- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS Croatia: Zagreb International Airport Overview Zagreb International Airport, the largest in Croatia, is a key gateway for tourism and busi- ness, making it a critical element in the country’s economy. At a capacity of two million passengers per year, however, the airport was unable to keep up with growing demand for airport services. In 2009, the Government of Croatia decided to build and operate a new terminal under a public-private partnership. The Zagreb Airport International Company (ZAIC) won the tender and took over manage- ment of the airport in December 2013. The European Investment Bank (EIB), the International Finance Corporation (IFC), Deutsche Bank, and Unicredit Bank Austria provided financing to the project. The new terminal is expected to open by the end of 2016. This series showcases how the Multilateral Development Banks’ collaboration supports the development and implementation of infrastructure investment. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid. - MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS - APRIL 2016 CroatiaZagrebAirport_WBG_EIB.indd 1 4/6/2016 5:06:35 PM Background of Aéroports de Paris (20.77 percent); Bouygues Bâtiment International, a subsidiary of Bouygues Tourism is a major contributor to the Croatian Construction (20.77 percent); the Marguerite Fund economy and a key driver of employment. The (20.77 percent); TAV Airports (15 percent); and Zagreb International Airport, built in 1962, had gone Viadukt, a Croatian construction company (5.11 through several stages of expansion. However, by percent). The consortium took over management of 2009 it was clear that the passenger terminal, with an the Zagreb Airport in December 2013. annual capacity of two million passengers, could no longer accommodate growing market demand. The Multilateral Development Banks’ Role government initiated a tender for the design of a new terminal, which would then be built and managed by • EIB supported the airport with a loan of €80 million a private operator under a public-private partnership. to finance Phase 1 of the expansion. • IFC committed €54 million to the project, including Project Description a loan of up to €35 million and an equity investment of €19 for a 17.58 percent stake. The project entails the expansion of capacity at Zagreb • Deutsche Bank and Unicredit Bank Austria also pro- International Airport, the county’s largest, under a vided finance. 30-year concession to finance, design, construct and operate a new, state-of-the-art passenger terminal. Outcomes Under the concession, the operator is also responsible The project improves a critical component of Croatia’s for managing the operation of the entire airport until economic infrastructure, supporting tourism, 2042, including refurbishment and maintenance investment, and trade: of runways, the cargo terminal, car parks and future property developments. Also included is the • Upgrades essential infrastructure in Croatia without construction of a new 1.8 kilometer access road to adding a burden to state finances. connect the new terminal with the local road network. • Mobilizes €331 million in investment. The existing terminal will be converted and leased for • Adds 65,000 square meters of terminal space. airport users. The new 65,000 square meter terminal is • More than doubles passenger capacity from two expected to be completed by the end of 2016. to five million people annually. • Boosts the tourism sector, a major driver of The project comprises a total investment of employment in Croatia, and encourages trade €331 million: €243 million for the design and and investment. construction of the new terminal and €88 million for the maintenance of the airport infrastructure. For more information please contact: When completed, it will accommodate five million World Bank Group: Nadine Ghannam passengers annually, over twice the current capacity. Email: Nsghannam@worldbankgroup.org A consortium, the Zagreb Airport International European Investment Bank: Tim Smit Company (ZAIC), was awarded the concession in Email: t.smit@eib.org February 2012. The agreement was signed in April 2012 with the Ministry of Maritime Affairs, Transport and Infrastructure of Croatia. Ownership of the consortium is as follows: Aéroports de Paris Management, a wholly-owned subsidiary Photo Credits Front: Andrew Nash/Creative Commons license, creativecommons.org/licenses/bysa/2.0 eib.org @EIB ifc.org @IFC_org worldbank.org @WorldBank CroatiaZagrebAirport_WBG_EIB.indd 2 4/6/2016 5:06:36 PM