The contract is signed with the Italian firm SALCEF Construzioni Edili e Ferroviarie SpA. The beneficiary of the project is Croatian Railways, whilst the coordination of the project is implemented by the Ministry of the Sea, Transport and Infrastructure. The abovementioned contract is a part of the Financing Memorandum for Rehabilitation of Railway System Vinkovci to Tovarnik to State Border, signed in the amount of 75.761.000, 00 euros. The European Commission, from ISPA programme, co-finances project in the amount of 28.789.000, 00 euros (38%), whilst the rest 46.972.000, 00 euros is allocated from the national budget. Memorandum includes two works contracts and one service contract. The project aim is to upgrade railway infrastructure and security system on the part Vinkovci to Tovarnik to State Border, which is a part of Pan European corridor X. With the project realization travel time, on the a.m. part, will be shortened and the transport security will be enhanced, which will directly contribute to the railway transport competitiveness. Vinkovci to Tovarnik to State Border part with the Serbia border, included within this project, is located on a part of corridor X, which is a part of Trans European Transport Network – from Salzburg to Solun. Part intended for reconstruction is 33, 5 kilometres long. Project implementation will contribute increasing the train speed from 40 km/h, as it is now, to 160 km/h. Project intends modernization and reconstruction of signalization system and platform, damaged by war, and reconstruction and modernization of present mechanisms in order to accomplish the a.m. train speed. Further on, the electrification will lead to repositioning of the contact network, along the whole part from State Border with the Serbia and Montenegro, in order to comply with the platform and track modernisation. Works include six road-railway crossings, ten railway stations, and infrastructure of rail telephone facilities modernization.