INVESTMENT INSTRUMENTS EU SUPPORT TO NORTH institutions. financial international and European by region the in facilitating increased public and private investments sition. Theinvestment package willbeakey driver for inclusive growth, and the twin green and digital tran- able connectivity, humancapital,competitiveness and substantial investment package insupportof sustain- vergence withtheEuropean Union.Theplansetsupa tal transition, tofoster regional integration andcon- recovery of theregion, tosupportagreen anddigi- October 2020*,aimstospurthelong-termeconomic Balkans, adoptedby theEuropean Commission on6 The of financialassistance toNorthMacedonia The largest provider EUROPEAN UNION Economic andInvestment Planfor theWestern *COM(2020)641 final ronment, competitiveness, innovation andcapacitybuilding. projectssupport nia, to fields the transport,in of energy, envi- tional funds as bilateral grants directly to North Macedo - The strument (IPA). as majordonorthrough thePre-Accession Assistance In- The WBIF was created in 2009, with the European Union region andindividualcountries growth andconvergence. and InternationalFinancialInstitutionsinsupportof the EDIF), gathers Western Balkans partners, bilateral donors Enterprise Development andInnovation Facility (WB cluding itsprivatesectorplatform theWestern Balkans The Total agriculture innovation including C E ompetitiveness and U supportto Pre-Accession Assistance (IPA II)alsoprovides addi- Western BalkansInvestment Framework (WBIF),in- Social Environment Energy Transport infrastructure Digital NORTH MACEDONIA support provided integration oftheregion.’ EU the accelerate and people of lives the to benefits tangible bring projects WBIF Macedonia and the entire Western Balkans. and North jobs in development economic boosting creating people, in instrumental connecting are investments ‘WBIF €181.8m Breakdown of WBIF grants +IPA IIbilateral grants: €139.7m 2009 -2020 €30.8m €9.8m €0.6m €0.9m below grants WBIF €618.6m Ambassador David Geer Head ofEUDelegation to NorthMacedonia

bilateral grants €436.8m €164.6m €120.3m €107.6m 2014 -2020 €44.3m IPA II _ _ following instruments: with blended investments (grants and loans) through the tor competitiveness andinnovation (includingagriculture) In NorthMacedonia, the WBIFalsosupports private sec • • • • • • nia by: ments intheeveryday lives of thecitizens inNorthMacedo- improve- key effecting in instrumental been has WBIF The BALKANS INVESTMENTFRAMEWORK (WBIF) NORTH MACEDONIA ANDTHEWESTERN WBIF ANDNORTH MACEDONIA Total GGF •sub-loaninvestments EFSE •sub-loaninvestments WB EDIF•financingfor SMEs Upgrading the prison system. Providing better schools and healthcare facilities; services; Securing access to efficient water and wastewater neighbouring countries; Creating key road and rail transport links with for the people and businesses; Ensuring continuous and competitive energy supply Piloting the first renewables scheme in the country; Results for 1.8millionpeople Healthcare research andtreatment facilities Better schoolsfor 160,000students 520 MWrenewable power generation capacity 238 kmoftransmission linesupgraded joint border railway station 191 kmofrailway linesrehabilitated andone 56 kmofmotorways € €197.3m 270.5m €36.7m €36.5m - the sustainable energy efficiency projects. instruments to ,SMEsand householdsfor The REEP/REEP Plusprovides acombination of financing that on-lendtoMSEsandprivate households. provision of finance tointermediatelendinginstitutions The GGFfinances renewable energy projects through the farmers, agro-businesses, andhouseholds. that on-lendtomicro andsmallenterprises(MSEs), provision of finance tointermediatelendinginstitutions The EFSE fosters economic development through the to boosttheSMEsinvestment readiness. financial instruments,accompanied by advisoryservices small andmediumenterprises(SMEs)viaarange of The WBEDIFprovides diversified access tofinance for Private sectorenergyefficiencyand renewables SME access tofinance and competitiveness € PROJECT VALUE ESTIMATED € GRANTS WBIF € LOANS SIGNED 181.8 591 2.1 (REEP/REEP Plus) Regional EnergyEfficiency Programme Green for Growth Fund(GGF) European Fundfor SoutheastEurope (EFSE) & Innovation Facility (WBEDIF) Western BalkansEnterpriseDevelopment m bn m PRIVATE SECTOR Dataasof June2020 Technical assistance: Investment grants: SUPPORT TO SUPPORTED € 270.5 PROJECTS €153.7m €28.1m 23 m

