The government yesterday signed two loan agreements with the European Investment Bank, the European Union’s long-term credit institution, worth a total of 215 million euros, for two important road projects in northern Greece.

Deputy Economy Minister Christos Pachtas said that 140 million euros will go toward building the westernmost part of the Egnatia Highway, a 123-kilometer stretch from the port of Igoumenitsa to the village of Panayia, in Epirus. The other 75 million euros will go toward construction of a 50-kilometer section of an outer ring road around the city of Thessaloniki, 32 kilometers of which are also part of the Egnatia Highway.

Both road projects are co-funded by the European Union’s structural funds, and the EIB has already provided additional funds for both. The Egnatia stretch in Epirus will be funded by a total of 840 million euros, 300 million of which were already paid last October. EIB will also loan a total of 175 million euros for the Thessaloniki road project. The remaining 100 million was paid out in March 2000.

When completed, the 650-kilometer Egnatia Highway will provide, for the first time, a quick connection between Greece’s northwest and northeast, and will also serve as a major transit highway for commercial vehicles coming to Igoumenitsa by boat from Italy and continuing to Turkey and beyond. A series of highways will also link Egnatia to Greece’s northern neighbors Albania, the Former Yugoslav Republic of Macedonia and Bulgaria.

Pachtas said that completion of the Egnatia highway is a top priority for the Greek government. The project has suffered delays due to the difficult terrain, especially in the western part of Egnatia, and environmental concerns.

Pachtas added that he also discussed with EIB officials financing plans for the Athens Metro extension, the suburban railway and the expansion of Greece’s railway network.