22nd August 2023, Skopje – Government of the Republic of North Macedonia ensures financing in the amount of EUR 100 million from the European Bank for Reconstruction and Development (EBRD) so as for ESM state-owned company to secure stable and reliable supply of electricity to the citizens and the businesses. Today, Minister of Finance, Fatmir Besimi, and EBRD Managing Director for Central and South Eastern Europe, Charlotte Ruhe, signed the Guarantee Agreement, with the ESM General Manager, Vasko Stefanov, signing the Loan Agreement with EBRD.
Minister of Finance underlined that the funds will provide for ESM to seamlessly deliver its services to the citizens and the companies despite the possible external challenges.
“So far, to the end of coping with the crisis, the Government has adopted two sets of anti-crisis measures, amounting to over EUR 760 million, with EUR 225 million also being projected therefore in 2023. The Agreements we are signing today complement such measures, providing for a subsidised electricity price for the citizens, with Budget funds being allocated therefore. In addition to the two sets of measures, activities are being undertaken aimed at implementation of energy projects which will provide for diversification and greater security of electricity supply over the long run, with the European Bank for Reconstruction and Development extending unwavering support for their implementation”, Minister Besimi said.
The Loan is extended under favourable terms and conditions, with 5-year repayment period, 6-month grace period and 6-month EURIBOR variable interest rate increased by 1% margin. AD ESM – Skopje is the borrower and all liabilities arising therefrom will be settled by the company, with the Government issuing sovereign guarantee therefore.
According to EBRD Managing Director for Central and South Eastern Europe, Charlotte Ruhe, the Government of North Macedonia, together with ESM, are showing the way for other countries in the Western Balkans region to successfully decarbonise and modernise their energy system.
“We are impressed with their climate ambitions, and look forward to working together to implement the $85 million made available to North Macedonia by the Climate Investment Fund,” said Charlotte Ruhe.
ESM General Manager Stefanov emphasised that the Loan will provide support in financing the costs related to improvement of the production process, investments in renewables, as well as maintenance of the already built renewable energy capacities.
“AD ESM continues on its path to the green scenario. Therefore, several renewable energy projects are envisaged in future, which will significantly contribute to the energy independence of our country”, Stefanov pointed out.
Support from and cooperation with an institution such as EBRD is of key importance, contributing to faster and easier transition towards the Green Agenda for the Western Balkans, by committing to transition to clean energy, aimed at reduction of greenhouse gas emissions by 61%.
Since 1993, EBRD has supported more than 175 projects in the country in the amount of EUR 2.6 billion, 86% out of which amount is allocated to the public sector. At the moment, active portfolio projects total EUR 1.1 billion. Priority projects, the implementation of which is support by EBRD, include Greece – North Macedonia Gas Interconnector Project, Photovoltaic Solar Power Plant Oslomej, construction of long-distance power line interconnection with Albania, construction of Road Corridor 8 sections, Rail Corridors 8 and 10, Skopje – Blace motorway section, Regional Solid Waste Management Project, etc.
Continuing the cooperation with EBRD in the areas of green transition, boosting the country’s competitiveness and regional connectivity and ties is priority of the Government.
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