THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES National Report ON MOTORWAYS

2019

ISSN: 1848-0233 The Croatian Association of Toll Motorways Concessionaires

Širolina 4 10 000 - CRO phone: + 385 1 65 15 375 Publisher: HUKA e-mail: [email protected] Editorial Board: [email protected] Miloš Savić, Editor in Chief www.huka.hr Brankica Bajić, Technical Editor Graphic design: Miloš Savić Modacom plus d.o.o. President Photographs: HUKA Archive Dario Silić Printed by: Kerschoffset d.o.o. Vice-President Published: July 2020 Current State of the Network

In 2019 a new stretch of fast road from 2 to Farkaševac was completed by motorway company HAC and handed over to HC for operation. Therefore the motorway network remains the same as in 2018.

As on 31 December 2019, the total length of the motorway network in amounted to 1,306.53 km. Motorways are operated by 4 companies: • d.o.o. (operates motorways , , , , and ) • Bina-Istra d.d. (operates the so-called – and ) • Autocesta -Zagreb d.d. (operates motorway , part of A1 and , the Bridge and part of D6 State Road from Novigrad to Netretić) • Autocesta Zagreb-Macelj d.o.o. (operates motorway )

Motorway and semi-motorway network (in km)

Company Total network Total network Plan openings in Total network 2018 2019 2020 plan for 2020 HAC 918.50 918.50 0.30 918. 80 ARZ 187.03 187.03 0 187.03 BINA-ISTRA 141.00 141.00 10.30* 141.00 AZM 60.00 60.00 0 60.00 TOTAL 1,306.53 1,306.53 0.30 1,306.83

*Widening to full motorway profile of the existing stretch, therefore the length of BINA network remains the same

Opening of new stretches in 2019

In 2019 there was no new opening of motorways but a new stretch of fast road from Vrbovec 2 to Farkaševac (total length of 10.6 km), built by motorway company Hrvatske autoceste d.o.o., was opened to in April and handed over to Croatian Roads Authority (HC). Therefore the motorway network remains the same in 2019.

Motorway and semi-motorway network 2015 – 2019 (in km)

2015 - 2017 1,313.8 1,306.5 2018* - 2020 *As of 1.1.2018. tolled Sv. Ilija operated by HAC was handed over to HC.

Tunnels and bridges on the network – single direction

Company Km of Km of bridges Total km tunnels and bridges HAC* 27.42 37.64 65.06 ARZ 12.88 14.56 27.44 BINA-ISTRA 5.31 9.36 14.67 THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE AZM* 4.70 3.32 8.02 TOTAL 50.31 64.88 115.19 HUKA

*Revised length in km

3 Motorways in the Republic of Croatia

Network and companies

Company Motorways Status of construction Km in service

HRVATSKE IN SERVICE AUTOCESTE d.o.o. 918.50 IN CONSTRUCTION AUTOCESTA RIJEKA- IN PROJECT ZAGREB d.d. 187.03

BINA-ISTRA d.d. 141.00

AUTOCESTA ZAGREB -MACELJ d.o.o. 60.00 TOTAL in service as per 31/12/2019 1,306.53

Part of the motorway A1 from Zagreb to is operated by ARZ d.d.

Part of the motorway A7 is operated by ARZ d.d.

D10 D10 i D12 were handed over to Croatian Roads D12 Authority

Key

TUNNEL OVER 5 KM

TOLLED BRIDGE

BRIDGE

STATE ROAD

BORDER CROSSING

4 Works in Progress

In 2020 there will be open to traffic 0.30 km of the brigde and 10.30 km of Rogovići – section upgraded to full motorway profile.

As per 31st December 2019 the works were in progress as follows: • 25.30 km of motorways • 10.30 widening to full motorway profile

Works in progress on 31 December 2019

Motorway/Road Section Km Description Subsection – 17.50 Halasica Bridge Construction works and Subsection Halasica Bridge – 0.80 supervision. Opening is Bridge planned by Mid 2022 A5 Beli Manastir – – Svilaj Drava Brigde 2.50 Drava Bridge – Osijek 3.80 Opening is planned by Sava Bridge 0.70 Mid 2020

A8 Istrian Y: Widening to full Subsection Rogovići – Cerovlje 10.30 motorway profile of the – existing stretch

In 2020, road works will be completed on the total of: • 10.30 km of widening of the existing section to full motorway profile • 0.30 km of bridge

The following sections will be opened to traffic in 2020

Motorway Section Km Opening to traffic scheduled Cross-border bridge with Bosnia & Herzegovina over the Sava river, A5 Beli Manastir – Osijek – Svilaj Sava Bridge 0.30 half of the bridge is in Croatia. Opening planned by Mid 2020 Widening to full motorway profile. A8 Kanfanar – Matulji Rogovići – Cerovlje 10.30 Opening planned by November 2020

In addition to the continuation of work from the previous year, the following new works will start in 2020: • 12.62 km of widening to full motorway profile • 6.50 km of new motorway, single in the first phase

Start of new works in 2020

Motorway Section Km Description A8 Kanfanar – Matulji Rogovići – Cerovlje 12.62 Widening to full motorway profile Construction of bypass as a part of the First Phase of Motorway construction of total length of 9.8 km (single in each direction) Selce – Novi whereby of total length of 6.5 km A7 Križišće – Matulji 6.50 Vinodolski of the future motorway will be built together with 3.3. km of junctions with the state road near Selce CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE and Novi Vinodolski. Opening to traffic is planned in the first semester of 2023. HUKA

5 Cost of Investment and Financing

The total of HRK 434.55 million (€ 58.65 million) was invested in the construction of new motorways in 2019, while HRK 389.91 million (€ 52.62 million) was invested into sections under traffic.

