Regional Solid Waste Project
Regional Solid Waste Project
NORTH MACEDONIA
1 As per section 1.4.8 of EBRD’s Directive on Access to Information (2019), the Bank shall disclose
Board reports for State Sector Projects within 30 calendar days of approval of the relevant Project
by the Board of Directors. Confidential information has been removed from the Board report.
For the avoidance of any doubt, the information set out here was accurate as at the date of
preparation of this document, prior to consideration and approval of the project.
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TABLE OF CONTENTS
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PRESIDENT’S RECOMMENDATION
This recommendation and the attached Report concerning an operation in favour of the
Government of North Macedonia (“North Macedonia” or the “Borrower”) are
submitted for consideration by the Board of Directors.
The facility will consist of a sovereign loan of up to EUR 55 million to the Republic of
North Macedonia for establishing regional waste management systems in five
administrative regions in the country (“Project”) covering local and regional levels in
accordance with the EU Waste Framework Directive. The proposed loan will consist
of two tranches: (i) a first tranche of up to EUR 47.5 million will be committed at
signing (“Tranche 1”) and (ii) a second tranche of up to EUR 7.5 million will be
committed at the Bank’s discretion following completion of the due diligence
(“Tranche 2”). Subject to approval, the Swiss State Secretariat for Economic Affairs
(“SECO”) will co-finance the Project activities under Tranche 1 for the investment in
the Solid Waste Management (“SWM”) system of the Polog region with a grant of up
to EUR 6 million. The Ministry of Environmental and Physical Planning (“MoEPP”)
will be responsible for implementing the Project.
The Project will involve technical cooperation (“TC”) support totalling EUR 6.2
million expected to be funded by SECO, WBIF, from the Bank’s Shareholder Special
Fund or by an international donor to provide capacity building and implementat ion
support to the MoEPP, implementation of inclusive procurement as well as preparation
of the feasibility study for Tranche 2.
I am satisfied that the operation is consistent with the Bank’s Strategy for North
Macedonia, the Municipal and Environmental Infrastructure (“MEI”) Sector Strategy,
the Green Economy Transition (“GET”) Approach, the Equality of Opportunity
Strategy, the Strategy for the Promotion of Gender Equality and with the Agreement
Establishing the Bank.
I recommend that the Board approve the proposed loan substantially on the terms of the
attached Report.
Odile Renaud-Basso
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Post-signing
TC 3: PIU support for Tranche 1. The assignment will include review of
designs, technical specifications, tender preparation, procurement and
implementation of works and supply contracts. Estimated cost: EUR 700,000, to
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Regular waste collection services are mainly limited to urban areas, providing up to 90
per cent waste collection service coverage in the cities and their outskirts. In total
around 70 per cent of the population in the project regions receives regular waste
collection services, while the remaining 30 per cent, residing in rural settlements distant
from the main collection areas, manage waste on their own. There are 73 municipal
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non-compliant landfills, with none in compliance with the minimal requirements of the
EU Directive on the landfill of waste (1999/31/EC)). All waste that is not covered by
regular waste collection services, ends up in non-engineered, local dumpsites, causing
severe impacts on human health and environment.
Although the country has developed the key national strategic documents such as the
National Waste Management Strategy (“NWMS”) and the Waste Management Plan
(“WMP”) 2018-2024, with an aim to develop an integrated waste management in line
with the EU Directives (including the waste hierarchy as set out in the Waste
Framework Directive (2008/98/EC)), and to ensure environmentally safe recovery and
disposal of solid waste, the implementation of the legislation is [REDACTED] lagging
behind, and the results are not visible yet. In September 2021, a new Law on Waste
Management (“LWM”), which is fully aligned and harmonised with the definition in
the Waste Framework Directive as well as the EU landfill directive, entered into force.
It entails the principles of waste management and the waste hierarchy that were missing
from the previous legislation.
The proposed project is the very first nation-wide undertaking in the Solid Waste
Management (“SWM”) sector in North Macedonia and an important step towards a
sustainable solution for solid waste management services. This is also the very first
Bank’s project in the Macedonian SWM sector which will support the introduction of
solid waste services compliant with the respective EU standards in the sector, covering
a population of more than one million residents across three solid waste planning
regions and 45 municipalities of urban and rural nature in the country.
