According to the proposal which the government sent to parliament on Thursday, the European Investment Bank is to ensure 60 million euros in loans for this project, worth 238 million euros.
The Croatian state-run company "Hrvatske ceste" will fund the project with 178 million euros.
Under the project, 52 sections of roads, the total length of which is 682 kilometres, will be renovated in the next few years.
Also on Thursday, the Ivo Sanader cabinet formulated a draft action plan for the establishment and development of the internal financial control in the public sector until 2008.
Finance Minister Ivan Suker portrayed the plan as a concrete measure in combating corruption.