Number of Active Projects
|EU IPA ||$17.2 million|
The strategic objective of the new Country Partnership Framework (CPF) for FY2019–23 is to support North Macedonia’s ability to achieve faster, inclusive, and sustainable growth and provide its citizens with greater opportunities for a better life.
The World Bank is mobilizing several instruments, both financial and technical assistance, to support North Macedonia’s efforts to manage and mitigate the impact of the COVID-19 pandemic.
In terms of financial assistance, the Bank is helping North Macedonia to access the emergency fast-track facility created to support countries’ response to the COVID-19 emergency.
These funds, which should be available at the end of the month, will be used to address urgent health sector priorities and protect household income, in particular that of the most vulnerable.
Together with the Ministry of Finance, the World Bank is also analyzing the overall portfolio of approved projects in the county to identify funds still unallocated that could be redirected to crisis-management and post-crisis economic recovery.
As part of this effort, the Bank is exploring the activation of a special window for emergencies that is embedded in one of the recently approved operations (the Local Roads Project). The goal is to mobilize the rapid disbursement of funds in support of small and medium enterprises (SMEs) that have been negatively impacted by the public health measures and by depressed demand, both domestically and from abroad. Collectively, these programs are expected to mobilize roughly €140 million.
The CPF aims to improve the environment for a competitive private sector by boosting connectivity and improving access to markets, helping businesses become more innovative, productive, and competitive, and creating more and better jobs.
The Western Balkan Trade and Transport Facilitation Project, approved in 2019, will improve connectivity and integration with regional and EU markets, reduce trade costs, and increase transport efficiency. In addition, the new Agriculture Modernization Project will improve access to modern agricultural services, thus benefiting 1,000 farmers, including by establishing collection and conditioning centers for fruits and vegetables.
The CPF is also designed to support investments in human capital, with a focus on improving education and skills training, providing better access to social services for the most vulnerable, and encouraging more inclusive participation in labor markets. Some of these goals are being achieved with a contribution from the active portfolio, e.g., the Skills Development and Innovation Support Project, through which secondary technical and vocational education students benefit from practical training in SMEs and large firms.
A new education project currently under preparation will improve conditions for acquiring key skills in primary education. The emphasis is on improving the teaching and learning environments in order to enhance what students learn in the classroom. The most vulnerable households will be protected by a contribution from the Social Services Improvement Project, which will support the creation and expansion of preventive and nonresidential social services.
The sustainability of pensions in an aging society will be guaranteed by the Social Insurance Administration Project, which will help to modernize pension administration. Finally, the CPF is reinforcing fiscal and environmental sustainability by strengthening public financial management and accelerating the country’s transition to a more sustainable energy mix. For example, the new Organic Budget Law and public financial management reforms will prevent the reemergence of arrears accumulation and strengthen the monitoring of fiscal risks.
Furthermore, the Public Sector Energy Efficiency Project will directly contribute to the reduction of CO2 emissions by retrofitting public buildings to improve energy efficiency, including municipal and central government buildings as well as public lighting.
Last Updated: Apr 05, 2019