Skopje, 8 June 2026 (MIA) - The Government has announced investments in the amount of EUR 10 billion in capital infrastructure projects over the next ten years, including motorways, expressways, railroads, healthcare and energy capacities.

"We expect to see the simultaneous construction of six motorway sections in the second half of 2026," Prime Minister Hristijan Mickoski told a press briefing on Monday.

The Izvor-Vrbjani section within the 57km-long Kichevo-Ohrid motorway, of which 34km are already in operation, will be put into use this September or October.

"In the most optimistic scenario, the section will be put into use on Independence Day-September 8, but the deadline could be delayed by the end September or October. The full length of the highway is to open in the first quarter of 2027," said PM Mickoski.

He recalled that the loan agreement with the Chinese Exim Bank for the project was terminated, followed by a syndicated loan from the domestic commercial banks in the amount of EUR 175 million, so that the motorway is completed.

"Even with this additional financing, the price per kilometer is lower than the one for the sections along Corridors VIII and X built by the Bechtel-Enka consortium," said Mickoski.

On the Bukojchani-Kichevo highway section, a project funded through a EUR 220 million loan from the European Bank for Reconstruction and Development, the PM said the best bidder has been selected and construction works are expected to start in September or October.

A bidder has also been selected for the second section of the Blace-Skopje motorway and works are expected to start in July, with the EBRD again providing a loan in the amount of EUR 215 million.

Bechtel-Enka is currently working on three highways (Tetovo-Gostivar, Gostivar-Bukojchani, and Prilep-Bitola), whereas the outcome for the Trebenishte-Kjafasan section will be known by the end of June.

"If everything goes as planned, we expect the first 11,5km of the Prilep-Bitola section to be into use by September 2027. In consultation with the management and the contractor, about EUR 250 million are to be allocated per year in 2027, 2028 and 2029. We are also discussiing the extension of the deadlines, because there was no significant progress for a couple of years from the project signing," said Mickoski.

Regarding expressways, the design of the Kochani-Vinica-Delchevo section has started as part of the broader strategy for modernization of the road infrastructure in the country's east, with the project worth about EUR 120 million.

In railway infrastructure, the key projects involve the construction and rehabilitation of the Corridor X railroad, with works to be launched by the end of 2026, alongside the Corridor VIII railway to Bulgaria.

"The contractor for the second section of the railway leading to Bulgaria (Kumanovo-Kriva Palanka) is seeking for an extension of the deadline by 2028 and an annex will probably be signed related to the reinforcement of the existing bridge pillars, which have been standing as memorials of the unfinished projects for years now," said Mickoski.

According to him, the country and the European Union are doing their part on the third section from Kriva Palanka to the Deve Bair crossborader border tunnel, since the tunnel is to be funded through IPA with EUR 150 million.

"However, there is no progress on the Bulgarian side. There might be progress in the future but they are currently giving priority to the railroads leading to Burgas and Varna," said Mickoski.

In the country's west, rehabilitation of the railway to Kichevo is carried out through the Reform Agenda, with the funds originally intended for the Corridor X now reallocated for this section of Corridor VIII.

"Tender documents for modernization of the Skopje-Jegunovce-Tetovo-Gostivar railway section are already in the pipeline, and the project is worth about EUR 284 million, provided through the Growth Plan," said Mickoski.

On Corridor X, construction works are expected by the year-end, with the UK-funded project worth about EUR 1.8 billion, so that passenger trains en route Tabanovce-Gevgelija operate at a speed of 160 km/h, while cargo trains at 100-120 km/h.

Turning to hydro-energy project Chebren-Galishte, the PM said the Government is nearing a strategic decision of investing into the project without the help of a private partner.

"The final decision will depend on the meetings within Power Plants of North Macedonia (ESM). Our calculations show that the return on investment (ROI) exceeds 10 percent, which makes the project economically viable," said Mickoski and highlighted the benefits of the reservoirs as a significant resource for water supply and water management, taking into account climate change and global warming. The investment into the project is estimated at about EUR 1 billion.

In addition, the Government is negotiating with 15 companies that want to invest in the country, with a German multinational company already setting up a legal entity and reserving two lots for the construction of two plants; a U.S. company that is part of the Forbes 500 list has reserved four industrial lots and has set up a subsidiary; while a Turkish company already operating in the Tetovo economic zone is planning to build an additional production facility.

"All these investments are expected to generate construction works worth at least EUR 300 million," said Mickoski.

In healthcare, the most important projects include the Shtip Clinical Hospital, the new faculty of medicine and a dormitory, the Tetovo Clinical Hospital and the Kichevo Health Center, worth EUR 200 million in total.

"When all these projects are taken together - motorways, expressways, railways, energy facilities, health institutions, industrial investments, filtering stations and other capital infrastructure - the total value of the ongoing and projected investments stands at about EUR 10 billion over the next decade, or EUR 1 billion per year," said Mickoski and added these projects would lead to the GDP growing by over five percent.

MIA file photo