EU banks supports Corridor VIII rail network, North Macedonia

Brussels, Belgium (Ports Europe) December 20, 2023 - European Union banks will help finance the third phase of the Eastern section of the Corridor VIII rail network linking North Macedonia and Bulgaria.. Participants, including the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), will raise a €560 million financial package. It will be part of the Global Gateway initiative. When complete, the rail line will transport about 500,000 tonnes of cargo and half a million passengers a year. This will bring better connectivity, climate resilience and socio-economic development to North Macedonia and the region. The finance will enable 24 km of railway line to be built between Kriva Palanka, northeastern part of North Macedonia, and the border with Bulgaria, and 88 km of track between Kumanovo and the border to be electrified. Corridor VIII is one of the Pan-European corridors. It comprises both road and rail routes. Both strat on the Italian Adriatic coast at Bari or Brindisi, with a ferry crossing to Durrës in Albania. From there the routes cross the southern Balkans into Bulgaria and thence to Varna, on the Bulgarian Black Sea coast. The road corridor follows the route: Tirana/Durrës/Vlorë – Elbasan – Skopje – Pernik – Sofia – Plovdiv – Burgas – Varna. More PortSEurope news about the TEN-T transport corridor network As part of the Trans-European Transport Network, the new section of rail on Corridor VIII will provide a smooth link between Sofia and Skopje. This will reduce vehicle operating costs, traffic congestion and pollution, and improving safety. The Team Europe financing package consists of a €175 million loan from EIB Global, a €175 million loan from the EBRD, a €150 million EU grant channelled through the Western Balkans Investment Framework and up to €60 million in the form of an Instrument for Pre-accession Assistance grant. The project has and will continue to benefit from EU and EIB technical support, including through the JASPERS programme, for the preparation, tendering and implementation. Management comment EIB Vice-President Kyriacos Kakouris, who is responsible for operations in North Macedonia, said: “We are proud to act as a leading financial institution for this project that entails the largest ever EU grant allocated for North Macedonia under the Western Balkans Investment Framework. It is a good example of the variety of financial and technical support that the Bank provides. 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. The new railway line will accelerate the country’s reforms in the railway sector, facilitate broader regional integration and enable North Macedonia to benefit further from upcoming European Commission initiatives such as the new Growth Plan. Finally, it will contribute to a more environmentally sustainable transport system in North Macedonia, enabling a gradual shift from road to rail in line with the European Union’s and the country’s climate aspirations.” EBRD First Vice President Jürgen Rigterink said: “We are delighted to once again collaborate with the EIB and EU on a significant railway infrastructure project in the region. This marks the final phase of the eastern segment of Rail Corridor VIII, a crucial part of the EU Core TEN-T network. This section will connect two existing EBRD-funded portions currently under construction. Upon completion, it will efficiently facilitate the international movement of goods and people, reducing the railway distance to the Black Sea and Türkiye by approximately 200 km.” Minister of Finance Fatmir Besimi said: “Funds the Government has provided from the EIB and EBRD — as well as the grant from the European Union — are unquestionably crucial for completing this project, which was launched many years ago. Its implementation will make it possible to improve railway infrastructure, creating better working conditions for companies, enabling easier transportation of both goods and passengers, and encouraging development”, Minister said Besimi. Head of Delegation to the Republic of North Macedonia David Geer remarked: ““The European Union is supporting North Macedonia to develop a functional and modern railway system, which will provide better connectivity, quality of life and increase economic development opportunities for the citizens. Integrating the railways into the country’s transport network is one of the EU's priorities to ensure efficient, energy smart and climate-friendly ways to move people and freight across the European continent.” Copyright (C) Ports Europe. All Rights Reserved. 2023.

EU banks supports Corridor VIII rail network, North Macedonia

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EU banks supports Corridor VIII rail network, North Macedonia

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