Zagreb approves $80m loan for ZET cable car project

The city government of Croatia's capital Zagreb has approved a loan of HRK537 million ($80 million) from four domestic banks to the public transport company Zagreb Electric Tram (ZET) to finance a cable car project. Privredna Banka, OTP Banka Hrvatska, Zagrebacka Banka and the Croatian Bank for Reconstruction and Development (HBOR) will each lend HRK134.25 million for a 15-year term at 2.75%. The city will also provide guarantees for 80% of the loan. The cable car will connect Zagreb's northern neighbourhood of Dolje to the popular ski area of Sljeme some 15 kilometres away. The project includes renovation of tram tracks from downtown Zagreb to Dolje and will help alleviate pressure on the existing surface transport infrastructure. Construction works started in May and are expected to be completed by the middle of next year.