North Macedonia: Team Europe - EIB continues to invest in the security of energy supply in the Western Balkans

• The EIB investment, through this EU priority energy infrastructure project, will enhance energy security by diversifying gas supply sources in North Macedonia and the Western Balkans.
• The project will help integrate North Macedonia into future major gas infrastructure projects, increasing the competitiveness of the country’s energy market for the benefit of its people.
• The EIB loan complements a €12.4 million grant from the Western Balkans Investment Framework

The European Investment Bank (EIB) is continuing to invest in the energy security of the Western Balkans by providing a €28.9 million investment loan for the construction of the North Macedonia section of the gas interconnector between North Macedonia and Greece. This investment will help to diversify energy sources and the security of energy supply, ensuring socioeconomic development and integration into the regional and EU energy market. The EIB loan complements a €12.4 million grant by the Western Balkans Investment Framework (WBIF) for technical assistance and project implementation.

The project concerns the construction of a 68 km long gas interconnector section in North Macedonia, starting from the border close to Gevgelija and ending near the town of Negotino. It has been classified as a project of mutual interest by the Energy Community, and is one of the flagship investments outlined in the Economic and Investment Plan that will future-proof the region’s energy supply. The project also benefits from EU-funded technical assistance aiming to develop the core transport and energy networks in the Western Balkans.

EIB Vice-President Lilyana Pavlova, responsible for the Western Balkans, said: “As the EU bank and part of Team Europe, the EIB is glad to support this EU priority project, part of the Economic and Investment Plan and at the core of the national energy strategy of North Macedonia. It is also linked to the Bank’s earlier commitment to enhance energy security in the Western Balkans by decreasing dependency on one source of gas supply. It will open up access to various sources, secure supply in case of a shortage and increase market competition through a connection to increasingly diversified natural gas markets in Greece. Being a priority project for the European Union and the Central and South Eastern Europe Energy Connectivity (CESEC) initiative, it will help the region gradually move away from coal, while increasing connectivity and creating the conditions for a common regional market and attracting new investments.”

Minister of Finance of North Macedonia Fatmir Besimi expressed his gratitude for the EIB’s continuous support for North Macedonia: “The North Macedonia section of the Greece–North Macedonia gas interconnector project is one of the highest priority projects for both countries, for the regions, as well as for the Energy Community, being supported by all the relevant European institutions. Implementation of this project will provide stability in the energy supply, above all in the field of industry, thus contributing to economic growth in all regions of the Republic of North Macedonia. The project is of strategic significance for North Macedonia. Project implementation will help to ensure accelerated and sustainable economic growth, higher living standards and a better quality of life for our people.”

Executive Director of NER JSC Skopje Bajram Redjepi said: “The signing of the contract as well as the partnership with the EIB for the construction of the natural gas interconnector with DESFA is of great significance not only for the development of the energy sector of the Republic of North Macedonia, but also for the entire region. This project will enable us to diversify and secure our sources of supply, and will also enable us to have access to a more competitive natural gas market. We are making our utmost effort to establish as many relationships as possible and also to break down as many barriers as possible.”

Head of Cooperation in the European Union Delegation to North Macedonia Steffen Hudolin said: “The gas interconnector between North Macedonia and Greece is an important project, both politically and economically. By investing over €2 million in project preparation and 12.425 billion in the construction of the connection line, the European Commission shows that it remains committed to the implementation of the Economic Investment Plan. Investing in key infrastructure is a requirement for the country’s growth and sustainable development. Investing in natural gas in North Macedonia has to be seen as a transitory measure to enable a gradual shift to renewable, green and clean energy, improving environmental health and ensuring energy security in the long run.”

Since the start of the pandemic in 2020, the EIB has invested €144 million in North Macedonia under the Team Europe initiative to support the faster recovery of small and medium enterprises and the development of vital infrastructure.