Investments in 2019 (in Mio. EUR) / 1 EUR*** = 7.41 HRK

Company Investments in 2019 Plan for 2020 Into new sections Into existing Into new sections Into existing sections sections HAC* 11.85 31.99 24.74 56.74 ARZ** 0 9.41 0 21.79 BINA-ISTRA 46.80 3.34 71.95 3.39 AZM** 0 7.88 0 7.29 TOTAL 58.65 52.62 96.69 89.21 TOTAL INVESTMENTS 111.27 185.90

*HAC: Investment amounts for the year 2019 are based on final accounts. For 2020 amounts are based on Draft Plan of Construction and Maintenance approved by the Supervisory Board of the Company on the 16th January 2020. The initial total investment plan for construc- tion and heavy maintenance amounted to 603.78 mio.HRK (81.48 mio EUR) but due to unforeseen COVID-19 crisis HAC has undertaken activities to adapt its activities to the new circumstances. The Company approved the Crisis Business Plan for 2020 and the Amendments to the HAC Financial Plan for the year 2020 which has been approved by the Croatian Government on 18th May 2020. By these two docu- ments the investment amounts for construction and heavy maintenance have been reduced by 171.18 mio. HRK (23.10 mio. EUR) i.e. to a total of 432.6 mio HRK (58.38 mio.EUR). ** The investment amounts are based on the temporary reports for 2019 *** 1 EUR=7.41 HRK (Average annual exchange rate in 2019, Source: Croatian National Bank)

Investments in 2019 (in Mio. EUR)

120 111.27

100

80

56.65 60 52.62 46.80 50.14 43.84 40 31.99

20 11.85 9.41 9.41 7.88 7.88 3.34 0.00 0.00 0 INTO NEW SECTIONS HAC ARZ BINA-ISTRA AZM TOTAL

INTO EXISTING Investments – plan for 2020 (in Mio. EUR) SECTIONS

200 185.90 TOTAL INVESTMENTS

160

120 96.69 89.21 81.48 75.34 80 71.95 56.74

40 24.74 21.79 21.79 7.29 7.29 0.00 3.39 0.00 0 HAC ARZ BINA-ISTRA AZM TOTAL 6 In 2020 a total amount of 185.90 Mio. EUR is planned to be invested into new sections of motorways and sections under traffic.

Total investments 2012 – 2019 (in Mio. EUR)

300 258.97 244.33 250

200

150 111.27 91.23 100 87.63 63.78 45.49 49.76 50

0 2012 2013 2014 2015 2016 2017 2018 2019

Investments in 2019 (in Mio. HRK)

Company Investments in 2019 Plan for 2020 Into new sections Into existing Into new sections Into existing sections sections HAC* 87.78 237.07 183.30 420.47 ARZ** 0 69.72 0 161.44 BINA-ISTRA 346.78 24.73 533.18 25.13 AZM** 0 58.39 0 54.02 TOTAL 434.56 389.91 716.48 661.06 TOTAL INVESTMENTS 824.43 1,377.54

*HAC: Investment amounts for the year 2019 are based on final accounts. For 2020 amounts are based on Draft Plan of Construction and Maintenance approved by the Supervisory Board of the Company on the 16th January 2020. The initial total investment plan for construc- tion and heavy maintenance amounted to 603.78 mio.HRK (81.48 mio EUR) but due to unforeseen COVID-19 crisis HAC has undertaken activities to adapt its activities to the new circumstances. The Company approved the Crisis Business Plan for 2020 and the Amendments to the HAC Financial Plan for the year 2020 which has been approved by the Croatian Government on 18th May 2020. By these two docu- ments the investment amounts for construction and heavy maintenance have been reduced by 171.18 mio. HRK (23.10 mio. EUR) i.e. to a total of 432.6 mio HRK (58.38 mio.EUR). ** The investment amounts are based on the temporary reports for 2019 *** 1 EUR=7.41 HRK (Average annual exchange rate in 2019, Source: Croatian National Bank)

Financing structure in 2019

Source of financing (%) HAC ARZ BINA-ISTRA AZM Loans 2.83 0 0 0 Proper resources 0 0 0 100 Revenues from tolls and other revenues 0 99.74 52.0 0 Revenues from fuel HRK 0.20/l i.e. EUR 0.026/l 90.72 0 0 0 Reimbursable and non-reimbursable state funding 6.45 0 48.0 0

EU funds 0 0.26 0 0 CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE TOTAL 100 100 100 100 HUKA

7 Traffic

In 2019 in all motorway companies experienced increase of traffic of all categories of vehicles by 4.91 % in com- parison with the previous year.

Number of vehicles in toll collection zones

Company 2018 2019

Light vehicles Heavy Vehicles Light vehicles % Heavy Vehicles % % (IA+I+II) (III+IV) (IA+I+II) (19/18) (III+IV) (19/18) Total (19/18) HAC 35.980.659 5.577.300 37.942.756 5.45 5.961.335 6.89 5.65 ARZ 21.163.407 2.413.085 22.056.892 4.22 2.407.576 -0.23 3.77 BINA-ISTRA 9.465.911 828.756 9.705.121 2.53 926.922 11.84 3.28 AZM 6.386.607 789.786 6.788.205 6.29 871.208 10.31 6,73 TOTAL 72.996.584 9.608.927 76.492.974 4.79 10.167.041 5.81 4.91 TOTAL TRAFFIC 82.605.511 86.660.015 4.91

Number of vehicles in toll collection zones 2019 (in Mio. vehicles)

40 37.943 LV HV

30 10.167

22.057 20

9.705 10 5.961 6.788 2.408 0.927 0.871 76.493 0 HAC ARZ BINA-ISTRA AZM TOTAL

Total number of vehicles in toll collection zones 2012 – 2019 (in Mio. vehicles)

86.660 90 82.605 TOTAL 76.041 79.899 80 LV 70.402 64.706 65.286 65.655 HV 70 70.689 72.996 76.493 67.346 60 62.417 57.837 58.093 58.126 50

40

30

20 6.868 7.192 7.528 7.984 8.694 9.209 9.608 10.167 10

0 2012 2013 2014 2015 2016 2017 2018 2019

8 In 2019 a total amount of 111,27 Mio. EUR was invested into new sections of motorways and sections under traffic.

Traffic, GDP and CPI (%)

