The European Investment Bank (EIB) has approved a substantial €207 million loan to the City of Zagreb, marking the first phase of a larger €395 million framework loan. This funding is aimed at crucial infrastructure upgrades essential for the sustainable development of Croatia's capital.
Key Infrastructure Projects and Investment Focus
The EIB loan will support a range of projects in Zagreb, including:
- Renewable Energy and Energy Efficiency: Expansion of sustainable energy sources and enhancement of energy efficiency across the city.
- Affordable Social Housing: Development of accessible housing solutions to meet the needs of Zagreb's residents.
- Education: Building and improving schools and kindergartens.
- Public Transport: Upgrading the public transport network, including the iconic Zagreb funicular.
- Digitalisation of City Services: Modernising and digitalising municipal services.
- Small-Scale Municipal Investments: Improvements in streets, sewage, and water networks, as well as the regeneration of brownfield areas for new investments.
In addition to financial support, the EIB will offer advisory services to help Zagreb prepare and implement these vital projects, enhancing the city's overall quality of life and business environment.
Statements from Key Figures
“Zagreb is getting a strong boost to its impressive plan to improve vital urban infrastructure, and we are very proud of our contribution to the green and sustainable chapter of the city's history,” said EIB Vice-President Tereza Czerwinska. “Together with our advisory support, we will help Zagreb develop and address complex issues like affordable housing, climate neutrality, and urban mobility. This loan highlights a constantly maturing relationship between the EIB and Croatia.”
"This is the first time that the EIB is investing in the City of Zagreb's projects, which is a recognition of the City's responsible financial management, which has also been acknowledged by the EIB. We will use the loan exclusively for capital investments, primarily to co-finance EU projects in green and energy transition and digitalisation, making Zagreb more resilient to climate change. We thank the EIB for its trust and for becoming our partner in building a better Zagreb for the benefit of all our fellow citizens," said Tomislav Tomašević, Mayor of Zagreb.
Financial and Advisory Support for Sustainable Development
The financing aligns with the EIB’s strategic commitment to regional cohesion within the European Union, climate action, and the development of digital, green, and affordable cities. The agreement will aid Zagreb in mobilizing and absorbing EU funds, improving its attractiveness to investors, and accelerating job creation. This initiative supports Zagreb's goal of becoming climate neutral by 2030.
The credit is the second direct EIB loan to a local government in Croatia, following a €49 million loan to the City of Split for urban infrastructure investments in December 2023.
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The EIB's investment in Zagreb’s infrastructure underscores the city’s commitment to sustainable development and economic growth, setting a precedent for future urban improvements and partnerships.
