On Thursday, Vice Prime Minister and Minister of Finance, Zoran Stavreski, and EIB representative, Peter Zajc, signed Finance Contract for the Water Supply and Waste Water Collection Project, in the amount of EUR 50,000,000. The Project is part of the Government policy on equal regional development. Project objective is to stimulate development of the municipalities through investments in utility infrastructure.
– The Project is of exceptional importance for the economic development of the Republic of Macedonia, even more for the economic development of the rural areas, in particular the poorer regions. It will contribute to improving the conditions and the quality of life of the citizens, Stavreski said prior to signing the Finance Contract. Credit conditions are excellent, Stavreski underlined, covering repayment period up to 25 years, including 5-year grace period and 1.3% interest rate.
– No funds are available on the capita market under better conditions than these ones. Credit is extended under exceptionally favourable variable interest rate EURIBOR plus spread of 0.17%. Should a tranche be disbursed now, the interest rate would be 1.27% annually, Stavreski said. The credit will be disbursed in up to 20 tranches, and the amount of each tranche is in a minimum of the equivalent to EUR 2,000,000.
– The Project, once again, confirms the so-far excellent cooperation between the Macedonian Government and EIB, as well as further EIB support to economic development and infrastructure projects. Which commenced long time ago, even in Former Yugoslavia, and continued after the country’s independence, Zajc pointed out.
Water Supply and Waste Water Collection Project will be implemented by the Ministry of Transport and Communications, in cooperation with the municipalities and the City of Skopje. Its realization is expected to commence by the end of this year. Amount of funds to be allocated to local government units depends on the number of population, the area covered and the number of inhabited areas. Depending on these parameters, some municipalities will receive from EUR 300,000 to EUR 2,000,000. How such funds will be utilize depends on their readiness.
– Municipalities have already been informed. What follows is to fill in the applications, submit them to the Ministry, their approval by EIB, and the procedure for selecting construction company to realize the projects, Minister of Transport and Communications, Mile Janakieski, said.
Priority as regards the credit funds, as the Minister Janakieski said, will be give to rural areas, since the goal of the Government is to significantly reduce the number of inhabited areas facing water supply problems. Water Supply and Waste Water Collection Project is part of a broader Program on Investments in Utility Area, total amount of which is EUR 100,000,000. EIB finances 50% of this Program, while the remaining 50% are projects financed by the World Bank, KfW, under the IPA Instrument and from the Budget of the Republic of Macedonia.(MIA)