GDP TRAFFIC CPI GDP TRAFFIC CPI 2018 / 2017 2018 / 2017 2018 / 2017 2019 / 2018 2019 / 2018 2019 / 2018 2.7* 3.4 0.8 2.9 4.9 1.5

Source: Central Bureau of Statistics

Traffic and GDP 2012 – 2019 (%) TRAFFIC GDP 10 9 8.0 8 7.21 7 6 5.1 4.9 5 3.4 4 3 3.2 2 2.8 2.7 2.9 0.9 0.56 1.6 1 0 -0.5 -1 -1.64 -1 -2 -2 -3 2012 2013 2014 2015 2016 2017 2018 2019

Tolling

The closed toll collection system, with several entrances and exit points, is predominantly operated in the Republic of Croatia. Motorway usage is charged per mileage and vehicle category. At the entrance to the mo- torway, the user takes an entry card (or the entry is recorded on the ETC device) and the payment is made on exit toll stations per the length of travel. The open toll collection system is used on – Zagreb Motorway, on the and on Rupa – Rijeka.

Average toll rate per km (with VAT) / 1 EUR* = 7.41 HRK

Existing systems Light vehicles (Category I) HRK/km €/km

Closed system 0.5175 0.0698 Open system 0.500 0.0675 Ratio categories I : IV – closed tolling system 1 : 4.2 Trucks (Category IV) HRK/km €/km Closed system 2.195 0.296 Open system 1.990 0.269 Ratio categories I : IV – open tolling system 1 : 4.0

* 1 EUR=7.41 HRK (Average annual exchange rate in 2019, Source: Croatian National Bank)

Motorcycles (category IA) pay 60% of the toll charged for category I vehicles. On all motorways, toll can be paid in cash (HRK and €), by credit and debit cards, by INA card and by SMART cards. Electronic toll collection (ETC) system is available on all motorways except on the Zagreb–Macelj Mo- CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE torway (A2).

VAT on tolls is 25%. HUKA

9 Technology of electronic toll collection system in use

The toll collection systems of HAC, ARZ and BINA ISTRA network has a stop and go system that integrates electronic toll collection (ETC).

The technology of electronic toll collection is in accordance with the legal provisions: DSRC 5.8 GHz Communication standards: Physical Layer ENV 12795, EN 12975 and ENV 12253 / Data Link Layer ENV 12834 and ENV 13372 Application standards: Application Layer ISO14906 EFC Transaction models: PISTA and TIS are in use, with openness to other transactional models in accordance with relevant standards.

Tolling system in the Tolling/charging system Tolling technology country Light vehicles Distance related system with barriers DSRC 5,8 GHz Heavy vehicles Distance related system with barriers DSRC 5,8 GHz Different enforcement means; subsequent back office check and analysis of transactions identified by IT system, ANPR/OCR Enforcement video cameras and ANPR (OCR) cameras for vehicle plate enforcement recognition

In the Republic of Croatia tolls are paid according to the following categories of vehicles:

Skupine vozila

IA I II III IV

HRVATSKE AUTOCESTE d.o.o. (HAC) The Government of the Republic of Croatia started a process aiming to transformation of the existing tolling system on motorways into system that will: • enable electronic tolling without barriers, improvement of road safety and traffic flow levels • be acceptable and non-discriminatory for all groups of users paying the toll • ensure to motorway operators optimum costs and revenues regarding tolling • be interoperable with future EETS service. AUTOCESTA RIJEKA-ZAGREB d.d. (ARZ) Tolling is distance based i.e. is calculated according to kilometres travelled and category of the vehicle. Tolls can be paid in cash (HRK or EUR), by credit or debit cards, INA fleet card, by monthly or annual tickets, smart cards and by ETC. SMART card is prepaid payment mean offering to users a discount of 21,74%. This payment method is charac- terized by: simple use, 21,74% discount, from 1st November to 31st March total discount of 33,48% is offered su- bject to replenishment of the account with defined amount of money, OBU is transferable and not linked to certain category of vehicle, and user is free to replenish his prepaid account according to his needs.

10 ETC is subscription pre-paid model where the user has to be provided with OBU for specific ve- hicle category with possibility to get 21,74% discount on due toll amount. This payment method is characterized by: sim- plicity, easy passing through toll stations, 21,74% discount on tolls, contactless payment. At exit toll station user gets 21,74% discount on due toll amount all year round and from 1st November to 31st March each year user can benefit from 33,48% discount when buying a seasonal ETC device. User can also choose ETC device with post-paid model whereby his account is charged after­ wards through his bank card. For vehicles from category III and IV there are additional discounts de- pending on eco class of the vehicle (European emission standards). Future ARZ projects are focused on the need to increase the flow of toll stations by introducing more fast toll without stopping (currently there are two) and to introduce new products based on electronic tags and ANPR modules. Bina-Istra d.d. (BINA-ISTRA) The Istrian Y network has a closed toll system. Users have at their disposal a total of 108 toll lanes, of which 45 are entry lanes and 63 are exit lanes. Payment can be made in cash in HRK and EUR (only for non-residents), with bank cards or Bina-Istra ETC devices. For users who travel frequently, Bina-Istra has prepared special offers with significant discounts on toll rates depending on the package chosen. The discounts can be obtained by using the Bina-Istra ETC device, which is compatible with the networks of other motorway concessionaires in Croatia – ARZ and HAC. During low traffic intensity, toll collection at most toll stations runs in automatic mode without the presence of a toll collector. Bina-Istra ETC subscribers can use the Internet or SMS subscription to see the balance of their acco- unts and subscription expiry time and can also obtain the listing of passes through toll stations. In addition, they can replenish their accounts and fill in and print invoices for payments via bank transfer. At Bina-Istra toll collection points, toll can be paid by all credit and debit cards, and by INA card and the ETC device. Furthermore, users who already own an ETC device can additionally register devices already bought at HAC and ARZ with the Bina-Istra toll collection system and in this way become Bina-Istra subscribers (this is valid for frequent users entitled to average discount of 30 to 50%, depending on the section used) or to register their credit cards for an ETC device (applicable to non-frequent users).

