The European Bank for Reconstruction and Development (EBRD) has loaned €107 million to support the modernisation of Macedonia's road infrastructure.
The funds will go towards the construction of a new 28km section of the north-south Corridor X - a road which connects the country to Serbia and with the rest of Europe in the north, and with Greece in the south.
The new segment of road will run between the towns of Demir Kapija and Smokvica in south-eastern part of the country, and the loan will also finance the construction and refurbishment of toll stations along the route.
EBRD said the project would allow Corridor X to achieve full motorway standard for its entire length in Macedonia. Corridor X is a pan-European transport corridor that passes through Austria, Croatia, Serbia, Macedonia and Greece.