Skopje, 20 May 2025 (MIA) – With the government-to-government agreement we will sign on Thursday in London, Macedonia is receiving the largest amount of funding in its history for the implementation of capital projects, Deputy Prime Minister and Minister of Transport Aleksandar Nikoloski said after the Government adopted the strategic partnership agreement with the United Kingdom for cooperation on infrastructure projects.

The goal of the agreement is to build a partnership to help carry out infrastructure projects in healthcare, transport, tech, energy, digital transformation, and other key sectors in Macedonia.

The planned projects under the agreement include the construction and reconstruction of the Railway Corridor 10 from Tabanovce to Gevgelija, which, according to Nikoloski, is estimated to cost between €1.9 billion and €2 billion. Additionally, the construction of the clinical hospital, medical faculty, and student dormitory in Shtip, the complete reconstruction of the clinical hospital in Tetovo, and the construction of a new hospital and health center in Kichevo are expected to cost around €200 million. From the projected €6 billion in the agreement, an estimated €2.1 to €2.2 billion will be allocated for these projects, with repayment scheduled to begin only after their completion, as requested by the Macedonian side.

Nikoloski said it’s very important that the agreement includes knowledge and experience sharing, using expertise from the UK Government and British companies to help implement projects and also to support reforms in public administration and the private sector, with help from UK businesses and government agencies.

“This collaboration will be aligned with the existing laws, regulations, and policies of both countries. The participants will jointly explore options for securing project financing. Notably, the Government of the United Kingdom has reaffirmed its commitment and financial capability through the UK Export Finance (UKEF) mechanism, making £5 billion or €6 billion available for the implementation of projects in Macedonia,” Nikoloski said.

He said he’s proud that the Government, and he personally, were officially invited by the UK Government to sign the government-to-government agreement on May 22.

The delegation accompanying him will include Deputy Prime Minister and Minister of Environment Izet Mexhiti, Minister of Education Vesna Janevska, Director of the Public Enterprise for Railway Infrastructure Sinisha Ivanovski, along with other associates.

“On Wednesday, meetings are scheduled with the United Kingdom’s Home Secretary and Defence Secretary, along with representatives from the Financing Instrument. The main ceremony is on Thursday. Additionally, I will hold a meeting with Ryanair’s CEO on Thursday, where I expect to discuss the introduction of new flights to Skopje,” Nikoloski added.

He pointed out that this is a historic moment and that May 22 will be a date remembered in Macedonian history because it’s the biggest deal Macedonia has ever made with any country.

“This isn’t just any country, it’s the world’s second-biggest power, one we work closely with through NATO. It’s part of the Western world and provides the most funds. For me, the political importance is huge because we’re partnering with a key Western ally, which shows the Government’s policy and Macedonia’s position as a pro-Western country that respects Euro-Atlantic values. I’m also happy that the UK announced it has reached a deal with the EU, so now Macedonia has its three main allies in one package: the EU, the UK, and the US,” Nikoloski said.

He stated that the conditions for repayment and interest rates on the funds from the agreement will be more favourable than any prior loans. Financing will be project-tied. For certain projects, the term will be shorter, for others longer, depending on the condition of the Macedonian economy and budget, as well as the successful implementation of the projects, Nikoloski explained.

Concerning the interest rates, he noted that "initially, it may be possible to operate below the inflation rate," with further details to be announced within a month to a month and a half.

Photo: Ministry of Transport