wbif.eu EU grant: €2.5m Total investment: €13.7m EBRD loan:€10m WBIF PUBLICSECTOR • Blending investments for majorinfrastructural projects road interconnection, KrivaPalanka –Deve Bairsection Orient/East-Med Corridor: NorthMacedonia –BulgariaCVIII EU grant: €0.5m Total investment: €136.7m improvement of roadsafetyandasafertravelling environment. reduction in vehicle operating costs, reduction in travel time, and crossing). The project will generate significant benefitsborder including(Bulgarian a Bair Deve to Palanka Kriva from VIII, Corridor on section the road satisfy km entails 13.2 a project not of rehabilitation The and does reconstruction 70km/h. of road speed the driving required of the section existing the international standards; with line in is VIII Corridor of 36% Only Balkans. tradeand connectivity country’s the Western the and EU the with for importance crucial of are which VIII, Corridor and X Corridor corridors, international main two by crossed is Macedonia North EIB loan:€68m;EBRD€58m wastewater treatment plant elimination of sludge, and thus improve quality of life for more more than 500,000peoplelivingin the cityanddownstream areas. for life of quality improve thus and sludge, of elimination i.e., increasing efficiency in wastewater treatment, of purificationand City the of measurable Skopje environment and to and urban improve country.the the significant quality of improve a wastewater the treatment to services, make contribution to in is watercourse purpose project transboundary The and longest discharge the still Skopje as such untreated wastewater directly to wastewaterwater bodies, in this case, cities , by Larger serviced plants. is Macedonia treatment North the of 15% Only EU grant: €0.4m niomna ipcs f nry s ad epn t mitigate to negative helping climate change. and the use reducing energy time of same impacts environmental the at of while security supply the improving energy of goal the to contributing capacity generating add thus will project The households. average 7,000 about for production electricity of source renewable a providing MW,52.5 of capacity total a with machines 25 in €75m approx. in of investment windfarm an justified study pilot feasibility The Macedonia. North a grant for study WBIF feasibility a The develop to generation. used was to energy keen renewable its means new fuels establish fossil on reliance Macedonia’s North Total investment: €76m KfW loans:€65.9m Bogdanci windparkpilotproject Bilateral donorgrants: €3m teachers. immediate The beneficiaries of wellbeing. the grant assistance are 11,000 children and and 700 term health long general bring in will improvement This facilities. education physical 145 of construction the for through education physical environment including a better learning, aimed offering programme by large development fostering a at of part is support WBIF indicators. regional comparative in lagging its by demonstratedschools, in North Macedonia has a very limited provision for physical education Total investment: €62.6m CEB loans:€42.5m and secondary schools in primaryschoolsandrehabilitation ofprimary Construction ofphysicaleducationfacilities NORTH MACEDONIA nance for companies intheWestern Balkans. affordable accessto and Improvecapacity Objective: readiness andsupportforpolicyreformsintheregion. This is accompanied by advisory services to boost the SMEs investment via a range of financial instruments (i.e. guarantees, equity and loans). accessdiversified (SMEs) enterprises small medium for and finance to to pull and leverage together financing and expertise. WB EDIF provides Balkan governments, IFIs, regional organisations, and bilateral donors in development Western the including stakeholders key Balkans.unites Western It the sector private for platform EU-led the is EDIF) (WB Facility Innovation & Development Enterprise Balkans Western The the initiatorandlead investoroftheFund. (e.g. entrepreneurs, financial institutions, public institutions). KfW is ecosystem technical entrepreneurial the provides of capacity the facility build to assistance development Its to households. and agro-businesses, private and farmers including MSEs, through to that on-lend institutions development lending intermediate to finance economic of provision the fostering fund public-private EuropeanThe supported FundEuropeEU Southeast an for (EFSE)is small enterprisesandlow-income families. Objective: Provide sustainablefundingtomicro and 33 advisoryprojects supported 10,290 sub-loansprovided €197.3m sub-loaninvestments & Innovation Facility Western BalkansEnterpriseDevelopment WBIF PRIVATE SECTOR •Access tofinance and competitiveness, energyefficiencyand renewables European Fundfor SoutheastEurope Technical assistance andadvisorytoSMEsfor €3.9m 7 equityinvestments (€3.3m) 141 SMEssupportedinNorthMacedonia €36.5m infinancingfor SMEs based onmarket feedback. solution the improve and team development the strengthen to opportunity the and portfolios, client its of expansion to the team drive sales dedicated a creating by growth its accelerate to The €2.4m investment provided by WB EDIF allowed the company revenue. new generate and prospecting the streamline to teams sales B2B helps which platform acceleration sales a is Cognism *Number andamountofsub-loanssinceinception * wbedif.eu efse.lu fi- edn isiuin. h iiitr o te G ae h European the are GGF the of Investment Bank(EIB)andGermany’sKfWDevelopmentBank. initiators The institutions. lending intermediate of capacity the builds and projects investment prepare renewable and efficiency energy on TechnicalIts FacilityAssistance investments. energy to MSEs supports focus special a has Fund The lend to micro and small enterprises (MSEs) and to private households. finances renewableon- energy projects. Intermediate lendinginstitutions FundGrowth for EFSE,Green than the structure same (GGF)the Under sustainable and renewable energy. It also facilitates access to to access facilitates also It finance tomunicipalities,SMEsandprivate households. energy. renewable and sustainable efficiency, energy in investments for environment regulatory the of and other bilateral donors, the EU programme the of supports support the the with improvement KfW and Secretariat Community Energy by the European Implemented Bank for Reconstruction and Development (EBRD), the development. market longer-term stimulate and barriers market address to dialogue policy and assistance technical instruments, financing of combination a provides Plus) (REEP/REEP Balkans Western the for Programme Efficiency Energy Regional The ciency intheWestern Balkans. effi- energy for market sustainable a Create Objective: and CO₂ emissions by 20%. Objective: Supportregional measures tocutenergyuse for theWestern Balkans Regional EnergyEfficiency Programme 46,853 tCO 161,899 MWh/yrprimaryenergysavings 6,050 sub-loans €36.7m sub-loaninvestments Green for Growth Fund Improved energyefficiency 20,000 householdsreceiving finance €140m on-lentfor project financing energy savings andsubstantially decreased CO €41,800 investment was provided, which led to 86 MWh a year in a (GEFF) Facility Financing Economy Green Through round. year all cooling and heating efficient produce and energy save which used, were pumps heat heating/cooling with and efficient facade, house Thermally windows, new insulation. thermal a and built heating has improved Skopje from family Popov The 2 /yr emissions reduction * ** *Number andamountofsub-loanssinceinception 2 emissions. wb-reep.org **Regional results ggf.lu

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