The local government borrowing initiative provides an extra £10million of revenue funding to councils.
That will enable them to unlock an additional £120m over two years of capital funding to accelerate the process of fixing roads and pavements.
The A548 in Conwy County, running between Abergele and Llangernyw, was among the first routes to benefit from the scheme.
Ken Skates, cabinet secretary for transport and North Wales, said: “Fixing our roads is a priority for this government.
“Not only are we providing an extra £25m to fix and prevent potholes on our strategic road network, but we are also supporting local authorities to fix local roads.
“This will deliver a real difference to communities across Wales, fixing problems now and making our roads more resilient for the future. I look forward to seeing more and more local roads fixed over the next months.”
The improvements are expected to resurface 600km of the local road network this financial year, targeting roads in the most urgent need of repair.
The work will see more than 200,000 potholes repaired or prevented across Wales, along with upgrades to pavements in all 22 local authority areas.
In Conwy County, 14km of resurfacing is planned on the A548, which is expected to address around 4,000 potholes.
Part of the road has already been completed under the scheme.
Councillor Goronwy Edwards, Conwy’s cabinet member for infrastructure, transport and facilities, said: “We welcome this funding from Welsh Government to improve the condition of our roads.
“Our road network is the council’s largest and most valuable asset and is really important to our residents.”