The Government of Albania has awarded a contract to local firm Gjoka Konstruksion to construct the $298m Arber Road that will connect the country’s capital Tirana to the region of Diber on the Macedonian border.

The 13-year concession contract, signed with Albania’s Ministry of Infrastructure and Energy, involves the construction, operation and maintenance of the two-lane highway, reported en.ata.gov.al.

Albania Minister of Infrastructure and Energy Damian Gjiknuri was quoted by the online publication as saying: “It is a major public infrastructure project and good news for Albanian citizens and Dibra inhabitants in particular who have long waited for construction of this road.”

Gjiknuri further added that the contract was concluded following a long competition and intensive negotiating procedure.

“It is a major public infrastructure project and good news for Albanian citizens and Dibra inhabitants in particular who have long waited for construction of this road.”

The new two-lane highway will pass through a mountainous terrain of central Albania to connect the remote Dibra region on the Macedonian border to the capital.

The segment of the concession is estimated to be 27km long, where the vehicles are expected to operate at a speed of 50km-60km per hour.

After completion, Arber Road will reduce the current route by more than 74km and shorten the travelling time from four hours to 1.5 hours.

Construction works are slated to begin this year and expected to be completed in 46 months.

The contract with Gjoka Konstruksion also represents the first of its kind under the $1bn government plan that aims to develop roads and invest in healthcare and education in the next few years under a public-private partnership (PPP) model.