\r\nImplementation of the project, which is being managed by Kosovo Railways (HK) infrastructure subsidiary Infrakos, is divided into three phases: Fush\u00eb Kosov\u00eb - Hani i Elezit (Macedonian border) (64km); Fush\u00eb Kosov\u00eb - Mitrovic\u00eb (34.4km); and Mitrovic\u00eb - Leshak (Serbian border) (42km). This line is Kosovo's only functioning international rail link.\r\nA \u20ac42m loan agreement was signed on December 8 by EIB deputy director general Mr Romualdo Massa Bernucci and Kosovo minister of finance Mr Avdullah Hoti in the presence of the head of the EU Office in Kosovo\/EU special representative Mr Samuel \u017dbogar. The deal represents the EIB's first public sector loan in the country.\r\nThe EC has agreed to support the upgrade with an initial \u20ac40m grant and a further \u20ac40m grant could be allocated for later stages.\r\nWith the contributions from the EC and EIB the Kosovo government has so far secured \u20ac122m for the project. In September the government signed a \u20ac39.9m loan agreement with the European Bank for Reconstruction and Development (EBRD), which will provide sovereign loans totalling up to \u20ac71.8m across the three phases. The Western Balkans Investment Framework (WBIF) has also contributed to the project, which was included in the investment package approved at the Western Balkan summit in Vienna in August.\r\nConstruction will begin in late 2016 and the project is due to be completed by the end of 2020.