To address the current status in the sector and to reduce the adverse impacts, the Bank
will finance the construction of two regional, sanitary landfills according to EU
standards and the closure and remediation of two major dumpsites. In addition, the
Bank will finance the construction of six transfer stations strategically allocated across
the regions, including transport equipment and civic amenity sites as well as collection
infrastructure for recyclables, green waste / bulky waste and mixed waste. The proposed
investment project will increase waste collection service coverage rates across the
regions and therefore minimise illegal dumping. In addition, the net of transfer stations
and regional sanitary landfills will make local dumpsites obsolete and provide
environmentally safe disposal practices according to EU standards at regional level.
The waste management system will move towards an integrated system following the
waste hierarchy, as civic amenity sites and infrastructure for the source-separation of
recyclables, green waste and bulky waste will be introduced.
The Project will increase recycling rates, provides environmentally safe and sound
disposal and will significantly reduce greenhouse gas emissions. The Project is 100 per
cent GET eligible and will generate significant GHG emissions reduction of
[REDACTED] CO2 equivalent per annum. This will be achieved through dumpsite
closure and remediation, new sanitary landfill construction according to EU standards
and increased source separation of recyclables and green waste.
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of a regulatory framework and tariff policy improvements via support to the Regulatory
Commission and establishment of a new department dedicated to SWM.
In parallel, the Bank will support the MoEPP in integrating inclusive procurement
principles into its tender processes for the first time ever. This comes in the context of
a EUR 4.1 million non-transactional policy dialogue programme on Inclusive and
Socially Responsible Procurement (“ISRP”) put forward under the WBIF. The ISRP is
a flexible and cost-effective approach to open up training opportunities at the level of
private sector contractors and it is explicitly recognised in the EU’s 2014 Public
Procurement Directives. It is of particular interest to the European Commission in the
context of the WBIF Economic and Investment Plan (“EIP”) as a way to strengthen
human and entrepreneurial capacity in the region (see Annex 6). A particular focus lies
on the integration of the Roma community. Access to economic opportunities is
severely limited for Roma individuals. Only 56 percent of Roma men and 30 percent
of Roma women participate in the Macedonian labour market. This creates major
concerns in terms of equality of opportunity, considering that Roma are estimated to
represent around 9.6 percent of the national population.
Against this backdrop, the Project aims to demonstrate how large infrastructure projects
in the solid waste sector can contribute to greater economic inclusion of marginalised
groups. If successful, the approach is expected to be replicated in future procurements
by MoEPP and other public entities, as well as under the WBIF. Contractors will also
be required to develop and implement Gender Action Plans (“GAPs”) and ensure the
participation of female trainees in the programme.
Considering the above, the Project is aligned with the MEI Sector Strategy which
supports local governments in the delivery of essential urban services and identifies SW
investments as one of the core strategic directions: "New sanitary landfills in
accordance with EU standards; closure and remediation of dumps; basic waste
collection services and upgrade of collection infrastructure (bins/containers, vehicle
fleet); pre-treatment of waste and waste-to-energy solutions". The Project also aligns
with the Bank's Strategy for North Macedonia, the Promotion of Gender Equality, the
Equality of Opportunity Strategy and the EBRD’s Green Economy Transition
Approach. It contributes to many UN Sustainable Development Goals (SDGs),
including SDG 9, 11, 12, and 17.
Obj.
Objective Details
No.
1.1 The project supports an The project will support expansion of the current
improvement to the existing competencies of the Energy and Water Services
tariff regulatory regime or Regulatory Commission by introducing a new
tariff methodology. dedicated department that will be responsible for
setting up a new commercially based tariff
methodology.
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1.2 The project and associated The project will, through technical assistance,
TC activities will introduce introduce a new sector wide regulator for solid
an autonomous new waste, within the Energy and Water Services
economic/sector wide Regulatory Commission. The department will be
regulator (i.e. not just in charge for setting up new commercially based
applicable to the project methodology for SW tariffs.
client/stakeholder).
Obj.
Objective Details
No.
