Page 120 - SE Outlook Regions 2023

So far, the government has secured funds of €25mn from the European
Investment Bank (EIB) and a grant of €12mn from the Western Balkan
Investment Framework (WBIF) for the project.

The EBRD’s support is also expected for the construction of the gas
pipeline sections Sveti Nikole - Veles and Gostivar - Kicevo.

3.8.5 Construction

The construction sector, which is one of the biggest drivers of the
economy, dropped by 9.1% in the third quarter of 2022 when the
overall growth of the economy was 2%.

Apartment prices started to grow rapidly since the fourth quarter of
2021, when they rose by 11.2% y/y, compared to a 5.8% y/y increase in
3Q21. In the third quarter of 2022, real estate prices grew by a record
high 21.2% year on year, after going up by 16.5% y/y in the previous
quarter, central bank data showed. Compared with the second quarter
of 2022, real estate prices went up by 4.7% in 3Q22, slowing from a
6.9% q/q increase in the previous quarter.

North Macedonia’s government has chosen Italyn manufacturer of
snowmaking systems TechnoAlpin as a strategic investor for the
development and modernisation of the Popova Sapka ski centre.

The investment of €186mn, which will include improvement of the
primary infrastructure, should be realised starting from 2023 in six
investment phases.

The finance ministry announced that in 2023 priority projects,
supported by the EBRD include the railway section of Corridor VIII
towards Bulgaria and the Kicevo-Bukojcani road section, part of
Kicevo-Ohrid motorway.

“At the same time, with the support of the EBRD, the implementation of
the Solid Waste Management Project will begin in 2023, for which the
Parliament gave the green light and it is expected to be signed in the
first half of January 2023,” Besimi said.

The minister noted that the EBRD is the most active international
financial institution in the country with an active portfolio in public
investments of over €800mn, the largest part of which, over €500mn, is
in the transport sector.

120 SE Outlook 2023 www.intellinews.com