WASHINGTON, July 26, 2000 - The World Bank has approved a US$9.3 million equivalent credit for the Trade and Transport Facilitation in Southeast Europe Project (TTFSE) for the former Yugoslav Republic (fYR) of Macedonia that will foster trade by promoting more efficient and less costly trade flows across the borders in Southeast Europe and provide European Union compatible customs standards.
The project will reduce non-tariff costs to trade and transport and prevent smuggling and corruption at border crossings. This project is the third to be approved in the regional program for TTFSE that will strengthen and modernize customs administrations and other border control agencies in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, fYR Macedonia, and Romania. The program is a result of a collaborative effort among the governments of these countries in association with the Southeast European Cooperative Initiative (SECI), assisted by the World Bank, the European Union, and the United States.
The TTFSE project in fYR Macedonia will support the implementation of ongoing customs reforms and focus on integrated solutions at selected pilot sites located on main European corridors. Customs reform is an essential part of the activities fYR Macedonia needs to undertake to join the EU. These pilots will increase the productivity of border agencies, enabling shorter processing time at border crossings and inland terminals. Reforms and pilots will need to be supported at some border crossings by upgrading of infrastructure. The project will finance physical improvements at these border crossings, once critical elements of the reform proceed.
The project is comprised of the following components:
- Customs Administration Institutional Reform includes assistance to streamline operations at three border posts and one inland terminal on a pilot basis; customs training in new procedures, and training for inter-agency awareness and cooperation; and organizational restructuring of the fYR Macedonia Customs Administration.
- Trade Facilitation Development includes the provision of technical assistance and advisory services to trade and international transport participants through the Economic Chamber; improvement of communication between border control agencies and trading community by using a virtual forum¾creation of an internet website that will enable the exchange of views, user surveys, and consultation; and provision of equipment to support information availability.
- Improvement of Integrated Customs Information System (ICIS) includes software and assistance for information system improvement; hardware and works for ICIS and communication improvement; ICIS personnel training; and a regional program of experience-sharing. This component will stimulate regional and inter-agency cooperation.
- Improvement of Border Crossing Facilities including rehabilitation at Tabanovce border crossing; improvement of Deve Bair border crossing; improvement of Kafasan border crossing; equipment for enhancing the processing capacity at customs stations, and improving the fYR Macedonia Customs Administration's training capacity; and design and supervision of civil works.
- Program and Project Implementation includes the services required to support implementation of the program. At the regional level these will consist of the secretariat services to the RSC and at the national level the auditors and procurement consultants, the establishment of a financial management system, and training to the Project Implementation Team.
Similar projects are at an advanced state of preparation in the other three countries taking part. The aim is to have all six projects launched before the year's end.
The total cost of the project is US$14.5 million, including US$3.1 from the Macedonian Government and US$2.1 million from the US Government. The credit will be disbursed on standard IDA terms for multi-currency credits and will be repayable in 35 years including a 10-year grace period. Since fYR Macedonia joined the World Bank in 1993, commitments to the country total approximately US$509.3 million for 18 projects.