As Poslovni Dnevnik writes on the 27th of October, 2020, the Republic of Croatia is working hard to modernise its transport sector, and in order to find out what is being built and what is planned to be built in the new mandate of this Government, HAK sought answers from the Ministry of Maritime Affairs, Transport and Infrastructure. Let's have a look at the massive Croatian megaprojects that are still to come.

''As far as the transport sector is concerned, a number of infrastructure projects worth more than 20 billion kuna are currently being implemented. The investment cycle is expected to continue in the next period, so that during the operational period 2021-2027, the plan is to invest an additional 45 billion kuna in the construction and renovation of transport infrastructure throughout the Republic of Croatia,'' explained Ivana Skaric, ministry spokeswoman.

Railway modernisation

She noted that the greatest emphasis will be on the modernisation of Croatia's aged railway infrastructure, with special emphasis placed on the completion of the Lowland Railway and the entire route of Corridor X. It is estimated that investment in this transport sector will exceed the hefty price tag of 22 billion kuna.

Thus, over the next three years, the Croatian megaprojects expected to be completed are as follows: the modernisation and electrification of the Zapresic - Zabok railway, the reconstruction and construction of the Dugo Selo - Krizevci railway, the reconstruction (and subsequent construction) of the second track on the Krizevci - Koprivnica - state border section, the upgrading and electrification of the Vinkovci - Vukovar railway, and the reconstruction and construction of the second track of the Hrvatski Leskovac - Karlovac section (the total value of these Croatian megaprojects stands at eight billion kuna).

''In addition to the above, the signing and implementation of the project of the reconstruction and upgrade of 95 railway-road crossings is expected soon. The start of the works on this is planned for the end of 2020, and the planned amount for the aforementioned project stands at more than 150 million kuna,'' the competent ministry revealed.

Additionally, the implementation of projects along Corridor X is planned, this namely regards the upgrade and reconstruction of the Dugo Selo - Novska railway section which carries an estimated value of more than four billion kuna. This foresees the reconstruction of 72 kilometres of railway and the reconstruction of four railway stations, as well as the reconstruction of the Okucani - Vinkovci railway section which also has an estimated worth of more than four billion. With that, there are plans to renovate 131 kilometres of railway, as well as reconstruct 12 railway stations and 13 accompanying stops.

The lowland railway

In addition, the completion of the lowland railway is planned for the coming period, which includes the following: the construction of the second track, the modernisation and reconstruction of the Skrljevo - Rijeka - Jurdani railway section. This project is estimated at two billion kuna and includes the modernisation of almost 30 kilometres of railway line. Furthermore, the modernisation of the Ostarije - Skrljevo railway section is also envisaged. The project is estimated at 7.5 billion kuna, and includes the reconstruction of 114 kilometres of railway.

The modernisation of the railway M202 Zagreb GK - Rijeka, section Karlovac - Ostarije is also planned. That particular project is estimated to stand at three billion kuna. Additionally, a project for the preparation of study documentation for the so-called Lika railway is in the works.

''The railway connections of the airports and ferry ports of Zadar and Split are being prepared, with the railway connection of the City of Zadar with the port of Gazenica and Zadar Airport, as well as the Bibinje - Sukosan bypass, and the project of connecting the Split subway railway station in the Ferry Port Split (East Coast), with Split Airport and the construction of an intermodal junction of the new main station Split (Kopilica),'' they claim from the appropriate ministry.

Peljesac Bridge

In the term of office, the completion of the largest and most important project in the Republic of Croatia is expected - the construction of the long awaited Peljesac Bridge. ''The deadline for the completion of the bridge is the beginning of 2022, while the completion of the entire project (with all of its access roads) is expected by 2023,'' the ministry noted.

15 billion kuna for road infrastructure

Investments in road infrastructure will continue in the next period, and Croatian megaprojects worth more than 15 billion kuna are already being prepared, such as the completion of Corridor Vc (the Beli Manastir - Hungarian border section), which stretches from Budapest all the way down to Ploce in a total length of 702 kilometres. The construction of the motorway on the Vc corridor in Croatia will be completed by the end of 2023.

In the next period, the ministry noted, investments will be directed to a number of projects in the City of Split, such as the Split Bypass, which is in Omis, carrying with it a total value of more than two billion kuna, and the Kozjak tunnel with a total value of almost one billion kuna.

The Ucka tunnel

Investments continue on the construction of the Istrian Y regarding the Ucka tunnel. The ministry states that this is an investment worth almost 1.5 billion kuna, which, in addition to the continued construction within the Ucka tunnel, refers to new viaducts, underpasses, overpasses and rest areas.

