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EBRD increases support for FYR Macedonia telecommunications
Under increased strain following the conflict in Kosovo, the Former Yugoslav Republic of Macedonia’s infrastructure has received welcome support from the European Bank for Reconstruction and Development (EBRD). The EBRD has extended EUR 18.7 million to the state-owned Makedonski Telekomunikacii (MT), which will allow MT to meet the fast-growing demand for its mobile services. The financing also provides incentives for the company’s eventual privatisation as well as the further liberalisation of the GSM mobile phone network.
"To assist in the reconstruction of Kosovo and the economic recovery of the whole region, more and more international organisations are using Skopje as their main base and transit area for the region," said Charles Frank, the EBRD’s First Vice President, speaking at a signing ceremony in Skopje today. "This is placing a significant strain on the country’s telecommunications infrastructure. GSM mobile networks provide the quickest and most effective means to tackle this problem. We aim to increase the capacity of the existing network to accommodate 35,000 more subscribers, doubling the existing capacity, and to expand the coverage to those areas where telecommunications is most needed."
Over the last four years, the EBRD has played a crucial role in FYR Macedonia’s telecommunications sector via a US$ 42.6 million (EUR 33.8 million) loan to Makedonija PTT (MPTT). This enabled the company to modernise the country’s telecommunications network and to fully restructure the sector. The country’s postal and telecommunications services were separated, with MT given responsibility for the latter. The Government announced its intention to privatise MT through the sale to a strategic investor of at least one-third of the company, as well as the transfer of operational control.
Mr Frank continued: "The Government has signalled to us its determination to privatise MT as quickly as possible. Along with the International Finance Corporation (IFC), which is another existing lender to MT, the EBRD is committed to supporting this privatisation. This project responds to a unique challenge and demonstrates the EBRD’s flexibility in project financing."
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