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November, 2008

MINISTRY OF TRANSPORT AND COMMUNICATIONS REPUBLIC OF MACEDONIA. Invest in Macedonia. Development and Investment Possibilities in the Republic of Macedonia. November, 2008. REPUBLIC OF MACEDONIA. Area : 25,713 sq.km Capital : Skopje Population : 2.1 million people

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November, 2008

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  1. MINISTRY OF TRANSPORT AND COMMUNICATIONS REPUBLIC OF MACEDONIA Invest in Macedonia Development and Investment Possibilities in the Republic of Macedonia November, 2008

  2. REPUBLIC OF MACEDONIA Area: 25,713 sq.km Capital: Skopje Population: 2.1 million people (69% in age bracket 15-64) Currency: Macedonian Denar (rate 1€=61.3 MKD) GDP in 2007: MKD 353 786 million GDP Growth: 4.1 (2005), 4.0 (2006), 5.1 (2007) Inflation: 0.5% (2005), 3.2% (2006), 2.3% (2007) Exports in 2007: US$3.4 billion

  3. MINISTRY OF TRANSPORT AND COMMUNICATIONS The Ministry of Transport and Communications covers the following fields of activities: ROADS RAILWAYS CIVIL AVIATION HOUSING AND COMMUNAL INFRASTRUCTURE CONSTRUCTION LAND MANAGEMENT SPATIAL PLANNING COMMUNICATIONS

  4. ROAD INFRASTRUCTURE Concession of 7 sections of Macedonian Roads with total length of 560 km with payment at the pay-tolls Corridor VIII - Romanovce – Uzem (border with Republic of Bulgaria) through Stracin and Kriva Palanka with length of 70km Stenkovce – Blatze (border with Kosovo) with length of 13 km Corridor VIII - Gostivar – Trebenishta with length of 93 km Kafasan (border with Republic of Albania) – Bitola trough Struga, Ohrid and Resen with length of 85 km Corridor X – Veles - Megjitlija (border with Greece) through Prilep and Bitola with length of 130 km Veles (Otovica) – Obel (border with Republic of Bulgaria) through Stip and Delcevo with length of 12km Miladinovci – Stip through Sveti Nicole with length of 49 km 48 companies showed interest. The companies that will successfully pass the pre-qualification process can apply on the tender procedure. Rehabilitation and reconstruction of the regional and local road network in the Republic of Macedonia has been initiated by the Government of the Republic of Macedonia and the Agency for State Roads. This project is financed by the World Bank, in total amount of € 70 million and EBRD in total amount of € 50 million

  5. DEVELOPMENT OF THE TRANSPORT INFRASTRUCTURE Pan European Corridor VIII Pan European Corridor X Ljubljana Zagreb CORRIDORX Belgrade CORRIDORVIII Thessaloniki Igoumentitza SKOPJE The completion of the transnational axes the Pan European Corridors VIII and X, which are passing through the Republic of Macedonia are of high priority for the Government, enabling safer, faster and more efficient transport of passengers and goods, thus providing a better regional economic development

  6. ONGOING ACTIVITIES Corridor VIII Skopje by-pas road, section Suto Orizari Saraj is in phase of implementation and it is expected to be completed in 2009. Corridor X Section Demir Kapija-Smokvica. Funds are secured. The final design is expected to be prepared. The construction is planned to be completed in 2010. Section Tabanovce – Kumanovo with length of 7.5 km construction activities started on October 21, 2008 and it is expected to be completed within the period of 18 months.

  7. RAILWAYS Railway reform process completed in the middle of 2007 and national legislation fully harmonized with first and second railway package Liberalization of the passengers and freight transport is available since the beginning of 2008 I) INFRASTRUCTURE National program for railway infrastructure for the period of 2009-2013 Development and improvement of the railway system security Confirmation of the construction of Corridor VIII section towards the Republic of Bulgaria, and completion foreseen by 2013 Modernization and rehabilitation of Corridor X, financial sources secured by the State Budget and International Financial Institutions II) TRANSPORT Electronic ticket purchase in the railway. It has been foreseen for the German “open window” system, which has been proved to be the best one in Europe, to be accepted. Purchasing of 100 new flatbed wagons and two electro locomotives Introducing of the Public Service Obligation Contract in the beginning of 2009 Besides the global economic recession, the transport company had undertook all action to maintain the traffic on satisfied level

