The water-supply system is worth 160 million kuna and the deadline for its completion is 2008. The system will supply with water some 20 villages in the Zadar hinterland with a population of 16,000.
Funds will be provided by the development and agriculture ministries, the Croatian Waters company, the Regional Development Fund, Croatian Highways, and Zadar County.
The prime minister said the ruling Croatian Democratic Union (HDZ) had pledged during its election campaign that it would launch this project.
"We are proud of everything we are undertaking and of what moves Croatia forward. We can't have our people, either in the Zadar hinterland or in Slavonia, to have no water in the 21st century," said Sanader.
"We will move Croatia forward in all segments and in all regions. We stand behind this project because without water, or roads, there is no life," he added, reiterating that his government knew what it wanted and how to make Croatia progress.
Sanader said the construction of the highway connecting Zagreb with Split continued towards Dubrovnik in the south, and announced that the construction of a bridge connecting the southern peninsula of Peljesac with the mainland would start soon. "We shall do everything we set out to do," he said.
Development Minister Bozidar Kalmeta said the Zadar hinterland water-supply project was of vital importance for the area not only because od potable water, but also because of economic growth.
Agriculture Minister Petar Cobankovic said Zadar County's agricultural potentials were high. He added Croatia must increase its agricultural production and strengthen the food-processing industry in order to stop the import of agricultural goods.
Zadar County prefect Ivo Grbic thanked the government for advocating the water-supply project, which he said was crucial for agricultural development.
After the inauguration in Zemunik Gornji, Kalmeta and Cobankovic attended the launching of construction of a water pipeline in Sukosan near Zadar, an investment worth 2.6 million kuna.
(EUR1 = 7.4 kuna)