POSTWAR RECONSTRUCTION OF EASTERN CROATIA BEGINS

ZAGREB, July 10 (Hina) - The reconstruction of the first five houses in the UN-administered area of eastern Croatia began on Tuesday, six days before the date agreed upon with UN Transitional Administrator Jacques Klein, Croatian Reconstruction and Development Minister Jure Radic said on Wednesday. The five houses are situated in the village of Lipovac on the Croatian-Yugoslav border and mine-disposal experts who began work on Tuesday would be accommodated in them in the next five to six days, Radic told a news conference in Zagreb. The beginning of repair work in the Baranja village of Bilje was being negotiated with Klein, Radic said, adding that contracts for the reconstruction of Lipovac and Bilje could be concluded as of Wednesday in the offices for reconstruction in the counties of Osijek and Vukovar. As of early August, it would also be possible to sign reconstruction contracts for other villages. In addition to Lipovac and Bilje, pilot projects for reconstruction and return of refugees had also been drawn up for Antunovac, Ceric and Nijemci, villages with a total prewar population of about 10,000. "We will make every effort to finish most of the 2,200 houses in the five villages before Christmas," he said. The reconstruction of the houses of the highest damage category will cost 385 million kuna or DM 110 million. The Croatian government was finalizing reconstruction projects for twenty more villages and the towns of Ilok and Vukovar. It would raise the funds for those projects by selling shares of some companies and from donations, humanitarian organizations, foreign loans and other sources, Radic said. Radic recalled that 98 per cent of the funds for reconstruction had so far been earmarked from the budget. About 25,000 houses in the UN-administered area would have to be repaired, which would cost about 4 billion kuna or DM 1.1 billion, he said. (hina) vm jn 101751 MET jul 96