2.1 The project will significantly MoEPP will, for the first time in the country,
improve policy practices integrate inclusive procurement requirements in the
and standards (e.g. equal solid waste sector, opening up skills and
opportunity legislation, or; employment opportunities for currently
new skills standards). underserved groups. Inclusive requirements will be
implemented in at least two of the three regional
tenders, encouraging contractors to provide on-the-
job training to the local population, including
women and Roma individuals. The Roma
population is traditionally involved in informal
waste picking activities in North Macedonia and
face significant barriers to economic inclusion. To
date, MoEPP has not adopted a comprehensive
approach to addressing the livelihood needs of
Roma people participating in the solid waste value
chain. With support from the WBIF, the Project
will support MoEPP in opening up skills and
employment opportunities for this group in the
construction as well as operation and maintenance
of new solid waste infrastructure. Additionally, the
Project will introduce an initiative to develop the
entrepreneurial ecosystem for minority-led
businesses along the solid waste value chain. These
improved policy practices are expected to create
systemic change beyond North Macedonia, by
creating a blueprint for future projects under the
WBIF applying inclusive procurement principles.
Delivery risks:
MoEPP’s lack of experience with EBRD Procurement Policies and Rules (“PP&Rs”)
and capacity could delay implementation and timing of CO2 reductions. This will be
mitigated through the appointment of an experienced PIU consultant which will be
working together with MoEPP. Moreover, the Corporate Development and
Institutional Consultant (“CDIS”) will help the Client to work on the TI related
benchmarks and objectives. Lastly, the implementation will be supervised by an
independent Supervision Engineer which will further reduce the implementation risks.
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1.3 ADDITIONALITY
Identified triggers Description
Financing Structure
- EBRD offers financing that is not - Long-term financing required for
available in the market from commercial infrastructure projects in North Macedonia
continues to be available predominantly
sources on reasonable terms and
from the IFIs.
conditions, e.g. a longer grace period.
Such financing is necessary to structure
the project of this nature;
- Client seeks/makes use of EBRD - The MoEPP lacks expertise and know how
expertise on corporate governance in implementing projects under IFI
improvements, including for climate risk procurement policies and rules. The Bank is
management. – providing technical assistance for tendering
process which will be carried out in line with
- Client seeks/makes use of EBRD best international standards and contribute to
expertise on best international enhanced technical and implementation
procurement standards capacities of the MoEPP.
- Contractors will be required to implement
- Gender SMART at Additionality level Gender Action Plans (“GAPs”) to address
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the strong horizontal and vertical gender
segregation currently observed in the solid
waste sector.
Knowledge, innovation, and capacity building
Implementation Medium/High The nature of the civil works contracts to be financed under the
risk Project are of moderate to high complexity. As this will be the first
project for the MoEPP, support from experienced PIU consultants
has been secured through technical cooperation funds. These
consultants will help the MoEPP with both procurement and project
implementation. Moreover, an independent supervision engineer
will be hired to follow the physical implementation of the project.
Sovereign risk Medium/ In 2021, public debt (comprising of state debt, municipal debt and
Medium debt of state-owned enterprises guaranteed by the government)
reached an estimated 62 per cent of GDP while the fiscal deficit
narrowed to 5.5 per cent of GDP. Despite the increase in public
debt, the IMF valued the public debt as sustainable in February
2022, mostly backed by an improvement of its composition. Also,
Fitch maintained its credit rating of BB+ with a negative outlook,
while S&P confirmed country’s rating at BB- with a stable outlook.
Government of North Macedonia measures to mitigate the impact
of the pandemic and to protect households from rising food and
energy prices in the wake of the war in Ukraine led to an increase
of public debt and to a higher deficit in 2021 and 2022
[REDACTED].
