European Bank for Reconstruction and Development
28 January 2009
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Regional and Local Roads Programme
EBRD helps improve Macedonian roads
EUR50 million loan to upgrade key links in regional, local network
The EBRD is lending EUR50 million to FYR Macedonia to finance the
improvement and upgrade of more than 400km of regional and local roads
that form part of key regional network and provide connections to
international road corridors.
The investments will address an urgent need for road repairs, helping
to improve transport links inside the country and support the
development of areas to which there is currently limited access.
The construction of the road sections will facilitate local
development and regional integration by rehabilitating and upgrading
the transport links, increasing access and improving road safety.
The regional component will cover at least 160km of both asphalt and
gravel roads in the south, east and west of the country, while the
local component will cover approximately 250km of local roads across
the country.
The improvement of these road links will contribute not only to the
economic development of FYR Macedonia and its important agricultural
sector, but will improve links and trade with neighbouring countries
and the EU.
This project is a continuation of the Bank's financing of road sector
improvements in FYR Macedonia. It will support the ongoing road sector
reform in the country, including institutional strengthening of Agency
for State Roads, the state entity responsible for the operation and
maintenance of roads in the country, and road maintenance reform.
The programme will address a plan for road maintenance, road planning
and road protection, aimed at improving the efficiency of road
transport services and encouraging the use of competitive tendering
for both periodic and routine maintenance.
The EBRD loan will be provided in two tranches of EUR25 million each,
with parallel financing by the World Bank of EUR70 million, which is
already committed. Additional technical cooperation has been provided
by the EBRD Western Balkans Fund, the EBRD Special Shareholder Fund
and the Central European Initiative, totalling more than EUR3 million.
Sue Barrett, EBRD's Director for Transport, said that this project
demonstrates the EBRD's continuing commitment to FYR Macedonia and its
help to upgrade important segments of the road infrastructure in the
country and the Western Balkan region.
Projects like these are key for regional integration, especially given
the importance of trade for spurring economic growth and making the
country more attractive for investment, Elena Urumovska, the Head of
the EBRD office in Skopje, added.
Dr. Trajko Slaveski, Macedonian Minister of Finance, said that the
EBRD is an important partner for the country in a number of
significant projects. The realization of this project comes at a very
opportune time for the country, considering its need for in
investments in road infrastructure. The project should create improved
living and working conditions for the citizens. Minister Slaveski
added that as with earlier projects financed by the EBRD, this loan
includes a component for strengthening the capacity of Macedonian
institutions which will be directly involved in the realisation of the
project.
The Bank has been engaged in the Macedonian road sector since 2003,
when it provided a EUR40m loan to upgrade a section of Corridor X from
Smokvica to Gevgelija which was completed in March 2006 and the second
phase of the Skopje Bypass which was opened to traffic in July 2008.
Active in FYR Macedonia since 1993, EBRD investments to-date amount to
more than EUR460 million and the Bank has helped generate a further
EUR496 million from its partners. The majority of investments are in
sectors including power and energy, general industries, financial
institutions and the private sector.
Press contact:
Bojana Todorovska, London - Tel: +44 20 7338 6940; E-mail:
todorovb@ebrd.com ---