Toll rates in 2019

HRVATSKE AUTOCESTE d.o.o. (HAC) Bina-Istra d.d. (BINA-ISTRA) In 2019 HAC has not changed its unit toll rates. In As of 1.1.2019. new toll tariffs have been applied on peak traffic period during tourist season, from 15st the Istrian Y motorway, adjusted for inflation rate June to 14th September 2019, seasonal toll tariffs for the last 12 months, which resulted in average have been applied for IA, I and II category of vehicles increase of toll rates on the Istrian Y by 1.6 %. (regular toll tariffs increased by 10%). The summer tariffs have been applied on Istrian Y AUTOCESTA RIJEKA-ZAGREB d.d. (ARZ) also this summer (from 1.6.-30.9.2019.). This special tariff was approved by the Ministry of the Sea, Tran- In 2019 the unit toll rates did not change on the mo- sport and Infrastructure and represents full toll ta- torway network under ARZ concession. However, in riff increased by 10%. peak traffic period during tourist season, from 15st June to 14th September 2019, seasonal toll tariffs For subscribers and local population using ETC devi- have been applied for IA, I and II category of vehicles ce tolls remain unchanged. Since summer 2015 (regular toll tariffs increased by 10%). BINA ISTRA has proposed to its users ETC package called EASY, offering a general discount of 10% wit- AUTOCESTA ZAGREB-MACELJ d.o.o. (AZM) hout time limit. ETC users have the possibility to qu- In 2019 toll rates did not change. For prepaid toll alify for a series of discounts on the regular toll pri- payments via SMART card the discount of 25% is cal- ce. To improve services for its users, in 2019 the com- culated for categories I and II and 13% for categories pany launched several projects whose implementa- III and IV (for amounts more than HRK 2,000.00). tion is expected in 2020. In addition to SMART card, payments can also be made via debit and credit cards, and by INA card. THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE HUKA

11 Toll Revenues

In 2019, the total toll revenues for all motorway companies amounted to EUR 425.737.086 which repre- sents an increase of toll revenues by 4.89 percent when compared to the previous year.

Toll revenues (without VAT)

Company 2018** 2019*** % LV HV TOTAL EUR LV HV TOTAL EUR (19/18) HAC* 177.054.410 77.912.959 254.967.369 185.43.797 83.566.774 269.001.752 5.36 ARZ* 66.554.124 22.024.189 88.578.313 69.188.221 21.308.228 90.496.449 2.03 BINA-ISTRA* 25.495.304 6.823.795 32.319.099 26.966.850 7.425.037 34.391.887 6.27 AZM* 20.237.232 9.245.849 29.483.081 21.357.148 10.488.851 31.845.999 7.87 TOTAL 289.341.070 116.006.793 405.347.862 302.947.195 122.788.891 425.736.086 4.89

*Toll revenues are based on the temporary reports for 2019 **1 EUR=7.42 HRK (Exchange rate as per 31st December 2018, Source: Croatian National Bank) ***1 EUR=7.41 HRK (Average annual exchange rate in 2019, Source: Croatian National Bank)

28.9% HV Portion of LV and HV in total toll revenues 2019 71.1% LV

Toll revenues breakdown for light vehicles and heavy vehicles

Company 2019* Light vehicles Heavy vehicles Total LV% HV% % (19/18) (IA+I+II) (III+IV) (IA+I+II+III+IV) (19/18) (19/18) HAC 185.435.797 83.566.774 269.001.752 4.59 7.11 5.36 ARZ 69.188.221 21.308.228 90.496.449 3.82 -3.38 2.03 BINA-ISTRA 26.966.850 7.425.037 34.391.887 5.63 8.66 6.27 AZM 21.357.148 10.488.851 31.845.999 5.39 13.29 7.87 TOTAL 302.948.016 122.788.891 425.736.086 4.56 5.70 4.89

Toll revenues 2018 – 2019, without VAT (in Mio. EUR)

300 269.00 254.97 2018 2019 250

200

150

88.58 90.49 100 405.35 425.74

50 32.32 34.39 29.48 31.84

0 HAC ARZ BINA-ISTRA AZM TOTAL

12 Total revenues from toll in 2019 increased by 4.89 percent in comparison with the year 2018.

Toll revenues 2012 – 2019, without VAT (in Bil. HRK)

4,000

3,007.68 3,154.70 3,000 2,876.60 2,594.93 2,414.30 2,266.91 2,126.50 2,209.14 2,000

1,000

0 2012 2013 2014 2015 2016 2017 2018 2019

Toll revenues for light and heavy vehicles 2012 – 2019 without VAT (in Bil. HRK)

TOTAL LV HV

3.500

3.000 3.007 3.155 2.876 2.500 2.594 2.413 2.266 2.245 2.209 2.000 2.126 2.147 2.045 1.831 1.500 1.709 1.528 1.570 1.589

1.000 0.861 0.910 0.763 0.831 0.500 0.598 0.638 0.668 0.704

0 2012 2013 2014 2015 2016 2017 2018 2019

Toll revenues are based on the temporary reports for 2019 *1 EUR=7.41 HRK (Average annual exchange rate in 2019, Source: Croatian National Bank) THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE HUKA

13 Traffic Safety

The total of 2.697 traffic accidents, with 31 fatalities and 459 injuries was registered in 2019. The total number of all traffic accidents registered in 2019 decreased by 3.71 % and total number of fatalities decreased by 8.82%, when compared to the previous year. Number of injured people decreased by 18.76 % when compared to the year 2018.

