The granting of PAL 1 is a sign of acknowledgement of the government's reforms, Suker said at the end of a meeting between Prime Minister Ivo Sanader and World Bank Vice-President for Europe and Central Asia Shigeo Katsu.
Minister Suker said he expected the talks on PAL 2, which is expected to provide between 120 and 150 million euros for the continuation of reforms, to start in the spring next year.
Speaking about the most important reform achievements, Suker mentioned the reform of state subsidies, the introduction of internal ministry audits, the continuation of the privatisation of companies with a minority state share and of tourist companies with a majority state share.
He also mentioned the reform of land books, the depoliticising of the state administration, changes in the health system, the adoption of a decision on the privatisation of Croatian Railways companies and the reorganisation of the national railway company.
World Bank Vice-President Katsu confirmed that the latest estimates showed that Croatia was in the base case loan scheme and that he expected that with the next assessment in spring 2006 it would join the high case loan scheme.
Under the World Bank assistance strategy, Croatia is expected to obtain, within the base case scheme, between USD450 and 500 million through three annual PALs alone. Once it joins the high case scheme, it is expected to obtain around USD600 million annually.
Along with PAL, instruments of assistance envisaged by the strategy also include investment loans and analytical and advisory services.
Suker said that projects that were signed or would be signed with the World Bank this year could reach EUR300 million.
Speaking about future World Bank projects, Suker mentioned a EUR25 million loan for the adjustment of agricultural legislation to the EU legislation and a EUR24 million loan to the Croatian Power Company (HEP) for a new system of hot water pipelines in Zagreb and Osijek.
The minister said that future projects also included a EUR40 million loan for the protection of the Sava and Drava river basins, and a nine million deed of donation from the Global Environment Fund for the management of the eco-systems of the Neretva and Trebisnjica rivers.
A EUR31 million loan for science and technological development is expected to be signed in about ten days.
The World Bank official and Croatian officials are expected to sign a USD1.75 million advance payment for a loan to be used for a project of modernisation of the southern port of Ploce, worth between 60 and 75 million dollars. Apart from the modernisation of the port, this loan will help complete the project of the pan-European corridor Vc, Suker said.