Suker said this was the third biggest donation given to Croatia so far.
Seth said the donation would help Croatia increase its energy self-sufficiency and that it would have a positive effect on Croatia's European Union accession negotiations in the energy area.
The director of Croatia's Environmental Protection and Energy Effectiveness Fund, Vinko Mladineo, said the donation fitted into national programmes of environmental protection, energy effectiveness and renewable sources. He added 1.5 billion kuna would be invested in this area by 2009.
The renewable energy sources project is financed by the Global Environmental Protection Fund Foundation. It is expected that banks and beneficiaries will ensure $120 million for the project.
The project will be implemented over four years, during which $2 million of the donation will be used for technical assistance in the legal regulation of the renewable energy sources market, while $3.5 million will be used for a loan programme for renewable energy sources development projects.
The Croatian Ministry of the Economy, Labour and Entrepreneurship is in charge of the donation agreement, while the project will be implemented by the Croatian Bank for Reconstruction and Development.
It is expected that by 2010 the project will help reduce the annual emission of carbon monoxide by more than 75,000 tonnes.
The creation of the renewable energy market is also expected to reduce the emission of greenhouse gases in Croatia by 250 tonnes of carbon monoxide, which is about 1.5 per cent of the current emission in Croatia.
(US$1 = 6.1 kuna)