China’s Exim Bank to fund two new Macedonia highways

The 3422 Chinese Exim Bank is providing much of the funding for two highway projects in Macedonia. The construction work will be carried out by a Chinese contractor, which has signed a deal with the Macedonian Government. The Chinese 5544 Sinohydro Corporation will build two stretches of highway linking Kicevo-Ohrid and Miladinovci-Stip. These will measure 56.7km and 53km long, respectively. Some 90% of the construction costs will come from the Macedonian Government, with this €580 million being provided by the loan from China's Exim Bank. The two projects will also involve local firms, which will carry out around 49% of the construction work itself. It is not clear if these local firms will be operating as sub-contractors to the Chinese Sinohydro Corporation or if they will have separate sections of the project to carry out however. Construction work is scheduled to commence in the first quarter of 2014.