Welcome speech Branko Azeski , president Economic Chamber of Macedonia

1. Welcome speech Branko Azeski, president Economic Chamber of Macedonia Ohrid, 21st - 23rd May 2009 1922-2005

2. Presentation entitled: Corridor VIII – Reality or Utopia? Its importance for the Region and the importance of investment in transport infrastructure 1922-2005

3. Role and importance of Corridor VIII development of the regional and intra-regional cooperation, the finding out ways and opportunities for its appropriate financing would be in function for successful approaching of the Region to the EU market and to its appropriate inclusion into the Euro-integration processes and structures 1922-2005

4. Role and importance of Corridor VIII competitive treat from the realization of Corridor IV, which transits through Bulgaria and Romania, connecting Central and Western Europe with Near East and Central Asia 1922-2005

5. Corridor VIII is a true need and reality liberalized international exchange and international mobile capital investments, opening space for expanded intra-regional cooperation as world economy’s basic trend 1922-2005

6. What is Corridor VIII ? complex system, respectively, an integral entity of more transport sub-systems (rail, road, air and pipeline), which in spite of being mutually competitive, are mutually connecting and complementing 1922-2005

7. Realization of Corridor VIII is of essential importance for the security and economical and political stability of the wider South-East Region and due to complexity from several aspects, by economic experts is classified in the concept of a process 1922-2005

8. Corridor VIII is extended to the East-West axis on a route Varna (Burgas) – Plovdiv- Sofia - Skopje –Tirana – Durres – Vlore –Brindisi total length of around 1270 km railway lines and 960 km roads 1922-2005

9. Republic of Macedonia is a country that has no pass on sea and has no direct access to the major continental and water roads, and in its transport sector dominate the road and railway transport (with dead ends on east-west direction) … two alternative roads of Corridor VIII in East-West direction, known as north and central road…. 1922-2005

10. The north road, in total length of 302 km connects Kafasan (Macedonian –Albanian border) through Kicevo, Tetovo, Skopje and Kumanovo with Deve Bair (Macedonian- Bulgarian border) Central road, in length of 339 km connects Kafasan through Bitola, Prilep, Veles, Kocani and Delcevo with Crna Skala (Macedonian –Bulgarian border) Both routes are passing through mountains and high areas and on the territory of the Republic of Macedonia they are intersected with Corridor X, establishing appropriate international connection 1922-2005

11. In the segment of railway connection, also, there are two alternative railway lines on East-West corridor from the Albanian border city of Lin to Skopje The north part of Lin through Kicevo to Skopje in length of 182 km, and the same to Kicevo (in length of 65 km) is not built yet, and there is no railway connection Central part would be in length of around 240 km and would connect Lin with Sopotnica through Prilep and Veles, and it is not built yet 1922-2005

12. … In the part from Skopje to Deve Bair, there is a railway line in the length of 123 km out of which 55 km are under construction stage, which is 10 years in stoppage ... … For construction of this railway part a project was elaborated by some French company, and investments works were started, but due to some problems in closing of the financial structure and other problems of legal nature, it is not realized yet ... Railway connection 1922-2005

13. Albanian railway network is in length of 447 km, out of which 280 km belong to Corridor VIII. To respond to European standards and to a Pan-European corridor’s needs the whole network must be reconstructed urgently In direction of revival of railway transport and modernization of railway line Tirana-Durres, as well as of building up of the part to the “Mother Teresa” airport, several contacts are accomplished with interested companies and investors GeneralElectic .... 1922-2005

14. ... funds from the Government of Italy and from the European Investments Bank was completed the highway Tirana –Durres Albanian road infrastructure .... 1922-2005

15. connection of the Macedonian border with the majorBlack Sea ports (Varna and Burgas). This road route is the longest road section of the Corridor in the length of 639 km Major part of the road section is two way (511 km) and the other part is highway Bulgarian road infrastructure … 1922-2005

16. What are the aspects of the Corridor VIII benefits for the Republic of Macedonia and for the Region? 1922-2005

17. The overall trade exchange value of the Republic of Macedonia with the Balkan countries in 2008 amounted € 3,0 billion which comprise even 43,5 percent from the overall external trade exchange volume of the Republic of Macedonia From weight aspect, the exchanged good is in quantity of 5,3 million tons, with participation of 57,2 percent in the overall external trade exchange volume The appraisal of the Corridor VIII 1922-2005

18. Corridor VIII will be also significant for more dynamic exchange of the EU markets to Central Asia and vice-versa, transforming the South-East European Region into a free trade zone … The appraisal of the Corridor VIII 1922-2005

19. tourism sphere should not be omitted, as it will enable great number of tourist locations in the countries within the Region to become more accessible to visitors … The appraisal of the Corridor VIII 1922-2005

20. social effect such as employment, development of new businesses along the corridor, as well as the facilitation of the communication between different cultures from the Region and wider … The appraisal of the Corridor VIII 1922-2005

21. low level of national economies` development; fall of GDP in most of the countries; high level of unemployment; low level of foreign direct investments; insufficient volume of trade flows which would justify the investments in relatively short time term; limited economic opportunities for the realization of high-capital projects, such as Corridor VIII in spite of its significant potential opportunities, etc. Obstacles in realization of Coridor VIII 1922-2005

22. numerous problems from administrative and technical nature, which are slowing down the mutual cooperation, such as not unified legislation; diversity of regulations from transport and customs sphere; diverse road taxes and dues; not understandable existence of visa limitations, non-tariff barriers on various bases, etc … Obstacles in realization of Coridor VIII 1922-2005

23. more concrete investments on the railway section of Corridor VIII are expected after 2012, by giving priority to the connection of the dead ends towards east and west, creation of opportunities for development of modern transport systems (integral transport) and to the functioning of transport freight centers … Financing 1922-2005

24. Corridor VIII could divide large financial funds for infrastructural projects although they have high amounts of foreign direct investments, solutions to that regard are seen only through elaboration of common regional projects which could compete for money from the European financial institutions` funds … Financing 1922-2005

25. is the need and inevitability for inclusion in broader and long term partnership of all the countries in the Region, whose benefit from economic and financial development and cultural aspect will be felt by all participants in that process... Mesdsage to the participants ... 1922-2005

26. in the realization of the projects and initiatives which spur and upgrade the broader regional cooperation, national economic Chambers as associated centers of the business interests, through their forms of organization and operation are providing significant contribution … Mesdsage to the participants ... 1922-2005

27. Thank You for the attention Branko Azeski, president Economic Chamber of Macedonia 1922-2005