The European Bank for Reconstruction and Development (EBRD) is lending North Macedonia 20.9 million euros for new electric locomotives and a rail resource planning system. The loan will be to the benefit of rail freight operations.
The money will go to Macedonian Railways Transport Joint Stock Company Skopje (MRT), which will be able to acquire five new electric locomotives with it. A modern enterprise resource planning system will help streamline MRT’s core business processes by driving improvements in operational effectiveness, says EBRD.
According to EBRD, the funding project seeks to boost MRT’s performance through the implementation of a corporate development plan. That should improve the company’s efficiency and financial sustainability, the bank says.
“The plan will include the creation of an efficiency action plan, with specific measures to refine the company’s tariff methodology, as well as updates to and the harmonisation of its public service obligation methodology in accordance with EU requirements.” It also hopes to boost gender equality and inclusivity at the company.
An important step for the industry
EBRD’s loan represents a significant step in moving North Macedonian rail freight forward, according to Fatih Turkmenoglu, EBRD Head of North Macedonia. “By supporting the renewal of rolling stock and corporate improvements to the national railway operator, the EBRD is helping boost the competitiveness, safety and sustainability of the country’s transport network”, says Turkmenoglu.
“The project will not only deliver tangible environmental benefits but also set new standards for operational excellence and equal opportunity in the sector. It is an important investment that will enable the country’s export-oriented businesses to integrate into global value chains. This will enhance private-sector competitiveness and create jobs, ultimately supporting the country in tackling population outflows.”