Traffic accidents 2018 – 2019

2018 2019 % NUMBER OF TRAFFIC HAC BINA- ARZ AZM TOTAL HAC BINA- ARZ AZM TOTAL (19/18) ACCIDENTS: 918.5 ISTRA 187 60 1306.5 918.5 ISTRA* 187 60 1306.5 km 141 km km km km km 141 km km km km

With fatalities 22 2 6 0 30 16 3 5 1 25 -16.67

With injured 205 10 86 15 316 178 13 57 8 256 -18.99

With material damage 1.788 73 484 110 2.455 1.660 73 567 116 2.416 -1.59

TOTAL number of traffic accidents 2.015 85 576 125 2.801 1.854 89 629 125 2.697 -3.71

TOTAL number of injuries 378 23 136 28 565 333 23 93 10 459 -18.76

TOTAL number of fatalities 25 2 7 0 34 22 3 5 1 31 -8.82

Traffic accidents are observed on the totality of the motorway network * Bina-Istra figures on traffic accidents are given for the total network of Istrian Y (both motorway and semi motorway) while safety ratios are given only for stretches in full motorway profile to be comparable with other concessionaires.

Traffic accidents on the entire motorway network 2012 – 2019

NUMBER OF TRAFFIC 2012 2013 2014 2015 2016 2017 2018 2019 ACCIDENTS:

With fatalities 29 31 21 18 27 20 30 25

With injured 346 308 293 307 315 332 316 256

With material damage 1.839 1.823 1.863 1.961 2.055 2.113 2.455 2.416

TOTAL number of traffic accidents 2.214 2.162 2.177 2.286 2.397 2.465 2.801 2.697

TOTAL number of fatalities 45 39 25 19 36 23 34 31

Total number of fatalities 2012 – 2019

50 45

40 36 34 39 31 30

25 23 20 19

10

0 2012 2013 2014 2015 2016 2017 2018 2019

NUMBER OF FATALITIES

14 In 2019 the total number of fatalities on all motorways decreased by 8.82%, when compared to the year 2018.

Main safety ratios (per 109 km travelled)

10⁹ vehicles/km in 2019 Change 2019/2018 in % HAC* BINA-ISTRA*** ARZ** AZM CRO HAC* BINA-ISTRA*** ARZ** AZM CRO 911 km 100 km 146 km 60 km 1217 km 911 km 100 km 146 km 60 km 1217 km Personal injury rate 33.50 12.13 39.5 19.25 35.16 -17.00 10.57 -32.11 -49.14 -18.99 Fatal accident rate 3.01 0.00 3.45 2.4 3.43 -30.48 -100 -19.95 240.00 -16.67 Rate of dead** 4.14 0.00 3.46 2.4 4.26 -15.85 -100 -31.21 240.00 -8.82

*km of the network maintained used for calculating the safety figures **ARZ safety ratios refer to A1 and A6 motorways i.e. to 146,5 km, while table with traffic accidents include the total ARZ network i.e.187,03 km ***Bina-Istra figures on traffic accidents are given for the total network of Istrian Y (both motorway and semi motorway) while safety ratios are given only for stretches in full motorway profile to be comparable with other concessionaires.

Road safety

CROATIA* 2018 2019 % 19/18 HUKA members 2018 2019 % 19/18 N. of persons injured (light and heavy 565 459 -18.76 N. of dead (fatalities) on 317 297 -6.31 injuries) all roads in the country Personal injury rate 43.40 35.16 -18.99 N. of fatal accidents 30 25 -16.67 N. of dead (fatalities) on all motorways in the 34 31 -8.82 Fatal accident rate 4.12 3.43 -16.67 country N. of dead (fatalities) 34 31 -8.82

*Source : Ministry of the Interior of the Republic of Croatia Fatality rate on members network 4.67 4.26 -8.82

Long and Medium-Term Development Program

According to the Roads Act, the construction and maintenance of motorways is planned: • In the long term, through the public road development strategy • In the medium term, through four-year Public Road Construction and Maintenance Programmes passed by the Government of the Republic of Croatia based on the proposal of the Ministry of Sea, Transport, and Infrastructure, • Annually, through construction and maintenance plans defined by individual motorway operating companies. In order to provide quality transport planning the Government of the Republic of Croatia prepared in 2017 the National Transport Model which was followed by adoption of the Strategy of Transport Development of the Republic of Croatia for the period 2017-2030 and set up the framework for further development of road network in Croatia. The Government of the Republic of Croatia adopted by now five four-year Public Road Construction and Ma- intenance Programs (2001-2004, 2005-2008, 2009-2012, 2013-2016, 2017-2020). The Republic of Croatia will complete its strategic goals and implement the standard of regular road mainte- nance as planned, harmonize the entire core road network with modern requirements and complete the needed network of motorways and fast roads in Croatia. According to Public Road Construction and Maintenance Program 2017–2020 the following motorways and express roads remain to be completed and opened to traffic:

A5 Beli Manastir – Osijek – B&H Border Section CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE • Osijek – Beli Manastir Section including Drava Bridge • Sava Bridge HUKA

15 A7 Križišće – Žuta Lokva • Selce – Novi Vinodolski section – construction of the First Phase of Motorway (1 lane in each direction)

A8 Kanfanar – Matulji Motorway • Rogovići – Cerovlje Section – widening to the full motorway profile

Start of construction of the “Ranžirni” on the A11 Motorway Zagreb – in 2020.

From major long-term projects of Hrvatske autoceste d.o.o. we underline the following: • Completion of the Motoroway A5 and finalizing of the cross-border section from Hungarian border to Beli Manastir, the motorway A5 which is part of the Corridor Vc, will enable the development and use of the entire Corridor. • Construction of A7 motorway, almost the half of the total length of A7 motorway going from Rupa (Slovenian border) to Križišće is already completed, while for the subsection from Križišće to Žuta Lokva projects are under development. A7 motorway is important link in Croatian motorway network, between the motorway A8 (Istrian Y), A6 motorway (Rijeka-Bosiljevo) and (Zagreb-Split). Furthermore, considering the international importance of motorway A7 it could become steering wheel for regional and local development of Croatian coast, its islands and Adriatic-Ionian region as well as link between Adriatic ports and . In the first phase the Novi Vinodolski bypass will be constructed. • Continuation of construction of motorway A1 to – further construction of stretch from Metković to Dubrovnik and integration of the Pelješac bridge by linking it to motorway network. Preparation of preliminary study documentation is under way to define possible options and feasibility of the project (construction by phases). • Reconstruction of and enlargement of the existing structure by adding one extra traffic line to cope with traffic jams. • Optimizing the lighting by implementing LED technology along the entire motorway network under operation of Hrvatske autoceste as to decrease energy consumption and improve energy efficiency. • Renewal of road service facilities to provide better service to users. • Upgrade and modernization of tolling system aiming to optimize managing of toll activities and im- prove traffic flow. • Implementation of safety fences compliant with legislation. The goal is to increase road safety by improving passive safety systems which will have direct impact on reducing the traffic accidents (re- duction of fatalities and injuries). This project aims to make safety fences on motorways under HAC operation compliant with regulations, standards and EU Directive.