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Additional Indicators
Indicator Monitoring Details Baselin Target Due
type indicator e date
Advisory Practices of the Contractors of landfill (re-) [REDA [REDA [REDA
& Policy relevant construction works have CTED] CTED] CTED]
Indicators stakeholder developed and implemented
improved (equal Gender Action Plans (GAPs)
opportunity
practices of
companies in the
client's supply
chain)
[TC][Donor]
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TC Project preparation Bank decides how to progress [REDA [REDA [REDA
Indicator product approved with investment based on project CTED] CTED] CTED]
(Technical Due preparation product
Diligence &
Environmental and
Social Due
Diligence)
TC Project Project implementation support [REDA [REDA [REDA
Indicator implementation implemented as targeted: in line CTED] CTED] CTED]
support completed with project specifications and
EBRD requirements
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3. KEY PARTIES
3.1 B ORROWER
In 2021, the country started recovering from the impacts of the Covid-19 pandemic,
with a 4 per cent activity expansion driven by both domestic and external demand and
a GDP which should be higher than that of 2019. The main risks and uncertainties now
come from the war in Ukraine. Although North Macedonia has limited exposure to
Russia or Ukraine in terms of direct economic links, the country is impacted through
rising commodity prices which have led to an increased fiscal spending above what was
initially planned. In addition to ongoing expenditures to uphold the energy sector and
maintain subsidised electricity prices for households, authorities adopted a package of
measures in the amount of EUR 400 million in March 2022 to protect households from
rising food and energy prices and to help firms maintain liquidity. [REDACTED]. The
authorities [REDACTED] issued a six-year EUR 700 million Eurobond in May 2020
and a seven-year EUR 700 million Eurobond in March 2021 to foster the recovery from
the pandemic. [REDACTED]. In 2022, North Macedonia is rated at BB- (Stable) by
S&P and BB+ (Negative) by Fitch. More details are provided in Annex 2.
At the regional level, the regional Public Utility enterprise (“PUE”) (i.e. the regional
waste management companies) will be responsible for managing the SWM
infrastructure once physical implementation is completed.
At the local level, the Municipalities and their Municipal Utility Companies will have
limited involvement in the implementation of the Project. They will only operate the
waste collection vehicles and use the waste containers as receptacles for their citizens.
Regional and municipal companies will benefit from comprehensive capacity building
assignment extended via TC funded Corporate Development and Institutional Support
(“CDIS”) consultant to build their capacity to manage and operate the SWM assets
provided to them as result of the Project in a sustainable manner.
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Moreover, the MoEPP has already applied for a WBIF Technical Assistance grant
which will finance consultants to facilitate the process of selection of a landfill site for
the Vardar and Southeast region (for Tranche 2).
4. MARKET CONTEXT
The National Waste Management Plan (2018-2024) coupled with the new Law on
Waste Management entered into force in September 2021 reflect clear and
unambiguous intention of the Macedonian Government to bring waste management
aligned and harmonised with the definition in the Waste Framework Directive
(2008/98/EC).
Currently tariffs for SWM services are set by the Municipal Councils. As prescribed in
the Law on Waste Management, the responsibility for tariffs setting for SWM services
will shift from the municipalities to the Regulatory Commission for Energy and Water
Services. The Regulatory Commission will therefore set up a solid waste department,
which will develop the regulations and methodology for determining waste
management tariffs. The Instructional TC is envisaged to facilitate reaching this
fundamental step in changing the tariff setting model and introducing an essential
feature of setting tariffs by an independent entity.
Whereas public systems do not achieve considerable recycling rates in the country, EPR
schemes for packaging waste are operated by Pakomak, Euro Ekopak, Eco Packaging
and Alpak Eko. Other collective EPR systems are in place for waste electrical and
electronic equipment (“WEEE”) and batteries. [REDACTED].
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Categorised B (ESP 2019). The independent Environmental and Social Due Diligence
(“ESDD”) was finalised in early March 2022 and consisted of a review of national
Environmental Impact Assessments (“EIAs”) and other reports, site visits, meetings
with the Project Implementing Agency, community members and a significant number
of national NGOs. As regional waste management enterprises/landfill operators are yet
to be established, the ESDD focused on analysis of skills, competencies and operational
procedures that will be required for the proper implementation of the Project. The
ESDD identified that the new landfills will be located in the areas with existing
environmental degradation and adjacent to existing non-compliant landfills. The
estimates of the waste to be disposed of at the new landfills are not high, each below
100 tonnes/day. The ESDD identified that the Project will foster the implementation of
North Macedonia’s national waste management strategy and conversion of existing
unused and heavily degraded areas into modern regional centres for waste disposal and
recycling; reduce pollution caused by unsanitary disposal of waste; reduce emissions
of greenhouse gases (“GHG”) improve the visual characteristics of existing heavily
modified areas by planned re-cultivation of landfill sites.
