The funds will be exclusively used to upgrade facilities at the border inspection post Bajakovo, located on the border with Serbia and Montenegro, the statement said.
"The expected benefits are speedier border controls and thereby the facilitation of the movements of goods, people and services between the two countries," the statement said.
The European Commission provided an additional EUR49 million to the CARDS programme in 2004. The additional funds will be used to further support action programmes for Croatia, Albania, Bosnia-Herzegovina, Macedonia and Kosovo.
Bosnia received additional EUR7 million which will further support integrated return programmes for refugees and displaced persons, and, together with other donors, help give Bosnia the facilities and capacity to try war criminals by supporting the setting up of a war crimes registry.
Macedonia will receive additional EUR8 million, while EUR23.9 million have been added to the financial allocation for Kosovo.