The inland water project is worth about USD 100 million and covers plans for investments in water supplies networks, the management of waste-water, and measures for the protection against floods in Croatia.
The funds donated by Japan will be used for drafting a feasibility study, as well as studies about social, economic and other aspects of these plans and for the purchase of technical equipment and services necessary for those activities.
After these preparations, Croatia is expected to reach agreement with the World Bank until the end of this year about terms and conditions of a USD 50-million loan necessary for the implementation of the project, Minister Suker said adding that the loan would be used in 2007.
The entire project is to be financed also by local governments in Croatian towns and municipalities as well as by interested companies.
Emphasising the importance of the project, Suker said that Croatia currently possesses great drinking water resources, but a lack of care and mismanagement could adversely affect the situation, he warned.
The Croatian Agriculture Ministry is entrusted with the implementation of the agreement.
According to the finance minister, the World Bank has so far ensured 49 million dollars of assistance to Croatia through 49 deeds of donation, and the Japanese Government has donated more than six million dollars in this way.
Seth said that this would be one of the last agreements on donations for Croatia as the country would soon complete its process of transition and become a European Union member which means that it would become a donor itself.