Afcons Clarifies Status of Croatia Infrastructure Projects and Railway Contract Selection

Afcons Infrastructure Limited clarified the status of infrastructure projects in Croatia for which the company had previously informed exchanges about being declared the lowest bidder (L1).

The company stated that it had earlier communicated being L1 bidder for:

• Two road construction packages (J324/23 and J325/23) of Croatian Motorways Ltd.
• Rehabilitation and construction of a second railway track on the Dugo Selo–Novska railway line including electrification and signalling works for HŽ Infrastructure Ltd.

According to the clarification:

• For the railway project, Afcons has now been selected as the most suitable bidder by the client, along with a proposal to accept its bid.

• For the two road projects, the company received communication from the client that both tenders were cancelled because Afcons’ quoted price exceeded the client’s planned or secured financial resources.

• Afcons earlier disclosed L1 status for multiple Croatia infrastructure projects during July 2025.

• Railway project relates to rehabilitation and construction of the Dugo Selo–Novska railway line.

• Railway scope includes electrification, signalling, and telecommunication works.

• Client for railway project is HŽ Infrastructure Ltd.

• Company selected as the most suitable bidder for railway project.

• Proposal submitted for acceptance of Afcons’ railway bid.

• Two Croatian Motorways road packages (J324/23 and J325/23) have been cancelled.

• Road project cancellation attributed to bid value exceeding client’s available financial resources.

• Company had informed exchanges regarding these developments on May 11 and May 16, 2026.

Key Risks:

• Final contract award for railway project is still pending.
• International infrastructure projects may face regulatory and funding delays.
• Tender cancellations can affect future overseas order inflows.
• Currency fluctuation risks associated with international contracts.
• Cost escalation and execution risks remain relevant in large infrastructure projects.
• Dependence on client approvals and financing availability.

Worst Case Scenario:

• Failure to secure final railway contract approval or additional cancellation of overseas infrastructure tenders could negatively impact expected international order pipeline growth.

Risk Level: Medium

• Afcons clarified that it had previously informed exchanges about being declared L1 bidder for the Croatia projects.
• The company stated that it has been selected as the most suitable bidder for the railway project.
• Management confirmed cancellation of the two Croatian road tenders due to funding limitations at the client level.
• Afcons stated it will continue updating stock exchanges regarding future developments.