North Macedonia - Serbia Gas Interconnection

North Macedonia - Serbia Gas Interconnection

Project Description

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 23 km of gas pipeline, from the Skopje – Deve Bair (border with Bulgaria) pipeline at the village of Klečevce (24 km east of Kumanovo) to the border with Serbia. The interconnection has a total length of 65 km, 23 km in North Macedonia and 42 km in Serbia, and will link the supply systems of the two countries.

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.

Project Financing

WBIF Grant WB25-MKD-ENE-01 € 960,000
EBRD Loan € 26,970,000
National Contribution Own Contribution € 110,000
Planned WBIF TA Grant Other Sources € 800,000
Total € 28,840,000
Total Grants € 960,000
Total Loans € 26,970,000

Partner Financial Organisations

Western Balkan Partners