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The EUR120 million project envisages the planting of orchards and vineyards and cattle breeding.
Croatian and Italian companies have established a joint company called Agro-Lovas, which will be in charge of the project that is expected to last 15-20 years.
The project, which was also joined by the towns of Ilok and Vukovar, is aimed at helping economic recovery and boosting employment in Croatia's formerly war-stricken areas.