- €10m senior loan supports development of a section of road Corridor VIII
- 13-km road section will improve regional connectivity with EU member Bulgaria
- WBIF investment fund to support project is expected to be approved by year-end
The EBRD is financing the modernisation of the road network in FYR Macedonia to help improve the country’s transport infrastructure and boost the national economy.
A €10 million loan to the Macedonian government will finance the construction of a part of road Corridor VIII crossing the country, a 13-km stretch of dual lane carriageway between Kriva Palanka and Deve Bair near the Bulgarian border. Corridor VIII is part of the Western Balkans Core Network and an indicative extension of Trans-European Transport Network (TEN-T).
The project will improve the country’s economic ties with the European Union via neighbouring EU member Bulgaria.
The EBRD senior loan is being extended to the Public Enterprise for State Roads, a state-owned company located in Skopje and responsible for the country’s road network.
The European Union is the EBRD’s strategic partner in the development of road Corridor VIII. An investment grant for EUR 2.6 million is expected to be provided for the project by the Western Balkans Investment Framework (WBIF) in December 2018. The EBRD’s Shareholder Special Fund (SSF) will provide technical cooperation support to prepare a corporate plan for the company and to assist the Project Implementation Unit.
The benefits of the project include supporting the state road company to become more competitive, by helping it develop a corporate plan to boost its efficiency. Improving the road will enhance the quality of transport services for people and goods and boost Macedonia’s economic development and regional integration.
The EBRD has invested €30 million in Corridor VIII and €117 million so far in Corridor X.
With 112 projects in Macedonia to date, the EBRD has invested €1,788 million in the country.