North Macedonia has launched a tender for construction of the railway corridor towards Bulgaria, following the signing of an EU investment grant worth €149 m in July. However, unresolved funding requirements on the Bulgarian side and the need to complete a cross-border tunnel mean that a continuous international railway connection is unlikely before the early 2030s.
The tender covers detailed design and construction of 22.1 km of single-track railway between Kriva Palanka and the Bulgarian border at Deve Bair. Bids are due by 20 January 2027. The line is designed for speeds of up to 100 km/h and will include 21 tunnels with a combined length of 8.5 kilometres, together with 51 bridges and viaducts totalling 5 kilometres. The cross-border tunnel and its associated facilities are excluded from the contract.
Part of Corridor VIII
The tender marks a significant step towards completing the North Macedonian section of the so-called Corridor VIII, which should link the Adriatic and Black seas. The eastern railway corridor extends approximately 88 km from Kumanovo, via Kriva Palanka, to the Bulgarian border. Its completion would establish a railway connection between the two countries and form part of a wider east–west freight route across the Balkans.
North Macedonia has now advanced procurement for its final section, supported by EU grants and international lending. Nevertheless, completion of the international connection will depend on delivery of all three North Macedonian sections, securing the outstanding Bulgarian funding and coordinating construction of the cross-border tunnel. The previously stated target of 2031–32 remains a planning objective rather than a confirmed opening date.
Construction and funding
The July financing agreement, signed through the Western Balkans Investment Framework (WBIF), provides a €149 million EU investment grant for Phase 3. Earlier EBRD documentation put the estimated cost of Phase 3 at €559.7 million, with a financing framework comprising €175 million in EBRD lending, €175 million from the EIB, a €134 million WBIF grant and €60.75 million in EU Instrument for Pre-accession Assistance funding. These figures predate the latest amendments and should not be added directly to the new grant without clarification of the revised financing structure.
Kumanovo–Kriva Palanka
North Macedonia is also working on the section of the railway going west to Kumanovo and thus the capital Skopje. The first section, extending 30.8 km from Kumanovo to Beljakovtse, returned to operation in December 2024 after 30 years thanks to a €40 million contract awarded to Strabag.
Construction of the approximately 34 kilometres Beljakovtse–Kriva Palanka section is continuing. This contract was assigned to Turkish contractor Gülermak for €155 million. Progress stood at around 40% in September, according to Siniša Ivanovski, director of North Macedonia’s railway infrastructure manager, ŽRSM Infrastruktura, with the aim of reaching 50% by the end of 2026 and complete it in 2031–32.
Bulgarian section remains uncertain
Bulgaria has secured funding and concluded a contract for the 2.4 kilometres railway section between Gyueshevo and the entrance to the planned cross-border tunnel towards North Macedonia, according to the Ministry of Transport. This removes a funding obstacle identified in March, when Transport Minister Korman Ismailov said that the required €50 million were not there and that the government was seeking state-budget support. The latest announcement does not specify the final financing package or confirm whether physical construction has started on the section.
The cross-border tunnel is a separate and more complex undertaking. Last month, Bulgaria and North Macedonia agreed to accelerate preparatory work. Bulgaria said it was ready to lead the procedures required under its national legislation and EU rules. However, the meeting produced no confirmed construction start date or fully secured funding package for the tunnel.
The project includes reconstruction of Gyueshevo station as a passenger and freight border facility. However, the final 420 metres depend on the cross-border tunnel, which remains the key outstanding element. A bilateral committee meeting last month agreed to accelerate preparations and coordination, but no construction start date or fully secured financing package for the tunnel has been announced.
Bulgaria has set 2030 as its target for completing the connection with North Macedonia. Despite progress on the short Bulgarian approach section, delivery of the international link will depend on advancing the tunnel and coordinating construction on both sides of the border.