The regional development and water management ministry will provide 80 percent of the funding for the project and the rest will be covered by Virovitica County.
The system is to enable the watering of 1,280 hectares of arable land along the Drava River.
The Hrvatske Vode water management company is in charge of constructing the system in two years' time.
Kosor said that Croatia had more than 600,000 hectares of arable land which could be irrigated.