The EBRD is considering providing €145 million sovereign loan to finance construction of a new section of Pan European Rail Corridor VIII in FYR Macedonia. The length of the section, connecting Beljkavce -Kriva Palanka, is approximately 34 km. This is the second phase of the total investment programme required to complete the entire eastern part of the Corridor VIII.
The Project aims at promoting regional development and connectivity, as this European Corridor is a key East-West connection which will ultimately link the Black Sea coast in Bulgaria and the Adriatic coast in Albania.
In addition, the transition impact of the proposed transaction is expected to be achieved through the following:
- Facilitating cross-border trade through Cross Border Agreements with Serbia and Kosovo
- Further commercialisation of core assets, which will allow the Company to generate additional revenue going forward;
- Improved standards of business conduct and corporate governance through the ISO 9001 and 14001 certifications;
- Improvement of the Company’s procurement procedures with a view to achieving certification by an internationally recognised procurement certification body;
- Support for the implementation of EU interoperability rules.
EBRD’s client is the Public Enterprise for Macedonian Railway Infrastructure (‘PERI’) –the state-owned enterprise responsible for the provision and maintenance of the railway infrastructure in FYR Macedonia.