Spancic spent three days in Bosnia and Herzegovina and in Sarajevo visited the student centre which the management of the Bosna Srebrena Franciscan province is building on the site of a monastery nationalised after World War Two.
He said the Croatian government was expected to approve in September funds for the project that he said supported the building of coexistence and tolerance in Bosnia.
Spancic said the donation was just part of the money the Croatian government was earmarking for reconstruction projects and added that in Bosnia's case the bulk of the money went on the reconstruction of houses for potential returnees.
He announced that in cooperation with the Bosnian authorities a special agency would soon be set up to help returnees find jobs and permanently stay in return areas.
The head of the centre being built in Sarajevo, father Stipo Karajica, said the Croatian government was expected to donate 800,000 kuna. The government has already invested 150,000 kuna in the student centre's culture and history institute.
Karajica said the Franciscans had not received any assistance from Bosnia's state or federal authorities.
(EUR1 = 7.25 kuna)