''In addition to the above, important road sections will be built in the term of office, such as the Skurinje junction to the Port of Rijeka, the Srijem Transversal, the construction of the Podravina Y, the road in the direction of the Dubrovnik - Montenegrin border, the Novi Vinodolski bypass will be built as part of the construction project, and motorways on the Krizisce - Zuta Lokva section,'' stated Skaric.

Investment in ports: three billion kuna

In the maritime sector, more specifically in the construction of port infrastructure along the Croatian Adriatic, the plan is to invest an additional three billion kuna.

''Investing in port infrastructure and increasing the capacity of the Port of Rijeka, along with the construction of the lowland railway, is a particularly significant strategic investment in the context of the continuation of traffic and the economic development of the Republic of Croatia. In that sense, the concessionaire at the new terminal on the Rijeka coastline expected, and thus the continuation of investments in the infrastructure of the terminal itself, as well as the implementation of all EU projects implemented in the Port of Rijeka, which are all worth more than three billion kuna.

Investments in other ports of special international economic interest in the amount of more than two billion kuna are also planned. Among them, the most significant will be projects in the area of ​​the ferry port Gruž, ie the project Batahovina II, investments in the expansion (including relocation) of the port infrastructure of the port of Split to the location Stinice, upgrade of the pier Vrulje within the maritime passenger terminal in the port of Sibenik.

- Projects for rehabilitation and reconstruction of port infrastructure of county and local importance from Istria to Dubrovnik with money from EU funds will continue in this mandate. An investment of around HRK 250 million is planned in such projects - the ministry states.

Rebuilding the fleet of ships

Further investment in the Department of Navigation Safety is also expected. In addition to the already planned laws and bylaws and the modernisation of the search and rescue system at sea, the renewal of the fleet of ships (10) is planned and it is estimated that investment in this sector will amount to more than 300 million kuna in total.

In the field of inland navigation, a number of EU projects are planned, such as the construction of a bulk cargo transshipment terminal in Osijek, the project of developing a waterway marking system in the Republic of Croatia, arranging a waterway on the Danube near Sotin, the construction of an international winter resort in Opatovac on the Danube, the new vertical shore in the port of Vukovar, and the study and project documentation for the dangerous goods terminal in the port of Slavonski Brod.

More than a billion kuna for the aviation sector

''After the opening of new passenger terminals in Zagreb, Split and Dubrovnik, investment in the modernisation and expansion of airports across the Republic of Croatia continues. In the next period, a total investment in the aviation sector is expected to stand at more than one billion kuna, with the most prominent investment of all being the renovation and expansion of the runway and car park of Zadar Airport, the modernisation of Osijek Airport and Rijeka Airport (Krk) and the planned modernisation and expansion of the airport in Mali Losinj,'' stated the ministry, adding that the process of finding a strategic partner for Croatia Airlines will continue, as will the stabilisation of the company's operations, also taking into account the situation within that company caused by the coronavirus crisis.

Broadband internet in every corner of Croatia

A special emphasis in the next period, the ministry added, will be placed on broadband internet, ie its availability in all parts of Croatia.

''The project of building a national aggregation of broadband infrastructure of the next generation and connecting target users within public administration bodies with modern electronic communications infrastructure, also of the next generation, is estimated at 780 million kuna,'' Ivana Skaric revealed.

New buses, trams, automatic traffic control

When it comes to public transport, after the successful implementation of projects for the procurement of new buses for as many as nine Croatian cities, a new round of investments is planned in the procurement of yet more new buses, trams, the construction of tram infrastructure and automatic traffic management systems.

Contactless toll collection

''Contactless toll collection on motorways will be introduced, which will apply to the entire system across Croatia, which includes HAC, ARZ and all concessionaires, ie Bina Istra and AZM. The plan is to introduce a new system by the summer season during 2022,'' the ministry said.

Extremely important investments for economic and social growth

Spokeswoman Ivana Skaric added that all the aforementioned Croatian megaprojects were listed as the most important and that some smaller projects were not included, especially in the road and port sector.

''Most of these projects will be co-financed through EU funds, specifically, the new Operational Programme for the period 2021-2027, CEF Connecting Europe Facility and through the presented European Recovery Plan, ie the Mechanism for Recovery and Resilience. At the moment, the ministry has proposed a number of projects and funding programmes to enable the launch and continuation of all infrastructure projects, especially those that will impact the green and digital transition, making the economy more resilient and prepared for future challenges.

