The project will be implemented over the next 15 months in Lika-Senj, Karlovac, and Sisak-Moslavina counties.
Grcic's ministry will fund 67 per cent of the project (HRK 2.32m) and the UNDP the remaining 33 per cent (HRK 1.16m).
Presenting the pilot project in Karlovac, Grcic highlighted the cooperation with the UNDP, saying it had huge experience in implementing projects in areas of special state concern where local governments did not have the administrative capacity to develop projects.
He said that thanks to the UNDP's experience, the government expected more projects and faster implementation in underdeveloped areas.
Vinton praised the partnership with the ministry, saying the UNDP had implemented 400 development projects in areas of special state concern in Croatia.
The UNDP has been in those counties more than a decade, investing close to EUR 50 million, so it understands their needs and desires, she said.
Vinton said Croatia's European Union membership facilitated the use of funds for priority challenges and improving people's lives.
She and Grcic said the aim of this project was to compile after 15 months a catalogue of ideas for projects that could apply for EU structural and investment funds.
Responding to questions from the press, Grcic said he was optimistic about Croatia's development because of upcoming grants, which he said would not affect the public debt.
He said EUR 4 billion would be invested in sewerage and water supply projects and EUR 3 or 4 billion in transport projects, adding that many companies in Croatia would be engaged based on these grants.
Quality of life will improve, trains will drive faster and there will be new routes to Central Europe, he added.
(EUR 1 = HRK 7.5)