State aid: Commission approves investments in Croatia in the expansion of the Istrian Y in the amount of EUR 197 million

In accordance with EU rules on state aid, The European Commission has approved,the plan of the Republic of Croatia to extend the contract with Bina-Istra on a concession for the Istrian Y. This will allow the concessionaire new investments worth 197m euros to continue work and limit distortions of competition. The Istrian Y is a 145 km long motorway that connects Istria with the rest of Croatia. The motorway is managed on the basis of a 1995 concession agreement, and the concession was granted to Bina-Istra until 2034.

In June 2020, Croatia notified the Commission of the extension of the road concession agreement until 2039.  (another lane in both directions) from the Vranje junction to the Učka tunnel (Kvarner) - 8 km long section on the northeastern part of the motorway. The aid is granted in the form of an extension of the concession. The 197m-euro investment will primarily be used to build a new 5.63km Učka tunnel pipe, which is needed to meet minimum safety requirements, and for several new viaducts, overpasses and underpasses. Bina-Istra will also renovate the Kvarner rest area. The Commission has considered the measure in accordance with EU rules on State aid for services of general economic interest and with EU public procurement rules, in particular the EU Directive on the award of concession contracts (Directive 2014/23 / EU), according to which companies may, under certain conditions, be reimbursed for the additional cost of providing the public service. The Commission has determined that the plan of the Republic of Croatia to extend the concession agreement for the Istrian Y meets all the conditions for obtaining support. The extension of the concession is proportional to the amount needed to finance the necessary works, and the company Bina-Istra will not receive excessive compensation. The Commission concluded that the measure would stimulate growth and investment and would not distort competition and trade between Member States in line with EU rules on state aid and public procurement. Accordingly, on the basis of EU state aid rules, the Commission approved aid to Croatia in the form of an extension of the Istrian Y concession. A non-confidential version of the decision will be available under case number SA.56832 in the State aid register on the Commission's competition website as soon as possible confidentiality issues have been resolved.

Comments are closed.