VISP - M-NAV Modernisation Project Restructuring


North Macedonia

Project number:


Business sector:


Notice type:


Approval date:

15 Dec 2021



PSD disclosed:

12 Oct 2021

Project Description

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. 

Project Objectives

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.

Transition Impact

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

Client Information


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

EUR 10,000,000.00

A senior loan of EUR 10,000,000

Total Project Cost

EUR 15,000,000.00

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

Fahrudin Hamidi
+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

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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