State Audit: Railways show €80 million losses and decaying infrastructure

The State Audit Office’s 2024 audit of the public railway infrastructure company found deep financial losses and widespread deterioration across the network, with accumulated deficits running at roughly €80 million.

Inspectors singled out the condition of several main lines as especially alarming: large stretches of Corridor 10 and many secondary tracks require major repairs, and speed restrictions have been introduced at numerous sites. "Identified are around 50 locations with defects that can be repaired only by larger construction interventions and at these places slow travel of 20 km/h has been introduced," the audit states. ([24.mk](https://24.mk/details/milionski-minus-vo-kasata-na-zheleznica-infrastruktura))

Cost overruns and delays on Corridor 8

The audit also documents big price increases and prolonged delays on the eastern section of Corridor 8. Work on the Kumanovo–Beljakovce section began after a March 2014 contract, but the original agreement was terminated in 2020 and a new contractor was selected in July 2022. By June 2025 three contract addenda had been signed. The State Audit Office notes that "the value of these contracts together with the funds already spent amounts to €77.8 million and represents an increase of 96% over the value of the originally signed contract (€39.7 million)." The report adds that the completion deadline was extended by 8 years and 3 months because of stoppages, contract termination and selection of a new contractor. ([fokus.mk](https://fokus.mk/zheleznitsa-so-zagubi-od-nad-75-milioni-evra-i-so-zastarena-infrastruktura-shto-otkrija-revizorite/))

The auditors raised specific infrastructure safety concerns: sections such as Dračevo–Jane Sandanski and Rajko Žinzifov–Veles show damaged track parameters, landslides and deteriorated wooden sleepers, while the railway bridge near Stobi has partially failed twice in the last six years because river erosion undermined its piers. Repair work carried out so far is described as temporary. ([24.mk](https://24.mk/details/milionski-minus-vo-kasata-na-zheleznica-infrastruktura))

The infrastructure company responded that work is under way to address the shortcomings and implement the audit recommendations. In a statement the public enterprise said that construction on the Beljakovce–Kriva Palanka section has accelerated: "The total physical progress of the project reached 45 percent and already in 2026 a record monthly advance has been recorded with over 2% monthly implementation and more than 650 people engaged by the contractor." ([slobodenpecat.mk](https://www.slobodenpecat.mk/en/zheleznica-evidentirame-imot-napreduvame-so-prugata-rabotime-na-kadrovska-ekipiranost/))

The State Audit Office published a separate audit two days earlier for the rail operator, which found a severely aged rolling stock fleet and a very large accumulated deficit. The transport company’s fleet includes locomotives and coaches that are around 40 years old, and the operator is reported to be in deficit by more than €100 million. ([dzr.mk](https://dzr.mk/mk))

Photo: press material from the event