site.btaEU Allocates EUR 560 Mln for Completion of Corridor VIII Railway Link to Bulgarian Border in North Macedonia

The EU will back the construction of a railway line in North Macedonia that will link the Corridor VIII rail network to the Bulgarian border, the European Investment Bank (EIB) said in a press release on Tuesday. Together with the Government of North Macedonia, the EU, including its bank - the EIB - and the European Bank for Reconstruction and Development (EBRD) have announced an EUR 560 million financial arrangement through Team Europe for the third phase of Corridor VIII's Eastern section, the press release reads.

The funds will enable a 24-km railway line to be built between Kriva Palanka and the border with Bulgaria, and 88 km of track between Kumanovo and the border to be electrified. Once completed, the new rail line will be able to transport some 500,000 tonnes of freight and half a million passengers a year, contributing to better connectivity, climate resilience, and socioeconomic development in North Macedonia and the region, the EIB said.

The Team Europe financing package consists of a EUR 175 million loan from EIB Global (the arm of the EIB for activities outside the European Union), a EUR 175 million loan from the EBRD, a EUR 150 million EU grant channelled through the Western Balkans Investment Framework, and up to EUR 60 million as a grant under the Instrument for Pre-accession Assistance.