EBRD supports modernisation of North Macedonia’s rail freight

• EBRD approves €20.9 million loan to North Macedonia for new electric locomotives and a modern rail enterprise resource planning system
• Project to boost rail efficiency, reduce CO₂ emissions, and improve quality and safety of the country’s freight transport
• Operational and financial sustainability of Macedonian Railways Transport Joint Stock Company Skopje to be enhanced with a corporate development plan

The European Bank for Reconstruction and Development (EBRD) is extending a sovereign loan of up to €20.9 million to North Macedonia to strengthen the country’s rail transport sector.

The financing, which will benefit Macedonian Railways Transport Joint Stock Company Skopje (MRT), will enable the purchase of up to five new electric locomotives and the implementation of a modern enterprise resource planning (ERP) system, marking a significant step up in the country’s drive to modernise its rail freight operations.

The project, implemented by the Ministry of Transport and supported by the Ministry of Finance, will enable MRT to modernise its rolling stock, enhance its operational efficiency and quality, and improve the safety of its freight operations.

The investment is expected to deliver significant economic and environmental benefits. By enhancing the competitiveness and sustainability of North Macedonia’s rail transport, the funds will advance the country’s transition to a greener, more competitive transport system. A modern ERP system will also streamline MRT’s core business processes, driving improvements in operational effectiveness.

The project aims to augment MRT’s performance by developing a corporate development plan that will improve the company’s efficiency and financial sustainability. The plan will include the creation of an efficiency action plan, with specific measures to refine the company’s tariff methodology, as well as updates to and the harmonisation of its public service obligation methodology in accordance with EU requirements. In addition to technological improvements, it will also support gender equality and help to foster a more inclusive and progressive workplace at MRT.

Fatih Turkmenoglu, EBRD Head of North Macedonia, said: “This investment represents an important advancement in enhancing the nation's rail freight industry. By supporting the renewal of rolling stock and corporate improvements to the national railway operator, the EBRD is helping boost the competitiveness, safety and sustainability of the country’s transport network. The project will not only deliver tangible environmental benefits but also set new standards for operational excellence and equal opportunity in the sector. It is an important investment that will enable the country’s export-oriented businesses to integrate into global value chains. This will enhance private-sector competitiveness and create jobs, ultimately supporting the country in tackling population outflows.”

Gordana Dimitrieska Kočoska, Minister of Finance, said: “The loan agreement that we are signing today with the European Bank for Reconstruction and Development, in the amount of €20.9 million, is the result of intensive and constructive negotiations and is a confirmation of the trust that international financial institutions have in our policies and in the direction in which the country is moving. The conditions under which the funds are provided – a long-term repayment period, a favourable grace period and a competitive interest rate – are fully in line with our strategy for responsible management of public debt and ensuring sustainable public finances. As the Ministry of Finance, we remain fully committed to providing financial support for projects that bring long-term economic value, stimulate development and improve the country’s connectivity with regional and European transport corridors.”

Aleksandar Nikoloski, Minister of Transport, said: "I am glad that today we have the opportunity to complete an extremely important process that will entail the procurement of at least five new electric locomotives, along with accompanying spare parts. With the new fleet of five locomotives and the existing four newer ones, we will have nine modern ones that will be able to fully cover cargo transportation, and some of them will also be used in passenger traffic."

The project is fully aligned with MRT’s business plan and action plan for restructuring and development and adheres to the requirements set out in the EU Reform Agenda for the Western Balkans, aimed at enhancing the management and performance of state-owned railway enterprises.

The EBRD is a major institutional investor in North Macedonia. To date, it has invested over €3 billion in 207 projects across the country.