The European Investment Bank (EIB) has agreed to provide a €40m fund to Croatia to improve health infrastructure in the country.
Croatia will use the fund for the reconstruction, extension and rehabilitation of the General Hospital in Pula on the Istrian peninsula.
EIB vice-president Dario Scannapieco said: "Higher quality and more effective healthcare services will improve the living standards of the inhabitants of Istria and provide a valuable service to people visiting as tourists.
"This will help to increase the competitiveness of this region, attract qualified medical personnel and secure existing employment."
The facility is being modernised to provide enhanced hospital services in a more integrated and cost-efficient manner for people in the region.
Under the project, different units in the hospital will be consolidated on a single site to correspond with modern standards to offer medical services and avoid current shortcomings and excessive maintenance costs.
The project, which will start this year, is expected to be completed by 2018.
Croatian Bank for Reconstruction and Development (HBOR) managing board member Martina Jus said: "Construction of the new hospital facilities is a capital investment of special local interest and I am particularly pleased that the successful and long-standing co-operation between EIB and HBOR is continuing through this key project."
HBOR is the borrower of the fund, while Pula General Hospital is the final beneficiary of the EIB loan.
Image: EIB is lending €40m to develop the General Hospital in Pula on the Istrian peninsula. Photo: courtesy of European Investment Bank 2015.