The European Investment Bank (EIB) has provided a €145m ($162m) loan to Slovenian motorway company DARS to finance the construction of a new 13km-long motorway section.

Apart from funding construction of the motorway section between Drazenci and Gruskovje in eastern Slovenia, the loan will be used for investments designed to increase road safety on several motorway sections across the whole country.

The funding will also support efforts to enhance transport security by upgrading the motorway’s electro-mechanical equipment, introducing intelligent transport systems and control centres.

"EIB funds will contribute to upgrading the motorway network in Slovenia, which represents a strategic transport sector in the country."

The EIB funds will finance 48% of the total cost of the motorway project, which is €303.4m ($340m), while the remaining will be provided by Slovenian national resources and EU cohesion funds.

It is expected that the project will be implemented within the period from 2015 to mid-2018.

EIB vice-president László Baranyay said: "EIB funds will contribute to upgrading the motorway network in Slovenia, which represents a strategic transport sector in the country.

"By removing bottlenecks, the project will make motorway transport more fluid, help to meet the increased current and future capacity demands and enhance transport safety."

After its financial consolidation phase, DARS has started a new investment cycle and the company covers its financial obligations from its own resources.

Including the recent funding, the EIB has granted nine loans to DARS to finance extensions and rehabilitations of several sections of the Slovenian motorway grid.