The European Commission has given a nod to Croatia's plan to extend a concession agreement with the company Bina-Istra for the operation and the expansion of the 145-kilometre-long Istrian Y motorway, linking the Istrian region with the rest of Croatia.

The Commission on Friday reported that it has approved “under EU State aid rules, a Croatian plan to prolong a concession agreement between Croatia and the company Bina-Istra for the operation and the expansion of Istrian Y motorway, a 145 km long motorway linking the Istrian region with the rest of Croatia.”

The EC noted that since 1995, the motorway has been operated by Bina-Istra under a concession agreement.

“The Commission approved amendments and the  prolongation of the concession in June 2018 (SA.48472) and in August 2020 (SA.56832). The concession is set to expire in June 2039.”

Croatia notified to the Commission its plans to prolong the concession until 2041 to allow Bina-Istra to engage in additional works worth €204 million.

“The prolongation will allow Bina-Istra (i) to build a second carriageway between the Ucka tunnel/Kvarner portal and the Matulji interchange, on the north-eastern section of the motorway, and (ii) to complete the second carriageway of the north-western section,” the EC reported.

The Commission found that the measure is necessary and appropriate to ensure the safety of the motorway and to reduce traffic congestion. Moreover, the Commission concluded that the measure is proportionate as Bina-Istra will not be overcompensated, and it will not distort competition and trade between Member States. On this basis, the Commission approved the Croatian measure under EU State aid rules.