Initially two separate national EIAs were prepared for Pelagonia and Southwest
regions, that were subsequently merged into a consolidated Environmental and Social
Impact Assessment (“ESIA”) in 2021. The landfill site for both the existing and the
planned landfills is located inside the depleted Suvodol lignite mine area. The buffer
zone of the planned landfill site marginally overlaps with the boundary of the Important
Bird Area (“IBA”) site (MK024) Pelagonia. Pre-construction rapid biodiversity surveys
will need to be conducted during spring/early summer; relevant actions have been
included in the Environmental and Social Action Plan (“ESAP”). The air quality in the
area is poor due to uncontrolled waste disposal and burning from the existing landfill,
which have resulted in emissions of pollutants (mainly СО2, methane and organic
compounds), odours and dust. There are no sensitive receptors in the vicinity of the
landfill site and the closest settlement is located at a distance of 1.2 km. There are
approximately 10 Roma families who collect waste on the existing landfill. Domestic
cattle from the nearby village forage on organic waste and thus poses the risk of
contamination through the food chain.
The regional sanitary landfill for the Polog region is planned at the location of the
existing non-compliant landfill Rusino. A national Draft EIA study was completed in
December 2021 and disclosed by the MoEPP, and the public consultation process is
ongoing. No flora or fauna species of conservation concern or protected areas have been
identified. Seasonal watercourses near the landfill site are filled with illegally fly-tipped
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industrial waste and pose the risk of soil, groundwater and surface water contamination.
A single-parent Roma family collects waste metal and small electric appliances and
sells them to the local scrap metal companies. The family has been living on the landfill
for six years and will require support to obtain adequate housing. There is also a small
weekend house attached to the landfill, whose owner is engaged in buying and reselling
plastic waste.
For both Pelagonija, Southwest and Polog regions, there will be Supplementary
Environmental and Social (“E&S”) Analysis conducted prior to the construction to fill
gaps in existing impact assessments and to identify potential impacts related to the final
siting for Transfer Stations and Composting Plans. The findings of the Analysis will be
used to update E&S Management and Monitoring Plans.
The proposed site for the regional landfill for the Vardar Southeast Region
(uncommitted tranche) is located in the area of the existing non-compliant landfill
Shapkar, which has been in use since 1992. No national EIA has been commissioned
for the proposed landfill as yet. The new landfill is planned to be built adjacent to the
existing landfill. This proposed site is a public land; and while registered as a
pastureland, it is however unused. The process of land conversion from agricultural to
construction land has been initiated. About 10 Roma families regularly collect waste on
the existing landfill. They have been collecting waste as their only source of income at
this landfill for 10-20 years. Impacts on waste pickers has been assessed as a major
negative impact.
The new waste management facilities will be designed and built in line with the EU
Waste Framework Directive, Landfill Directive and Best-Available-Technology
(“BAT”) Conclusions for Waste Treatment; and relevant technical specifications will
be included in tender documents. The design of the landfills will mitigate any potential
impacts related to leachate and landfill gas collection, air emissions, odours and impacts
on soil and groundwater. Temporary issues during the construction will be mitigated
through the development and implementation by the contractors of the Contractors'
E&S Management Plan, Erosion Control plan and air and ground and surface water
monitoring.
In order to enable the successful implementation of the Project the MoEPP will also
need to establish a Project Implementation Unit (“PIU”) staffed with qualified and
experienced personnel. The MoEPP along with the PIU and regional
operators/companies will need to implement the ESAP, LRF and the Stakeholder
Engagement Plan (“SEP”). The MoEPP disclosed the Non-Technical Summary
(“NTS”), the LRF and SEP on their website. The ESAP was finalised and agreed. Some
of the ESAP actions include developing a Project-specific Environmental and Social
Management Plan, inclusive of contractors’ management provisions, development and
implementation of Construction and Operational Environmental and Social
Management Plans, activities aimed at minimising and monitoring impacts on soil,
surface and groundwater.
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6.2 INTEGRITY
Integrity due diligence was undertaken on the Ministers, Deputy Ministers and parties
responsible for Project implementation within the Ministries. [REDACTED] No
[REDACTED] integrity concerns have been identified. All actions required by
applicable EBRD procedures relevant to the prevention of money laundering, terrorist
financing and other integrity issues have been taken with respect to the Project, and the
project files contain the integrity checklists and other required documentation which
have been properly and accurately completed to proceed with the project.
