The loan agreement was signed in Davor, in Brod-Posavina County.
The project was prepared jointly by the Croatian Ministry of Agriculture, Forestry and Water Management, the Hrvatske Waters company, and the World Bank.
The main objective of the project is to support the government's efforts to improve water supply and water collection and treatment services, as well as flood protection measures in municipalities in the inland part of Croatia.
The project area will cover the Sava, Drava and Danube river basins.
The loan was signed for a period of 15 years, with a five-year grace and an interest rate of 4.4 percent.
Seth said that the implementation of the project would help Croatia prepare better for EU membership and facilitate access to EU funds.
The project is expected to be completed in the next five years.