The Croatian Government is Expanding Zagreb Airport to Cope with Rising Demand for Air Travel

Date: 2015-09-01

“• The Croatian construction industry is undergoing a challenging period as a result of subdued economic activity. The industry went into recession, contracting by -15%, -10%, -10.4%, -4.4% and -6.1% in real terms in 2010, 2011, 2012, 2013 and 2014 respectively. According to the Croatian Bureau of Statistics (CBS), the country’s annual average construction work index declined by 5.3 points, going from 73.9 in 2013 to 68.6 in 2014. The construction work index for buildings declined by 2.8% over the same period, going from 62.6 to 60.8, while that of civil engineering construction work declined by 10.7%, going from 85.8 to 76.7. Moreover, the total construction work index declined by 1.2% during the first quarter of 2015, compared to that of 2014.

• To improve rail infrastructure, cut travel times, increase access and improve transport services, HŽ Infrastructure, the state-owned railway infrastructure operator, is modernizing the country’s rail network. Accordingly, the government aims to construct second tracks on the most congested lines by 2016 in a bid to increase capacities and rail speeds.

• The Croatian construction industry is expected to be supported by EU grants to develop the country’s infrastructure. In order to co-finance priority projects in Croatia, the European Investment Bank (EIB) is providing a HRK2.3 billion (US$365.1 million) loan, the first tranche of a total loan of HRK23.5 billion (US$730.2 million) to the country over 2014–2020. 

• The Croatian government is expanding Zagreb Airport to cope with rising demand for air travel from both domestic and international passengers, handle the growing number of air passengers and provide additional capacity to alleviate congestion. Accordingly, the EIB is providing HRK605.9 million (US$106.2 million) funding under the public-private partnership (PPP) model to construct the first phase of the project. It involves the construction of a 65,000m2 passenger terminal building and other related infrastructure that will increase the airport’s passenger-handling capacity to 5.0 million per year. It is expected to be completed by the end of 2016.”

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