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The loan comprises two tranches: up to EUR 47.5 million to finance Pelagonija &
Southwest Region and Polog, to be committed at signing (“Tranche 1”), and EUR 7.5
million to finance Vardar & Southeast Region, to be committed at the sole discretion
of the Bank (“Tranche 2)”. Figure 1 shows the planning regions.
1. The Polog Region - has a total area of 2,379 km² and is located in the north-western
part of the country. It borders the South-western and Skopje statistical regions. The.
The Polog region is formed of nine municipalities, with two largest Tetovo and
Gostivar, as administrative units of lower level, which in total include 184
settlements. The municipalities are listed in Table 1.
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Figure 2: SWM System for Polog region
2. The Pelagonija & Southwest Region are located in the south of the Republic of
North Macedonia. The Pelagonija Region borders Greece and internally the Vardar
and Southwest Regions. The Southwest Region borders Albania and internally the
Pelagonija, Polog, Skopje and Vardar Region. The two Regions are comprised of
eighteen municipalities in total or nine municipalities per region. These
Municipalities are listed in Table 2.
Debarca Dolneni
Kičevo Krivogashtani
Ohrid Mogila
Plasnica Novatsi
Struga Prilep
Vevčani Resen
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They have a combined population of around 450,000 who together generate approx.
138,000 tonnes of MSW per year. This amount is expected to decrease to approx.
130,000 in 2040 due to a declining population. Waste collection rates vary per
municipality between 15 per cent and 100 per cent.
For both Regions, a regional waste management plan (“RWMP”) has been prepared but
preparations for an inter-municipal entity to manage the regional SWM facilities have
not yet started.
The current waste collection services in the region are managed by the Municipalit ies ,
but the actual services are delivered by PCEs owned by the Municipalities. Each of the
18 municipalities in the PSW regions have their own PCE, inter alia, for waste
collection and disposal. The PCEs also have tasks in water supply and sanitation and
maintenance of public property and roads. None of the cities engage the private sector
for waste management services.
The SWM systems in the region are based on waste collection and final disposal in
dumpsites, which do not comply with EU legislation on landfills (1999/31/EC).
Figure 3 shows the envisaged solid waste management system for the Pelagonija and
Southwest Region .
Figure 3: SWM System for Pelagonija and Southwest Region regions
Proposed waste collection concept consisting of bins for households and containers at
communal points of urban and rural areas and waste collection vehicles. At households,
the bins are meant to store mixed waste fractions and containers at communal points
are meant to store recyclables and biodegradables (green waste).
Five transfer stations will be implemented in Debar, Kichevo, Ohrid, Bitola and Prilep
municipalities.
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The proposed site for the new sanitary landfill (Novaci landfill) to serve the region is
located approximately five and a half kilometres northeast of the centre of Novaci, just
south of the road R1311. The existing dumpsite is located opposite the proposed site
just north of the R1311. Both the new and the existing site are located close to the
Novaci thermal power plant and the open cast mine where lignite coal for the power
plant is mined.
The Vardar & Southeast Region : The region comprises the Vardar planning region and
the Southeast planning region. The Southeast Region is located in the southern part of
the Republic of North Macedonia and is comprised of ten municipalities and has a total
area of 2,734 km2. The region borders Bulgaria and Greece. Internally it borders the
Vardar and Eastern Regions. The Vardar region covers an area of 3,995 km2 and is
formed by nine municipalities. The Vardar Region borders Greece and internally the
Southeast, Southwest, Pelagonija, Skopje and Eastern Regions. The municipalities of
the Vardar & Southeast Region are listed in Table 3.
Table 3 Municipalities in Vardar and Southeast Region
Veles Bogdanci
Gradsko Bosilovo
Kavadarci Vasilevo
Lozovo Gevgelija
Negotino Dojran
Rosoman Konche
Strumica
The regions have a combined population of over 300,000 who together generate just
under 100,000 tonnes of MSW per year, an amount which is expected to decrease
[REDACTED].
The level of preparation for the SWM system in the VSE Region is quite limited. In
order to develop a regional landfill and regional waste management centre, a feasibility
study will have to be prepared and an environmental due diligence will have to be
conducted including alternative locations will have to be considered.
