EBRD Provides €20.9M To North Macedonia To Cut CO₂ Emissions With 5 New Electric Locomotives And A Modern ERP System For Greener Rail Freight

The European Bank for Reconstruction and Development is providing a sovereign loan of up to €20.9 million to North Macedonia to help improve and modernise the country’s rail transport system. The funding will support Macedonian Railways Transport Joint Stock Company Skopje in purchasing up to five new electric locomotives and in introducing a modern enterprise resource planning system. These upgrades are intended to increase the efficiency, reliability and safety of the company’s freight operations.

The project is being carried out by the Ministry of Transport with the support of the Ministry of Finance. By updating MRT’s rolling stock and digital systems, the investment is expected to bring important economic and environmental benefits. A more competitive and sustainable rail freight system will contribute to North Macedonia’s broader goals of creating a greener transport network and improving the overall quality of logistics services in the country. The introduction of an ERP system will also help streamline MRT’s core business processes and strengthen its operational performance.

Alongside these technological improvements, the project includes the development of a corporate development plan aimed at improving the company’s efficiency and financial stability. This plan will introduce specific measures, including improving tariff methodologies and updating public service obligation procedures to meet European Union standards. The project will also promote gender equality and help create a more inclusive working environment at MRT.

Fatih Turkmenoglu, EBRD Head of North Macedonia, stated that this investment represents an important step forward for the country’s rail freight sector. He noted that renewing the rolling stock and strengthening corporate management will help enhance competitiveness, safety and sustainability across the transport network. He also emphasised that the project will support export-oriented businesses, create jobs and contribute to reducing the country’s population outflow.

Minister of Finance Gordana Dimitrieska Kočoska said the loan is a result of constructive negotiations and reflects the confidence that international financial institutions have in the country’s policies. She explained that the favourable loan terms are in line with North Macedonia’s strategy for responsible public debt management and sustainable public finances. She added that the ministry remains committed to supporting projects that deliver long-term economic value and improve the country’s connectivity with regional and European transport corridors.

Minister of Transport Aleksandar Nikoloski said the new investment will allow the procurement of at least five new electric locomotives along with spare parts. He explained that with the addition of these locomotives to the existing newer ones, MRT will have a fleet capable of fully supporting freight transport operations and assisting in passenger transport where needed. The project aligns with MRT’s business plan and long-term development strategy and follows the requirements of the EU Reform Agenda for the Western Balkans, which focuses on improving the performance of state-owned railway companies. The EBRD continues to be a major investor in North Macedonia, having invested more than €3 billion across 207 projects in the country so far.