Joint ITS CROCODILE 3 CROATIA project CROCODILE 3 CROATIA project is a cooperation between public authorities, road administrations and traffic information service providers as logical follow up of the previous CROCODILE project phases. The Project is part of CROCODILE 3 corridor which includes EU-Member States from the Central European region who are working together to improve cross-border traffic and transport through implementing harmonized and sync- hronized ITS applications on the high-level road network in this area. The corridor involves Central European (CE) countries, thereby ensuring coordinated traffic management and control resulting in high quality tra- vellers’ information services on one of the most important road-corridors in an enlarged . For drivers, the provision of information services along the whole CROCODILE 3 corridor before and during their journey will help them to optimize their route, respond to disruptions, and avoid hazardous situations.

Project details Start End Value Co-funding by EU 01.01.2018. 31.12.2020. 4,896.000.00 EUR 4,161.600.00 EUR

Participants Project coordinator: Hrvatske autoceste d.o.o. Beneficiaries: Autocesta Rijeka-Zagreb d.d.; Autocesta Zagreb-Macelj d.o.o.;Bina-Istra d.d.; d.o.o.

16 Significant activities in 2019 and plans for 2020

HRVATSKE AUTOCESTE d.o.o. In 2019 the company was focused on works as follows: • On Beli Manastir – Osijek – border with , completion of works and equipment of full motorway stretch from Halasica Brid- ge to Osijek (subsection Osijek Interch. – Drava Bridge of total length of 3.8 km, subsection Halasica Bridge – Drava Bridge of total length of 0.8 km as well as constructi- on works of the Drava Bridge of total length of 2.5 km) and construction of Sava Bridge od total length of 0,66 km. On subsection Beli Manastir – Halasica Bridge construction works continued on 7 road crossings as well as on the Halasica Bridge, representing the first phase of construction of this subsection (17.5 km). • On A1 Motorway Zagreb – Split – Dubrovnik – enlargement of – I. Phase • Completion of construction and equipment of DC12 state road from Vrbovec 2 Interch. – Farkaševac and opening to traffic • Renewal of road service facilities – renewal of Popovača – Gračenica and Križ rest areas on the • On A3 Motorway Bregana – Zagreb – Lipovac – setting up of noise protection walls in accordance with the Noise Protection Action Plan. In addition, Hrvatske autoceste carried out heavy maintenance works that included renewal and reconstruc- tion of pavement and structures, cleaning up of cuttings, water drainage system, road equipment and road signs, procurement of ITS equipment in TMMC (application of ITS Directive and DATEX I protocol), upgrade of tunnels with requirements of the Directive 2004/54/EC (construction requirements), harmonizing of safety and protection fences with new regulation requirements, works at TMMC, systems etc. as to extend the life span of assets and improve quality and safety of motorway as well as regular maintenance in compliance with regulations and standards for regular maintenance. In 2020 the main activities are planned as follows: • Works on A5 Motorway Beli Manastir – Osijek – border with Bosnia and Herzegovina include completi- on of works and opening to traffic of the Sava Bridge, together with border sections in Croatia and in Bosnia, start of works on the subsection from Beli Manastir to Halasica Bridge (17.5 km) including continuation of construction of Halasica Bridge and 7 road crossing representing the part of the fore- said subsection. • On A1 motorway Split – Dubrovnik enlargement of Dugopolje Interchange – II. and III. Phase. • A4 Zagreb – Goričan – completion of reconstruction works and opening to traffic of the link road to Goričan border crossing.

• Start of construction works on Novi Vinodolski Bypass, being the I. Phase of the construction of future motorway. • Renewal of road service facilities and service areas on the A3 Motorway. • On A3 motorways – setting up of noise protection walls in accordance with the Noise Protection Action Plan Upgrade and modernising of toll collection system. As in the previous year regular and heavy maintenance works are also planned in 2020. In addition to the ac- tivities from the year 2019 and which will be continued also during this year, in 2020 will be continued intro- duction of ITS system in TMCC centres (implementation of ITS Directive and DATEX I protocol), upgrade of tunnels with requirements of the Directive 2004/54/EC (equipment), revitalizing of road side facilities, optimi- zing of motorway lighting on HAC network in the framework of the National Energy Efficiency Action Plan and several projects aiming at improving the road safety (setting up of signing to prevent ghost drivers, tre- atment of potentially dangerous road spots, replacement of obsolete variable road signing, implementation of over-speed monitoring project on motorway network etc.) THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE HUKA

