The contract, signed in Zagreb, covers all highways managed by Hrvatske Autoceste (Croatian Motorways), Bina-Istra Group and Autocesta Zagreb – Macelj, and is valued at €80m (£69m), excluding VAT.

The project is set to be completed within 24 months. It was commissioned by the Croatian Ministry of Sea, Transport and Infrastructure as part of the National Recovery and Resilience Plan, aimed at modernising Croatia’s transportation infrastructure.

SkyToll and TollNet’s proposal was selected from a competitive field of 10 bidders, recognised for its “advanced technological approach and capacity for seamless implementation”.

Once operational, the new ETS will enable distance-based toll payments for both personal and commercial vehicles.

It will leverage automatic license plate recognition and dedicated short-range communication technology to ensure efficient, contactless toll collection.

The approach aims to not only reduce congestion and travel times but also support the European Electronic Toll Collection Service (EETS) standard, paving the way for future expansions and interoperability across Europe.

“This is an historic project that will transform the entire highway system in Croatia and significantly benefit all road users,” said Oleg Butković, deputy prime minister and minister of sea, transport and infrastructure.

Butković highlighted the strategic importance of the project, noting its timing alongside the restructuring of companies in the road sector and the ongoing completion of key highway sections, including the Istrian Ypsilon and the highway to Sisak.

Hrvatske Autoceste director Boris Huzjan added: “With this agreement, we are entering a new era of toll collection, moving toward free-flow tolling without the need to stop at toll booths, which will greatly enhance traffic flow and reduce congestion.”

SkyToll and TollNet have successfully implemented similar systems in the Czech Republic, Slovenia and Austria, and are currently working on projects in Slovakia and the Netherlands.

“We are excited to bring our proven technology and expertise to Croatia,” said Matej Okáli, CEO of ITIS Holding, the parent company of SkyToll and TollNet.

“This system will be compatible with existing electronic devices in vehicles and will provide a flexible foundation for future development, ensuring a smooth transition and a better experience for all road users.”