The EBRD is supporting further modernisation of Macedonian road infrastructure with a €107 million sovereign loan to finance the construction of a new section of the north-south Corridor X.
Corridor X is one of the two principal transport routes in FYR Macedonia along with Corridor VIII. It connects the country to Serbia and with the rest of Europe in the north, and with Greece in the south.
The EBRD loan will be used to co-finance the construction of a new 28 kilometres segment of motorway between the towns of Demir Kapija and Smokvica in south-eastern part of the country. The project will allow Corridor X to achieve full motorway standard for its entire length in FYR Macedonia.
In addition the EBRD funds will finance the construction and refurbishment of toll stations and installation of the necessary equipment to introduce Electronic Toll Collections (ETC) in FYR Macedonia.
The project will support further reform of the Macedonian roads sector through the introduction of ETC performance-based contracts and the establishment of a dedicated Public-Private Partnership unit, as well as by setting milestones for the preparation of a concession for Corridor VIII.
“The construction of the new motorway is vital for the Macedonian economy as well as for regional integration as a whole. Corridor X is a key regional transport link and the EBRD has been supporting its modernisation with investments in both rail and road in Hungary, Croatia, Serbia and FYR Macedonia, worth a total of €854 million,” said Sue Barrett, EBRD Director for Transport.
“Today’s event is another confirmation that the EBRD is focused on supporting projects in sectors identified by the Macedonian Government as priority areas for the forthcoming period. I would like to emphasise that the government will continue to support capital infrastructure projects that will contribute to increasing the competitiveness of the national economy, and achieving stronger and more balanced economic growth,” said Zoran Stavreski, Deputy Prime Minister and Minister of Finance.
The EBRD loan is supported by €650,000 in grant financing from the Bank’s Shareholder Special Fund for technical assistance. The construction of the new motorway segment is co-financed by the EU’s Instrument for Pre-accession and the European Investment Bank.
To date the EBRD has invested over €715 million in the Macedonian economy through projects in the corporate, financial, infrastructure and energy sectors. The EBRD funds have attracted additional investments worth €700 million from other sources.