Skopje, 24 January 2024 (MIA) - Prime Minister Dimitar Kovachevski and Finance Minister Fatmir Besimi met Wednesday with Xiaoqing Yu, the World Bank Country Director for the Western Balkans and Massimiliano Paolucci, the World Bank Country Manager for Kosovo and North Macedonia.

The discussion during the meeting focused on the new partnership framework with the World Bank, providing the Republic of North Macedonia with US$695 million over the next four years. These funds were allocated and approved Tuesday by the World Bank’s Board of Executive Directors of the international financial institution, the government said in a press release.

During the meeting, the impressions of the Board of Executive Directors were shared, commending the achievements and sound policies of the Government of the Republic of North Macedonia and the broader macro-management.

“The recently approved new partnership framework stands as a testament to the enduring partnership and close collaboration between the Republic of North Macedonia and the international financial institution, spanning three decades. This achievement is a result of our commitment and the policies we adopt to foster societal prosperity, streamline developmental processes, and boost economic growth. The ongoing collaboration reaffirms our dedication to sustainable progress and highlights the positive impact of shared efforts on the country's development. The new partnership framework outlines priorities, crafted in collaboration with the World Bank, focuses on priorities aimed at enhancing public service accessibility and quality, creating a favourable environment for the development of new, well-evaluated jobs in the private sector, and fortifying resilience to climate change while curbing carbon emissions,” PM Kovachevski said at the meeting with World Bank officials.

Prime Minister Kovachevski noted that projects totalling US$404 million have been supported through this partnership, and with the new partnership framework, this support increases to US$1.1 billion.

In the context of the new partnership aimed at achieving three specified goals, projects are being developed in several sectors, including transportation, municipal infrastructure, agriculture, digitization, energy, health, education, and social services.

Finance Minister Fatmir Besimi, during the meeting, underscored that the partnership framework ensures the continuity of ongoing reforms aimed at advancing human capital. He highlighted substantial funding allocated for reforms in the social, education, and health sectors, anticipating societal prosperity and accelerated economic growth.

As outlined in the press release, the partnership framework also focuses on enhancing the business environment and infrastructure, fostering competitiveness, modernizing the agricultural sector, and advancing energy transition.

During the meeting, it was underscored that the initial loans under the new partnership framework have already received approval. A sum of €27.5 million has been granted to fund the Second Social Services Improvement Project, focusing on expanding access and improving the quality of social services, particularly preschool services for vulnerable groups.

A loan of €31 million has been approved for additional funding for the Road Upgrade and Development Project, aimed at improving transport connectivity along Corridor VIII between Skopje and Deve Bair, reads the press release.

The government also noted that in December, the World Bank, as our significant and strategic partner, also approved a loan of US$100 million for budgetary support. The funding will bolster the climate transition of the energy and financial sectors and strengthen sustainable public finances.

“The partnership framework serves as a confirmation of our policies, following the endorsement received from the International Monetary Fund regarding the right direction and sustainability of policies during the first review within the framework of the Precautionary and Liquidity Line,” reads the press release.

Photo: Government of the Republic of North Macedonia