17 AUTOCESTA RIJEKA-ZAGREB d.d. In 2019 the company’s activities were focused on: Investments relating to the rehabilitation and maintenance of existing facilities on the motorway and of the motorway itself, maintenance of the equipment and investments in IT systems. Among projects financed through EU funds in 2019: • LIFE DINALP BEAR project was finished. From 1st July 2014 until 30th June 2019 ARZ Company was partner in the implementation project “Population level management and conservation of brown bears in northern Dinaric Mountains and the Alps ” so called LIFE DINALP BEAR Project. The leading partner in the project was The Slovenian Forestry Institute from and project was co-financed with 72% Grant from the EC. • Feasibility Study Project for the Infrastructure Adjustment Project Zagreb-: on the 1st August 2018 the Ministry of the Sea, Transport and Infrastructure, Central Finance and Contracting Agency for the funded programmes and projects and Motorway Company Autocesta Rijeka-Za- greb d.d. signed a grant contract for drawing up a feasibility study for the Infrastructure Adjustment Project Zagreb – Karlovac. The 85% of the total value of the Study will be co-financed by the EU whilst 15% will be financed by Autocesta Rijeka Zagreb motorway company and its partners; , towns of Karlovac and and municipalities of Stupnik and Klinča Sela. • Noise protection walls project: during 2019 project activities were carried out according to Contract signed i.e. in phases: Situation analysis, Options identification and analysis, Financial analysis and CBA for chosen option, Writing, delivering and presentation of the draft version of the Study, Writing, delivering and presentation of the final version of the Study and of the Final Report, Writing of Checklist for evaluating a project and Writing of executive summary template. • Project CROCODILE 2 CROATIA – the final technical workshop of the EU project CROCODILE 2 was held in 2019 and was attended by the representatives of the Ministry of the Sea, Transport and Infra- structure as well as the representatives of the state roads and motorway operators; public procure- ment procedures and signing of contract for provision of goods, equipment and works related to the project were finalized and their implementation was started. • Project CROCODILE 3 CROATIA is continuation of the project CROCODILE 2 CROATIA and is a part of the CROCODILE 3 corridor which includes six EU-Members States (, , Croatia, , and ). The focus of the project CROCODILE 3 CROATIA is to continue the imple- mentation of DATEX II protocol for the exchange of traffic data and information important for the road safety. Activities of the company in 2020: Among major projects of the Company for the year 2020 we underline the investments relating to the rehabi- litation and maintenance of existing facilities on the motorway and of the motorway itself as well as the ma- intenance of equipment. Projects undertaken by ARZ and planned for the year 2020 include improvement of service to users and of road safety level. Some of important projects started in 2019 and to be continued also in 2020 are: • Overall plan for development of the motorway Zagreb-Karlovac, • Noise Protection Walls Project • Project CROCODILE 2 CROATIA • Project CROCODILE 3 CROATIA In the long term the Company plans as follows: • Construction/Diversion of the State Road D6 from Novigrad Interchange to Lišnica of total length of 4.440 m • Construction of noise protection walls • Construction of Trinajstići Interchange • Reconstruction of Matulji Interchange • Adjustment project for Zagreb – Karlovac Motorway

18 All motorway companies participate in joint ITS projects CROCODILE 2 and 3 CROATIA.

Bina-Istra d.d. In 2019 the company’s activities were focused on: For fourth year in a row Bina-Istra proposes to its users new ETC subscription model with unlimi- ted duration of funds available on their accounts and 10% discount on toll price. In addition, Bina-Istra proposes to all its current and future ETC users the possibility to associate their ETC device with their credit card or INA fleet card account. In that way users do not need to replenish their ETC account, but their credit card or INA fleet card is charged on monthly basis for all trips made in one month. The feedback from users is positive. Bina-Istra introduced improved web page version for mobile phones offering to users better and more user-friendly experience while searching for information on ETC packages, gathered information about weather forecast, conditions on Istrian Y motorway, road assistance including automatic localisation on the motorway, possibility for ETC users to access to their personal accounts and about general organizing travel information and other useful information. After the successful closure of the financial structure for phase 2B1 and the start of works on the section Rogovići – Cerovlje (10.30 km) in 2018, in 2019 Bina-Istra continued with the works according to the planned schedule. For the year 2020 the company has set following objectives: • Widening to a full motorway profile on the -Učka Tunnel Section (Phase 2B1) • Implementation of project of interoperability of ETC systems with companies Hrvatske autoceste d.o.o. and Autocesta Rijeka-Zagreb d.d. • Start of construction of second tube of Učka Tunnel • Debt refinancing In the long term the Company plans as follows: • Widening to full motorway profile on the Pazin – Učka Tunnel Section (Phase 2B1) i.e. completion of the Istrian Y project • Construction of second tube of Učka Tunnel • Debt refinancing

AUTOCESTA ZAGREB-MACELJ d.o.o.

The short-term objectives of the company include: • Regular and periodic maintenance of the motorway and all existing systems and equipment, • Heavy maintenance (renewal of facilities and structures, pavement, bridges, viaducts, underpasses and and renewal of tolling system), • Implementing measures for lowering the number of traffic accidents (reconstruction of wildlife protec- tion fence), • Energy savings (project documentation for reconstruction of motorway lighting system based on LED is prepared), • Environmental protection and • Implementation of projects CROCODILE 2 CROATIA (DATEX II and Protocol) and CROCODILE 3 CRO- ATIA. Long term project of AZM: • The upgrade of the – Đurmanec Section of the total length of 3.7 km to the full motorway profile • Introduction of ETC toll payment THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE HUKA

19 Key Data

Data on motorways in Croatia 2018 2019 (19/18)

