NORTH MACEDONIA: A €560m package of support for the construction a rail link between North Macedonia and Bulgaria has been announced by the EU, European Investment Bank and European Bank for Reconstruction & Development.
The future route forming part of pan-European Corridor VIII will start at Kumanovo on the Corridor X main line which links Skopje with Beogra. It will use an existing line to Beljakovtse, then an extension now under construction to Kriva Palanka.
The latest funding announced on December 19 is for the next 24 km from Kriva Palanka to the border, where the line will meet an extension of the Bulgarian network near Gyueshevo. There is also funding for electrification of the 88 km between Kumanovo and the border.
The promoters hope that trains could start running between the two countries by 2030, transporting 500 000 tonnes of freight and 500 000 passengers a year and contributing to better connectivity, climate resilience and socioeconomic development.
’Upon completion, it will efficiently facilitate international movement of goods and people, reducing the railway distance to the Black Sea and Turkey by approximately 200 km’, said EBRD First Vice-President Jürgen Rigterink.
The financing package comprises a €175m loan from EIB Global, a €175m loan from EBRD, a €150m EU grant channelled through the Western Balkans Investment Framework and up to €60m in the form of an Instrument for Pre-accession Assistance grant.
The project will continue to benefit from EU and EIB technical support, including through the JASPERS programme.
This ‘is a good example of the variety of financial and technical support that the bank provides’, said EIB Vice-President Kyriacos Kakouris. ‘The substantial financial package earmarked for this project demonstrates that with firm commitment and partnerships under the Team Europe approach, we can advance vital infrastructure projects that bring tangible benefits for regional economies and people.’
