Where does the Public Enterprise for State Roads obtain its operating funds?

The Public Enterprise for State Roads (Javno Pretprijatie za Drzavni Patista - JPDP) plays one of the most important roles in the development of infrastructure in North Macedonia. It is a state-owned enterprise responsible for the planning, construction, reconstruction and maintenance of state roads, as well as for the management of highways, main and regional roads.

Its work is not limited to the construction of new roads. The company is tasked with ensuring regular maintenance of the existing road network, repairing damage, installing signage, winter maintenance, improving traffic safety, and implementing capital infrastructure projects that have a direct impact on the economic development of the country.

Although it is a state-owned enterprise, JPDP is regularly positioned among the 200 LARGEST AND MOST SUCCESSFUL companies in North Macedonia every year, generating revenues that place it among the largest economic entities in the country.

Unlike private companies, JPDP's financial results do not depend solely on the sale of products or services in the market.

Its operations are based on legally established sources of revenue, the main purpose of which is to ensure continuous financing of the construction, reconstruction and maintenance of the state road infrastructure.

How does JPDP rank among the largest and most successful companies?

In 2024, the Public Enterprise for State Roads generated revenues of 13,361,886,581 denars , or approximately 217.3 million euros , as well as profit before tax of 3,853,478,174 denars , or approximately 62.7 million euros .

With these financial results, the company ranked 11th on the ranking list of the largest companies in North Macedonia , and at the same time took second place on the ranking list of the most successful companies , which is an exceptional achievement for a public entity.

Compared to the previous year, revenues increased by 4.06 percent , while profit before tax decreased by 38 percent .

Although at first glance this may seem like a weaker result, it should be borne in mind that 2023 was one of the most financially successful for the company, when profits grew by an impressive 69.19 percent.

Hence, it can be concluded that such a decrease represents a normal correction after an exceptionally strong year, and not an indicator of impaired financial stability.

But what is really behind these numbers? Does JPDP's revenue come exclusively from tolls or are there other sources of funding?

Legal sources that provide stable funding

When talking about the Public Enterprise for State Roads, most citizens first think of tolls. This is understandable, as they represent the most visible way in which drivers directly pay for using the highways.

There are 14 toll stations operating in North Macedonia today, and the toll amount depends on the section and the category of the vehicle.

With the construction of new highway and expressway sections, the number of toll plazas is gradually increasing, which in itself contributes to revenue growth.

However, tolls represent only one segment of the JPDP financial system.

According to the Law on Public Roads, the company has multiple sources of income that ensure continuous financing of its activities.

One of the most significant sources is the fee paid upon registration of motor vehicles. Each vehicle owner, upon registration, allocates funds that are intended for the development and maintenance of road infrastructure. This income ensures financial stability because it does not depend directly on the daily intensity of traffic.

An additional source of funds is also a portion of the excise tax on petroleum derivatives.

Although the excise tax is paid into the state budget, the legal provisions stipulate that part of these funds be directed towards the construction and maintenance of state roads. This principle is also present in many European countries, since fuel consumption is directly related to the use of road infrastructure.

This practically means that every citizen who registers a vehicle or buys fuel indirectly contributes to the improvement and development of the road network.

In addition to these revenues, JPDP also generates funds through various fees for the use of the road belt. These include permits for the installation of advertising billboards, the construction of connections to state roads, the installation of underground and above-ground installations, the use of land in the road belt, as well as fees for extraordinary transport of cargo that exceeds the prescribed dimensions or weight.

Although these revenues have a smaller share in the total budget, they represent an additional source of financial resources that contributes to the regular functioning of the enterprise.

Loans and grants for capital investments

The construction of a new highway, bridge or expressway is an investment worth tens or hundreds of millions of euros. Therefore, own revenues are often not sufficient to realize such capital projects.

To finance them, JPDP uses loans from international financial institutions such as the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the World Bank and other international financial organizations.

At the same time, some of the projects are being implemented with the support of the European Union and other international donors, which provide grants for the development of transport infrastructure.

This model allows for the construction of modern roads without the entire financial burden falling on the state budget, while at the same time ensuring the long-term financial stability of the company.

Capital projects that have a direct impact on the economy

The work of JPDP is not limited to maintaining the existing road network. The company is the bearer of the largest share of capital infrastructure investments in the road sector and plays a key role in improving the country's transport connectivity.

In recent years, significant funds have been directed towards the construction of new highways and expressways, the reconstruction of national and regional sections, the rehabilitation of bridges, the installation of modern signaling and the modernization of toll collection systems.

In addition to actively working on the construction of the Corridor 8 and Corridor 10 highways, projects for the implementation and rehabilitation of a large number of regional and national roads were successfully completed, and of particular importance was the opening of the road that passes through the Farishta Gorge.

In parallel, the company continuously invests in regular maintenance of thousands of kilometers of state roads. This includes repairing damaged pavements, cleaning drainage systems, mowing roadside vegetation, installing protective fences, winter maintenance, and interventions in the event of landslides and other natural disasters.

Investments in road infrastructure have broader economic significance. Better roads reduce travel times and transport costs, increase traffic safety, improve connectivity between regions, and create better conditions for the development of tourism, trade, and industry.

For companies, quality infrastructure means faster delivery of goods, lower logistics costs and greater competitiveness, while for citizens it represents a safer and more comfortable journey , and it is of particular importance for tourists and transporters who use our country only for transit, i.e. as the fastest destination to Greek ports and resorts, and vice versa as a bridge to Europe.

In that context, the financial results of JPDP should not be analyzed only as revenues and profits, but as an indicator of the enterprise's capacity to provide funds for investments of public interest.

Unlike private companies, whose primary goal is to make a profit, the task of JPDP is to create and maintain infrastructure that will contribute to long-term economic development.

That is why the regular ranking among the largest and most successful entities in North Macedonia is a confirmation of the financial stability and the importance that this company has for the development of the country.

The combination of its own revenues, legally established fees, loans and grants allows it not only to maintain the existing road network, but also to invest in its expansion and modernization, creating the prerequisites for more efficient transport, better regional connectivity and sustainable economic growth.