Provision of a sovereign-guaranteed loan in favour of the Public Enterprise for State Roads (the "Company" or "PESR"), a state-owned company incorporated in the Republic of North Macedonia, at the amount of up to EUR 110 million. The operation will finance the construction of an approximately 10 km-long sub-section of the Trans-European Transport ("TEN-T") Route 6 motorway (the "Motorway A4") running from Skopje (Interchange Stenkovec) to the Blace Interchange, close to the border with the Republic of Kosovo (the "Project"). The Project will be co-financed with a EUR 20.8 million investment grant provided by the European Union (EU) through the Western Balkans Investment Framework ("WBIF"). In addition, the WBIF approved grant package includes EUR 8.8 million of TC funds for project preparation, project implementation support and supervision of works. The existing road between Skopje and the Kosovo border is a two lane road built 50 years ago which does not meet traffic needs or EU safety standards. As trade between North Macedonia and Kosovo has increased, greater traffic volumes have led to increased travel time. The Project involves the construction of a 4 lane highway which establishes a safe fast connection and trade route between the two neighbouring countries, as well as the wider Western Balkans region. The Project is structured to support the Bank's reform agenda in the Macedonian road sector with a focus on financial sustainability and climate resilience while promoting an enabling environment for electric vehicle infrastructure roll-out. For more details, please refer to the project summary document at https://www.ebrd.com/view/psd/52508