The Assembly of the Republic of North Macedonia adopted amendments to the Law on Concessions and Public-Private Partnership, introducing for the first time into the domestic legal framework the concepts of “self-initiated proposal”, “private initiator”, and “institutional public-private partnership”. The amendments were published in the Official Gazette of the Republic of North Macedonia No. 96/2026.

Under the new provisions, legal entities, natural persons, and consortiums are granted the possibility, as “private initiators”, to proactively submit proposals for the establishment of a public-private partnership. The Law provides that a “self-initiated proposal” represents a proposal for establishing a public-private partnership submitted independently by the private initiator on its own initiative.

Pursuant to the amendments, a private initiator may at any time submit a self-initiated proposal containing, at minimum, information regarding the nature of the project, the public infrastructure to be developed, the public services to be provided, possible implementation scenarios, technical and financial feasibility, and consistency with the public interest. The proposal must be accompanied by a feasibility study justifying the award of the public-private partnership agreement.

At the same time, the Law introduces limitations regarding projects which may be subject to a self-initiated proposal. Namely, such proposal may not relate to a project already included in the public partner’s work program, planning or strategic documents, a project prepared by the public partner, or a project for which a procedure for awarding a public-private partnership agreement has already been initiated.

The amendments further establish a structured review process applicable to the public partner. Upon receipt of the self-initiated proposal, the public partner is obliged within 30 days to conduct a review and assessment of the submitted documentation and feasibility study. During this process, the public partner may request additional information from the private initiator, who is obliged to respond within 10 days.

In addition to contractual public-private partnership, the amendments for the first time regulate “institutional public-private partnership”. Unlike the traditional contractual PPP model, this structure enables cooperation between the public partner and the private partner through joint investment in a commercial company established for the implementation of the agreement for establishment of the public-private partnership.

In the case of institutional public-private partnership, the tender documentation must define the legal form of the entity, capital participation ratios, obligations of the preferred bidder and the public partner, as well as other matters related to the establishment and operation of the special purpose company. The draft incorporation agreement of the project company shall form an integral part of the tender documentation.

This institutional public-private partnership structure may prove particularly relevant for large-scale infrastructure, energy, transport, utilities, healthcare, and municipal projects where long-term operational alignment between the public and private sectors is commercially desirable.

From a practical perspective, the amendments create new opportunities, but also introduce important strategic considerations for potential investors. Private initiators will need to carefully assess whether a proposed project genuinely falls outside existing public programs, planning or strategic documents, or already initiated procedures before investing in feasibility work and proposal preparation.

At the same time, the amendments signal a broader policy direction toward greater private-sector participation in the development of public infrastructure and public services in North Macedonia. If implemented efficiently and supported by institutional capacity, the new framework may increase market interest in public-private partnership projects and provide additional flexibility for both public authorities and investors seeking alternative project delivery models.