For the development of major infrastructure projects, including the Corridor 8 and Corridor 10D highways, the state has historically utilized budgetary funds to meet its obligations to the American-Turkish consortium, Bechtel and Enka. This funding method, which was employed to cover contractor payments, has recently undergone a significant adjustment. As of February of this year, the government officially approved a revised funding structure: a joint loan secured from four commercial banks operating within Macedonia, backed by a state guarantee.
The consortium is responsible for the construction of several key routes, specifically the highways connecting Tetovë – Gostivar – Bukojçan, Trebenishtë – Strugë – Qafë Thanë, and Prilep – Manastir. Previously, the contractor received payments of approximately 100 million euros annually, amounts derived from the terms of the contract and associated special legislation. However, the current financial arrangement dictates a shift in funding sources.
According to reports from “Faktor,” the financing for this year will be provided through a syndicated loan. This loan involves participation from Stopanska Banka, Komercijalna Banka, Halk Banka, and NLB Banka. This transition marks a move from direct state budgetary expenditure to a structured, multi-bank lending agreement to sustain the ongoing development of the national road network.
Topics: #macedonia #state #regularly
Hopefully, these new corridors will significantly boost regional trade and connectivity.
What is the structure or source of the funding for these new loans?