The Project sponsors (investing directly or indirectly) include Aeroports de Paris Management (“ADPM”), Bouygues Batiment International (“BBI”), TAV Airports (“TAV”), Viadukt D.D. (“Viadukt”) and Croatia Osiguranje D.D. (“Crosig”). All sponsors, except for Crosig, would invest in the Project through a holding company ZAIC-A Limited (“ZAIC”), which will own circa 90% of Međunarodna zračna luka Zagreb d.d. (“MZLZ”), a company established in Croatia to implement the Project. Crosig would invest directly in MZLZ.

ADPM, a French company, is one of the leading global airport operators. It is a wholly-owned subsidiary of Aéroports de Paris (“ADP”) focused on airport operations outside of Paris. ADP is a publicly listed company which is majority-owned by the French Government. ADPM will have a circa 20% stake in the Project.

BBI, a French company, is the international building subsidiary of Bouygues Construction, a leading French contractor and developer of infrastructure projects. Bouygues Construction has been present in Croatia since 1995 through its involvement in the Bina-Istra highway, the first private concession project in the country. BBI will have a circa 20% stake in the Project.

TAV, a Turkish company, is one of the leading airports operators in the emerging markets. It manages airport terminals in Turkey, Georgia, Macedonia, Latvia, Tunisia and Saudi Arabia. TAV will have a circa 15% stake in the Project.

Viadukt is a Croatian construction company which specializes in building roads, tunnels, bridges and civil structures. Viadukt will have a circa 5% stake in the Project.

Crosig is the largest insurance company in Croatia. It is publicly listed on the Zagreb Stock Exchange and is majority-owned by the Croatian Government. Crosig will have a maximum 10% stake in the Project.

For the outstanding 10% stake, the sponsors are considering either inviting an infrastructure investor to participate or increasing their respective stakes.

The total project cost is expected to be up to €365 million. IFC would invest up to €19 million for up to 20% of the equity in ZAIC. In addition, IFC may also consider providing up to €30 million loan to the project company to support the project.

69.90 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	53.61
Equity	16.28

* These investment figures are indicative

Zagreb Airport is situated in Zagreb County in the territory of Velika Gorica and Zagreb County in the cadastre municipalities of Pleso, Mičevec and Kosnica approximately 10 km south of the center of Zagreb, Croatia. In existence since 1962, the airport is surrounded with a mix of commercial and residential areas; residential areas located to the south-east are most affected by the current activities and planned development. The Airport represents a rare example in Europe in which the capital city airport is also an air force base and one runway is used for both civil and military purposes.

- The Project would create a new modern and efficient airport terminal in country''s capital city which is also the business and cultural centre of Croatia. Economic growth and development of tourism industry, a major driver of Croatia''s GDP and employment, would benefit from the Project.
- It is viewed as a flagship project in the country with a major strategic importance for both the transport infrastructure and the PPP-type funding
- IFC''s involvement in the Project will ensure it meets international safety and E&S standards.

- Equity Capital: IFC will provide long-term equity capital, which is needed for the Project
- Explicit request from ADPM and BBI for equity participation by IFC. They believe that IFCs'' presence among shareholders would have a beneficial impact for implementing the first full-fledged PPP project in Croatia and raising senior debt financing.
- E&S: IFC will assist ZAIC in implementing E&S management systems and making Zagreb Airport compliant with IFC Performance Standards.

The proposed investment in the Project is a Category B project because it principally involves expansion of capacity within the existing Airport footprint. The current boundaries of the site will be changed to accommodate a new terminal building. A limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. It is expected that once the project is fully operational it will contribute to overall environmental, safety and social conditions through introduction of modern, low environmental impact facilities, with attendant improved management and operational procedures.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.