Company profile Bina Istra

Istrian Motorway,

The safest way to discover the beauty of Istria

Bina Istra

General Manager’s Opening Statement

Ever since 1995, Bina Istra has been an important stakeholder in the propulsion of Croatian economy through the financing, operation and maintenance of the Istrian Motorway over a longterm investment cycle of over 4.5 billion Euros. Istrian Motorway connects Istria with the rest of Croatia and is extremely important for the inhabitants of Istria as the main traffic link. The Government of the Republic of Croatia awarded a concession to the company Bina Istra d.d. in September 1995, and the Concession Agreement was amended five times, each time to build a new section and improve the position of the Republic of Croatia.

Following a continuous upgrade of business operations, the Company managed to garner both local and international investors and capital suppliers, who, joined by 18 banks worldwide, placed complete trust in the development of the project. The daily efforts expanded in optimization of business operations, transparency, integration in the local community, sustainable development, partnership relations with our suppliers and Motorway users and respect and development of our employees give an additional value to Bina Istra. The Company puts safety of Motorway users in the foreground, together with the provision of quality everyday services expected from us.

Bina Istra is a modern, socially-responsible and transparent company. It takes permanent care for the environment by focusing on sustainable development and care for the health and safety of its employees and wider community. With over

10 million passengers a year, Bina Istra has played a pivotal role in the Croatian transport sector and has been focusing on the persistent improvement of business operations and quality of products and services with a view to create a greater value. To satisfy the needs and expectations of the Motorway users, to earn their trust and lasting loyalty and to maintain correct relationships, are the Company fundamental values.

Finally, the Company has a great consideration of the needs, interests and abilities of its workers, who provide an irreplaceable creative potential and unstinting support, and who are the greatest engine and stronghold of the Company in the achievement of the planned goals: to finance, build and operate the Istrian Motorway in an optimal way, on behalf of the Republic of Croatia, which, upon the expiry of the Concession, will take over the entire built Motorway free of any charge.

Istria is, certainly, one of the most dynamic counties in the country. It is, therefore, justifiable that its infrastructure be of equally good quality in order to allow and to promote such dynamism. The opening to traffic of the Kanfanar to Pazin Section in October 2011 marked the completion of the first phase of building the second carriageway of the Istrian Y Motorway. This first phase has remarkably improved the level of road safety and contributed to the saving of human lives. Furthermore, the investment enabled opening of a number of jobs. However, there is a tremendous amount of work that still has to be done: the conversion of the remaining 45 kilometres of single-carriageway

motorway between Pazin and Matulji into a dual carriageway motorway. This section will be extremely demanding due to the number of structures to be constructed, in particular the second bore of the Učka Tunnel.

Amendments No. 5 to the Concession Agreement marked the commencement of the construction of Phase 2B1 of the Istrian Motorway, namely of the 28 km long second carriageway between Rogovići and Vranja, on the north-eastern side of the existing single-carriage motorway. The construction of phase 2B1 will increase the safety level of this section of the Motorway, reduce congestion, shorten travelling time, improve environmental protection, and upgrade the comprehensive Trans-European Transport Network (“TEN-T”), thus linking Istria with the rest of Croatia. The construction of this section of the Motorway will also improve economic and social cohesion and contribute to the achievement of significant economic benefits.

We hope that our efforts will ensure that the beauty of Istrian landscape be accessible to the largest possible number of people, all the more because the Istrian Motorway is the safest way to discover the beauties of Istria.

Bina Istra wishes you a safe trip.

Dario Silić, General Manager

BINA ISTRA, THE REGIONAL ENGINE OF DEVELOPMENT OF TOURISM, CONSTRUCTION AND TRANSPORT

The Istrian Motorway Project has seen the investment of 765 million euros to date

Bina Istra, the Istrian Motorway Concessionaire, has developed the first project under the public-private partnership model for motorway construction in Croatia. With the EUR 765 million invested in the Project so far, our main activities are design, financing, construction, as well as the operation and maintenance of the Motorway.

As a strong partner to state and local institutions, Bina Istra aims to improve road connections, thus encouraging economic development through the construction and maintenance of new kilometres of the Motorway.

