The governments of the United Kingdom and North Macedonia are set to sign a bilateral agreement on Thursday to expand trade and investment, as part of a broader strategic partnership between the two countries.
British Ambassador to North Macedonia, Matthew Lawson, said the new government-to-government deal builds on a trade agreement signed five years ago and aims to deepen economic ties.
“The UK is a free-trading nation, and we see this as a major opportunity. British businesses already operating here are eager to expand, and we believe this agreement will drive hundreds of millions of pounds in mutual investment,” Lawson told local broadcaster Sitel.
GBP 5 Billion Financing Framework
Deputy Prime Minister and Transport Minister Aleksandar Nikoloski, who will lead the Macedonian delegation to London, said the agreement outlines cooperation across multiple sectors including healthcare, transport, energy, and technology.
Under the deal, the UK government will make up to GBP 5 billion available to North Macedonia through its external financing mechanisms. The funding framework is open-ended, with no obligation on the timeline or amount to be used. Projects will be determined based on national needs, Nikoloski said.
The agreement also includes technical assistance and knowledge exchange, bringing in UK expertise across various sectors.
“These two agreements have the potential to transform Macedonia on an institutional and societal level,” Nikoloski added.
Priority Projects: Rail, Hospitals, and Education
Initial cooperation will focus on infrastructure and healthcare, with five flagship projects valued at around GBP 2 billion.
The largest is a high-speed rail line from Tabanovce to Gevgelija, running along an upgraded corridor through Skopje and other major cities. The dual-track system will support passenger trains at speeds over 160 km/h and freight trains at 110–120 km/h, accommodating cargo up to 750 meters in length. Estimated cost: EUR 1.7–1.9 billion.
“If we reach our goal of transporting 327,000 tonnes of goods per kilometre, annual revenues from transit alone could reach EUR 120 million. This would make the project economically self-sustaining in the long term,” Nikoloski said.
The passenger line will also be integrated into a future urban rail network, connecting Skopje’s city centre with the international airport.
Other planned projects include a new clinical hospital in Štip, a new medical faculty and dormitory with at least 200 beds, a full reconstruction of the Tetovo hospital, and a new hospital in Kičevo.
Further investment will be considered in other municipalities, and plans remain in place for a new clinical centre in Skopje.
“We hope to see early progress, particularly in hospital construction and rail infrastructure,” Ambassador Lawson said. “The UK is ready to act quickly and deliver.”