Total Operating Expenses / Total Operating Revenue) Value HAC: 0.38ARZ: 0.31HC: 0.29 HAC: 0.32 HC: 0.31
Date December 31, 2016 December 31, 2021
Comment
Debt Service Coverage Ratio (DSCR) Value HAC: 0.15xARZ: 0.63xHC: 0.55x HAC: 0.77 HC: 0.30 1.0x
Date December 31, 2016 December 31, 2021 December 31, 2020
Comment

Ability of MSTI to monitor and enforce performance of motorway and road companies using Key Performance Indicators (KPIs) and standardized accounting measures	Value	Inadequate performance monitoring system	Service-level agreements will be signed in Q2 2022	Completed new institutional setup of sector compan
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Operating Expenditures per kilometer of road network Value HAC: 0.68ARZ: 1.05HC: 0.08 HAC: 0.69 HC: 0.09
Date December 31, 2016 December 31, 2021
Comment
Loan Life Coverage Ratio (LLCR) 10 Year Value HAC: 0.51xARZ: 0.66xHC: 0.97x HAC: 1.07 HC: 0.66 1.0x
Date December 31, 2016 December 31, 2021 December 31, 2020
Comment
Debt to CFADS Ratio Value HAC: 36.0xARZ: 15.2xHC: 9.8x HAC: 15.03 HC: 35.23 12.5x (HAC); 12.5x (ARZ); 9.0x (HC)
Date December 31, 2016 December 31, 2021 December 31, 2019
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Status of implementation of new financing strategy for HAC, ARZ and HC as implemented under the coordination of the National Government [A.1]	Value	Contract with advisor signed	Financing strategy approved; execution of debt opt	Execution of additional debt optimization transact
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Weighted Average toll revenue per Vehicle-Km travelled [B.4] Value HAC: 0.59ARZ: 0.64 HAC: 0.66
Date December 31, 2016 December 31, 2021
Comment
Private Direct Mobilization (Debt Refinancing & Rescheduling with support of IBRD Guarantee) Value n/a Refinanced: > 900 mn EUR (all companies) Reschedul
Date December 31, 2016 December 31, 2021
Comment

Operational status of Planning Department established within MSTI [A.2]	Value	Inexistent planning and coordination functions wit	Department is fully operational	Department produces first sector plan
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Status of implementation of new tolling revenue enhancement measures [B.4]	Value	Existing mixed toll system	New tolling strategy approved by the MSTI and adva	New tolling systems contracts awarded
	Date	December 31, 2016	December 31, 2021	December 31, 2019
	Comment

Status of implementation of improved and harmonized accounting standards [A.3]	Value	Non-harmonized accounting standards	Amendment to Roads Act approved in December 2021,	Improved accounting standards applied
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Percent Reduction in Operating Cost of Motorways relative to baseline: HAC and ARZ [B.3]	Value	HAC+ARZ: 823 mn HRK annual	HAC: 7.05 percent (765 mn HRK)	-15%
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Weighted average maturity of road sector companies' debt Value 3.5 years 6.87 years
Date December 31, 2016 December 31, 2021
Comment
Reduction in Operating Cost for State Roads relative to baseline: HC [B.6] Value HC: 546 mn HRK annual HC: 624 mn HRK
Date December 31, 2016 December 31, 2021
Comment
Staff per Kilometer of road under operation (motorways) [B.3] Value HAC: 2.7ARZ: 3.2 HAC: 2.4
Date December 31, 2016 December 31, 2021
Comment

Status of implementation of end-performance road maintenance standards [B.1]	Value	Standards without end-performance requirements	Maintenance standards consultancy completed. Stand	Update of regulations (pravilnici); end performanc
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Status of Implementation of Road Asset Management System (RAMS) development and incorporation in planning [B.2]	Value	Road sector agencies and companies do not have int	RAMS technical specifications and bidding document	TA completed; implementation contract awarded
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Percent of HC network where county agencies (ZUC) participate in joint procurement committee Value 0.00 0.00 50.00
Date December 31, 2016 December 31, 2021 December 31, 2019
Comment

Percentage of TEN-T road network for which road safety audit or inspection as per EU Directive 2008/96 has been carried out [B.7]	Value	0.00	100.00	10.00
	Date	December 31, 2016	December 31, 2021	December 31, 2018
	Comment

Citizen engagement - Maintain full responsiveness rate to comments and grievances from citizens Value 100.00 100.00 0.00
Date December 31, 2016 December 31, 2021
Comment
Gender balancing - Ratio of women in the motorway sector after retrenchment Value 0.19 0.21 0.00
Date December 31, 2016 December 31, 2021
Comment

Operating Expense Ratio (Total Operating Expenses / Total Operating Revenue)	Value	HAC: 0.38ARZ: 0.31HC: 0.29	HAC: 0.32 HC: 0.31
	Date	December 31, 2016	December 31, 2021
	Comment

Debt Service Coverage Ratio (DSCR)	Value	HAC: 0.15xARZ: 0.63xHC: 0.55x	HAC: 0.77 HC: 0.30	1.0x
	Date	December 31, 2016	December 31, 2021	December 31, 2020
	Comment

Operating Expenditures per kilometer of road network	Value	HAC: 0.68ARZ: 1.05HC: 0.08	HAC: 0.69 HC: 0.09
	Date	December 31, 2016	December 31, 2021
	Comment

Loan Life Coverage Ratio (LLCR) 10 Year	Value	HAC: 0.51xARZ: 0.66xHC: 0.97x	HAC: 1.07 HC: 0.66	1.0x
	Date	December 31, 2016	December 31, 2021	December 31, 2020
	Comment

Debt to CFADS Ratio	Value	HAC: 36.0xARZ: 15.2xHC: 9.8x	HAC: 15.03 HC: 35.23	12.5x (HAC); 12.5x (ARZ); 9.0x (HC)
	Date	December 31, 2016	December 31, 2021	December 31, 2019
	Comment

Weighted Average toll revenue per Vehicle-Km travelled [B.4]	Value	HAC: 0.59ARZ: 0.64	HAC: 0.66
	Date	December 31, 2016	December 31, 2021
	Comment

Private Direct Mobilization (Debt Refinancing & Rescheduling with support of IBRD Guarantee)	Value	n/a	Refinanced: > 900 mn EUR (all companies) Reschedul
	Date	December 31, 2016	December 31, 2021
	Comment

Weighted average maturity of road sector companies' debt	Value	3.5 years	6.87 years
	Date	December 31, 2016	December 31, 2021
	Comment

Reduction in Operating Cost for State Roads relative to baseline: HC [B.6]	Value	HC: 546 mn HRK annual	HC: 624 mn HRK
	Date	December 31, 2016	December 31, 2021
	Comment

Staff per Kilometer of road under operation (motorways) [B.3]	Value	HAC: 2.7ARZ: 3.2	HAC: 2.4
	Date	December 31, 2016	December 31, 2021
	Comment

Gender balancing - Ratio of women in the motorway sector after retrenchment	Value	0.19	0.21	0.00
	Date	December 31, 2016	December 31, 2021
	Comment