26 million passengers a year

Istrian Motorway strongly contributes to the socio-economic development of Istria. This valuable infrastructure is not just the lifeblood of goods and services exchange on the main Zagreb - Rijeka – Pula route, but is the key arrival route for 5.5 million tourists who choose Istria for their summer holiday.

The 7.5% annual growth recorded over the last 4 years indicates a high level of utilisation of our Motorway, which is travelled by 26 million passengers a year. 28,000 vehicles a day with summer peaks of 67,000 vehicles have become the main reason for investing great efforts into quality maintenance and certainly into completing the Istrian Motorway Project.

1,000 workers per day engaged during construction

European Commission has confirmed compliance of the Concession Agreement with EU regulations

As a member of the European Union, the Republic of Croatia requested from the EC Directorate General of Competition (DG Competition) to confirm the compliance of the Bina Istra Concession Agreement with EU regulations.

Experts from the Brussels office concluded that the project encourages growth and activates investments with limited impact on motorway users. Risk differentiation mechanisms balancing the overall risk to the benefit of the Republic of Croatia through rules that stipulate that the shareholders also bear the toll collection risk, were recognized. Toll rates, subsidies, construction costs, motorway operation and maintenance costs have been analysed and confirmed as commercially justified by the EU. Bina Istra has the lowest motorway maintenance costs in Croatia.

The Government of the Republic of Croatia adopted a decision approving Amendments Nos. 5 to the Concession Agreement for financing, construction, operation and maintenance of the “Adriatic Motorway” on 13 September 2018, which marked the continuation of the works on the construction of Phase 2B1 (Pazin to Učka Tunnel Section).

141 km length of the Istrian Motorway

5 km length of the Učka Tunnel

135 structures

(viaducts and bridges)

108 toll lanes

Učka Tunnel:

83 CCTV cameras

39 fire hydrants

38 SOS stations

6 km fibre optic sensors

MOTORWAY / TUNNEL / STRUCTURES

25 smart weather stations for user warning

Smart cameras with automatic incident detection

Over 300 km of underground pipes filtering water in water-protected areas

By 2050, around 45% of the world’s population will live in areas faced with chronic water shortages. Croatia is among the 3 richest countries in Europe in water resources.

Preservation of this natural resource is becoming crucial for our future generations. Personal habits must change and the behaviour of companies must be more responsible. Mirna, Raša, Dragonja, Pazinčica and Boljunčica are the rivers whose valleys are crossed by our Motorway.

A system of 300 km of underground pipes, 55 filtration chambers, 11 drainage lagoons to separate the impurity of the size of Olympic pools. 250 laboratory tests of water quality are conducted in partnership with the Istrian County Public Health Institute. Bina Istra Intervention Service is specially trained and equipped for quick response in cases of environmental incidents .

In one year, more than 3,000,000 m3 of water is collected from our Motorway and filtered. This corresponds to the annual consumption of the population of the town of Pula.

16 000 square meters of noise attenuation walls reducing vehiclegenerated noise.

Works at the height of 90 m

Works

on the protection of the Vela Draga slope took place under special conditions that allow the tunnel to continue operating during the works. 30 professional climbers worked in extremely demanding conditions on cliffs that reach 90 meters in height. State-of-the-art technology was used to complete this project, and 650 anchors were drilled in to provide a 325 meter barrier that protects the road from falling rocks and stones.

Mirna, the Viaduct constructed on friction piles reaching 80 m in depth

The 1,354 meters long Mirna Viaduct is the most significant structure It literally “floats” over the valley of the river Mirna, whose soil is very soft, and even the deepest boreholes do not reach a solid ground. Therefore the Viaduct rests on friction piles, the longest of which reach 80 meters in depth. The overall structure consists of a total of 14.2 kilometres of steel piles driven in the ground, protected by an electric field to avoid corrosion problems (cathodic protection system).

OUR STRENGTH - OUR PEOPLE

An innovative training programme for our 230 employees

Our employees

Through an innovative education programme, the Company launched a project to raise the quality of services and improve customer relationships based on new knowledge in the field of customer relations. The project is intended for all employees who are in direct contact with more than ten million users a year , whose demands and expectations are increasing.

