Bulgaria Finalizes Agreement Steps for Cross-Border Railway Tunnel with North Macedonia on Pan-European Corridor VIII

Key Agreement Finalized by Bulgarian Cabinet

The Bulgarian Cabinet announced on Friday, October 3, 2025, that it has taken the final steps towards signing an agreement with North Macedonia. This pivotal agreement concerns the preparation, construction, and operation of a cross-border railway tunnel, a crucial component of the broader Pan-European Corridor VIII. The draft agreement, which received preliminary approval on January 10, 2025, underwent coordination with North Macedonian authorities before its final endorsement by the Bulgarian government.

The formal signing of this intergovernmental agreement is expected to take place on November 4, 2025, as announced by Deputy Prime Minister and Transport and Communications Minister Grozdan Karadjov on September 29.

Boosting Regional Connectivity: Pan-European Corridor VIII

The railway tunnel is integral to connecting the railway systems of both nations and completing Corridor VIII, a strategic multi-modal transport network. This corridor is designed to link Sofia, Skopje, Durres (Albania), and Bari (Italy), extending from the Adriatic Sea to the Black Sea via North Macedonia and Bulgaria. It forms part of the Western Balkans - Eastern Mediterranean Corridor and is recognized as a flagship project under the EU's Global Gateway initiative.

The project aims to significantly boost trade, stimulate economic growth, and improve travel times across the region. The agreement specifies the tunnel's length and its division, with each country assuming responsibility for maintaining its respective section once operational. A Joint Coordination Committee will be established to oversee the collaborative construction and operational activities.

Progress and Future Outlook for the Railway Link

Significant progress has been made on various sections of Corridor VIII. On the North Macedonian side:

• The Kumanovo-Beljakovce section, approximately 30.8 km long, saw its rehabilitation completed in December 2024 and is now fully operational.
• The Beljakovce-Kriva Palanka section, spanning about 34 km, is currently under construction and is at an advanced stage.
• The final 23-24 km stretch from Kriva Palanka to the Bulgarian border is in the procurement phase, with tenders for works expected to be relaunched by the end of 2025.

On the Bulgarian side, public procurement procedures were launched in July 2025 for the final 2.4 km section from Gyueshevo to the border at Deve Bair, with completion anticipated by 2028 or 2029. This includes the modernization of the Gyueshevo station to serve as a Schengen-compliant border facility. The last 420 meters of track will be constructed following the completion of the cross-border tunnel itself.

The project is set to receive substantial financial backing, with the agreement slated for submission to the European Commission and other European financing institutions. Bulgaria has secured €69 million in funding for its part of the project, contributing to a total investment exceeding €1.5 billion for the railway connection from Sofia to the border. The overall estimated investment for the railway line in Albania and North Macedonia is approximately €2.1 billion, supported by €367.6 million in EU grants. Procurement for the tunnel's construction works is projected to commence in early 2026.