The agreement was signed in Zagreb on Thursday by the Croatian Minister of Agriculture, Forestry and Water Management, Petar Cobankovic, and Swedish Ambassador Sture Theolin.
Sweden donated 16.15 million krona for the project. Involved in its implementation will be the Ministry of Agriculture, the Swedish Agency for International Development Aid, regional and local self-government units, and farms.
The aim of the project, which will last about four years, is to improve the structure of farms by consolidating agricultural land holdings at selected pilot locations, boost agricultural production and encourage the overall development of rural areas in Croatia.
During the signing ceremony, the Swedish ambassador said that his country supported Croatia's efforts to open membership talks with the European Union.