Sergije Popović, Toll Collection Manager: In Bina-Istria, we pay close attention to relations with our customers. We can freely say that our effort has so far paid off, given the results of our satisfaction surveys that point to a high level of service of our employees to each individual user. Our employees are very important to us and we consider every one of our employees as ambassador of Bina Istra, who contributes remarkably to the reputation of our Company and directly affects the satisfaction of our customers. We want to convey to our employees the message that there are no ‘important’ and ‘less important’ ones, and that only together, as a team, we can maintain the current high level of services we offer.

49% 51%

average worker age

37 years

Safety Patrol Teams

20 Traffic Engineers

Professional Firemen initiate safety interventions monitor and operate

Help Desk Operators

Our Technical Teams

5.000 interventions at service to the drivers

Finance Team

direct assistance to users at toll areas, call response time 3 seconds

implement the maintenance programme on 35 bridges and viaducts, take care of 300 hectares of grassed areas

responsible for 3 international prizes awarded by the prestigious EMEA Finance magazine

SAFETY AND COMFORT OF TRAVEL

Our Motorway safety rated with 4

Istrian Motorway free for driving learners

In co-operation with the Police, the project “Shift Caution into Gear” was implemented in all driving schools of Istria. The project aims to further educate young people and raise their awareness of the dangers of traffic. More than 1,500 young people participated in the project and had the opportunity to practice driving on the Motorway.

Special evacuation vehicle

An innovative vehicle for evacuation of people from tunnels, unique in Europe and manufactured in Croatia

Hold capacity: 12 people

Double operator’s cabin (front/back) for faster evacuation from the point of fire

Electricity-powered to enable functioning in smoky areas

Air-bank supplying the passenger area

Infrared cameras to facilitate operation of the vehicle in restricted-visibility conditions

ENC PACKAGE MADE TO MEASURE

For users who travel often and want the maximum discount on toll price

ENC Package tailored for users who do not travel often, but want a more affordable price

The best model for users who wish to use the ENC on-board unit with no time limit and enjoy deferred payment by using AMEX, DINERS, VISA, Mastercard and INA cards

Ideal for users who travel through the Učka Tunnel every day

Bina Istra Call Centre: timely information for all of our 120.000 ENC clients

Toll-Free Telephone Number: 0800 600 601

COMMERCIAL ACTIVITIES DIRECTED TOWARDS OUR CLIENTS

Loyalty Rewards Programme

94% satisfied users

We obtain information on customer’s experience in a fast, affordable and anonymous way directly at the point of sale. The data are collected through a customer satisfaction survey that is completed at all points of sale of Bina Istra via an in-house application developed for this purpose. Using the touch-screen floor standing terminal, users evaluate the service by pressing the icon that best suits their experience.

The application we developed helps us to listen to the needs of our customers. According to research, this type of survey gives 20 times more feedback than usual surveys.

Relax zone for drivers

During the tourist season almost 3 million guests choose Istria as their preferred holiday destination. Over 95% of the guests travel by car and use the services of our Motorway.

During peak arrival days, the Rest Areas of the Istrian Motorway offer a relaxation zone where children can have a soft drink and ice cream, while their parents can relax over a short massage and a cocktail. To keep the oasis of relaxation complete, sand is laid, sun loungers and umbrellas are installed, and refreshing drinks are served. At the motorway stop, the true atmosphere of the beach was created, which inspired the enthusiasm of travellers who recognized hospitality and thanked them for the fantastic beginning of their vacation.

Driver support on Motorway by quad

In co-operation with the Red Cross, we initiated an action to assist drivers arriving by the Motorway during the summer traffic jams.

Namely, a Red Cross volunteer was slowly passing along the queues by quad and checked for people needing assistance. He paid particular attention to vehicles with more passengers, especially children. This action is very interesting and was implemented in Croatia for the first time. The action was happily accepted by parents with small children due to difficult driving conditions, such as high temperatures and long waiting times.

