Skopje, 23 November 2022 (MIA) - The Ministry of Finance and the Ministry of Environment and Physical Planning provide €50 million in direct financial support to municipalities to implement projects to improve the water infrastructure. Finance Minister Fatmir Besimi, European Investment Bank (EIB) Vice-President Lilyana Pavlova and Minister of Environment and Physical Planning Naser Nuredini, in attendance of EU Ambassador David Geer signed Wednesday the investment agreement for the implementation of this project. Selected municipalities will be able to utilise the funds to install and modernise water and wastewater infrastructure, distribution and collection networks, as well as emergency flood protection measures. “The conditions under which the loan will be granted to the Republic of Macedonia are very favorable. The repayment period is up to 25 years, including a grace period of up to five years. EIB is a significant partner of the Republic of Macedonia in the implementation of priority projects in the field of energy, infrastructure connection, the green transition, as well as increasing the competitiveness of domestic companies,” according to the Ministry of Finance. “Under the investment agreement, which demonstrates the Bank’s continuous support for the country, the North Macedonian government will grant access to €50 million in direct financial support for the Skopje area and other municipalities, in the form of donations to implement utilities infrastructure projects. This comes under the Government of the Republic of North Macedonia’s policy for balanced regional development, and should stimulate growth in the municipalities through investments in such infrastructure,” Besimi noted. “This is a strategic investment in the country that benefits from Team Europe support. It is a priority for providing better living conditions and on the path to EU accession and alignment with EU standards. It will help close a significant investment gap in the water sector and provide our local partners with long-term financing to meet their needs and further their sustainability goals,” EIB Vice-President Lilyana Pavlova said. The funds provided by this credit line will be implemented through the Ministry of Environment and Physical Planning. “The Ministry of Environment and Physical Planning is prepared to realise the projects the municipalities have identified as priorities. The municipalities, in turn, are expected to show readiness and sophistication in producing the project documentation needed to efficiently deploy and utilise the funds. Quick implementation will open up new investment opportunities,” Minister Nuredini underlined. The EIB has been active in the territory of North Macedonia since its establishment in 1991, providing finance to support key infrastructure projects, local authorities and small and medium-sized enterprises (SMEs). The EIB has provided €1.1 billion of financing to SMEs and transport, energy and utility infrastructure projects.