Overcoming Water Challenges in North Macedonia
North Macedonia transforms its water infrastructure with the support of the European Union.
17/07/2023
Božin Spasov, a long-time resident of Leski village in the eastern part of North Macedonia, has witnessed the challenges of accessing clean water for nearly seven decades. As a primary school teacher, he consistently emphasized the importance of being cautious while drinking the local water and understanding its unreliable availability. “Living in such a hot climate, we have faced consistent water supply issues,” Spasov explains. “Especially during the summer, we would be deprived of drinking water almost every day.”
“Now we have access to water both in summer and winter. There is no one in Leski who is not satisfied.”
Božin Spasov, resident of Leski villageOutdated and poorly installed water pipes exacerbated the water shortages and compromised the quality of drinking water in the village throughout the year. The water often became contaminated with organic substances, posing a health hazard. To address this problem, the local government made the decision to connect Leski to the water supply system of Vinica, a larger town nearby, through a 3.5-kilometre pipeline. Simultaneously, a state-of-the-art filtration station for purifying drinking water and a pumping station were installed in Vinica.
In February 2023, the European Investment Bank approved a €50 million loan to North Macedonia to address water-related challenges in the country. This development brought significant improvements to the situation in Leski. “Now we have access to water both in summer and winter. There is no one in Leski who is not satisfied,” Spasov joyfully remarks.
The loan approved in North Macedonia will extend its benefits beyond Leski, reaching other cities and towns facing similar water challenges. Referred to as a “framework loan,” it offers financing for a variety of projects. With the support of a guarantee from the European Fund for Sustainable Development, an EU programme, this framework loan will facilitate the construction and renovation of water supply, wastewater, and flood protection infrastructure in 80 cities or towns across North Macedonia. Additionally, the European Investment Bank has granted €1.2 million for technical assistance.
The project’s impact will be substantial, benefiting approximately 700,000 people and fostering new economic opportunities. It will also enhance the country’s resilience to climate change, benefiting around 40% of the population.
“It is a priority for providing better living conditions and on the path to EU accession while aligning with EU standards. The investment will help close a significant investment gap in the water sector and provide our local partners with long-term financing to meeting their needs and sustainability goals.”
EIB Vice-President Lilyana PavlovaThe allocated funds will enable selected municipalities to upgrade and modernise their water and wastewater infrastructure, including distribution and collection networks. Additionally, emergency flood protection measures will be implemented to enhance resilience. The municipal water investment programme will be implemented by North Macedonia’s Ministry of Environment and Physical Planning, with technical support from the EIB amounting to €1.2 million. This initiative is part of the Economic Resilience Initiative, which aims to mobilise additional financing to support growth, essential infrastructure, and social cohesion in the Western Balkans.
EIB Vice-President Lilyana Pavlova, responsible for operations in North Macedonia, emphasized the strategic nature of this investment, supported by Team Europe. “It is a priority for providing betterliving conditions and on the path to EU accession while aligning with EU standards. The investment will help close a significant investment gap in the water sector and provide our local partners with long-term financing to meeting their needs and sustainability goals,” Pavlova said. Pavlova further highlighted the social and economic benefits that will arise from improving environmental and living conditions, while also enhancing water infrastructure resilience to climate change—a key objective for the EIB as the EU climate bank.
About the initiative
Launched in 2016, ERI is part of the European Union’s response to the challenges in the Southern Neighbourhood and Western Balkans, such as forced displacement and migration, economic downturns, political crises, droughts and flooding. ERI creates jobs and economic growth in the region by investing in key infrastructure and in private sector development. It also may help migration flows. ERI offers a package of loans and innovative financial products, while blending funds from the donor community with EIB financing. The initiative is implemented in close cooperation with EU countries, the European Commission and other partners. Bulgaria, Croatia, Italy, Lithuania, Luxembourg, Poland, Slovakia, Slovenia and the United Kingdom were the first countries to contribute to ERI.
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Photo credits: EIB