Funds for the project will be provided by the European Commission (eight million) and the Croatian government, Vukovar-Srijem County, and Lovas municipality, which is an area of return.
Lovas municipal head Zeljko Cirba said the local authorities would give benefits to future investors in the zone.
He said that the Croatian-Italian venture Agro Lovas was one of the first investors in the zone and that it would build a fruit refrigeration plant there.
Vukovar-Srijem County prefect Bozo Galic said that the business zone in Lovas was one of the four business zones in Vukovar County whose construction was financed from the EU's pre-accession funds.
The whole project will cost 50 million kuna, of which 35 million will be spent for the construction of business zones in Vinkovci, Otok, Lovas and Gradiste, and 15 million for the equipment of local vocational schools.
Agriculture Minister Petar Cobankovic marked the start of works on the construction of the Lovas business zone.