The upgrade of the road network will be carried out as part of the so called fourth development axis and will get the lion's share or EUR 34m of the available funds.

The state aims to improve road connections between the mountainous Posočje and Idrijsko-Cerkljansko regions and central parts of the country.

"I believe that this ... will enable better connections to the region," said Economy Minister Zdravko Počivalšek, who signed the contract with the head of the development council of the northern Primorsko region, Matej Arčon.

Road transport is of key importance for the development of the region and today's agreement an insurance that the works on the development axis will continue, Mayor of Tolmin Uroš Brežan said.

A community centre in Nova Gorica, which is to bring all organisations and institutions dealing with social services under the same roof, will get EUR 1.6m, and a scheme for regional scholarships will get EUR 3.9m.

Of the total EUR 36.5m earmarked for the projects, EUR 32m will come from EU cohesion funds and the state.

Arčon, the head of the regional development council, stressed that EU funds were key for the development of local communities and regions.

The government also endorsed two cross-border projects in the area: the construction of green infrastructure in the valleys of the Soča, Vipava and Idrijca rivers, and anti-flooding measures in the Vipava drainage area.

Today's deal is the seventh in the first call for applications for regional development projects. So far, deals have been signed with the central region for EUR 17.8m, with the Gorenjsko region for EUR 23.1m, with the Koroško region for EUR 14.8m, with south-eastern Slovenia for EUR 7.1m, with the Podravje region for EUR 14.4m and the Posavje region for EUR 6.1m.

Two more deals will be signed, with the Primorsko-Notranjsko region for EUR 5.9m and the Savinjsko region for EUR 6.1m.

A second call for application has also been published, under which a total EUR 418.9m in cohesion funds will be made available to regions.