ZAGREB, 7 Feb (Hina) - Croatian government  endorsed a contract for managing railway infrastructure until 31 December 2032 between the Republic of Croatia, the transport and infrastructure ministry, and the infrastructure manager, that is the company HŽ Infrastruktura.

In order to implement the contract, it will be necessary to allocate from the state budget for this year €394.2 million, €413.9 million in 2026, and €428.4 million in 2027.

Transport Minister Oleg Butković said at a government session that the multi-year contract for managing railway infrastructure provides stability and predictability in planning and managing infrastructure projects, enables better planning of financial resources, long-term maintenance and modernisation strategies, and facilitates investments in infrastructure.

The minister went on to say that railway infrastructure is a public good in general use, owned by the Republic of Croatia, and managed by the infrastructure manager, HŽ Infrastruktura.

"Maintaining, modernising, and building railway infrastructure is a key condition for a competitive railway services market," said Butković.

This approach, he noted, will create conditions for achieving the financial stability of the railway infrastructure operator, while ensuring transparency in financial transactions from the state to the infrastructure operator in Croatia and greater cost-effectiveness.

Such a multi-year contract for managing railway infrastructure represents one of the preconditions for achieving the goals defined in the National Recovery and Resilience Plan, which relate to the reform of the railway sector, specifically the reorganisation of the management of railway companies and their operations.

The cabinet today accepted a settlement between the Republic of Croatia and the company HŽ Passenger Transport (HŽPP) regarding the resolution of property and legal issues remaining after the division of HŽ - Croatian Railways.