CROATIA, WORLD BANK SIGN CONTRACT ON BIGGEST DONATION SO FAR

ZAGREB, June 19 (Hina) - The World Bank's director for Croatia, Bulgaria, and Romania, Andrew Vorkink, and Croatian Finance Minister Mato Crkvenac on Wednesday signed a contract on a USD5.07 million World Bank deed of donation for the preservation of Karst eco-systems. The contract was signed in the presence of Croatian Environmental Protection Minister Bozo Kovacevic. #L# The 27th World Bank donation to Croatia is the bank's largest donation to the country so far, and it was approved by the World Bank Global Environment Fund (GEF). The donated funds will be managed by the Ministry of Environmental Protection and Zoning and used for the protection and preservation of endangered species in the national parks Plitvice, Paklenica, and Risnjak, and the nature park Velebit. Vorkink said the donation would not be used only for the preservation of the environment, but also for granting loans to individuals willing to launch environmental projects and activities in the areas where the parks were located and which he said were among the least developed and populated and most war- affected regions. The total value of the project is eight million dollars, said Minister Kovacevic, adding that the remainder of some three million dollars would be secured by Croatia. Apart from environmental protection and the management of natural resources, the funds would also be used for the development of traditional and environmentally sustainable activities, he said. Since 1995, the World Bank has granted Croatia 26 donations worth 6.4 million dollars, 270.5 million yens, and 352,800 British pounds, Crkvenac said, adding that Croatia had been given close to a billion dollars through other projects as well. Stressing the importance of the cooperation and support the World Bank has been providing in numerous reforms in Croatia, Crkvenac said the government was preparing wider reforms aimed at increasing economic growth and reducing unemployment. (hina) rml