  8. AIR TRANSPORT DEVELOPMENT “St. Apostle Paul” International Airport-Ohrid: DISCOUNT OF GROUND HANDLING SERVICES OF 27% “Alexander the Great” International Airport - Skopje: DISCOUNT OF GROUND HANDLING SERVICES OF 17%

  9. AIR TRAFFIC Signed concession contract for the two Macedonian Airports and building a new cargo airport in Stip with the Turkish company “TAV” for a period of 20 years Legal membership of the Republic of Macedonia into the JAA-Joint Aviation Authorities Attracting low-cost airlines at the airports “Alexander the Great” –Skopje and “St. Apostle Paul” – Ohrid

  10. CONSTRUCTION LAND AND SPACE ARRANGEMENT Reduced deadlines for issuance of an approval for development and implementation of the legal administration silence measure Possibility for selling and giving under long term lease of the construction land in ownership of the Republic of Macedonia, exchanging of the land with other entities and giving the land under concession Preparation of the “Macedonian village” project as a national tourist attraction Foreign natural and legal entities residents of EU and OECD member countries can purchase land owned by the Republic of Macedonia according to the new Law on Ownership and Other Real Estate Rights with previously obtained consent from the Minister of Justice and upon previous obtained opinion from the Minister of Transport and Communications and the Minister of Finance.

  11. Preparation of a National Strategy for development of broadband Internet. The strategy is in a process of preparation and it is planned to be completed by the end of January 2009 3G mobile systems. Last year one license was issued to Cosmofon. The Government made a decision for issuing three new 3G licenses. The deadline for submitting offers was November 13,2008 WiMax wireless internet technologies-two national licences and another 18 regional licences awarded in February 2008 COMMUNICATIONS

  12. LIBERALIZATION OF THE MARKET OF ELECRONIC COMMUNICATIONS AND POSTAL SERVICE In the Republic of Macedonia are operating three mobile operators. One of them is the “VIP” - Mobilcom Austria group Start of the work of the second and third operator for fixed telephony – On.tel and Cosmfon which have already provided services as mobile operators Service number portability for mobile and fixed operators started on September 1, 2008 Liberalization of the postal market and development of the postal sector. A new Law on Post Services is adopted in compliance with EU directives. Tender procedure has started for selection of a consulting company to be engaged in the process of privatization of “AD Makedonski Posti”

  13. GASIFICATION In September, 2008 a tender for procurement of services for preparation of feasibility study for a pipeline system was launched The deadline for preparation of the study is nine months, i.e. from December 1st, 2008 until August 1, 2009, at the latest The funds from preparation of a feasibility study shall be allocated from the Budget of the Republic of Macedonia

  14. ANNOUNCEMENTS Announcements for public bidding for sale of construction land in ownership of the Republic of Macedonia, foreseen for construction of hotels, trade centers, multi-storey buildings, multi-storey parking garage etc. are regularly published both in the national and foreign printed media, as well as on our websitewww.mtc.gov.mk

  15. REPUBLIC OF MACEDONIA Reasons to invest in Macedonia • GOOD ACCESS TO THE MARKET • GOOD STRATEGIC POSITION • LOW COSTS • LOW TAXES • EDUCATED, HIGHLY QUALIFIED PEOPLE • EASY COMPANY REGISTRATION, ONE-STOP-SHOP SYSTEM • FOREIGN DIRECT INVESTMENTS-MAIN PRIORITY • GOOD INFRASTRUCTURE • EXCELLENT LINGUISTIC SKILLS • GOOD LIVING ENVIRONMENT

  16. MINISTRY OF TRANSPORT AND COMMUNICATIONS If you have any question related to scope of work of our Ministry, please do not hesitate to contact us at the following contacts: Street ”Crvena Skopska Opstina” No. 4 1000 Skopje, Republic of Macedonia Phone: +389 (0)2 3123 292 Fax: +389 (0)2 3126 228 E-mail address: mtc@mtc.gov.mk

  17. THANK YOU FOR YOUR ATTENTION! MINISTRY OF TRANSPORT AND COMMUNICATIONS REPUBLIC OF MACEDONIA www.mtc.gov.mk

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