The documents were signed during an international workshop on national power markets two years after the southeast European power supply and distribution system was reconnected to that of the continental parts of Europe.
The united power supply and distribution grid was separated 13 years ago at the start of the Serb aggression on Croatia, with the destruction of the Ernestinovo transformer station in eastern Croatia and the transformer station in Mostar, Bosnia-Herzegovina.
On 10 October 2004 the two European synchronous zones were integrated into one, which was preceded by the reconstruction and construction of the transformer stations Ernestinovo and Zerjavinec in Croatia.
The reconnection has resulted in increased safety of the Croatian power supply and distribution system and increased power trade, HEP CEO Ivan Mravak said.
He added that profits now accounted for five percent of HEP's overall revenue, which was at the level of European power industries.
After the reconnection, HEP's power trade rose from the previous two billion kilowatt hours to nine billion, which is the equivalent of some 300 million euros annually. Power losses during transmission have been reduced by some 120 million kWh, HEP Management Board member Ivica Toljan said.
Another result of the reconnection is the stability of power prices.
Addressing participants in the workshop, Deputy Prime Minister Damir Polancec said that one should not hurry with but be cautious and wise in the privatisation of HEP.
HEP officials thanked the US Agency for International Development (USAID) for technical assistance. The USAID mission in Croatia will complete its activities in 2007.
USAID Mission chief William Jeffers said that over the last seven years USAID had invested around eight million dollars in Croatia's power supply and distribution system.
The value of the Ernestinovo-Pecs transmission line is around 50-80 million euros. Works on this project are expected to start in 2007 or 2008 and the transmission line is to be put into operation by 2010 at the latest, Mravak said.
The other investment, the high-voltage direct-current submarine cable to connect Croatia and Italy, is estimated at 250-400 million euros, Mravak said.