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Project Description

The International Bank for Reconstruction and Development (IBRD) has granted to the Republic of North Macedonia, Republic of Serbia and Republic of Albania by a EUR 78,6 million (USD 90 million) Loan for The Western Balkans Trade and Facilitation projects (WBTTFP). The Western Balkans Trade and Facilitation Project (WBTTFP) for Republic of North Macedonia (RNM) will be supported total EUR 26.2 million (USD 30 million) Loan from IBRD. Loan Agreement (“Loan Agreement”) between North Macedonia (“Borrower”) and the International Bank for Reconstruction and Development (“World Bank”), was signed on June 6, 2019 for the Western Balkans Trade and Transport Facilitation Project (“WBTTFP”).

The project will be implemented through Multiphase Programmatic Approach (MPA). The MPA will facilitate the achievement of the Western Balkans Governments’ goal of reducing trade costs and increasing transport efficiency through longer-term, adaptive, and continuous engagement. It includes two phases which will be implemented over five years each. Phase 1 of the MPA is a US$90 million IBRD financing, covering 3 out of the WB6 with the highest level of readiness (Albania, North Macedonia and Serbia). It will include a combination of investments, technical assistance and regulatory and institutional reforms, primarily focusing on a) the adoption and implementation of New Single Window (NSW) solution; b) the improvements in border crossing points and crossing points in selected trade corridors; c) the adoption of an Intelligent Transport System (ITS); and d) technical assistance and support for the implementation of regulatory and institutional reforms needed in line with specific commitments under the Additional Protocol 6 (AP6). Phase 2, estimated at US$50 million, will scale up to the remaining Western Balkans Six beneficiaries. The phase will also aim to deepen multi-sectoral engagement to build on phase 1 efforts to establish trade costs reduction and transport efficiency increase as a long-term priority with sustained high-level commitment and a broad set of stakeholders.

Project Development Objectives

Project Development Objective for the first phase is to reduce trade costs and increase transport efficiency in Albania, North Macedonia and Serbia.

The general objective of the Project is to facilitate and enhance the access to and exchange of cross border data and information among various government agencies and among the government and the business community. More specifically, the Project aims at providing conditions for submission of import/export/transit data only once and on one place and for more efficient coordination of all cross-border controls and inspections.

Project components

The project will include the following components:

01

Facilitate cross-border movement of goods

02

Enhance transport efficiency and predictability

03

Improve market access in services and foster regional investments

04

Support project implementation units (PIU)

PDO – Results Indicators

The PDOs will be measured by the following indicators:

  • Total trade cost (sum of WB6′ cumulative import and export cost);
  • Cost to import (average per shipment, disaggregated by beneficiary);
  • Cost to export (average per shipment, disaggregated by country); and
  • Average freight transport time on targeted corridors (disaggregated by corridor).