Government, Chinese company sign agreement on construction of two highways in Macedonia
Macedonia's Government and Chinese Sinohydro Corporation LTD signed Tuesday the agreements on construction of Miladinovci-Stip and Kicevo-Ohrid highways.
On the Government's behalf the agreements were signed by Vice Premier for Economic Affairs Vladimir Pesevski, Minister of Transport and Communications Mile Janakieski and Director of the Public Enterprise for National Roads Ljupco Georgievski. Yu Shichun put his signature on the agreements on behalf of the Sinohydro Corporation LTD.
Ninety percent of the total investment of EUR 580 million will be covered by the Chinese Exim Bank loan, while the remaining funds are to be provided from the budget of the Public Enterprise for National Roads.
Under the agreements, Chinese Sinohydro will be obliged to engage subcontractors from Macedonia for at least 49 percent of the planned work, and to supply at least 49 percent of the building materials from Macedonia. The contractor and sub-contractor are also obliged to engage at least 51 percent of local work force.
The construction works are expected to commence in the first quarter of 2014.
The contractor will have to provide all necessary permits and certificates in accordance with the regulations for building, planning, safety and environment, the Ministry of Transport and Communications said in a press release.
The construction of two new highways is expected to boost the economic development in all regions of Macedonia, reduce the travelling time and improve the traffic security, the press release reads.