CURRENT SITUATION 

STRATEGICAL DOCUMENT

Final Report of the High Level Group for Transport

With the signing of the Memorandum of Understanding for the principal regional transport network of South-East Europe in June 2004 in Luxembourg, the signatory countries have confirmed their strong political will for development of the principal transport network of South-East Europe and for promotion of the administrative and regulative procedures that will ensure effective function of the network. The Memorandum foresees close cooperation for harmonization of the technical standards and practices in order to bring them into accord with the European practice. The signatory countries have agreed with the Memorandum of Understanding as a next step into the common goal – regional cooperation in South-East Europe. With this goal and in order to be studied, identified and recommended the priority connections of the EU with the neighbors, the EC has decided to form a High Level Group for transport of the EC. One of the main tasks of the Group was to choose a limited number of principal transnational transport axes for better connection of the EU with the neighbor countries enabling better cooperation in international framework. During the last meeting held on November 30,2005 a Final Report was adopted in which both Corridor 10 and Corridor 8 are identified as transnational axes as well as multimodal routes. As priority projects identified by the High Level Group of the Republic of Macedonia that needs to be realized till 2007 are the following :

In the framework of the Memorandum of Understanding for Development of the principal regional transport network of SEE a Management Direction and the South-East Europe Transport Observatory –SEETO were formed. SEETO plays a role of a technical secretariat that assists on the Management Direction into the implementation of the goals of the Memorandum of Understanding. The importance of SEETO into the coordination of the development of the principal regional transport network and into the preparation of the Multi-annual Action Plan was affirmed with the signing of the Resolution on the First and Second Annual Minister Meeting held in Skopje in November 2005 and in Brussels on December 1, 2006.  As a secretariat of the Management Direction, SEETO has helped by the National Coordinators that are the contacts in every government of the participant countries. In that way, the Multi-annual Plan represents a real regional document, and SEETO plays a role of coordinator and facilitator. The Republic of Macedonia takes active part into the work of the Management Direction through own representatives and has also assigned own National Coordinator.
The main task of the Multi-annual Plan of SEETO is to provide correct and updated inventory of the conditions, function and performances of the principal regional transport network that is defined in the Memorandum of Understanding. The Multi-annual Plan, besides facilitation of the planning of the projects, has a goal to promote the institutional “soft measures” that are necessary for effective investments in the network as well to include the regional elements into the planning process on national level. Because of that, SEETO has developed procedures for evaluation that are approved by the Management Direction and that prioritize the projects on the basis of defined economic, financial and other criteria, including also the potentional regional influence .
Generally, the aims can be defined as :

The multi-annual Plan 2006-2010 was adopted in May 2006 but as an official phase in the progressive planning process and as first step into the establishment of regional cooperation in the development of the principal transport network. The Multi-annual Plan 2007-2011 that upgrades the previous plan was adopted in Belgrade in November 2006 by the Management Direction and it was finally adopted on the Second Minister Meeting in Brussels on 01.12.2006. One of the most significant improvements of the SEETO Plan 2007-2011 is that was made a significant progress in collecting of informations by which was improved the description of the condition of the infrastructure, identification of the bottlenecks of the principal corridors  and on the possibilities of evaluation of the implications for future development. As well a list of priority investment projects and indicative program for implementation were prepared. In the list of priorities of a great importance for the Republic of Macedonia are included these projects :
- Demir Kapija-Udovo-Smokvicaon on Corridor 10;
- Sections Gostivar-Bukojcani and Deve Bair-Kriva Palanka on Corridor 8;
- Sections Gostivar-Kicevo, Struga – Kafasan and Kriva Palanka- Rankovce on Corridor 8

The Public Investment Program is a strategical document of the Government of Republic of Macedonia for a period of three years. The development policy of the Government of the Republic of Macedonia for investment in the Public infrastructure of the country in a medium and long term is based on dynamic investment activity that is expected to result with optimization into the usage of the existing capacities, reconstruction and modernization of the public infrastructure in order to provide economy, higher level of efficiency as well as conclusion of the already initiated economic approved projects for a shorter period, taking in consideration the possibilities for law costs. The period with activities for preparation of the program for public investments it is based on appropriate methodology for selection of projects and efficient monitoring on the realization of the program as well as achievement of consistency of the first year of the program with capital expenses from the Budget of the state for that year.