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The economic assessment was prepared as part of the feasibility study for each of the
three project regions. The methodology and assumptions used for the preparation of the
economic analysis is presented below. [REDACTED].
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Introduction
The proposed investment will improve the municipal solid waste management system
in three planning regions in North Macedonia through increased and improved waste
collection and transportation services and through improvement of waste disposal
practices in line within the legislative framework of the EU and national legislation.
Two planning regions were merged into one waste management region, namely the
Pelagonija & Southwest Regions, whereas the Polog region is a stand-alone region.
Investment components focus on the upgrade of waste collection infrastructure for
mixed waste and introduces infrastructure for the source-separation of recyclables and
bulky waste/green waste. In addition, five transfer stations in the Pelagonija and
Southwest regions and one transfer station in the Polog region will be implemented; the
transfer stations also include civic amenity sites aiming at providing additional
infrastructure for residents to drop off recyclables and other waste streams. The
proposed design of the Project's facilities - new sanitary landfills, dumpsite closure and
remediation as well as transfer stations - is based on the EU Landfill Directive and BAT
Conclusions for Waste Treatment Facilities.
Significant environmental benefits (and GHG emission reductions) will be achieved by
closing two major dumpsites and by establishing two regional, sanitary landfills. The
regional landfills will be equipped with landfill gas collection systems and flares,
therefore preventing uncontrolled GHG emissions. In addition, the closure and
remediation of two major dumpsites will minimise methane emissions into the
atmosphere.
GET attribution of 100 per cent is related to the improvements in the solid waste
management that the Project will bring along, i.e. the reduction of the negative impacts
due to dumpsite closure and remediation, new sanitary landfills according to EU
standards and increased source separation of recyclables and green waste.
Regarding adaptation, the Project does not face any potentially material physical
climate risks and it is unlikely to undermine climate resilience of the system in which
it operates.
GET attribution
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and [REDACTED] in Polog region) during the Project's operational stage mainly due to
landfill gas collection at the new, regional landfills instead of venting in dumpsites.
[REDACTED]
Economic assessment
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Score for primary transition quality Score for secondary transition quality
↓ ↓
ATQ adjustment ATQ adjustment
↓ ↓
Weighted TI score*
↓
Adjustment for Country Strategies
↓
Final TI score
Final TI score: 71
*The Primary Quality score is weighted 75% for the calculation of the Base TI Score. The
Secondary Quality is weighted 25%.
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[REDACTED]
MoEPP will establish a dedicated Project Implementation Unit (“PIU”) in the Solid
Waste Sector with adequate resources and suitably qualified personnel to coordinate,
manage, monitor and evaluate all aspects of the project implementation including
procurement. MoEPP’s PIU will be strengthened by a Project Implementation
Consultant to coordinate and support with all procurement activities under the Project.
In addition, a Supervision Engineer will be selected to carry out the duties of the
Engineer under the Contract(s) to assist MoEPP with supervision and monitoring of the
contracts until completion.
This structure should strengthen project implementation ability within the MoEPP and
mitigate risks of procurement and project implementation delays, while significantly
speeding up the implementation of the project.
Procurement arrangements:
All EBRD funded contracts under the Project will be procured following open tendering
procedures by using ECEPP in accordance with the requirements of the EBRD PP&R
for public sector operations.
https://ecepp.ebrd.com/
The Bank’s standard tender documents as available in ECEPP will be used for the
procurement exercises. The intention is to use FIDIC Conditions of Contract for
Construction based on the Employer’s design for the Works contracts, and the Bank’s
standard Contract Conditions for the Goods contracts.
Additional information:
The Project is co-financed alongside SECO for Polog region only with EBRD as Lead
Financial Institution and being responsible for procurement oversight. [REDACTED].
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The EBRD has been implementing ISRP on a number of investments across the
Western Balkans and beyond. The majority of ISRP projects has been in the road sector,
followed by urban transport and water-wastewater projects. These projects have
unlocked skills and employment opportunities for over 500 people to date, including
particularly hard-to-reach groups such as refugees. The EBRD has also helped its client
develop and implement dedicated Gender Action Plans (“GAPs”) at the level of
contracting companies. [REDACTED].
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