These funds will be provided to water and wastewater firm ViK Rijeka to boost the investments for the improvement of wastewater collection and water supply networks.

The water supply network in Rijeka covers approximately 95% of the city, which has a population of 190,000.

Commenting on the transaction, ViK director Andrej Marochini said the company is committed to improve water supply and wastewater collection and treatment services in its area of operations.

EBRD president Sir Suma Chakrabarti said, "The modernisation of the network will significantly increase the efficiency of operations and also strengthen our partner company. Rijeka and the EBRD are long-standing partners and we are sure that Croatia’s membership of the European Union will provide us with many new opportunities to further develop and intensify this relationship."

To date, EBRD has invested about €2.5bn in approximately 140 projects across Croatia.