Signature of the Financing Agreement for the Operational Programme for Regional Development 2007-2009

The Financing Agreement for the Operational Programme for  Regional Development 2007- 2009 was signed on 14 September 2009 in Skopje, between the Deputy Prime Minister of the Republic of Macedonia in charge of European Affairs and National IPA Coordinator, PhD Vasko Naumovski and the Head of the Delegation of the European Commission, Erwan Fouéré.

The Decision on conferring management powers for decentralised implementation of the third Component of the Instrument for Pre-Accession Assistance (IPA) – Regional Development, made by the European Commission on 24 July 2009, was the essential pre-condition for signing of this Agreement.

By signing the Agreement, the Republic of Macedonia has the possibility of utilisation of 40,5 million Euro from the European funds, in addition to which the Government of the Republic of Macedonia shall provide around 38 million Euro as compulsory National Co-financing, according to the IPA rules.

Also, by signing the Agreement, the Operating Structure established within the State Administration responsible for decentralised implementation of IPA assistance within the Regional Development Component, shall start with the tendering procedures for implementation of the projects financed under this Component.

Two “Major Projects”, whose amount is more than 10 million Euro, and with significant importance for the Republic of Macedonia, are foreseen to be implemented under this Component:

  • Corridor X Motorway Completion Project – Section Demir Kapija – Smokvica,
  • Waste-Water Treatment Plant in Prilep.

Furthermore, a number of projects in amount bellow 10 million Euro shall be financed under this Component in the:

  • Transport Sector,
  • Environmental Sector.

Namely, in the forthcoming period in the transport sector, projects for preparation of the necessary documentation, including Feasibility Study and Cost-Benefit Analysis for the road and railway section within Corridor X and road section of Corridor VIII, as well as preparation of National Strategy on multi-modal transport nodes, are foreseen to be implemented.

In the environmental sector, projects for preparation of the necessary documentation regarding the establishment of integrated financial system for waste management, as well as National Strategy on the methodology for setting up tariffs for the Waste-Water Management Sector, as well as Waste Water Collection and Treatment, are foreseen to be implemented.

With the utilisation of the funds within this Component of the IPA assistance, the Republic of Macedonia should prepare its administration for proper implementation of the Structural Funds and the Cohesion Fund, after accession in the European Union as a member state.