Disclosable Restructuring Paper - Sustainable Croatian Railways in Europe - P147499

The objective of the Sustainable Croatian Railways In Europe Project is to improve the operational efficiency and the financial sustainability of the public railway sector in Croatia. This is the first restructuring for the Sustainable Croatian Railways in Europe Project, and it is expected that with the restructuring and the implementation of the proposed measures and the Sector Policy Letter, the project status will become satisfactory. The proposed changes would directly improve the project capacity to support preparation and implementation of restructuring programs for HZ Infrastructure and HZ Passenger Transport by reinforcing funding for capacity building and technical assistance, improving safety and reliability of transport, modernizing and increasing availability of train sets, and decreasing companies’ operating costs. Overall the modification of investment will allow an increased impact on service quality. The restructuring will also improve the capacity of MSTI to finalize its strategy on the future of HZ Cargo and in sector coordination. The Level two project restructuring envisages modification of Intermediate Outcome Indicators values measuring the PDO, modification of project description, revision of disbursement estimates and change in components. The restructuring does not modify the safeguard category or trigger new safeguard policies.