In 2012, the Ministry of Economy adopted the “Ordinance on the list of entities bound by the Public Procurement Act”, which published a list of public and sectoral contracting authorities. The Public Procurement procedures are defined and regulated by the Public Procurement Act (PPA,current edition, Official Gazette 120/16, 114/22) and include a set of activities that contracting entities, who do not independently acquire financial means for their business, but are direct or indirect beneficiaries of the state or local budget, must carry out before concluding a public procurement contract for procuring goods, works and services. According to the PPA, and in accordance with the aforementioned Ordinance, this paper presented and discussed the issues of sectoral contracting entities from the water management, through the public procurement procedure of works, for a project co-financed by the European Structural and Investment Funds. The aim of this research is to answer the following questions: • can the public procurement procedure within the framework of this EU project be carried out in accordance with the only available Public Procurement Act that regulates public procurement procedures, or is it necessary to upgradethe PPA with unique regulations for conducting such public procurement procedures, in order to minimize financial corrections • what is the exact purpose of implementing dual control of intermediate bodies, since the ex-ante control of the Procurement Document (PD) results in recommendations that remain advisory and non-binding in nature which the intermediate bodies as such does not stand behind, and is subject to the penalty of a later ex-post control. • whether sectoral contracting entities that carry out public procurement procedures as part of EU projects, spend public (and/or European) funds efficiently and in accordance with the planned procurement value that was arranged in the Grant Agreement The purpose of this research is to gain insight into the specific nature of the public procurement procedure of sectoral contracting entities, that is carried out as part of this EU project and the interdependence of the Public Procurement Act and all other documents that must be applied in accordance with the Act on the Establishment of an Institutional Framework for the Implementation of European Structural and Investment Funds in the Republic of Croatia (Official Gazette 92/14) and the Regulation on bodies in the system of management and control of the use of the European Social Fund, the European Fund for Regional Development and the Cohesion Fund. And gain insight into the duration of the process of public procurement of items as part of the EU project.