WORLD BANK APPROVES TWO LOANS FOR CROATIA

( Editorial: --> 2314 ) WASHINGTON, June 18 (Hina) - The management committee of the World Bank on Thursday approved two loans for Croatia, intended for the reconstruction of the flood control system in the Danube region and environment protection in the territory of Kastel and Trogir, central Adriatic coast. The first loan, worth US$40 million, intended for the Project of Reconstruction of eastern Slavonia, Baranja and western Srijem, will enable the reconstruction, construction and de-mining of the flood control system. The loan is also intended for the drainage system in the Danube region across 155,000 hectares. It will secure the ecological management of the National Park of Kopacki rit and reconstruction of the drainage system in Vinkovci. "The World Bank project should contribute greatly to stimulating the local economy and create incentive for the return of people," the World Bank assessed. The total worth of this project is $US81 million and the bank will secure half those means. The second loan, worth US$36 million will be directed to the reconstruction and improvement of the infrastructure for environment protection on the local level. That project should reduce the effluent pollution of the Kastel and Trogir bays by the introduction of more modern technology, in line with Croatian and European standards and improvement of the quality of drinking water on the territory of Split, Solin, Kastel and Trogir. The total worth of this project is US$261 million of which the World Bank will secure US$36 million. The loans are for 15 year terms with a five-year grace. So far the World Bank has approved a total of $US620 million for 12 projects in Croatia. (hina) bag 191140 MET jun 98