The European Investment Bank (EIB) is lending €17.5m for the expansion and upgrade of the airport in Dubrovnik, Croatia.
The amount represents the first segment of the total approved loan amount of €32.5m for a development project at the Dubrovnik Airport.
Under the terms of the deal, EIB will provide €7m as a direct loan to the Dubrovnik Airport and €10.5m through Croatia's Development Bank (HBOR) to Dubrovnik Airport.
The €274m development project co-financed with EU structural funds includes the construction of a passenger terminal and apron, in addition to the restoration of the existing runway and taxiways, the relocation of the fuel farm among other infrastructure improvements.
EIB vice-president Dario Scannapieco said: "The new EIB Group Representation will further foster EIB Group operations in Croatia where the EU Bank has a very good record of cooperation with a lending commitment of €4.5bn. It will allow us to better seize upon lending, blending of loans with EU grants and technical assistance opportunities and better assess and respond to the financing needs of both public and private sector in Croatia.
"Today we sign loans supporting the development of Dubrovnik Airport, a strategic infrastructure for the country. In this context the EIB has concluded the first loan with a Croatian corporate entity providing it with a direct access to EIB funding provided under favourable terms relying on collateral granted by the promoter but without a state guarantee."
According to EIB, the airport's project estimated at €247m will be implemented during 2015 - 2019 and will cater for future growth in traffic and improve safety and service standards.
Additionally, EIB has opened its office in Croatia to enhance its outreach in the country.
In 2014, Zagreb Airport in Croatia also received €80m from EIB as a part of public-private partnership (PPP) development project involving the construction of new passenger terminal building.
The project was the first EIB development under PPP financing in the Western Balkans.
Image: EIB opens new office in Zagreb, Croatia. Photo: courtesy of EIB.