Croatia scraps EUR 3 bn motorway tender

(ZAGREB) - Croatia has scrapped plans to put the operation of its motorways up for tender following strong public opposition, Prime Minister Zoran Milanovic said Friday.

The plan for the 50-year concession to operate and maintain toll roads was aimed at raising funds to help slash public debt in the recession-hit country.

Milanovic said the government was now looking at selling 51 percent of its stake in the national motorway firm HAC only to local pension funds and citizens.

"They were saying that it was the sale of national wealth," said the prime minister of the opposition of its tender plan.

"I still disagree but now we will go for an option only targetted at local pensions funds and citizens," he added.

The centre-left government had expected to rise about three billion euros ($3.1 billion) from the concession to operate and maintain 1,024 kilometres (615 miles) of the country's toll roads.

According to media reports, the tender had attracted three bidders -- a consortium including local pension funds led by US top investment bank Goldman Sachs, Austria's construction firm Strabag and Australia's Macquarie Group.

But critics had gathered almost 500,000 signatures to push for a referendum on the plan.