CONSTRUCTION OF THE ISTRIAN MOTORWAY

We have built 100 km of modern motorway

2,200 blastings

Special anti-corrosion protection of the Mirna Viaduct

Archaeological sites along the Istrian Motorway

3 million cubic meters of material moved

In cooperation with the Ethnographic Museum of Istria, about 200 “kažuns” (dry-stone huts) found along the Motorway route were relocated For a better water protection:

55 filtering chambers

11 drainage lagoons for separation of impurities

150,000 m2 of special wire mesh to protect rock slopes along the Motorway

During the construction of the Istrian Motorway, a total of 7 archaeological sites dating from the Middle Palaeolithic to Late Antiquity were explored. The most notable site is Stancija Peličeti, which is located in Pula Interchange and dates back to the period of antiquity. It is a residential and business complex where glass, bronze and iron objects, amphorae, bones and tegulae imprinted with workshop stamps were found.

Today, we link Pazin and Rijeka

Works in line with the Environmental Impact Study for a better protection of people, animals and soil

Diversion of the existing utility, water, electricity and telecommunication networks along the Motorway

Modern technology LED lighting to protect from light pollution

Special technology applied in building embankments on the motorway main alignment

High visibility traffic signage

Advanced asphalt which prevents tire spray and hydroplaning during rain

Newly-built 9,300 m2 noise attenuation walls to ensure peace to the residents

Modern technology used in soil stabilisation

90.000 meters of new-generation safety barrier Construction of 31 new bridges and viaducts over 36 months

SUSTAINABLE DEVELOPMENT

Učka Nature Park and Istrian Motorway: coexistence in the sign of environmental protection

The Nature Park of Učka stretches over 160 square kilometres of beautiful natural landscapes. The distribution of the plants and animals makes Učka Nature Park one of the most important natural and scientific areas in Istria, and it is extremely important to take care of its protection.

As the Učka Tunnel lies within the territory of the Nature Park, we carry out special environmental protection measures and support the implementation of educational programmes for young people aimed at the preservation of natural resources. Once a year, our technical teams join the organization of the famous Učka Fair, which presents the cultural and ethnological heritage to its visitors through an traditional culinary offer, old crafts, music and customs.

Half million kuna for the Children’s hospital in Rijeka

Education Workshop for the residents of the Children’s Home in Pula

Therapy horseback riding programme implemented to assist children with motor disabilities

A flat for young people with developmental disabilities refurbished

Long-standing friendship and continued assistance to Children’s Ward in Pula

Bina Istra Charity Concert by Maestro José Carreras

The Croatian Handball Team and 160 children played a tournament at the Istrian Motorway

Bina Istra organized a sports spectacle, the first of its kind in Croatia - a children’s handball tournament on a motorway. The tournament was organized at one of the Istrian Motorway Rest areas, where two professional courts and stands for more than 300 spectators were set up.

The tournament was attended by 160 young athletes from children’s handball clubs of Istria, Rijeka and Zagreb, while in the very end they were joined up the golden Croatian handball Olympics Džomba, Goluža, Saračević, Matošević, Načinović, Prskalo and others.

Employment of people with disabilities programme

Unemployment of disabled people is a real problem challenging the meaning of their overall social integration. Namely, it is considered that unemployment causes social isolation, lack of self-confidence and even low selfesteem as well as economic dependency.

Driven by the devastating statistics confirming that 8% of disabled people in Croatia have a job, business people should mobilize in creating actual opportunities offering employment to people who had no possibility to show their potential.

In order to provide an opportunity to the disabled, we launched a programme entitled Equal Opportunities. The aim of the programme is to adjust work processes to people with physical disability requiring individual approach, space and working environment adaptation and work methodology adaptation, in order to achieve equality in the fulfilment of tasks. Today, we are proud of our six new colleagues who have become members of our team.

Pula – Zagreb

OUR PLANS FOR THE FUTURE

2.30 h

Construction permits obtained for the second bore of the Učka Tunnel

All necessary project documentation for the construction of the second Učka tunnel bore has been ensured. As part of the obtained building permit for the doubling of the tunnel, an environmental impact study was carried out for the section to Matulji.

Designing of the Učka Tunnel - Rijeka ongoing

Technical characteristics of the Učka Tunnel second bore:

Lenght: 5.630,34 m

Width: 7,70 m

Height: 4,8 m

Emergency exits: 5

Our efforts will continue to be aimed at increasing traffic safety, meeting customer satisfaction and maintaining high standards of this valuable infrastructure, the Istrian Y Motorway. Bina Istra Team