Finally, all these investments will enable the further development of transport infrastructure across the Republic of Croatia, which is extremely important for economic and social growth, as well as for international connectivity. Developed transport infrastructure is an instrument of regional development that initiates the exchange of goods and better accessibility to all economic, health, tourist and other facilities,'' concluded IvanaSŠkaric, spokeswoman for the ministry.

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As Poslovni Dnevnik writes on the 27th of August, 2020, there has been talk circulating for a long time about the construction of a new southern entrance to Zagreb. To be more precise, talks have been going on for more than a decade now. Is the long-anticipated Buzin City Island about to come to fruition?

Various rumours and options have appeared in public, but the attractive piece of land in Buzinske krce, along the main road connecting the Croatian capital city of Zagreb with Velika Gorica and Franjo Tudjman International Airport, remained untouched. And then recently, large excavators arrived on the meadow. This is the announcement of the beginning of the realisation of one of the largest investments in Croatia - Buzin City Island. The business settlement on eighty thousand square metres of land, with 250,000 m2 of office space, will be realised in five phases, and the entire project is worth two billion kuna, as reported by Vecernji list.

When the works are completed, the southern entrance to the capital will become Buzin City Island and, as was revealed by project manager Marijo Tomic, it will have "all of the facilities needed by a working man during and outside his working hours". The investor of this project is the company City Island d.o.o. based in Rugvica, and the main designer is the Split company MIG arhitekti. The main contractor is KFK, a regional leader in the production of aluminum-glass facades. The same company is currently working on seven major projects in the United Kingdom and some in the United States. The Buzin City Island project will be built in five phases, explained Tomic.

''It isn't being built classically, several different buildings will be built, and in several phases. The deadline for the completion of the first phase is 24 months. The construction site is divided into two plots, zone A and zone B, and we will build about twenty business buildings,'' Tomic stated, adding that in the first phase, which is still only just beginning, the construction of envelopes of various business premises is planned. In the first phase, they will build a hotel with 200 rooms and a congress centre, as well as three business buildings in which multifunctional halls and a studio will be located.

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As Novac/Vedran Marjanovic writes on the 2nd of July, 2020, coronavirus threw a spanner in the works for many, but the pandemic failed to hinder Hrvatska elektroprivreda (HEP) in its investment plans.

Moreover, this year will be a record year in the company's history with investments of 4.9 billion kuna, said HEP's Frane Barbaric at a recent presentation of eleven of HEP's new investments in solar power plants.

''We're one of the largest investors in the country and a driver of economic development. Last year alone, we exceeded our investments when compared to the previous year by more than 40 percent, and this year and next year we're making additional strides. After that, we'll continue with the same intensity of investment, from 2021 to 2024 we plan to invest 14.5 billion kuna, all in accordance with the strategic commitment of HEP as the carrier of low-carbon energy transition in Croatia,'' announced Barbaric.

Among the company's current green investments, he singled out the Senj hydropower system project, worth 3.4 billion kuna and with an expected connection capacity of 412 megawatts of electricity.

When it comes to the company's investments in solar power plants, Barbaric announced the imminent connection to the power plant system on Vis and in Marici near Zminj.

''Our plan is to have 1,500 new megawatts of electricity from renewable energy sources in the system by 2030, of which 350 megawatts will be from solar power plants. In the part related to new solar power plants alone, we'll turn Croatia into one large construction site,'' said the President of the Management Board of HEP, drawing attention to cooperation with Croatian companies in the construction and equipping of these new renewable energy plants.

In the case of investments in eleven solar power plants presented by HEP recently, these regard investments in cooperation with municipalities and cities that responded to last year's public call to find locations for the construction of solar power plants.

As it was heard at the presentation, the interested municipalities and cities submitted letters of intent on possible locations to HEP, and then the company analysed them and made a decision on how the investment will be carried out. The options were a partnership between HEP ​​and local self-government units, an independent investment by HEP, or an independent investment by a municipality or city itself.

From mid-last year to April 2020, HEP signed contracts for the development of solar power plants with eleven Croatian municipalities and cities. Among other things, HEP signed contracts with the municipalities of Krsan in Istria and Lipovljani in Sisak-Moslavina County. In the first case, a solar power plant with an expected connection capacity of 40 megawatts will be constructed, and in the second, a facility with a capacity of 25 megawatts will eventually come to be. In total, the inclusion of all eleven Croatian solar power plants in the system will generate 120 megawatts of new power.

A new invitation from HEP to local self-government units to express their intention to jointly invest in solar power plants is now underway. At the recent presentation of eleven joint investments from HEP and local self-government units across Croatia, the Minister of Environmental Protection and Energy, Tomislav Coric, expressed his belief that HEP's new call for joint investments will result in an even better response from municipalities and cities across the country.