The total length of motorway network, in km, as on 31/12/2019 1.306.5(1) 1.306.5 TOLLED NETWORK LENGTH 1.306.5(1) 1.306.5 0 2 x 1 lanes – not including the stopping lane 57.1 57.1 0 2 x 2 lanes – not including the stopping lane 1.228,6 1.220,6 0 2 x 3 lanes – not including the stopping lane 20.8 20.8 0 2 x 4 lanes – not including the stopping lane 0 0 0 Length of tunnels longer than 500 m (in km of tunnel tubes) 38.09 38.09 0 Number of tunnels operated by the members longer than 500 m 31 31 0 Single directional length of bridges longer than 100 m 55.05 55.05 0 Number of bridges operated by the members longer than 100 m 171 171 0 NETWORK Number of km opened to traffic in 2019 1 NEW INTERCHANGE 0 0 0 MOTORWAYS SEMI-MOTORWAYS/FAST ROADS -7.3 (1) 10.6(2) Planned opening of new sections in 2020, in km MOTORWAYS 0.3 0.3 0 WIDENING OF EXISTING STRETCH TO FULL MOTORWAY 10.6(2) 10.3 Number of km under construction as on 31/12/2019 MOTORWAYS 25.3 25.3 0 SEMI-MOTORWAYS/FAST ROADS 10.6(2) 0 0 WIDENING OF EXISTING STRETCH TO FULL MOTORWAY 10.3 10.3 0 INVESTMENT New investment (in M€) 33.51 58.65 75.0 Investment into existing network (in M€) 57.72 52.62 -8.8 Total annual investments (in M€) 91.23 111.27 22.0 TOLL REVENUES in 2019, in EUR (without VAT) Annual toll revenues from light vehicles (in M€) 289.341.070 302.947.195 4.56 Annual toll revenues from heavy vehicles (in M€) 116.006.793 122.788.891 5.70 Annual toll revenues – total (without VAT, in M€) 405.347.862 425.736.086 4.89 Taxes other than VAT calculated on toll No No No VAT % 25 25 25 Calculated VAT/VAT charged on tolls (in M€) 101.33 106.43 5.03 EMPLOYMENT Total full-time employees 3.185(3) 3.048(3) -4.3 TRAFFIC DATA AADT LIGHT VEHICLES 14.342 14.695 2.5 AADT TRUCKS 2.123 2.496 17.6 AADT LV + HV 16.465 17.191 4.4

(1)As of 1stJanuary 2018 St. Ilija Tunnel was handed over to Croatian Roads Authority (HC) therefore HAC network decreased in 2018 by 7.3 km (2)Section of the State Road D12 handed over for operation to HC (Croatian Roads Authority) after completion (3)Total number of work force in all motorway companies and their operators

20 Data on motorways in Croatia 2018 2019 (19/18)

NUMBER OF KILOMETRES TRAVELLED (10⁶ x km) Total number of kilometres travelled 7.662,7 8.000,8 4.4 Number of kilometres travelled – light vehicles 6.674,2 6.839,3 2.5 Number of kilometres travelled – heavy vehicles 988,5 1.161,5 17.5 ROAD SAFETY Total number of accidents 2.801 2.697 -3.71 Number of accidents with injuries 316 256 -18.99 Number of fatalities 34 31 -8.82 Number of injuries 565 459 -18.76 Fatality rate 4.67(4) 4.26(4) -8.82 Number of kilometres travelled (10⁶ x km) 7.662,7 8.000,8 4.4 TOLLING Total number of toll transactions 82.605.511 86.660.015 4.9 Number of toll transactions – light vehicles 72.996.584 76.492.974 4.8 Number of toll transactions – heavy vehicles 9.608.927 10.167.041 5.8 Total number of ETC transactions 24.215.307 30.298.213 25.1 % of manual transactions 49,00 46,12 -6 % of ETC transactions 34,06(5) 36,30(5) 6.6 Number of toll stations 109 108 -0.9 Number of toll lanes 712 712 0 Number of ETC lanes or mixed lanes 505(6) 505(6) 0 Number of ETC subscribers – total 403.326 461.445 14.4 Number of ETC subscribers – light vehicles n/a n/a n/a Number of ETC subscribers – heavy vehicles n/a n/a n/a Number of ETC devices in use 700.012 788.278 12.6 Length of the network tolled electronically (in km) 1.178,22 1.178,22 0 Length of the network tolled in the MLFF (Multi-lane free flow) 0 0 0 ITS

Length of the network covered by traffic monitoring 1.079 1.079 0 SERVICES Number of truck parking (s)lots or spaces 2.122 2.122 0 Number of roadside rest areas (with filling stations) 75 74 -1.3 Number of rest areas 124 124 0 Number of restaurants 26 27 1.2 Number of hotels 10 9 -10 ENVIRONMENT -emission classes (yes/no) YES YES 0 If yes: % of »clean traffic« (per Euro class categories EURO V, VI and EEV) n/a n/a n/a THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES MOTORWAYS TOLL OF ASSOCIATION CROATIAN THE (4) Bina-Istra figures on traffic accidents are given for the total network of Istrian Y (both motorway and semi motorway) while safety ratios are given only for stretches in full motorway profile to be comparable with other concessionaires. (5) The percentage of penetration of ETC in total transactions is not taking into account AZM company which does not have ETC HUKA (6) The Autocesta Zagreb-Macelj d.o.o. has not yet introduced the ETC

21 HRVATSKA UDRUGA KONCESIONARA ZA AUTOCESTE S NAPLATOM CESTARINE

THE CROATIAN ASSOCIATION OF TOLL MOTORWAYS CONCESSIONAIRES www.huka.hr ARZ – Autocesta Rijeka-Zagreb d.d.

Širolina 4 10 000 Zagreb - HR tel.: + 385 1 65 15 100 fax: + 385 1 65 15 110 HAC – Hrvatske e-mail: [email protected] www.arz.hr autoceste d.o.o. Miro Škrgatić Širolina 4 Predsjednik Uprave / 10 000 Zagreb - HR President of the Managing Board tel.: + 385 1 46 94 444 fax: + 385 1 46 94 505 Tomislav Tkalčić e-mail: [email protected] Član Uprave / Member of www.hac.hr the Managing Board Boris Huzjan Predsjednik Uprave / President of the Managing Board Stjepan Baranašić Član Uprave / Member AZM – Autocesta of the Managing Board Zagreb-Macelj d.o.o.

Garićgradska 18 10 000 Zagreb - HR tel.: + 385 1 36 89 600 fax: + 385 1 36 89 620 e-mail: [email protected] www.azm.hr Bina-Istra – Bina-Istra d.d. Miloš Savić Predsjednik Uprave / President of the Managing Savska cesta 106 Board 10 000 Zagreb - HR Ivica Mlinarević tel.: + 385 1 61 38 300 Član Uprave / Member fax: + 385 1 61 38 301 of the Managing Board e-mail: [email protected] www.bina-istra.com Dario Silić Generalni direktor / General Manager