The Department for International Investments and Integrations in the framework of the Ministry of Transport and Communication coordinates the preparation of the investment priorities in the field of the transport infrastructure, defining priority projects in the field of the road, rail and air infrastructure for the period of the next 3 years (2007-2009).

CONDITION OF THE ROAD INFRASTRUCTURE ALONG CORRIDORS X AND VIII

Both Corridor 8 and Corridor 10 represent strategical economic priorities that will help to the Republic of Macedonia to grow from a geographical in a real traffic crossroad of the Balkans. The strategical importance of these transnational axes is in the fact that they will contribute for a faster and safer common communication and transport of passengers and goods, that leads to economic security and stability.   
The Corridor 10 in total length of 172 km in the Republic of Macedonia starts at the border crossing Tabanovce, the border with the Republic of Serbia, and runs till the border crossing Bogorodica, the border with Republic of Greece. Also part of the Corridor X is the motorway section Veles-Megitlija, that runs and connects Veles,Prilep and Bitola with the Republic of Greece  in total length of 127,1 km.
The condition of the motorway E-75 Tabanovce-Gevgelija is :

1. 132 km are constructed as a motorway
   
2. The section Kumanovo-Miladinovci,Miladinovci-Petrovec,Petrovec-Katlanovo,Katlanovo-Veles and the bypass at Veles are completely constructed as a motorway. For these sections there are projects for their rehabilitation.
3. The section Negotino-Demir Kapija in total length of 15,4 km was divided in 3 phases, first and second phase are implemented through the PHARE Program for cross-border cooperation and the third phase is financed through the European Commission, the CARDS program. These sections are constructed. (the first phase was completed in 2003,the second in 2004 and the third in 2005 ) .  
   
4. The construction of the section Smokvica-Gevgelija in total length of 11, 22 km financed through EBRD was completed in January 2006.
5. The section from Gevgelija to the border with Republic of Greece in total length of 4,6 km is completely constructed as a motorway in the period 1998-2000, with what we have increased flow on the border crossing and better cooperation on the both sides of the border.

With the construction of the previously mentioned sections the capacity and the overall efficacy of the motorway E-75 north-south is improved enabling a secure and faster transport, reduction of the noise and the pollution, better conditions for the transit transport, support and stimulation of the economic development, increase of the capacity and better cooperation with the neighbor countries.
With the construction of the sections Demir Kapija-Udovo-Smokvica as well as the part of the motorway from (Tabanovce to Kumanovo) Kumanovo to the border crossing Tabanovce, that are part of the Transeuropean Corridor X, will be provided modern and fast motorway, and with that improvement of the road transport(regarding the reduction of the traveling time and expenses ). Connecting the principal urban, industrial and commerce centers will contribute to the economic exchange and cooperation between these centers and maintenance of the entire economic development. 
The construction of the road infrastructure along the Corridor VIII is : the total length that runs through the Republic of Macedonia is 304 km from which 84 km or 27,6% are constructed as motorway , 8,7 %  as a motorway are in phase of construction (Skopje Bypass Motorway in total length of 26,5 km) .
There are other 14 sections that have to be constructed :

1.Deve Bair – Kriva Palanka, 13,47 km
2.Kriva Palanka – Dlabocica, 10,34 km
3.Dlabocica – Stracin , 14,11 km
4.Stracin – Strezovce, 18,30 km
5.Strezovce-Romanovce , 16,6 km
6.Gostivar– Gorna Gonovica, 17,3 km
7.Pesocani – Trebaniste, 12,7 km
8.Trebaniste – Ohrid, 10,26 km
13Podmolje – Struga, 7,5 km
9.Struga- Kafasan, 14,40 km

The development of the road infrastructure in the Republic of Macedonia has achieved significant results in the past period, but still has not achieved a level of development that will satisfy the demands of the modern society and economy for transport of passengers and goods.

At present the financing of the road infrastructure is realized through budget participation, foreign donations and cofinancing. With the references of the EU will start a financing through system of investment-Public/private partnership (PPP) and concessions.