March 17 (SeeNews) - The European Commission said on Tuesday it has approved a 119 million euro ($131 million) investment from its Cohesion Fund to finance the purchase of 21 new electric trains by Croatia.
"This project will contribute to modernise the country's rolling stock and to improve connectivity and mobility with positive economic consequences," the Commission said in a statement.
The project will help reduce travel times, noise, vibrations and operating costs, while increasing safety.
Croatia's state-owned railway passenger carrier HZ Putnicki Prijevoz (HZPP) said in January that its 1.29 billion kuna ($187 million/170 million euro) project for the purchase 21 electric trains has qualified for European Union co-financing. The EU Cohesion Fund will finance 85% of the 1.04 billion kuna portion of costs eligible for co-financing.
The project includes the purchase of 11 urban-suburban and 10 regional electric trains. Its aim is to improve the regional connectivity and mobility, providing for a better access to the job markets and services in the country's largest cities, HZPP has said.
(1 euro = 7.58165 kuna)