The money will go towards the Zletovica basin water utilisation improvement project, which is to include the construction of a multi-purpose dam on the Zletovica river leading to the formation of a 23.5Mm3 reservoir, in addition to neighbouring intake and raw water transmission facilities.

The loan, provided under the Japanese official development assistance charter, will be used for the procurement of civil works, materials and equipment, and consulting services.

It is hoped that the project will help to stabilise the water supply in eastern Macedonia, a dry region which only receives 500mm of rainfall annually.