The European Bank for Reconstruction and Development (EBRD) is providing a syndicated loan of about €123.2m ($164m) to Croatia's electricity utility Hrvatska Elektroprivreda, to finance the construction of the Ombla hydro power plant.
The new 68MW hydro power plant will help Croatia to improve its energy security and also diversify its energy supplies.
Furthermore, it will also increase the supply of potable water to the city of Dubrovnik.
EBRD will work closely with Hrvatska Elektroprivreda to ensure the project is implemented in line with national legislation as well as the relevant EU directives.
Structured under the EBRD's A/B loan scheme, the financing facility includes an €80m ($107m) portion for the Bank's account, with the remaining €43.2m ($58m) to be syndicated to commercial banks.