The European Investment Bank (EIB) has agreed to provide a €400m loan to upgrade a section of the A3 motorway in Bavaria, Germany.

The long-term financing will be used to upgrade the motorway between the AK Biebelried and AK Fürth / Erlangen junctions through a public-private partnership (PPP).

Overall, the project is estimated to cost more than €1bn.

A consortium comprising Eiffage and Johann bunte Bauunternehmung has been selected to carry out the project works.

The work includes expanding a 76km section of the motorway running from Biebelried to west of the Rhine-Main-Danube canal bridge from four to six lanes.

Construction work is scheduled to be completed in 2025.

EIB vice-president responsible for operations in Germany, Ambroise Fayolle, said: “Providing efficient and effective infrastructure is key. Despite the current difficult context, the EIB has proven to be a reliable cornerstone financer for the project.

“This once again shows that the EU bank, with Juncker Plan support, is able to fulfil its aim to strengthen the European economy, even in complicated circumstances.”

The A3 motorway upgrade project is part of an infrastructure programme by the Government of Germany, which involves upgrading ten sections of the motorway network in the country.

The EIB loan has a term period of 29 years. It is backed by a guarantee from the European Fund for Strategic Investments (EFSI).

This February, EIB awarded a €90m loan to the Slovenian motorway operator Družba za avtoceste v Republiki Sloveniji (DARS) to widen the Karavanke Tunnel.