Provision of a senior loan of up to EUR 10 million to M-NAV, Air Navigation Services Provider of the Republic of North Macedonia, GOJSC ("M-NAV", the "company"), a state-owned air navigation service provider of North Macedonia and the Bank's existing client. The loan will be co-financed with a senior loan from a local bank in the amount of up to EUR 5 million. The proceeds will be used to refinance the Bank's current exposure under the M-NAV Modernisation project (44067), finance the remaining capex under the current project and provide liquidity support.
The project aims to support M-NAV, which has been negatively impacted by the drastic decrease in air traffic due to Covid-19, by providing capex financing and liquidty support. The EBRD loan will finance the three remaining contracts under the M-NAV Modernisation project (ATM, VCS, and Mode S radar at Skopje), and the local bank loan will be used to refinance the current EBRD exposure and provide liquidity support. The proposed transaction is in line with the Vital Infrastructure Support Programme (VISP) under the Bank's COVID-19 Solidarity Package.
The project will have the following Transition Impact qualities:
Resilient: The project will provide capex financing and liquidity support to a public sector client that has been severely affected by Covid-19
Well Governed: The project will ensure the completion of the investment programme under M-NAV Modernisation project (44067), which will support M-NAV in joining SECSI FRA, an initiative to use the shortest route in the region in order to shorten flight times and protect the environment due to lower CO2 emission and smaller fuel consumption
M-NAV AIR NAVIGATION SERVICE PROVIDER OF THE REPUBLIC OF NORTH MACEDONIA
The borrower is M-NAV, Air-Navigation Service Provider of the Republic of North Macedonia, GOJSC ("M-NAV", the "company"), a state-owned air navigation service provider of North Macedonia. M-NAV is responsible for (i) the provision of air navigation services for flights through Macedonian airspace ("en-route" air navigation) as well as terminal services at the two airports in the country, Skopje and Ohrid; (ii) the provision of air traffic control and alerting services; (iii) collecting, processing and issuing of aeronautical information; (iv) airspace and flight procedures; and (v) meteorological and other services.
EBRD Finance Summary
A senior loan of EUR 10,000,000
Total Project Cost
Total project cost is EUR 15,000,000
COVID-19 crisis response: the project provides capex financing and liquidity support in adverse market conditions, e.g. the COVID-19 crisis.
Environmental and Social Summary
Categorised B (2019 ESP). The potential E&S impacts of the project were assessed during the initial project appraisal in 2012 as part of the environmental and social due diligence and are deemed limited, site specific and have been addressed through mitigation measures reflected in the Environmental and Social Action Plan (ESAP) developed at the time to structure the project to meet the Performance Requirements of the 2008 E&S Policy.
The project includes the improvement of air navigation safety and help North Macedonia comply with international aviation safety (ICAO) requirements.
The environmental and social due diligence (ESDD) is underway to re-assess environmental and social issues associated with the project and the Client's current operations with regards to the new E&S Policy (2019), including the response to COVID-19. Based on the results of the ESDD, an updated Environmental and Social Action Plan (ESAP) will be developed and agreed with the Client to address the corrective and mitigation measures that need to be additionally implemented so as to manage remaining E&S risks and to structure the project to comply with the EBRD's E&S Policy 2019.
This PSD will be updated once the ESDD is completed to summarise the outcomes.
Technical Cooperation and Grant Financing
The following technical co-operation ("TC") assignments are envisaged as part of this Project:
- Project Implementation Unit Assistance
- Safety Case
- SECSI FRA / refreshner courses
Company Contact Information
+389 (0) 2 3 148 100
+389 (0) 2 3 148 239
M-NAV- Air Navigation Service Provider of the Republic of North Macedonia, GOJSC Bosfor Nr 7, Mralino Ilinden Republic of North Macedonia
PSD last updated
12 Oct 2021
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