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As Barbara Ban/Novac writes on the 28th of April, 2020, regardless of the ongoing coronavirus crisis, the popular Istrian city of Porec continued to refurbish part the Porec waterfront, continuing with an investment worth as much as 26 million kuna.

Although this is an enormous investment which covers as much as seven thousand square metres in total, which was unfortunately started at the worst possible time - before the outbreak of the coronavirus crisis that has hit the economy of Istria, including that of Porec, the city authorities decided to see the Porec waterfront project through to the end. The project marks the most significant public investment in the old city centre in the last ten years.

''The works were slowed down for a while because we couldn't get the materials we needed, but now everything is back on track and I believe we'll be done in June. And in regard to the horticulture side of things, everything should be completed by July the 1st, 2020.

The original plan for the opening of the Porec waterfront opening was set for June the 1st. We were also slowed down by archaeological works where an ancient vessel which is over two thousand years old was discovered, but also by the fact that our contractor was from Slovenia, so the fact that border crossings were implied slowed down the entire story. But, we've still been working constantly,'' said the Mayor of Porec, Loris Persuric.

Workers have been busy installing stone slabs, and concrete road is being gradually laid... Before that, completely new infrastructure was erected underground, and when the finishing touches were completed, interesting benches, candelabras, light installations with signposts for monuments and tourist attractions were set to follow. Booths/stands will be removed from this part of the waterfront and boaters will be provided with unified booths for the sale of their respective tourist excursions. There will be no parking spaces on this part of the Porec waterfront.

''We wanted our waterfront to become a kind of living room to bring the citizens and guests of Porec back to the waterfront,'' said the Mayor of Porec. There are currently no tourists who would otherwise be walking along this part of the city, so everything is running very smoothly.

''We've only been in this situation for two months and we expect the situation to normalise. It will not be as safe as it all was before, but I believe that we'll all adapt and tourism will start again. When tourism is fully operational in Croatia, I think Istria has an edge over everyone else because it's a destination that can easily be driven to. Tourists who arrive by air represent Istria's tourism figures by six to seven percent. We have a pool of one million guests within a five-hour drive. That was our advantage before, and I believe it will be now. I believe that we'll push through this year and that by July and August, the situation will improve a little. However, when it comes to the question of whether or not it will be as good as last year, we can't be certain. If time serves us and if nothing else happens on the global market, I believe that we'll get something out of this season,'' stated Porec's mayor optimistically.

However, this will be the strangest Croatian tourist season ever since there will not be a single event or manifestation being put on.

''We've cancelled all of the events - from Vinistra to Porec Open Air. Of course, we also expect that our budget will suffer, because there won't be as many employees as there used to be in Porec. Last year, five thousand workers came here from all over Istria. Although the city budget is estimated at 300 million kuna, it will be at a mere 40 to 50 percent of last year's amount of 270 million kuna. And that will also be the case for all other local governments. This means that we'll have to give up a lot, and we've already reduced the wage bill by 17 percent in April,'' said Persuric.

Over recent years, intensive investments have been made in new schools, kindergartens, roads, sewage, irrigation, beaches... Parts of those projects are funded by European Union funds, but not all of them, like the Porec waterfront itself.

''As we're one of the most developed cities in the Croatian framework according to the criteria of the European Union, we couldn't access EU funding for this project. So, we just decided to do it on our own. It will be arranged through 15 phases, and projects are being prepared for each phase. They're all in different stages of preparation. We'll see what will be the further dynamics of the Porec waterfront landscaping will be once this crisis passes, but we certainly won't give up on it,'' said Porec's mayor.

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The Croatian startup scene has been given a new opportunity since Fil Rouge Capital entered the market.

Marko Repecki writes for index.hr about the new venture capital fund which has found its way to the Croatian market this summer, as he spoke to Stevica Kuharski, one of the partners in the fund. Stevica is a well-known fixture on the Croatian startup scene, having been a serial entrepreneur on his own (Locodels is probably his most successful project thus far), and he's made his way to "the other side", now helping find and distribute the funds provided to the Croatian companies.

Mr Kuharski explains that the Fil Rouge Capital fund is mostly supported by the European structural and investment funds (ESIF) with over 32 million euro, while the total value of the fund is 45 million euro. It took less than a year between the public tender for the management of the fund and when it started working in earnest. They cover all of the phases of the development of a startup, from the early stages of an idea, all the way to those who already have a product or a service ready. Within the next four years, they plan to invest into 250 to 300 companies. 9 million euro will go to the companies that are early-stage startups, while the rest of it will go to more developed ideas.

