Skopje, 28 October 2021 (MIA) – TIDZ’s strategic green investment fund, which is part of the Accelerated Growth Plan, is expected to encourage investments amounting to EUR 750 million and create 15,000 new job positions. The fund won’t generate additional public debt. It aims to attract investments in green economy, that is, green buildings, technologies and infrastructure. Moreover, it’s set to establish a program aiming to encourage domestic medium and large enterprises to strengthen their production capacities to join more efficiently global chains. The green investment fund will be made up of EUR 70 million public funds, as well as funds from institutional investors and ETFs. Its participation in private investor projects is set to be up to 40%. According to Free Zones director Jovan Despotovski, participation of the country and institutional investors in financing the project, will give banks confidence in project realization. Participation of ETFs, he added, will also provide the necessary expertise, thus raising project implementation expectations and lowering the risk of business banks declining loans. Despotovski noted that securing funds from institutional investors and ETFs will not be an issue, stressing that business banks have already expressed interest in this type of funding. “Two major investment structures are nearly done and realization will launch soon. A feasibility study for installation of photovoltaic power plants at TIDZ and establishing a separate eco-friendly industrial development zone, is in the final stages,” Despotovski told a joint press conference with Finance Minister Fatmir Besimi on Thursday. The green investment fund was developed in cooperation with the World Bank. Minister Besimi expressed assurance that the Accelerated Growth Plan, which includes the strategic green investment fund, won’t generate new debt, but ensure fiscal consolidation and accelerated economic growth via EUR 12 billion investments by 2026. “The goal is to ensure fiscal consolidation. At mid-term, public debt should stand at 60% and deficit at 3%, while in the last two years of plan implementation, deficit should drop below 3% and public debt below 60% of the GDP,” Besimi said, adding that focus will be put on accelerating growth and green and digital economy transformation. The Plan also includes several other new mechanisms, such as development, project and green bonds for capital investments. Moreover, besides public investments in the amount of EUR 4 billion, the Plan also includes private sector investments amounting to EUR 8 billion, for a total of EUR 12 million in investments by 2026. The Plan targets a rise of the average annual growth rate from 2.5 percent to 5 percent in the next five years.