The energy sector in North Macedonia relies predominantly on fossil fuels (lignite and natural gas) and hydropower and is dependent on electricity imports. Natural gas is imported from Russia through a single-entry point at the border with Bulgaria. It is mainly used by industrial consumers and three combined heat and power plants, while households have an almost negligible share of total consumption due to limited distribution networks.
This investment project will build 16 km of gas pipeline, from the Skopje – Kičevo pipeline at the village of Upper Matka (17 km west of Skopje) to the border with Kosovo*. The interconnection has a total length of approximately 86 km: 16 km in North Macedonia and 70 km in Kosovo.
The WBIF supports the feasibility study preparation and environmental and social impact assessment for the gas interconnection. The investments are developed under Flagship 5 – Transition from coal of the Economic and Investment Plan for the Western Balkans.
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
| WBIF | Grant | WB21-MKD-ENE-02 | € 653,250 |
| EBRD | Loan | € 9,900,000 | |
| National Contribution | Own Contribution | € 400,000 | |
| Anticipated WBIF TA Grant | Other Sources | € 1,000,000 | |
| Total | € 11,953,250 | ||
| Total Grants | € 653,250 | ||
| Total Loans | € 9,900,000 | ||