Early-stage startups will be able to get 10 thousand euro, and you can apply at any time. If the fund decides to invest in such companies, they get 10 per cent of the ownership.

The teams that claim they have a "minimum viable product" can receive an investment in the amount of 25 to 50 thousand euro through the acceleration program for which they must apply. The first group was selected in early September, and they've been awarded 50,000 euros each. Next round will happen in March, and if you want to apply, you should do it before the end of the year. For bigger investments, the ownership given to the fund will be in the 6 to 8 percent range. 

Fil Rouge Capital fund is not specialised, they are willing to consider any Croatian startups, but they really need to be Croatian - meaning they need to be registered in Croatia and most their employees need to be local. Founders can be (and are!) from all over the world, but they need to recognize that Croatia is an excellent market to try an idea or a product out to see if they work. In addition to funds, the VC fund provides full support through mentorship, contacts, networking, helping open new markets, whatever it takes. The people in the fund have good contacts with over 50 institutional investors and numerous private investors, all of which might help the startups to secure the investments in the following investment rounds.

Stevica Kuharski also highlights that nobody should be afraid of any type of control the fund might exert over them, explaining that they simply don't have enough people to do that. He also adds that they are willing to invest 10 thousand euro into an idea, a single piece of paper, to get 10 per cent of the ownership - which means that they've valued the idea itself at one hundred thousand euro!

A huge European investment for Bjelovar-Bilogora County has been achieved, and usage permits are expected in just a few weeks time.

All too often we're bombarded with depressing tales of failed investments, lost money, shattered dreams and the infamous red tape of the Croatian state which seems to want nothing more than to stop potential investors with cash in their pockets from putting their money where their mouth is in Croatia for the benefit of everyone.

When confronted with such headlines and stories on a daily basis, it can often be difficult to believe, let alone imagine, that not everything is always quite so bleak here in Croatia. While many would-be investors try and fail at the first (or first several) needless hurdles put in place by Croatia's blank-faced uhljebs (rough translation: pointless state employees/oxygen thieves), there are many who do persevere, and succeed. But, we'd all much rather be depressed and have something to complain about over a four hour coffee while we ourselves could be working, right? Right.

The fact of the matter is, Croatia is slowly but surely improving when it comes to investment, and while the country has an awfully long way to go before it could ever be considered even remotely investor friendly or truly safe, progress is being made at a snail's pace - the Croatian way.

As Poslovni Dnevnik writes on the 28th of May, 2019, one of the largest European investments is set to come to no less than Bjelovar-Bilogora County in continental Croatia, in the form of a Technology Park in Garešnica. The park was planned and then built in the Kapelica Entrepreneurial Zone, and the value of the investment is an enormous 21.5 million kuna. Most of the money, as much as 92 percent of the total amount, was invested by the European Regional Development Fund, according to a report from Tocka na i.

Bjelovar-Bilogora's new Technology Park stretches to nearly 1,800 square metres, boasts an impressive eighteen business premises, a conference and education hall, as well as a meeting room. The issuance of a usage permit is expected in early July, followed by the final conclusion of the contracts with entrepreneurs.

Josip Bilandžija, Mayor of Garešnica, is convinced that Bjelovar-Bilogora's brand new Technology Park will definitely reach completion. There will be places for eleven new and three already existing companies, and assistance in development projects will be readily provided by the Entrepreneurial Incubator from Osijek, as well as the Entrepreneurial Centre in Garešnica.

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The Croatian capital city unfortunately has many worn facades and buildings, and the bid for Zagreb's Blok Badel will be opened in just one month and will run until May the 15th, and the selected investor should be known early on in June.

As Poslovni Dnevnik writes on the 22nd of April, 2019, the City of Zagreb issued a public call for potential investors in the realisation and development of the Blok Badel project. This is a space located near the very centre of the city, about 30,000 square metres bordered by Vlaška, Šubićeva, Martićeva and Derenčinova. The expected value of this investment is about 750 million kuna, according to Tocka na i.

Potential investors are required to have a total value of their realised projects of at least 1 billion euros, have adequate experience in the reconstruction and conversion of historical or protected facilities over the last ten years, and also have experience in the realisation of public-private partnership projects of a minimum value of 75 million kuna.

Bids which do not provide evidence on the development of similar projects over the last ten years and proof of their completed projects for the development of residential, office, hotel and multifunctional facilities will not be considered.

"The location has some great potential with regard to its position, it's very well connected with public transport, it's close to a car park (garage), the city centre, city squares and historical and cultural sights. The realisation of this project will involve the restoration, construction and redoing of the entire block as the only block in this part of the city that hasn't been completed and has no clearly defined urban structure and purpose.

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