Short description of the overall project

The project concerns the construction in North Macedonia of a gas interconnection with Greece, identified as a Project of Mutual Interest by the Energy Community. The main objective of the project is to enable security of gas supply for North Macedonia, through a diversification of gas sources and access routes. The project will also pave the way for further integration of the national gas market and infrastructure within both the Western Balkans region and the EU.

Short description of activities financed by the donation

The project concerns the construction of a 68 km gas pipeline in North Macedonia, part of the 123 km gas interconnector between North Macedonia and Greece. The investment is a key energy infrastructure for North Macedonia that will help mitigate market failures in the energy sector, by ensuring security of supply, diversification of energy sources, increased competition via integration of energy markets and economic, social and territorial cohesion by linking North Macedonia, a pre-accession country, with the region and EU. The project is aligned with national objectives and priorities. It is also in line with EU policies, being indicated as a Project of Mutual Interest according to the EU Energy Community and being included as a flagship project in the Economic and Investment Plan for the Western Balkans. The most important economic and social benefit stems from the security of supply feature. The EIB's involvement ensures that NER JSC has access to funding and helps mobilising EU grant funds, both for investment and technical assistance, by signalling that the project is good and worth supporting, thereby facilitating its full financing and implementation. The Bank's presence ensures compliance with EU policies and international standards, offering valuable technical advice.