The European Bank for Reconstruction and Development (EBRD) is providing a EUR 175 million loan for the modernisation of a section on North Macedonia’s Rail Corridor VIII.
The loan will support the completion of the last section of rail infrastructure on the eastern end of the corridor from Kriva Palanka to the Bulgarian border in total length of 23.4 km. The project include construction, signalling and telecommunication as well as the electrification works for the overall eastern rail line including the sections 1, 2 and 3 in total length of 88 km.
The Public Enterprise for Railways Infrastructure (PERI) will implement the project between Kriva Palanka, Deve Bair towards the border with Bulgaria. At the end of October, the prime ministers of Bulgaria and north Macedonia officially launched the construction works for this rail section.
In April 2023, the European Investment Bank started the appraisal process for this section, proposing a EUR 299 million funding with a total eligible cost of the project of EUR 569 million. for the project, North Macedonia has secured a EUR 321.7 million financing while the government is providing EUR 4.2 million. The EU’s initiative Western Balkans Investment Framework (WBIF) has provided EUR 82 million in grant support for technical assistance as well as construction/rehabilitation works, out of which EUR 70 million in EU grant contribution for the construction of 34 km of railway track on the Beljakovce – Kriva Palanka section and the rehabilitation of 2 train stations and 3 halts.
The planned development includes several railway bridges and over and underpasses, 5.5 km-long tunnels and new signalling and telecommunication systems. Once complete, the new railway interconnection will shorten the railway link between North Macedonia and the Black Sea by 200 km.
North Macedonia’s Rail Corridor VIII has a total length of 192 km of which 89 km-long rail section between Kumanovo and the border with Bulgaria as well as another 103 km-long rail section between Kicevo and Skopje.
In the North Macedonia, the rehabilitation and modernisation of the corridor is split into four sections including Kumanovo – Beljakovce (30.8 km), Beljakovce – Kriva Palanka (34 km), Kriva Palanka – Deve Bair – Border with Bulgaria (24 km) and Kicevo – Skopje (103 km).
In 2022, the rail infrastructure manager signed the contracts for the Kumanovo – Kriva Palanka line (the first two sections totalling 64.8 km) and works are expected to be completed until 2025. The project’s financing has a total value of EUR 281.7 million, of which EUR 79.9 million in grants (28.4% of the costs) and EUR 191.4 million in loans (67.9%). The WBIF committed a EUR 159.8 million financing and the EBRD would deliver EUR 191.4 million, while EUR 8.3 million (3.1%) is the country’s own contribution and EUR 1.6 million represents external grants.
The Corridor VIII is proving North Macedonia rail connections to Serbia and Greece on East-West axis and on its territory 50% is operational while the other sections must be modernised, including the signalling and telecommunication systems.
The corridor is essential for North Macedonia’s transport connections and trade because the country does not have rail links with Bulgaria and Albania deprives it of effective connectivity with the states of the region and with Eastern Europe. The only link along the corridor spans 152 km and runs between Kichevo via Skopje to Kumanovo which needs rehabilitation. The global project covers the construction of 155 km of new lines of which 89 km on the eastern section (towards Bulgaria) and 66 km on the western section of the corridor (towards Albania).
This corridor is part of national plan to modernise transport infrastructure with an emphasis on railways focused on the modernisation of the rail Corridor VIII which ensures North Macedonia access to Bulgaria ports (Varna and Burgas).
Share on:
