The investments include street rehabilitation, a concession for local road maintenance, as well as support for the preparation of a Sustainable Urban Mobility Plan, EBRD said in a statement.
The total cost of the project has been estimated at EUR 18.35 million. The loan will be discussed by EBRD board in September.
The investment program targets improving road management and maintenance by using performance-based contracting.
At the same time, by integrating multi-year maintenance activities into the urban road maintenance sector, better value for money will be achieved, EBRD said.
“Through the preparation of a regional-wide transport strategy and policy, overall mobility in the city is expected to improve especially with regard to the viability of using public transport as an alternative to private car travel,” according to EBRD.