The loan agreement was signed in Sisak, about 50 kilometres southeast of Zagreb, on Monday by the CEO of the Sisak water supply utility, Zeljko Zuk, and the EBRD Director for Croatia, Charlotte Ruhe.
The loan will co-finance the extension of the municipal sewage network and the construction of a waste water treatment plant. The project will start in the second half of 2011 and is to be finished by the end of 2013.
Nonrefundable funds in the amount of some EUR 20 million have been secured from the EU pre-accession fund IPA, while the City of Sisak will invest EUR 2 million of its own funds in the project.
The project will have a direct impact on the quality of life of every resident of Sisak, because every person has a right to a clean and healthy environment, Ruhe said.
She said that the EBRD had so far invested EUR 2.2 billion in different sectors of the Croatian economy and had mobilised additional investments from other sources in the amount of EUR 3 billion.
Ruhe announced further investments in the amount of between EUR 80 million and 100 million in the construction of infrastructure in northern and western Croatia.