Serbia’s Minister of Construction, Traffic and Infrastructure Zoran Mihajlovic signed an agreement with the European Investment Bank (EIB) for a 100 million worth loan and another one on aid of 40.6 million Euros for the construction of a motorway linking Serbia’s southern city of Nis to Kosovo’s capital Pristina, the Beta news agency reported.

The Minister’s office statement said the signatories also included EIB Director for Malta, Slovenia, Croatia and the Western Balkans Miguel Morgado, Serbia’s Minister of European Integrations Jadranka Joksimovic and the assistant director of Serbia’s Corridors Dusan Puric.

“Such a project is important not only for Serbia’s economic development and the linkage between people from several districts but also for stability in the region… Strategically, this motorway will provide as access to the (Adriatic) sea and ports,” Mihajlovic said.

The EIB Vice President Dario Scannapieco said the motorway project was of “crucial geopolitical significance.”

The European Union Commissioner for Transport Violette Bulk witnessed the signing and said the motorway would increase the road safety and efficiency and that it was a concrete example of better cooperation and reconciliation between Serbia and Kosovo.