GOVT ADOPTS TEXT OF AGREEMENT ON CONSTRUCTION OF MOTORWAY

( Editorial: --> 7611 ) ZAGREB, 11 Dec (Hina) - The Croatian Government adopted the text of an agreement with the Italian company 'Astaldi' on the construction of the Zagreb-Gorican motorway. The project is worth 830 million German marks, and the agreement envisages establishing a joint venture, which would complete the construction by the year 2000, Croatian Reconstruction and Development Minister Jure Radic told reporters following today's Government session, which was held behind closed doors. Radic added that the agreement would be signed during the forthcoming visit of the Italian President Oscar Luigi Scalfaro to Croatia. The agreement envisages that the Italian partner secure credits for the project, under very favourable terms. Radic said that the credits would not be paid for the next five years (neither the capital sum nor the interest rates). The interest rates would be paid in the next ten years (from the sixth to the 15th year) while the capital sum would be paid in the 16th year. Croatian companies would carry out 70% of construction works in the project, Radic said. (hina) mm rm 111516 MET dec 97