With the guarantee law for the Divača-Koper track and for the 3rd development axis, it is accelerated and cheaper to complete the projects – October 10, 2019
The Government has defined the text of the draft Law on the Guarantee of the Republic of Slovenia for the obligations of 2TDK d.o.o. for loans and debt securities leased or issued to finance the construction of the second track of the Divača-Koper railway line. The Act also defines the obligations of DARS d.d. for loans and debt securities leased or issued to finance the construction of part 3 of the Development Axis.
The draft law regulates the granting of a state guarantee to 2TDK doo for the financing of the construction of the second track of the Divača-Koper railway line up to a total amount of €417 million. DARS dd to finance the construction of two sections on the 3rd Development Axis North and the construction of a section on the 3rd Development Axis South totaling up to €360 million. All sections included in the Act are already approved investment programs.
»Without improving the infrastructure, Slovenia will not be a more successful country. On field trips around Slovenia, the residents repeatedly tell me how important infrastructure projects are to them and how important the second track Divača-Koper and the third development axis are to them. That is why I am pleased that the Government has approved the guarantee law, which will make the implementation of these projects within the foreseen time and financial frameworks. The implementation of these projects means that Slovenia is strengthening its geo-strategic position, strengthening the port in Koper and thus the entire Slovenian economy, which provides new jobs. The Divača-Koper project will also help the environment, as more trucks will go on trains, which means fewer discharges and fewer congestion on our highways.
She also announced that she would continue to make every effort to accelerate major infrastructure projects. “This also applies to sections of the third development axis for which the investment program is not yet prepared and therefore not yet covered by the guarantee law. Once the investment programs have been completed for the remaining sections, we will supplement the guarantee law. “
Divača-Koper 2nd track projects and 3rd development axis are the priority infrastructure projects of the ministry and the government.
For the timely implementation of the Divača-Koper 2nd track project, additional sources of financing in the form of loans or debt securities totaling €417 million must be provided during construction. This is stipulated in the investment program of the project, which was approved by the government as an assembly of the 2TDK company in charge of the construction of the new railway link on January 24, 2019. The government also proposes a guarantee for financing the Divača-Koper project in order to make construction as cheap as possible – an application State guarantee is also to reduce the risk to the participating financial institutions in financing the project and thus greatly reduce the interest rate and other financing costs.
In the same law, the government also proposes a state guarantee for financing part of the project 3rd Development Axis. The Resolution on the National Program for the Development of Transport in the Republic of Slovenia for the Period until 2030, approved by the National Assembly at the end of 2016, stipulates that DARS’s investments are conditional on the adoption of a guarantee law. This also applies to the 3rd development axis.
To begin construction of part 3 of the Development Axis, DARSU should be allowed to borrow up to €360 million with a state guarantee. The Government is currently proposing to accept a guarantee for parts of the 3rd Development Axis for which an investment program has already been prepared and adopted, for the Velenje South – Slovenj Gradec South section and the Novo mesto East – Osredek section (Stages 1 and 2).
With a state guarantee, Dars borrowing will be more favorable than it would have been, and therefore the Dars Development Axis 3 project will be cheaper, which means that it is more efficient in spending the money Dars collects from toll road users.
In doing so, we make it clear that giving a guarantee does not mean giving a loan. Government guarantees do not represent actual but only potential obligations of the Republic of Slovenia. The actual obligations become these only when the primary debtor to whom the guarantor is a state fails to fulfill its obligations within the agreed deadline.
The State, therefore, guarantees nothing to Dars and 2TDK – it merely guarantees that in the event that Dars or 2TDK fails to meet its financial obligations, the borrowed funds will be repaid to the creditors on their behalf.
Source: Government of Slovenia