Mexico's Tradeco signed a contract with the government to build a highway in eastern Bolivia that will be financed by the Inter-American Development Bank, or IDB, President Evo Morales said.

The IDB is providing $122 million in financing for the project, the Bolivian leader said.

Morales discussed the project during an appearance Saturday in the town of Yapacani, which the road will link to Montero, another town in Santa Cruz province.

The two-lane 70-kilometer (43-mile) segment is part of a national highway that will link the eastern city of Santa Cruz to the central city of Cochabamba.

Tradeco has been asked to complete the project in 18 months even though the contract has a 30-month term, Morales said.

The area where the highway is being built has high traffic levels, with nearly 9,000 vehicles per day passing through. EFE