The EBRD is supporting further modernisation of Macedonian road infrastructure with a €107 million sovereign loan to finance the construction of a new section of the north-south Corridor X. Loan agreement was signed Tuesday by Zoran Stavreski, Deputy Prime Minister and Minister of Finance and Sue Barrett, EBRD Director for Transport.
The EBRD loan will be used to co-finance the construction of a new 28 kilometres segment of motorway between the towns of Demir Kapija and Smokvica in south-eastern part of the country. The project will allow Corridor X to achieve full motorway standard for its entire length in Macedonia.
Corridor X is one of the two principal transport routes in Macedonia along with Corridor VIII. It connects the country to Serbia and with the rest of Europe in the north, and with Greece in the south.
The total investment for construction of this section is €271 million of which €130 million are provided by the European Investment Bank, €45 million are IPA grant of the European Union and €6 million from the budget of the Republic of Macedonia.
- Today’s event is another confirmation that the EBRD is focused on supporting projects in sectors identified by the Macedonian Government as priority areas for the forthcoming period. I would like to emphasise that the government will continue to support capital infrastructure projects that will contribute to increasing the competitiveness of the national economy, and achieving stronger and more balanced economic growth, said Zoran Stavreski, Deputy Prime Minister and Minister of Finance.
The loan is provided under favourable conditions with 15 years payment deadline, 3 years grace period and with variable interest rates now standing at 2.7%. The loan will be paid with funds from the budget of the Republic of Macedonia and project will be implemented by the State Road Agency, Ministry of Transport and Communications and operational structure of the Ministry of Finance.
EBRD with this project showed once again that it becomes the most serious partner to the Republic of Macedonia in realisation of huge infrastructure projects, said Stavreski.