Milinovic said that the Croatian government had invested about 70 million kuna over the past years for the said projects in this town situated about 150 kilometres south of Zagreb near the Croatian-Bosnian border.
So far, 372 houses have been rebuilt in this formerly war-stricken area and another 60 are to be renovated this year, Milinovic said.
He announced the start of the construction of a local water supply system and of county roads.
Asked about the security situation in Donji Lapac, Milinovic said that he had arrived with no police escort which confirmed in the best way that safety and security were at a high level.
The town, which was mainly populated by ethnic Serbs before the 1991-1995 war and where in the meantime a significant number of Bosnian Croat refugees have settled, has been recently thrust into the limelight when an incident happened in a local cafe.
Although the police declined to reveal the ethnic origin of participants in the incident, some media portrayed it as an ethnically motivated conflict. According to statements of those involved or eye witnesses, the incident was actually a brawl among drunken young men.
"Much ado about nothing," the head of the town council, Milan Djukic, said today in his comment on media reports.
Djukic, a former representative of the Serb minority in the Croatian parliament, added that statements issued by the Interior Ministry should be taken as credible statements on the event.
During his tour of Donji Lapac, Milinovic also met representatives of the Bosnian Croat settlers.